Investors in bonds might exercise a _____ option if interest rates increase, and investors can reinvest the cash proceeds in debt securities with a higher yield
a. convertible
b. call
c. put
d. serial
e. short-term
C
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The accounts in the general column of the combination journal should be posted
a. daily; b. weekly; c. at the end of the accounting period; d. whenever there is time; e. never
Porter Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data:
What is the variable overhead efficiency variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
A) $1866 F
B) $1866 U
C) $2534 F
D) $2534 U
Answer the following statements true (T) or false (F)
1. The payback and accounting rate of return methods are often used to perform an initial screening of investments. 2. The payback method provides management with valuable information about the time period in which the cash invested will be recouped. 3. The net present value and internal rate of return methods are appropriate for longer-term investments because they ignore the time value of money. 4. Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment. 5. Most capital budgeting methods focus on accrual-based income.
The two methods of accounting for uncollectible receivables are ________
A) the direct write-off method and the liability method B) the asset method and the sales method C) the allowance method and the liability method D) the allowance method and the direct write-off method