Using greater amounts of debt in the capital structure

A survey of top executives revealed that 35% of them regularly read Time magazine, 20% real
Newsweek and 40% read U.S. News & World Report. Ten percent read both Time and U.S. News &
World Report. What is the probability that a particular top executive reads either Time or U.S. News &
World Report regularly?

Which of the following statements is (are) true with respect to the impact the choice between expensing and capitalizing will have on certain financial ratios?
I). Profit margins will be higher throughout the period for firms that capitalize certain expenditures as opposed to expensing them.
II). Reported income tends to be more stabilized throughout the period if the capitalization method is used.
III). Asset turnover ratios will be lower for firms that capitalize certain expenditures as opposed to expensing them.
IV). Debt-to-equity ratios will be lower for companies that expense costs as opposed to capitalizing them.

Two countries have free trade with each other, but they have different trade policies against other countries. This is an example of:

Which of the following statements would be an indication that the firm may use the percentage-of-completion method?
I). A reliable estimate of the costs of the project cannot be estimated; however the contractor does have cost data from other projects.
II). There exists some uncertainty about the current credit-worthiness of the purchaser of the contract, but he has paid billings in the past.
III). There is no formal contract; however there exists a verbal contract between the two parties.
IV). A reliable estimate of the portion of the contract that has been completed can be made.