Which method of preparing the operating activities section of the statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?
A) the direct method.
B) the indirect method.
C) both direct and indirect methods.
D) neither the direct method nor the indirect methods.
B
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Exhibit 9-1 The Happy Cereal Company includes a premium in each box of its cereal. For four premiums plus $2.00, customers are entitled to a plastic wiggle worm that costs Happy $4.50 each. Happy expects 60% of the premiums to be redeemed. In 2016, Happy sold 500,000 boxes of cereal and distributed 25,000 wiggle worms. Refer to Exhibit 9-1. What is Happy's premium expense for 2016?
A) $125,000 B) $187,500 C) $225,000 D) $337,500
The amount of liquidated damages is considered reasonable if it is not so large as to be a penalty or so small as to be unconscionable.
Answer the following statement true (T) or false (F)
Azucar, Inc. has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows:
The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for direct materials and conversion costs. (Round any intermediate calculations and your final answer to two decimal places.)
A) $222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs
B) $81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs
C) $200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs
D) $222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs
Which of the following is not one of the behavior and attitude segments defined by Bates Asia?
A) experiencers B) adapters C) traditionals D) achievers