The cost of doing business is also known as
a. a liability.
b. an expense.
c. revenue.
d. an asset.
B
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Which of the following is a cost-effective mode for shipping large amounts of bulk products — coal, sand, minerals, and forest products — over long distances?
A) air carriers B) water carriers C) pipelines D) trucks E) railroads
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $20,000 and, the ending balance was $36,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $111,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
A. $63,000 B. $79,000 C. $45,000 D. $47,000
William Pajak married his third wife, Audrey, one day after they entered into a prenuptial agreement by which Audrey waived any and all interests in William's estate. William had four children from his two previous marriages and wished for his property
to go to them. Audrey was a secretary at Carolina Furniture Company, William's business. She had a tenth-grade education and did not read the agreement before signing it. The agreement was drafted by William's lawyer, and the lawyer was present while Audrey signed the agreement. Audrey also indicated that she knew William owned the furniture store, but she knew of no other holdings. In fact, William's property and estate were quite extensive. Shortly after their marriage, William passed away. Audrey claimed an interest in the estate because the prenuptial agreement was invalid. The children claim that Audrey understood the agreement and chose not to seek advice. Should Audrey be entitled to a spouse's share of the estate?
Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1, 20X8, for delivery on January 31, 20X9: 11/1/20X8 12/31/20X8Spot rates$0.035 $0.037 30-day forward rate 0.034 0.036 90-day forward rate 0.033 0.035 In its income statement for the year ended December 31, 20X8, what amount of loss should Levin report from this forward contract?
A. $100 B. $300 C. $0 D. $200