Examples of poor earnings quality that hinder the forecasting of expected future earnings include all of the following except:
a. Earnings dominated by a substantial one-time gains from the sale of real estate tangential to the firm's operations.
b. Reporting a large expense from a warehouse fire that was not covered by insurance.
c. A local government corrects a processing error and a firm receives an unexpected rebate on property taxes previously paid.
d. The company adds equipment that reduces carbon emissions in response to EPA requirements and increases production efficiency.
D
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If the liabilities of a business increased $97,000 during a period of time and the stockholders' equity in the business decreased $41,000 during the same period, the assets of the business must have:
A. Decreased $138,000. B. Increased $138,000. C. Increased $56,000. D. Decreased $56,000. E. Increased $41,000.
In process costing, which of the following accounts is credited when goods are sold?
a. Merchandise inventory b. Cost of goods sold c. Work–in–process d. Finished goods
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted ActivityActivity Cost PoolBudgeted CostProduct AProduct BActivity 1$87,000 3,000 2,800 Activity 2$62,000 4,500 5,500 Activity 3$93,000 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing?
A. $15.00 B. $2.33 C. $2.00 D. $3.00 E. $10.28
[The following information applies to the questions displayed below.]On January 1, Year 1, Weller Company issued bonds with a $400,000 face value, a stated rate of interest of 10%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8%. Interest is paid annually on December 31.Assuming Weller issued the bonds for $431,940, what is the carrying value of the bonds on the December 31, Year 3?
A. $420,615 B. $404,800 C. $426,495 D. $414,264