Certain persons cannot make contracts that will bind them
Indicate whether the statement is true or false
True
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Fair value is the amount for which an asset could be bought or sold in a current transaction
Indicate whether the statement is true or false
Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies. The sales office is a revenue center and prepares a monthly responsibility report. The partially completed responsibility report is provided.
The company uses management by exception to address flexible budget variances. On which product type would the company first focus?
A) 40 inch
B) 36 inch long
C) 36 inch short
D) 32 inch
Which of the following principles best describes the current method of accounting for research and development costs?
a. Immediate recognition as an expense b. Systematic and rational allocation c. Income tax minimization d. Associating cause and effect
The firm may transfer the accounts receivable to a legally separate entity that issues debt securities to investors. Which of the following is/are true?
a. The firm remits to investors the cash received from customers as those cash receipts occur. b. The firm may be obligated to make payments to investors in securities if the customers fail to make sufficient cash payments to pay the principal and interest on the debt securities. c. The transfer is called securitization, a process that transforms an asset (accounts receivable) into securities held by investors. d. all of the above e. none of the above