For a smaller retailer, the use of outside consultants as auditors may be less expensive than full-time auditors
Indicate whether the statement is true or false
True
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Explain the concept of derived demand
What will be an ideal response?
The first step in discriminant analysis is to formulate the problem by identifying the objectives, the criterion variable, and the independent variables
Indicate whether the statement is true or false
The unadjusted trial balance and the adjustment data for Porter Business Institute are given below along with adjusting entry information. What is the impact on net income if these adjustments are not recorded? Show the calculation for net income without the adjustments and net income with the adjustments. Which one gives the most accurate net income? Which accounting principles are being violated if the adjustments are not made? Porter Business InstituteUnadjusted Trial BalanceDecember 31 (in millions)?Cash…………………………………………………. ?$ 58,000??Accounts receivable…………..………………59,000??Prepaid insurance …………………………...12,000??Equipment …………………………………….8,000??Accumulated
depreciation-equipment ……….. ??$ 2,000Buildings………………………………………...57,500??Accumulated depreciation-buildings…………..??17,500Land………………………………….55,000??Unearned rent…………………………………..??16,000Long-term notes payable……………………….??50,000Common stock……………………….??50,000Retained earnings ……………………………….??65,600Tuition fees earned ……………………….??74,000Training fees earned ………………………….??23,400Wages expense ……………………………………...32,000??Utilities expense …………………………….8,000??Property taxes expense …………………………5,000??Interest expense …………………………………….4,000?________Totals ………………………………………..$ 298,500 ?$298,500 Additional information items:a. The Prepaid Insurance account consists of a payment for a 1 year policy. An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the December 31 year-end.b. A cash payment for space sublet for 8 months was received on July 1 and was credited to Unearned Rent.c. Accrued interest expense on the note payable of $1,000 has been incurred but not paid. What will be an ideal response?
Hercules Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for the year. Actual sales for the year were 75,000 units at $14 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $5 per unit. Budgeted fixed costs totaled $387,000, while actual fixed costs amounted to $450,000. What is the flexible budget variance for variable costs?
A) $158,000 unfavorable B) $150,000 unfavorable C) $150,000 favorable D) $158,000 favorable