Profit center managers are evaluated on their ability to generate revenues in excess of costs.
Answer the following statement true (T) or false (F)
True
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What must audit firms do to perform financial statement audits for public companies?
a. Register with the American Institute of Certified Public Accountants. b. Register with the Institute of Internal Auditors. c. Register with the U.S. General Accounting Office. d. Register with the Public Company Accounting Oversight Board.
A company purchased a new delivery van at a cost of $60,000 on July 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $4800. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?
A. $4600. B. $9200. C. $5000. D. $5600. E. $6480.
Flower Company had beginning inventory of $19,000, purchases were $100,000, and ending inventory had a cost of $25,000 and a market value of $20,000 . Which of the following is/are not true?
a. Cost of Goods Sold is $5,000 larger when the firm records ending inventory at lower of cost or market than when it records the inventory at acquisition cost. b. The loss of $5,000 increases Cost of Goods Sold by $5,000 and therefore reduces net income by $5,000, compared to the acquisition cost basis. c. The firm should disclose the existence of large write-downs included in Cost of Goods Sold in the notes so that users of financial statements understand the components of the Cost of Goods Sold account. d. The firm should disclose the existence of large write-downs included in Cost of Goods Sold in Managements' Discussion and Analysis so that users of financial statements understand the scope of the asset impairment. e. none of the above
Discuss with a partner the best way to lead a global firm. Which method is better – formalized or cultural leadership? Why?
What will be an ideal response?