If a firm detects an error at the end of the year, where property taxes on the headquarters buildings was recorded as a debit to Cost of Goods Sold instead of Selling and Administrative Expenses, which of the following entries would they make?
a. correcting
b. reversing
c. closing
d. memorandum
e. t-account
A
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In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the:
a. bill of lading b. sales order c. customer acknowledgement d. shipping notice
Equity monitoring costs are lower in the United States than in other countries because:
A. debt that corporations use in the United States consists primarily of bank loans. B. capital gains are not taxed in the United States unless they exceed some minimum amount. C. U.S. companies must comply with fairly stringent financial audit requirements. D. dividends in the United States are exempt from personal taxes; i.e., investors are not required to pay taxes on the dividends they receive. E. banks in the United States hold a significant proportion of long-term bonds (debt) issued by companies, which means they can better monitor companies' debt than can banks in other countries.
In EEOC v. Dial Corp, where Dial used a weight lifting test to see if people were qualified to do the work needed at a factory, and the EEOC said it discriminated against women, the appeals court held that:
a. such tests of strength are discriminatory against women, so are illegal as disparate impact b. such tests of strength are part of a bona fide occupational qualification, so are legal c. the test used here was not a good predictor of ability to do the job, so was discriminatory d. the test used here was a good predictor of ability to do the job, so it was legal e. none of the other choices
A new 5-year project has expected sales of 3,400 units, ± 8 percent; variable costs per unit of $22, ± 2%; annual fixed costs of $47,500, ± 2 percent; annual depreciation of $33,000; and a sale price of $45 a unit, ± 3 percent. The project initially requires $165,000 of fixed assets and $42,000 of net working capital. At the end of the project, the net working capital will be recouped and the fixed assets will produce an aftertax cash inflow of $35,000. The tax rate is 21 percent and the discount rate is 14 percent. What is the net present value of the optimistic scenario?
A) ?$28,026.15 B) ?$28,799.24 C) ?$22,584.66 D) $21,202.98 E) $18,566.01