Which of the following is not true about the FASB?
a. It considers the economic consequences of proposed accounting policies.
b. It has seriously considered the question of the desirability of corporate social responsibility accounting.
c. It is sensitive to whether there are sufficient benefits to external users to warrant the imposition of new accounting standards.
d. The FASB has commissioned studies to aid in assessing the effects of proposed standards on firms.
ANSWER: B
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Judy believed that Ray and Don were partners in an automotive repair business. Ray and Don were not partners. Ray owned the business as a sole proprietor. Ray, however, allowed Don, his unemployed brother-in-law, to be around the business. When Judy was having her car repaired, Ray told her "my partner here, Don, will give you a ride to work this morning so you can leave your car here. He will
give you a ride back here after work and your car will be done." Judy allowed Don to drive her to work. While riding with Don, Don accidentally ran a stop light and caused an accident. Judy was hurt and claims that both Don and Ray are liable to her. Is she right? a. Yes. This illustrates a partnership by estoppel. b. No. Don was not a partner in the business. c. No. Don was a dissociated partner. d. No. There was no intent to have a partnership.
Both the buyer and seller may have an insurable interest in the same goods at the same time
a. True b. False Indicate whether the statement is true or false
The most common way to discharge one's contractual duties is by breach of contract
Indicate whether the statement is true or false
The break-even point is that level of activity where:
A. sales revenue equals fixed cost. B. total contribution margin equals the sum of variable cost plus fixed cost. C. sales revenue equals total variable cost. D. variable cost equals fixed cost. E. contribution margin equals fixed cost.