The term, Fund Balance, is used to indicate the residual net position of a proprietary fund.
Answer the following statement true (T) or false (F)
False
Fund balance is unique to governmental funds. It is the difference between assets and liabilities and represents the net resources of the fund that are currently available for future spending. Proprietary funds are not governmental funds.
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Which of the following describes the allocation base for allocating manufacturing overhead costs?
A) the primary cost driver of indirect manufacturing costs B) the estimated base amount of manufacturing overhead costs in a year C) the percentage used to allocate direct labor to Work-in-Process Inventory D) the main element that causes direct costs
A ________ mark is a mark that confirms that a seller of a product or service has met certain geographical location requirements, quality standards, material standards, or mode of manufacturing standards established by the owner of the mark
A) guarantee B) certification C) service D) collective membership
To compute earnings per share the denominator is net income attributable to common shareholders less any preferred stock dividends for the period.
Answer the following statement true (T) or false (F)
A weakness of the percent-of-sales method of preparing a pro forma income statement is ________
A) that it forecasts income and then expresses the various income statement items as percentages of projected income B) the assumption that the firm faces linear total revenue and total operating cost functions C) the assumption that the firm's past financial condition is an accurate predictor of its future D) the difficulty faced in calculation and preparation of such statements