The difference between the debits and credits for each pair of columns in the Income Statement and Balance Sheet sections of the work sheet represents net income or net loss

a. True
b. False
Indicate whether the statement is true or false


True

Business

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The purchases account is used to record the cost of goods purchased for resale

Indicate whether the statement is true or false

Business

The degree to which an organization achieves a stated goal refers to:

A. effectiveness. B. synergy. C. conceptual skill. D. efficiency. E. human skill.

Business

An example of a direct material when manufacturing an automobile is

a. fabric; b. glue; c. screws, d. washers; e. nails

Business

Jeff was a subcontractor, bidding on a contract for ACE Corp, the general contractor. When adding up the total of materials and labor, Jeff's secretary mistakenly moved the decimal point one place, ending up with a bid of $3500 rather than $35,000 . ACE Corp accepted Jeff's bid, mostly because all the other bids were over $30,000 . When Jeff learned of the mistake, he tells ACE Corp that he

cannot do the job for $3500 . If ACE Corp sues to enforce this contract, what is the most likely result? a. The contract is enforceable, since there was an offer, acceptance, and consideration. b. This is a bilateral mistake, so the contract can be rescinded by either party. c. This is a unilateral mistake, so the contract cannot be rescinded by Jeff. d. This is a unilateral mistake, but one where ACE Corp. knew that a mistake had been made. Jeff should be able to rescind the contract.

Business