Answer the following statements true (T) or false (F)
1. Noble, Inc. purchases each unit of product X for $100 and can sell it in the market for $135. The price
of the product for Noble would be $100.
2. Selling and administrative expenses are subtracted from gross profit to obtain operating income.
3. Merchandising companies, like service companies, do not use a Cost of Goods Sold account.
4. For external reporting purposes, GAAP requires companies to treat period costs as assets.
5. In the income statements of both manufacturing and merchandising companies, the Cost of Goods
Sold account is usually the largest expense.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
You might also like to view...
______ is a set of standard tests for fairness in disciplinary actions that were originally utilized in union grievance arbitrations.
A. Just Cause B. Serious Misconduct C. Coaching D. Gross Negligence
A movie theater finds that when it reduces its prices, its total revenues drop significantly. Its price elasticity of demand is _____
a. unitary b. inelastic c. positive d. elastic
Let xij = gallons of component i used in gasoline j. Assume that we have two components and two types of gasoline. There are 8000 gallons of component 1 available, and the demand gasoline types 1 and 2 are 11,000 and 14,000 gallons, respectively
Write the supply constraint for component 1. A) x21 + x22 ? 8000 B) x12 + x22 ? 8000 C) x11 + x12 ? 8000 D) x21 + x22 ? 8000
A study examined emotional intelligence among US military aircrew and maintenance teams with a total of 422 servicemen as respondents. It found that
a. emotionally intelligent servicemen were promoted faster b. although prior studies had found emotional intelligence to predict leadership in other settings, the strict command and control nature of the military suppressed the effects of emotional intelligence c. leaders’ emotional intelligence did influence the development of emotionally competent team norms, and the norms did influence performance d. emotionally intelligent servicemen were more likely to have been decorated for bravery and to have maintained emotional control while under fire