A reconciliation from Enterprise funds statements to government-wide statements is not necessary because:
A. they both use the same measurement focus and basis of accounting (current financial resources, modified accrual).
B. they use a different measurement focus and basis of accounting.
C. enterprise funds are not included in the government-wide statements.
D. they both use the same measurement focus and basis of accounting (economic resources, accrual).
Answer: D
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Answer the following statements true (T) or false (F)
1. If a business operates in an industry that experiences significant cost changes, it would be to its benefit to use the first-in, first-out (FIFO) method. 2. Under the first-in, first-out (FIFO) method, prior period costs are not merged with current period costs.
The amount of a debtor's wages that may be taken by garnishment is
a. limited by federal law. b. unlimited. c. limited by state law. d. limited by the Wage and Hour Law.
One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets.?
Indicate whether the statement is true or false
Suppose the suppliers of your firm offered you credit terms of 2/10 net 30 days. Your firm is not taking discounts, but is paying after 25 days instead of waiting until Day 30. You point out that the nominal cost of not taking the discount and paying on Day 30 is approximately 37%. But since your firm is neither taking discounts nor paying on the due date, what is the effective annual percentage cost (not the nominal cost) of its costly trade credit, using a 365-day year?
A. 60.3% B. 63.5% C. 66.7% D. 70.0% E. 73.5%