Which of the following is NOT one of the basic elements for formation of a valid contract?
a. Consideration
b. Promissory estoppel
c. An offer and acceptance
d. A legal purpose
b
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The major control procedure for preventing fictitious inventory transactions from being recorded is proper segregation of duties.
Answer the following statement true (T) or false (F)
At the end of the year, Jenkins Corporation had $120,00 . in the Factory Overhead account and applied factory overhead of $100,000 . Mark Gibbs, the controller, has decided that the difference is to large to close to Cost of Goods Sold. Work in process inventories were $30,000 . finished goods inventories were $60,00 . and cost of goods sold during the year was $210,000 . How should the entry to
dispose of the difference in overhead incurred and overhead applied affect Cost of Goods Sold? a. $14,00 . credit. b. $14,00 . debit. c. $6,00 . credit. d. 20,00 . debit.
For a firm to recognize an asset
a. a resource must represent a future economic benefit that the firm controls as a result of a past transaction or exchange. b. the firm must be able to measure the resource with sufficient reliability. c. must impose a future economic sacrifice because of a past event or transaction that the firm has little or no discretion to avoid. d. Both choices a and b are correct. e. None of these answer choices is correct.
Divine Paper, a United States-based company, processes wood pulp into paper products in fixed-asset intensive facilities. It has a large ratio of property, plant, and equipment to total assets and a high debt-equity ratios. Which of the following is/are true?
a. Divine Paper carries higher levels of risk than an electrical utility. b. Divine Paper does not have the regulated, monopoly status of an electrical utility. c. Sales of Divine Paper are more sensitive to changes in the level of business activity than those of an electric utility. d. The higher risk of Divine Paper, relative to an electric utility, raises its borrowing costs and decreases its reliance on debt financing. e. all of the above