The doctrine of proximate cause:
A) forces the insurer to pay for all claims arising out of an unbroken sequence of events if any one of the subsequent perils following the original excluded peril was covered
B) forces the insurer to pay for all claims arising out of an unbroken sequence of events if the original insured peril was covered
C) forces the insurer to pay for the loss when the proximate cause of the event is the insured's fault
D) divides any loss payment among parties proximately affected by the loss
B
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Quan uses a periodic inventory system. At the end of April, Quan had 20 units on hand. April 1 On hand, 10 units @ $2 each $ 20 19 Purchased 90 units @ $3 each 270 Goods available for sale $290 If Quan, Inc uses FIFO inventory costing, how much is cost of goods sold for April?
a. $250 b. $232 c. $230 d. $240
If Milt Alden focuses on overall costs of manufacturing plus profit in setting product prices, which strategy would he employ?
A) break-even pricing B) competition-based pricing C) value-added pricing D) cost-plus pricing E) good-value pricing
A contingency must be accrued in the accounts and reported in the financial statements when
a. the amount of the loss can be reliably estimated and it is probable that an asset is impaired or a liability incurred. b. it is evident that an asset has been impaired or a liability has been incurred even though the amount of the loss cannot be reliably estimated. c. it is not certain that funds will be available to settle damages that may arise from a pending lawsuit. d. a loss is expected and its amount is uncertain.
Below is a list of key terms.
______1)Bill and hold sale______6)Periodic Inventory ______2)Consigned Goods_____7)Perpetual Inventory ______3)Finished Goods Inventory______8)Purchase obligation ______4)FOB Destination______9)Raw Materials Inventory ______5)FOB Shipping Point______10)Work-in-Process InventoryRequired:Match each key term with its appropriate definition. a)Includes direct labor, raw materials, and manufacturing overhead. b)Buyer recognizes purchase of inventory at shipment. c)The requested goods will be delivered to the buyer at a later date. d)Not recognized in inventory until delivered. e)A temporary account is used to record purchases. f)Goods ready for sale. g)Buyer recognizes purchase of inventory at destination. h)Purchases are recorded in an inventory account. i)A third party acts as a sales agent for another company's goods. j)Tangible goods used in production. What will be an ideal response?