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NEW QUESTION 22
in times of declining prices using the Last-in First-Out (LIFO) cost flow assumption rather than the First-in, First-Out (FIFO) assumption will yield

A. higher assets and lower IncomeB. higher assets and higher incomeC. lower assets and higher incomeD. lower assets and lower income

Answer: B

 

NEW QUESTION 23
Lewis Farms inc, is a large grower of vegetables in Northern California. During a year in which there is no drought the firm earns S3 million from its produce In a year with a partial drought, earnings are $1 million and if there is a severe drought, the firm has zero earnings Based on many years of weather data, in 50% of the years there was no drought in 30% of the years there was a partial drought, and a severe drought occurred 20% of the time. Lewis Farms has an opportunity to purchase an insurance policy that would pay Lewis $2 million in the event of a severe drought $1 million in the case of a partial drought, and nothing in the event there is no drought ignoring taxes, the maximum premium that Lewis would be willing to pay for the policy is

A. $1, 200, 000.B. $1, 500, 000.C. $500,000.D. $700,000.

Answer: C

 

NEW QUESTION 24
in order for the IT manager in cnarge of a company's disaster recovery plan to have complete planning documentation, he should ensure that the documentation includes all of the following except

A. program and operating system documentationB. the phone numbers of key employeesC. vendors who win set up the hot siteD. the results of the latest disaster recovery test run

Answer: C

 

NEW QUESTION 25
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