What is the normal year-end treatment of immaterial variances recognized in a cost accounting system utilizing standards?
a. Reclassified to deferred charges until all related production is sold
b. Closed to cost of goods sold in the period in which they arose
c. Allocated among cost of goods manufactured and ending work in process inventory
d. Capitalized as a cost of ending finished goods inventory
b
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A receiving report is an external request for the purchase of goods or services from a vendor
Indicate whether the statement is true or false
Which of the following combinations results in a net loss reported on the income statement?
A. Total revenues of $80,000 and total expenses of $74,000. B. Total revenues of $40,000 and total expenses of $31,000. C. Total revenues of $70,000 and total expenses of $74,000. D. Total revenues of $60,000 and total expenses of $52,000. E. Total revenues of $20,000 and total expenses of $16,000.
Starship Corporation incurred the following losses during 2014: • Loss of $100,000 was incurred in the abandonment of equipment. • Accounts receivable of $30,000 were written off as uncollectible. • Several factories were shut down during a strike at a cost of $240,000. • Loss of $150,000 was sustained as a result of flood damage, an unusual and infrequent occurrence. Ignoring income
taxes, what amount of loss should Starship report as extraordinary on its annual income statement? a. $100,000 b. $520,000 c. $270,000 d. $150,000
In the context of social responsibility, which of the following statements is true of benefit corporations?
A. They do not have profits as their first priority. B. They receive special tax treatment. C. They do not undergo comprehensive annual audits. D. They include only small-scale businesses.