Button Transportation purchases many pieces of office furniture with an individual cost below $200 each. Button chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant and independent CPA agree that no accounting principle has been violated. What accounting justification allows
Button to expense the furniture?
a. Conservatism
b. Matching
c. Materiality
d. Verifiability
c
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Which of the following operating activities results in a cash outflow?
a. Paying creditors for merchandise b. Collecting accounts receivable c. Making cash sales d. Receiving deposits recorded as unearned revenue
The average cost method of process costing differs from the FIFO method of process costing in that the average cost method:
a. Requires that ending work in process inventory be stated in terms of equivalent units of production. b. Can be used under any cost-flow assumption. c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. d. Considers the ending work in process inventory only partially complete.
While research has not determined the optimal number of members for effective group work, an odd number offers some advantage
Indicate whether the statement is true or false
Which of the following bad-news messages should be organized using the direct strategy?
A) An announcement of changes in business services B) A layoff notice for a long-time employee C) A denial of benefits on an insurance claim to an angry customer D) A notice of an unexpected plant closure to the city council and mayor