All of the following are true of the gross profit ratio except:
a. gross profit is a function of the markup percentage.
b. the gross profit ratio is calculated by dividing gross margin by net sales.
c. a revenue-related fraud scheme that overstates sales will result in an increase in this ratio.
d. the gross profit ratio will increase if cost of goods sold is overstated.
d
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The double-entry system
A) requires that each transaction be recorded with at least one debit and one credit. B) requires that the total amount of the debits must always equal the total amount of the credits. C) is based on the principle of duality. D) All of these choices.
Simple interest is the interest earned on a principal sum that is increased at the end of each period by the interest for that period
Indicate whether the statement is true or false
Many firms provide similar types of airline services with similar types of assets. They each received unqualified opinions from their independent auditors. Yet, Flash Airlines appears to apply its accounting principles more aggressively in income-enhancing ways relative to its competitors. The choices for Flash Airlines in applying generally accepted accounting principles under the accrual basis
of accounting include: a. depreciable lives for buildings and equipment. b. estimated uncollectibles for accounts receivable. c. estimated warranty costs. d. all of the above. e. none of the above.
Which extrinsic reward can be a useful way to motivate employees while providing them with an opportunity to showcase their new skills and competencies?
a. Skill–based pay b. Job content-based pay c. Performance-based pay d. Seniority-based pay