Denise, Ervin, and Flem occupy the positions of directors on the board of Gallery Corporation. As directors, they may not
A. authorize major corporate policy decisions.
B. decide to issue stock and bonds, and declare dividends.
C. select and remove corporate officers.
D. support businesses that directly compete with Gallery.
Answer: D
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Which of the following items need not be reported separately at the bottom of the income statement?
a. Profitability ratios b. Discontinued operations c. Extraordinary gains and losses d. Cumulative effect of a change in accounting principle
An audit basically consists of having the auditor form an opinion regarding management's financial statement assertions. The auditor therefore develops general and specific procedures to apply to the accounts and transactions. In a particular case, s/he might do this by:
A. Tracing sales invoices to shipping documents to tests the completeness of reported sales. B. Tracing sales invoices to shipping documents to test the occurrence of reported sales. C. Tracing sales invoices to shipping documents to test the completeness of recorded accounts receivable. D. Tracing shipping documents to sales invoices to test the occurrence of reported sales.
The terms "bookkeeping" and "accounting" are not synonymous
Indicate whether the statement is true or false
Total conversion costs for the period include direct materials, direct labor, and overhead
Indicate whether the statement is true or false