In your own words state the primary uses the GASB believes external users have for financial reports of state and local governments. For contrast, state the uses the FASB believes external users have for the financial reports of not-for-profit organizations.
What will be an ideal response?
External users of government financial reports, the GASB believes, need to (1) compare actual financial results with the legally adopted budget; (2) assess financial condition and results of financial operations; (3) assist in determining compliance with finance-related laws, rules, and regulations; and (4) assist in evaluating efficiency and effectiveness. The FASB believes that financial reports of not-for-profit organizations should provide information (1) useful in making resource allocation decisions, (2) useful in assessing services and ability to provide services, (3) useful in assessing management stewardship and performance, and (4) about economic resources, obligations, net resources, and changes in them.
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Which of the following statements is not true about parametric tests?
A) Parametric tests are used when the independent variables are non-metric. B) The t test is a commonly used parametric test. C) The t statistic assumes that the variable is normally distributed and the mean is known (or assumed to be known) and the population variance is estimated from the sample. D) B and C are not correct.
Answer the following statements true (T) or false (F)
1. The salary of a manufacturing plant manager will be included in manufacturing overhead. 2. In a manufacturing company, the salary of the sales staff is an example of a period cost. 3. In a manufacturing plant, indirect materials costs from lubricants and cleaning fluids are product costs. 4. Indirect materials costs are included in manufacturing overhead. 5. For a manufacturer, rent paid for an office building is an example of a period cost.
Using the risk-adjusted discount rate method of project evaluation, the NPV for Project N is ________.
Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which are described below. Tangshan Mining's overall cost of capital is 15 percent, the market return is 15 percent and the risk-free rate is 5 percent. Tangshan estimates that the beta for project M is 1.20 and the beta for project N is 1.40.
A) $166,132
B) $122,970
C) $85,732
D) $600,000
From the adjusted trial balance for Brookstone Art Supplies given below, prepare a multiple-step income statement in good form.
