Accounting for inventories by applying the lower-of-cost-or-market is an example of the application of
a. conservatism.
b. comparability.
c. consistency.
d. materiality.
A
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Robert is giving a speech at his local YMCA. He begins by emphasizing that he has grown up in this neighborhood and has seen many of the same problems as other members in the audience. Robert is
a. making an emotional appeal. b. baiting the audience. c. establishing common ground. d. making an informative appeal.
Regarding discontinued operations, which of the following statements is incorrect?
A) Gains and losses on the sale of plant assets and equipment are reported as Other Income and (Expenses). B) A loss on discontinued operations is reported with an addition for the applicable income tax. C) The sale of an identifiable division of the business is reported on the income statement under the category Discontinued Operations. D) The Discontinued Operations category of the income statement includes information about segments of the business that have been sold.
You should insure your property for more than its replacement cost
Indicate whether the statement is true or false
The purchaser of a futures contract
A) is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment. B) is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract is entered. C) does not have to worry about margin calls since margin loans are not required. D) is affected by the daily procedure known as mark-to-the-market.