An audit report on a public company is least likely to include a paragraph titled:
A. Critical Audit Matters.
B. Auditor responsibility
C. Basis for Opinion.
D. Opinion on the Financial Statements.
Answer: B
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Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year and has calculated its economic order quantity as 3000 units. If the cost per order is $5, the total ordering cost incurred by Aberwald is:?
A. $500.? B. ?$425. C. ?$210. D. ?$310. E. ?$620.
?If an investor buys a bond and holds it until it matures, the average rate of return the investor will earn per year is called the bond's:
A. ?coupon rate. B. ?yield to maturity. C. ?yield to call. D. ?current yield. E. ?capital gains yield.
Pound Industries' customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the wholesale operation should amount to:
A. $29. B. $203,000. C. $85,260. D. $117,740. E. $0.
On January 1, 2018, Jackie Corp. purchased 30% of the voting common stock of Rob Co., paying $2,000,000. Jackie properly accounts for this investment using the equity method. At the time of the investment, Rob's total stockholders' equity was $3,000,000. Jackie gathered the following information about Rob's assets and liabilities whose book values and fair values differed: Book ValueFair ValueBuildings (15-year life)$1,000,000$1,500,000Equipment (5-year life) 2,500,000 3,000,000Franchises (10-year life)$0$500,000??Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Rob Co. reported net income of $300,000 for 2018, and paid dividends of $100,000 during that year.?What is the balance in Jackie Corp's Investment in Rob Co. account at
December 31, 2018? A. $2,005,000. B. $2,090,000. C. $2,000,000. D. $2,200,000. E. $2,060,000.