The lower-of-cost-or-market value (LCM) rule ________.
A) replaces the use of specific identification, FIFO, LIFO, or weighted-average inventory costing methods.
B) violates the conservatism principle
C) requires that merchandise inventory be reported in the financial statements at the lower of the historical cost or the selling price of the inventory
D) is an accounting issue separate from applying an inventory costing method
D) is an accounting issue separate from applying an inventory costing method
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On April 12, Hong Company agrees to accept a 60-day, 10%, $5400 note from Indigo Company to extend the due date on an overdue accounts payable. What is the journal entry needed to record the transaction by Indigo Company?
A. Debit Accounts Receivable $5400; credit Notes Payable $5400. B. Debit Accounts Payable $5400; credit Notes Payable $5400. C. Debit Notes Payable $5400; credit Accounts Payable $5400. D. Debit Sales $5400; credit Notes Payable $5400. E. Debit Cash $5400; credit Notes Payable $5400.
Which of the following companies is most likely to use process costing?
A) a music studio B) a breakfast cereal company C) an accounting firm D) a building contractor
A good example of a profit center would be
a. a car manufacturer's assembly line. b. a local Home Depot store. c. Avis Car Rental's national reservation center. d. a manufacturer's human resources department.
At least one or both deviational variables in a goal constraint must equal:
A) 1. B) -1. C) 0. D) 2.