If a check correctly written and paid by the bank for $558 is incorrectly recorded in the company's books for $585, how should this error be treated on the bank reconciliation?
A. Subtract $27 from the bank's balance and add $45 to the book's balance.
B. Subtract $27 from the book balance.
C. Subtract $27 from the bank's balance.
D. Add $27 to the bank's balance.
E. Add $27 to the book balance.
Answer: E
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Aunt Emily's Food Products is famous for its frosted fruit cake. The main ingredient of the cake is dried fruit, which Aunt Emily's purchases by the pound. In addition, the production requires a certain amount of direct labor. Aunt Emily's uses a standard cost system, and at the end of the first quarter, there was a favorable direct materials cost variance. Which of the following is a logical explanation for that variance?
A) The production manager negotiated a lower wage package for production staff, bringing direct labor costs down. B) The factory lost two experienced workers at the beginning of the quarter, and their replacements worked at a much slower pace during their training period. C) The purchasing manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard. D) The production staff changed the work flow process so that there was less wastage of direct materials during production.
U.S. GAAP requires the disclosure of the acquisition of a building by assuming a mortgage obligation
a. as both a financing activity and an operating activity. b. as both an operating activity and an investing activity. c. as both an investing activity and a financing activity. d. in a separate schedule or note, but does not appear in the statement of cash flows as an operating activity, investing activity or a financing activity. e. as both an investing activity and a exchange activity.
Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000. If the beginning and ending cash balances for the company were $4,000 and $11,000, what was the net cash change from investing activities?
A. An inflow or increase of $1,000 B. An outflow or decrease of $1,000 C. An inflow or increase of $2,000 D. Zero
In effective global capacity management, the time horizon for a regular capacity planning cycle is ______.
a. short to intermediate term (0–1 year) b. intermediate to long term (1–4 or more years) c. short to intermediate term (3–4 weeks) d. intermediate to long term (15–20 or more years)