An accountant is uncertain about the best estimate of an amount for a business transaction. If two amounts are about equally likely, the amount least likely to overstate assets and income is selected. Which of the following qualities is characterized by this action?
a. Comparability
b. Conservatism
c. Materiality
d. Neutrality
b
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A cancelled check would be a source document for which of the following?
a. recording a purchase of inventory on credit b. recording cash received on an customer account c. recording accrued payroll d. recording a cash payment to a creditor
Another term for cost incurred to sell and deliver products is:
a. Differential costs. b. Administrative costs. c. General costs. d. Distribution costs.
Describe why decision-making is important to leader effectiveness.
What will be an ideal response?
The following production data were taken from the records of the Finishing Department for June: Inventory in process, 6-1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out
method is used to cost inventories. Assume the completion percentage of 25% applies to both direct materials and conversion costs. A) 575 units B) 200 units C) 1,000 units D) 300 units