Which of the following accounting changes requires an emphasis-of-matter paragraph regarding consistency in a nonpublic company auditors' report?
A. A change in calculating bad debt expense from one percent to two percent of credit sales.
B. A change from the straight-line method of depreciation to an accelerated method for a class of fixed assets.
C. A change in the estimated useful lives of a class of fixed assets.
D. A write-off of a patent because future benefits do not appear to exist.
Answer: B
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Cost and management accounting
a. require an entirely separate group of accounts than financial accounting uses. b. focus solely on determining how much it costs to manufacture a product or provide a service. c. provide product/service cost information as well as information for internal decision making. d. are required for business recordkeeping as are financial and tax accounting.
Maintaining a stable workforce generally results in the firm paying higher wages than a firm that varies workforce level with demand
Indicate whether the statement is true or false
Bell Company has provided the following figures as of December 31, Year 2: sales of $600,000, cost of goods sold of $320,000, net income of $120,000, and ending inventory of $64,000. Indicate whether each of the above statements pertaining to the Bell Company is true or false. ________ a) Bell's inventory turnover is 5.0. ________ b) Bell's average number of days to sell inventory ratio is 39.5. ________ c) Bell could increase its inventory turnover by increasing prices. ________ d) Bell's gross margin as a percentage of sales was 46.7%. ________ e) A local competitor in the same line of business has an inventory turnover of 3.5. Assuming each firm has approximately the same gross margin rate, Bell Company is likely to be more profitable than the competitor.
What will be an ideal response?
If workers vote to join a union, management has no choice legally but to determine wages, working hours and the other conditions of employment with union bargainers
a. True b. False Indicate whether the statement is true or false