To determine his company's net profits, Edward should
A. deduct cost of goods sold from sales.
B. add interest paid and depreciation expense.
C. deduct income taxes from profits before taxes.
D. add income taxes paid and income before taxes.
Answer: C
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A plan for timing acquisitions of buildings, equipment or other significant assets is a(n):
a. budget balance sheet. b. capital expenditures budget. c. asset budget. d. cash budget.
Return on assets is a better measure of profitability than profit margin because it takes into account the assets invested in the business
Indicate whether the statement is true or false
Which of the following is an advantage of leasing an automobile?
a. vehicle is not owned b. lease agreements are consumer friendly c. monthly lease payments are lower than monthly purchase payments d. mileage, repair, and early return costs e. qualification
At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.
A. 126,000 materials; 117,500 conversion. B. 112,000 materials; 117,500 conversion. C. 112,000 materials; 121,500 conversion. D. 126,000 materials; 121,500 conversion. E. 121,500 materials; 126,000 conversion.