Under the "one-year rule" for the current period deduction of prepaid expenses of cash basis taxpayers, the asset must expire or be consumed by the end of the tax year following the year of payment
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: If the one-year rule is not satisfied, the prepayment is prorated and deducted over the benefit period.
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When an accountant reconciles a bank statement, NSF (not sufficient funds) checks should be
a. subtracted from the ledger balance of cash. b. subtracted from the bank statement balance. c. added to the bank statement balance. d. added to the ledger balance of cash.
When the companies engage students to design and carry out projects, the payoff to the students is experience and visibility; the payoff to the companies is a fresh sets of eyes to solve problems at a fraction of what consultants would charge
Indicate whether the statement is true or false
One possible explanation for a company that experiences a favorable labor efficiency variance, but an unfavorable labor rate variance could be:
a. The company paid the workers overtime. b. The company hired more experienced workers. c. The company purchased materials that were hard to work with. d. The workers "goofed around" and wasted time.
Cross-merchandising is most effectively used in the sale of _____
a. private brands b. substitute goods c. generic brands d. complementary goods