Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?
a. In the investing section if the amount of investing activities are greater than the financing activities amount.
b. In the financing section if the amount of financing activities are greater than the investing activities amount.
c. In a note to the financial statements or in a supplemental schedule.
d. The transaction does not need to be disclosed.
c
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Which of the following is the name of a form providing standard quantities of inputs required to produce a unit of output and the standard prices for the inputs?
A. Master budget B. Variance account C. Standard cost sheet D. Static budget
Crosson Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. Refer to Crosson Corporation. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is $.25, what is the total annual carrying cost for Material Y?
a. $3,750 b. $7,500 c. $6,250 d. $10,000
Cox, North, and Lee form a partnership. Cox contributes $186,000, North contributes $155,000, and Lee contributes $279,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $171,000 for its first year, what amount of income is credited to Cox's capital account? (Do not round your intermediate calculations.)
A. $51,300. B. $42,750. C. $58,800. D. $57,000. E. $76,950.
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Indicate whether the statement is true or false