Which of the following is NOT a reason why inventory is a complex accounting and auditing area?
a. Diversity of items in inventory.
b. Low volume of activity.
c. Easily transportable.
d. Difficulty in applying the lower of cost or market principle.
b
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Las Palmas Company reported the following items on its financial statements for the year ending December 31, 2016: Sales $ 560,000 Cost of goods sold $400,000 Salary expense 40,000 Interest expense 30,000 Dividends 30,000 Income tax expense 25,000 How much will be reported as retained earnings on Las Palmas' balance sheet at December 31, 2016, if this is the first year of operations?
a. $ 45,000 b. $ 35,000 c. $ 85,000 d. Not enough information is provided.
Apparel retailers that display most of their merchandise on freestanding fixtures typically measure space productivity in terms of
A. sales per linear foot. B. sales per square foot. C. retained earnings. D. inventory turnover. E. asset turnover.
One significant area where value engineering has produced impressive results is with regard to ______.
A. reducing costs of inputs into a product B. the information technology in product manufacture C. analyzing the market to ensure customers receive value D. reducing the cost of reverse logistics
Electronic banking involves _____
a. end-of-month credit statements b. the use of standardized credit systems on a national level c. video-recording systems d. the use of automatic teller machines and the instant processing of retail purchases