Sports Fit Company sponsors the "$100,000 Game" in which contestants compete in ten separate athletic events over a period of weeks. Sports Fit announces that the winner of each event will be awarded $5,000 with the "Ultimate Champion"¾the winner of the most events¾awarded $50,000. If the "$100,000 Game" is treated as a unilateral contract, Sports Fit can
A. cancel the contest or alter its terms at any time.
B. not modify the terms of the contest after it begins.
C. reduce the amount of the event prizes but not the grand prize.
D. reduce the amount of the grand prize but not the event prizes.
Answer: B
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IFRS content in the income statement is similar to U.S. GAAP in all of the following areas except the disclosure of
A) revenues. B) finance costs. C) comprehensive income disclosure in a statement of shareholders' equity. D) tax expense.
One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to
a. pay off accounts payable prior to year end. b. purchase more inventory on account. c. purchase short-term investments with cash. d. purchase more inventory with cash.
A traditional definition of internal control specifically includes all of the following features except
a. adherence to prescribed managerial policies. b. promotion of operational efficiency. c. reliability of accounting data. d. maintenance of a clean and safe workplace.
Meow Products Ltd. Meow Products Ltd. produces and sells scratching posts for cats. In the current year, the company had expected to sell 12,000 posts but actually produced and sold 10,000 posts. The following information is available regarding the standard cost to produce a single post: Direct materials: 3 feet @ 1.75 per foot Direct labor: 15 minutes @ $.30 per minute In the current year,
38,000 feet of material were purchased out of which 35,000 feet were used at a cost of $1.55 per foot, and 160,000 direct labor minutes were incurred at a cost of $.32 per minute. Refer to the Meow Products Ltd. information above. The company's direct labor rate variance for the current year is: A) $ 200 F. B) $ 200 U. C) $3,200 F. D) $3,200 U.