Answer the following statements true (T) or false (F)
1. A company's month-end adjusting entry for Insurance Expense is $1,000. If this entry is not made then expenses are understated by $1,000 and net income is overstated by $1,000.
2. Profit margin can also be called return on sales.
3. Profit margin measures the relation of debt to assets.
4. Profit margin reflects the percent of profit in each dollar of revenue.
5. Profit margin is calculated by dividing net sales by net income.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following information:Jan 1Beginning inventory400 units @ $2.50Jan 12Purchase500 units @ $2.30Jan 18Sales600 units @ $4.00Jan 21Purchase400 units @ $2.60Jan 25Purchase200 units @ $2.40Jan 31Sales550 units @ $4.00Assuming Chase uses a LIFO cost flow method, what is the amount of cost of goods sold for the sales transaction on January 18?
A. $1380 B. $1400 C. $1460 D. $1500
Sony manufactures clock radios in quantities of more than 100,000 in a given time period, but the average consumer wants only one clock radio at a time. This difference is an example of
A. a discrepancy of assortment. B. re-assorting. C. a discrepancy of quantity. D. a sorting error. E. a regrouping activity.
Proactive live chats on websites in the customer support context offer considerable savings
Indicate whether the statement is true or false
Buying products from loosely organized markets is called _____
Fill in the blank(s) with correct word