Changing inventory methods to take advantage of the tax breaks offered by LIFO is not a valid reason for a change in methods
a. True
b. False
Indicate whether the statement is true or false
True
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Alex, Brad, and Carl are partners. The profit sharing rule between them is 4:3:2 in alphabetical order. The partnership incurs a net loss of $120,000. The journal entry to close Income Summary will include a ________. (Do not round any intermediate calculations.)
A) debit to Income Summary account for $120,000 B) debit to Alex, Capital account for $53,333 C) credit to Alex, Capital account for $53,333 D) credit to Carl, Capital account for $26,667
Ethics can be a particular problem with financial reports
Indicate whether the statement is true or false
Ingalls Mercantile Inc sells bolts of fabric to retailers for $80 per bolt. The company's accountant has prepared the following sales forecast (in bolts) for the first quarter of 2013: January 600 bolts February 1,000 bolts March 700 bolts Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 30 percent in the month following sale, and 9 percent in the
second month following sale. Cash receipts for March are expected to be: A) $ 61,920 B) $182,160 C) $ 33,600 D) $ 57,840
Which of the following terms refers to a contribution by those jointly involved in a maritime venture to make good the loss by one of them for his voluntary sacrifice of a part of the ship or cargo to save the residue of the property and the lives on
board, or for the extraordinary expenses necessarily incurred for the benefit and safety of all? A. dead freight B. maritime lien C. general average D. particular average