Which of the following statements is true?
A. In preparing a budget, information flows occur only from the bottom up.
B. Employees often find that budgets are constraining and limiting.
C. The attitudes and actions of upper-level management have little impact on the effectiveness of a company's budget.
D. Participative budgeting means that a company's budget should be prepared by lower-level employees.
Answer: B
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Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods.
Answer the following statement true (T) or false (F)
On the statement of cash flows, the cash flows from financing activities section would include
a. receipts from the sale of investments b. payments for the acquisition of investments c. receipts from a note receivable d. receipts from the issuance of capital stock
During August, Boxer Company sells $358,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,600 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9200 in parts for repairs. The entry to record the estimated warranty expense for the month is:
A. Debit Estimated Warranty Liability $17,900; credit Warranty Expense $17,900. B. Debit Estimated Warranty Liability $9200; credit Warranty Expense $9200. C. Debit Warranty Expense $14,500; credit Estimated Warranty Liability $14,500. D. Debit Warranty Expense $5300; credit Estimated Warranty Liability $5300. E. Debit Warranty Expense $17,900; credit Estimated Warranty Liability $17,900.
Which of the following is true of product modification?
a. It entails the creation of marketable new products. b. It necessitates the use of crowdsourcing to develop new ideas for a product. c. It goes beyond applied research by converting applications into marketable products. d. It makes cosmetic or functional changes to existing products.