What is a company's unique responsibility to its stockholders?
A) to make a profit
B) to produce products that the public will find useful
C) to provide jobs to workers
D) to create a stable balance sheet between income and expenses
E) to be a good corporate neighbor
A
Explanation: A) Without a profit, a corporation does not exist and cannot produce the products or offer the benefits it can offer when it is financially sound.
You might also like to view...
Martin is in charge at a college radio station. He knows most listeners are not tuned in on Saturday mornings, so he always schedules alternative news stories at that time. Martin is a(n) ______.
A. change agent B. gatekeeper C. opinion leader D. none of these
A disadvantage to manufacturers for using a distributor's sales force is that it generally tends to increase costs
Indicate whether the statement is true or false
Which of the following is not a good example of how accountants might use data analytics to help evaluate estimates used to value financial statement accounts?
A. Estimate the collectability of accounts receivable balances. B. Automate the order entry process for online customers. C. Assess the likelihood and level of expected warranty claims. D. Assess property, plant & equipment values based on current comparable prices.
Magoro, Inc. has two processes—Coloring Department and Mixing Department. The company sold 450 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, the company used a predetermined overhead allocation rate to allocate $80,000 and $90,000 of indirect costs to the Coloring Department and Mixing Department, respectively. The actual overhead costs incurred amounted to $150,000 at the end of the year.
What are the journal entries to record the sale of goods and the adjustment for over/underallocated manufacturing overhead at the end of the year if the company follows a perpetual inventory system and process costing?