If payables turnover has increased significantly since the prior year, this is an indication that which of the following assertions for accounts payable might be violated?
A. Valuation and allocation.
B. Completeness.
C. Rights and obligations.
D. Existence or occurrence.
Answer: B
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Which of the following statements is true of the purpose section of a proposal?
A. Problem and purpose are often used as interchangeable terms in reports. B. The purpose is included only in the last section of a proposal. C. A proposal should always include the purpose and the scope under the same heading. D. The purpose section avoids including objectives of a measurable nature.
Which of the following is/are true concerning an employee stock options' time value element?
a. The time value element results from the possibility of increases in the market price of the stock during the exercise period. b. Time value is larger the longer the exercise period and the more volatile the market price of the stock. c. A stock option whose exercise price exceeds the current market price has economic value because of the possibility that the market price will exceed the exercise price on the exercise date. d. A stock option whose exercise price has zero intrinsic value has economic value because of the possibility that on the exercise date there would be positive intrinsic value. e. all of the above
Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%, salary allowances of $34,000 and $26,000 respectively, and the remainder equally. How much of the net income of $100,000 is allocated to Xavier?
A) $49,000 B) $51,000 C) $50,000 D) $56,000
The Parts Division of the Stein Corporation had average operating assets of $150,000 and net operating income of $27,800 in March. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 17%.Required:What was the Parts Division's residual income in March?
What will be an ideal response?