The most accurate method for setting an advertising budget is the executive decision method.
Answer the following statement true (T) or false (F)
False
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As a user, the accountant might initiate the AIS acquisition
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. For a merchandising company, the selling and administrative expense budget separates fixed and variable expenses. 2. When preparing the selling and administrative expense budget, there is no need for a merchandising company to separate mixed costs into the fixed and variable components. 3. The financial budget of a merchandising company is similar to that of a manufacturing company. 4. When a merchandiser calculates the budgeted cash payments for selling and administrative expenses, noncash expenses like depreciation are also considered.
During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit.What is the amount of gross margin for the first year?
A. $15,000 B. $20,000 C. $45,000 D. $24,000
Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be:
A. Debit Cash $85,000 and credit Notes Payable $85,000. B. Debit Note Receivable $85,000 and credit Accounts Receivable $85,000. C. Debit Cash of $85,000 and credit Accounts Receivable $85,000. D. Debit Accounts Receivable $85,000 and credit Notes Payable $85,000. E. Debit Cash of $85,000 and credit Accounts Payable $85,000.