Why are the amounts determined for ending inventory and cost of goods sold the same under both the periodic and perpetual inventory systems when FIFO is used but not when LIFO is used?
FIFO will provide the same valuation results for ending inventory and cost of goods sold under both systems because the ending inventory will always consist of the last items purchased. The results will not be the same using LIFO because the cost of goods sold would be determined at the time of each sale when using the perpetual system. Only in rare circumstances would the only goods sold be the last purchased during the period.
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Ethnocentrism among international managers has been linked to
A. higher performance by foreign subsidiaries. B. lower turnover among employees in foreign subsidiaries. C. fewer lawsuits over personnel policies within foreign subsidiaries. D. recruitment difficulties for foreign subsidiaries. E. poor-quality products from foreign subsidiaries.
Owen, Petunia, Quentin, and Rita combine to finance the building of Surfside Stores, a waterfront shopping mall. Their selected form of business organization is an investment group, or
A. a business trust. B. a joint stock company. C. a joint venture. D. a syndicate.
The type of loss covered by a marine insurance policy when cargo is damaged, destroyed, or sacrificed in the process of saving the vessel or the cargo of others is a: A) general average loss
B) weighted average loss. C) partial or particular average loss. D) rescued loss.
Answer the following statements true (T) or false (F)
1. Company-level controls can have a big impact on a company's financial reporting. 2. Since management is most familiar with an organization, they should sit on the board of directors and advise those charged with governance of the organization. 3. Management's philosophy and operating style have to do with how the business is operated and are not part of the internal control environment. 4. To assess the risk of material misstatement at the financial statement level, the auditor needs a detailed knowledge of internal control components relevant to financial reporting. 5. Management fraud is an intentional act that injures investors or creditors.