On October 1st, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year-end adjusting entry is required to increase
A. interest expense by $4,200.
B. notes payable by $1,050.
C. interest payable by $1,050.
D. prepaid interest by $3,150.
Answer: C
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The best ways to avoid faddish management ideas are to
A. understand your own core values, and use this knowledge to create or accept the core values of your company. B. adopt management by consensus and business process reengineering. C. adopt MBO and TQM. D. emphasize employee diversity and expand the business's operations globally. E. implement a six-sigma quality system and manage by "walking around."
Theoretically, the amount of estimated future returns and allowances on credit sales should be recorded during the period of the sale so as not to overstate sales and ending accounts receivable. In practice, these estimates are not recorded by most companies because
A. the amount of such returns and allowances tends to fluctuate too greatly from period to period. B. there is too much uncertainty surrounding such estimates. C. such estimates are not allowed according to generally accepted accounting principles. D. the amount of such returns and allowances is usually not material.
JAX Inc In early 2012, JAX Inc had budgeted for the production and sales of 5,000 units at a sales price of $15 per unit. The following information is available regarding the standard cost for each unit: Direct materials: 1.50 pounds at $2.50 per lb Direct labor: 30 minutes of assembly at $.20 per minute Actual results for 2012 were determined to be as follows: Number of units produced and sold:
5,600 units Sales revenue: $100,800 ($18 per unit) Direct materials cost: $ 22,848 (9,520 lbs purchased and used at $2.40 per lb) Direct labor cost: $ 38,192 (173,600 minutes at $.22 per minute) Refer to the JAX Inc information above. What was JAX Inc's sales price variance for 2012? A) $15,000 F B) $15,000 U C) $16,800 F D) $16,800 U
When parties make international agreements, they can incorporate as a term of the agreement their choice of which nation's court will hear any disputes arising under the agreement
Indicate whether the statement is true or false