Closing the temporary accounts at the end of each accounting period does all of the following except:
A. Brings the revenue and expense accounts to zero balances.
B. Has no effect on the retained earnings account.
C. Prepares the dividends account for use in the next period.
D. Serves to transfer the effects of these accounts to the retained earnings account on the balance sheet.
E. Causes retained earnings to reflect increases from revenues and decreases from expenses and dividends.
Answer: B
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The term LIFO reserve refers to
A) a cost flow assumption for valuing inventory B) a special fund set aside to cover LIFO liquidation C) inventory pools used in the dollar-value LIFO method D) any difference between the ending inventory amount under LIFO and the ending inventory amount under FIFO or average cost
U.S. GAAP, IFRS, and other major accounting standards are best characterized as
a. historical accounting models. b. current value accounting models. c. acquisition cost accounting models. d. mixed attribute accounting models.
Damaged goods that can be sold at a reduced price should be included in a company's merchandise inventory
Indicate whether the statement is true or false
Which of the following is when storming occurs and the team performance may actually decline for an extended period of time?
A. potential team B. real team C. pseudoteam D. high-performing team