A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:
A. Debit Estimated Warranty Liability $7,400; credit Cash $7,400.
B. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400.
C. Debit Warranty Expense $7,400; credit Sales $7,400.
D. Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400
E. No entry is recorded until the items are returned for warranty repairs.
Answer: B
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In the CAPM, if a stock has a beta coefficient near zero, then
A. the stock's return is less volatile than the market's average return. B. the stock's return is about as volatile as the market's average return. C. the stock's return is more volatile than the market's average return. D. the stock's risk is greater than its expected return.
Answer the following statements true (T) or false (F)
1. The production cost report for Department 2 shows that $452,000 was assigned to the 59,000 units transferred to Finished Goods Inventory. This cost assigned to Finished Goods Inventory is recorded with a debit to Work-in-Process—Department 2. Process costing is used. 2. The production cost report for Department 2 shows that $454,000 was assigned to the 50,000 units transferred to Finished Goods Inventory. Cost of goods manufactured equals $454,000. Process costing is used. 3. The production cost report for Department 2 shows that $457,000 was assigned to the 51,000 units transferred to Finished Goods Inventory. Cost of goods sold equals $457,000. Process costing is used. Explanation: Cost of goods manufactured equals $457,000. 4. A company uses process costing and a perpetual inventory system. When finished products are sold, Cost of Goods Sold is debited and Finished Goods Inventory is credited. 5. In a process costing system, costs can be controlled with the aid of a production cost report.
Ali declares personal bankruptcy for the first time. Three months after the bankruptcy proceedings begin Ali gets a job and he is earning $3,014 per month and he is a single. The threshold level that year for a single person is $2,014
As a result Ali A) will have to pay $1,507 per month to the trustee to be used for creditors' claims B) will have to pay $1,000 per month to the trustee to be used for creditors' claims C) will have to pay $500 per month to the trustee to be used for creditors' claims D) will be able to keep all his monthly income himself E) will only have to pay some money to the trustee for the next 6 months until he is discharged from bankruptcy
What is the statistical interpretation of the expected future spot rate?
Fill in the blank with correct word.