When given a choice between buying advertising time on a locally televised gardening show and transit advertising, the owner of Lowe's Jewelry Store chose the television program because he had heard about the problem transit advertisers have with
A. limited selectivity.
B. short ad exposure.
C. low readership rates.
D. high maintenance costs.
E. creative inflexibility.
Answer: A
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If Susan sues Will and Frank's Furniture for $80,000 in damages resulting from her injuries in federal district court in Montpelier, Vermont, will the court have proper subject matter jurisdiction
a) No, because the amount in controversy is only $80,000. b) No, because the case lacks a federal question. c) Yes, because there is diversity of citizenship federal jurisdiction. d) Yes, because the accident occurred in Vermont. e) No, because there is no diversity of citizenship federal jurisdiction
Which of the following is not considered in computing net cost of purchases?
A) Freight-out expenses B) Purchases C) Freight paid on purchased goods D) Purchases returns and allowances
Compute the cash flow from transactions involving treasury stock.
Louisiana Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:
Note:
1. There were no stock retirements during the year.
2. There were no sales of treasury stock during the year.
A) zero net cash flow
B) $4500 of positive cash flow
C) $4500 negative cash flow
D) $13,000 negative cash flow
Eban Corporation uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $52,200. An additional 55,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $284,160 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to:
A. $5.550 B. $4.608 C. $5.167 D. $5.800