Circumstantial variables are environmental conditions that possess which of the following qualities?
a. Excessive measurement costs
b. A high degree of verifiability relative to other accounting methods
c. Both a and b
d. None of the above
ANSWER: A
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Troma Inc, is a famous manufacturer of cookware, that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) system mainly due to the fear of unknown
However, rapidly escalating operational costs and inefficiencies have made it absolutely necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs. A) innovator B) early adopter C) early majority D) laggard E) late majority
Sales Discounts and Sales Returns and Allowances are contra-revenue accounts
Indicate whether the statement is true or false
In 2016, its first year of operations, Richmond Corporation reported pretax financial income of $80,000 for the year ended December 31. Richmond depreciates its fixed assets using an accelerated cost recovery method for tax purposes and straight-line depreciation for financial reporting. On assets acquired in 2016, the following are differences between depreciation on the tax return and accounting income during the asset's five-year life:
? ? Tax Depreciation in Excess Enacted ? of Book Depreciation Tax Rates 2016 $18,000 30% 2017 10,000 30% 2018 2,000 35% 2019 (13,000) 35% 2016 (17,000) 40% Assuming no other temporary or permanent differences, which of the following combinations of noncurrent deferred tax liabilitiy and income taxes payable would be included on Richmond's December 31, 2016 balance sheet? ? Noncurrent Deferred Income Taxes Income Tax Liability Payable I.$5,400 $18,600 II.$7,650 $18,600 III.$7,650 $29,400 IV.$5,400 $24,000 ? A. I B. II C. III D. IV
Fashions, Inc has 12 shareholders. The company is subject to the Model Act. What officers is Fashions, Inc required to have?
A) A president, secretary, and treasurer B) A president and a secretary, and they can be the same person C) A president, at least one vice-president, a secretary, and a chief financial officer D) Whatever officers are described in the corporate bylaws