Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany transaction. Which of the following events is a corresponding event for the intercompany transaction?
A) the purchasing group member depreciating the machine
B) the purchasing group member selling the machine for cash to a nonmember of the group
C) the departure of the purchasing group member from the affiliated group when its stock is sold to a nonmember of the group
D) All of the above are recognition events.
D) All of the above are recognition events.
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A check was written by a business for $507 but was recorded in the journal as $705. How would this error be included on the bank reconciliation?
A) a deduction on the bank side B) an addition on the book side C) an addition on the bank side D) a deduction on the book side
Of the three cost-flow assumptions, when inventory costs have been falling and inventory amounts increasing, LIFO results in balance sheet figures that are _____, cost of goods sold will _____, and _____ reported net income
a. closest to current cost, be out of date, highest b. out of date, closest to current cost, highest c. closest to current cost, be out of date, lowest d. out of date, closest to current cost, lowest e. closest to current cost, closest to current cost, highest
To test whether a particular diversification move has good prospects for creating added shareholder value, corporate strategists should use the
A. barrier-to-entry test, the competitive advantage test, the growth test, and the stock price effect test. B. strategic fit test, the industry attractiveness test, the growth test, the dividend effect test, and the capital gains test. C. profit test, the competitive strength test, the industry attractiveness test, and the capital gains test. D. attractiveness test, the cost of entry test, and the better-off test. E. better-off test, the competitive advantage test, the profit expectations test, and the shareholder value test.
In market transactions, when one party wins, the other usually feels as though he or she lost
Indicate whether the statement is true or false