The cash disbursements process uses disbursement vouchers as inputs to update the accounts payable master data.
Answer the following statement true (T) or false (F)
True
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Which of the following best describes a profit center:
a. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. b. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. c. authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. d. authority to provide specialized support to other units within the organization. e. responsibility for combining the raw materials, direct labor, and other factors of production into a final product.
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Gain on Disposal of Equipment—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
a. Add to net income to arrive at net cash flows from operating activities b. Subtract from net income to arrive at net cash flows from operating activities c. Not used to adjust net income to calculate net cash flows from operating activities
Which of the following statements is TRUE of the budgeting process?
A) If a company carefully plans for its future, there will be no need to make modifications during the budget period. B) It is a continuous process that encourages communication. C) It shows the actual performance of the business. D) Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.
Cost of goods sold is equal to
a. the cost of inventory on hand at the end of a period plus net purchases minus the cost of inventory on hand at the beginning of a period. b. the cost of inventory on hand at the beginning of a period minus net purchases plus the cost of inventory on hand at the end of a period. c. the cost of inventory on hand at the beginning of a period plus net sales minus the cost of inventory on hand at the end of a period. d. the cost of inventory on hand at the beginning of a period plus net purchases minus the cost of inventory on hand at the end of a period.