If a nominal independent variable has 4 possible categories, the number of dummy variables needed to uniquely represent these categories is:
a. 5.
b. 4.
c. 3.
d. 2.
C
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In a typical computerized accounting information system, ________.
A) transactions must be recorded in debit and credit format B) the software automatically knows to record a debit or a credit C) transactions are posted manually D) spreadsheets must be used to produce financial statements
Which of the following statements is true of the Federal Trade Commission Act (FTC Act)?
A) It can sue only in state courts to obtain compensation on behalf of consumers. B) It usually cannot enforce a cease-and-desist order in any case of violation. C) Section 5 of the FTC Act excludes monitoring of firms indulging in any consumer malpractice. D) It has been used extensively to regulate business conduct.
When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.
Answer the following statement true (T) or false (F)
Mountain Sports Equipment Company projected sales of 81,000 units at a unit sales price of $14 for the year
Actual sales for the year were 75,000 units at $13.00 per unit. Variable costs were budgeted at $2 per unit, and the actual amount was $4 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $425,000. What is the sales volume variance for total revenue? A) $159,000 favorable B) $159,000 unfavorable C) $84,000 unfavorable D) $84,000 favorable