Companies are allowed to switch each year from one inventory cost method to another, depending on economic circumstances.
Answer the following statement true (T) or false (F)
False
Once a company chooses an inventory cost method, it is not allowed to frequently change to another one.
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An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect method is
a. depreciation expense. b. compensation expense related to stock option plans. c. income from an investment accounted for using the equity method. d. unrealized losses on trading investments
The following information is provided: Units Work in process, May 1 (10% complete) 4,000 Started in May 17,000 Work in process, May 31 (20% complete) 3,000 Materials and conversion are incurred uniformly throughout the process. Equivalent units of production for conversion using the weighted average method would be
A) 17,400 B) 22,000 C) 21,000 D) 18,600
A sales representative at Oxtren, Inc orally told the purchasing agent at Wety, Inc that its industrial saw is exceptional. Which statement is correct concerning the claim that the saw is exceptional?
a. The claim is an express warranty. b. The claim is an implied warranty of merchantability. c. The claim is not a warranty because it is not in writing. d. The claim is not a warranty because it is sales puffery.
Jenkins Services reported the following balances
December 31, 2016 December 31, 2015 Net Income $ 45,000 $ 42,000 Preferred Dividends 5,000 3,000 Total Stockholders' Equity 375,000 368,000 Total Stockholders' Equity attributable to Preferred Stock 40,000 24,000 Number of common Shares Outstanding 16,000 12,000 Compute earnings per share for 2016, price/earnings ratio for 2016, assuming the market price on December 31, 2016 is $37.50 per share, and the rate of return on common stockholders' equity for 2016. (Show your computations and round to two decimal places.) What will be an ideal response