If the percentage-of-completion method is used, what is the basis for determining the gross profit to be recognized in the second year of a three-year contract?
a. Cumulative actual costs and estimated costs to complete
b. Incremental cost for the second year only
c. Cumulative actual costs incurred only
d. No gross profit would be recognized in year 2
A
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Bonds that are subject to retirement prior to maturity at the option of the issuer are called
a. debentures b. callable bonds c. early retirement bonds d. options
A natural business year
a. is the calendar year. b. records activities for a period less than a year. c. refers to an interim accounting period. d. ends when most activities in an operating cycle have been substantially concluded. e. none of the above
Which of the following statements is False?
a. SOX holds CFOs and CEOs personally accountable for their organization's financial reporting. b. Enron, Tyco, and Health South have all been identified as ethically run companies. c. The Institute of Management Accounting administers the CMA exam. d. As a result of many large financial frauds, the U.S.Congress passed the Sarbanes-Oxley Act(SOX).
To properly maximize the value of the firm, the financial manager should execute his or her duties independent of the cash flow decisions made by other senior managers.
Answer the following statement true (T) or false (F)