Differentiate between periodic reports and functional reports
Periodic reports are issued on regularly scheduled dates. They are generally directed upward and serve management control purposes. Daily, weekly, monthly, quarterly, semiannual, and annual time periods are typical for periodic reports. Preprinted forms and computer-generated data contribute to uniformity of periodic reports.
Functional reports serve a specified purpose within a company. The functional classification includes accounting reports, marketing reports, financial reports, personnel reports, and a variety of other reports that take their functional designation from their ultimate use. For example, a justification of the need for additional personnel or for new equipment is described as a justification report in the functional classification.
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A company estimates that warranty expense will be 5% of sales. The company's sales for the current period are $206,000. The current period's entry to record the warranty expense is:
A. Debit Warranty Expense $10,300 credit Sales $10,300. B. Debit Estimated Warranty Liability $10,300 credit Warranty Expense $5380. C. Debit Warranty Expense $10,300 credit Estimated Warranty Liability $10,300. D. Debit Estimated Warranty Liability $10,300 credit Cash $10,300. E. No entry is recorded until the items are returned for warranty repairs.
All of the following statements regarding a work sheet are true except:
A. A worksheet reduces possible errors when working with many accounts and adjustments. B. A worksheet is not useful in planning and organizing an audit of financial statements. C. A worksheet shows the effects of proposed or "what-if" transactions. D. A worksheet helps in preparing interim financial statements. E. A worksheet aids in the preparation of financial statements.
Martha is self-employed in 2018. Her self employment income is $140,000. What is her self-employment tax?
A. $21,420 B. $19,645 C. $19,982 D. None of the above.
The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year
She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. If her discount rate is 6%, should she accept the project? A) Yes, because the NPV is positive at that rate. B) No, because the NPV is negative at that rate. C) No, because the NPV is positive at that rate. D) Cannot be determined from the information given.