When using common-size statements,
a. data may be selected for the same business as of different dates, or for two or more businesses as of the same date.
b. relationships should be stated in terms of ratios.
c. dollar changes are reported over a period of at least three years.
d. All of these are correct.
A
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Better Deals Company has 6 units in inventory on December 31. The units were purchased in November for $155 each. The price lists from the suppliers indicate that the same items would now cost the company a total of $960. What would be the amount reported as ending Merchandise Inventory on the balance sheet?
A) $1,890 B) $315 C) $930 D) $960
A shoe department carries more than fifty-five different styles of white sandals. This is a description of the shoe department's ________
A) merchandise breadth B) retail diversity C) merchandise depth D) point-of-sale range E) service assortment
For U.S. companies, how do U.S. GAAP and income tax reporting compare in their treatment of uncollectible accounts?
a. U.S. GAAP and income tax reporting both require the direct write-off method. b. U.S. GAAP and income tax reporting both require the allowance method. c. U.S. GAAP and income tax reporting require different treatments of uncollectible accounts. d. U.S. GAAP and income tax reporting assume uncollectible accounts are estimated based on past experience for reporting purposes. e. none of the above.
Firms recognize deferred tax assets only to the extent that they expect to generate sufficient taxable income to realize the assets in the form of tax savings in the future. U.S. GAAP requires use of a deferred _____ to reduce the balance in the _____ account to the amount the firm expects to realize in tax savings in the future
a. tax asset valuation allowance; Deferred Tax Asset b. tax expense; Deferred Tax Asset c. tax asset valuation allowance; Deferred Tax Liability d. tax expense; Deferred Tax Liability e. tax expense; Deferred Tax Revenue