Factors to consider when choosing a business form include continuity of life.
Answer the following statement true (T) or false (F)
True
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The ____________________ is the rate of return that investors in the bond markets demand for bonds of similar risk
Fill in the blank(s) with correct word
Which of the following statements is true?
a. law imposes structure on society by limiting activities that hurt the "public interest" b. the sale of marijuana is illegal worldwide c. the sale of alcoholic beverages is legal worldwide d. laws do not apply to individuals; only to society as a whole e. all of the other choices are correct
Item I51 is used in one of Policy Corporation's products. The company makes 18,000 units of this item each year. The company's Accounting Department reports the following costs of producing Item 151 at this level of activity: Per UnitDirect materials$1.20 Direct labor$2.20 Variable manufacturing overhead$3.30 Supervisor's salary$1.00 Depreciation of special equipment$2.70 Allocated general overhead$8.50 An outside supplier has offered to produce Item 151 and sell it to the company for $15.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs
of the entire company. If the outside supplier's offer were accepted, only $26,000 of these allocated general overhead costs would be avoided.If management decides to buy Item I51 from the outside supplier rather than to continue making the Item, what would be the annual impact on the company's overall net operating income? A. Net operating income would decline by $55,800 per year. B. Net operating income would decline by $29,800 per year. C. Net operating income would decline by $119,800 per year. D. Net operating income would decline by $81,800 per year.
Which of the following errors causes net income to be understated?
A. Employee wages that have not been paid are not recorded. B. Revenue that has been earned but not yet collected has not been recorded. C. Depreciation Expense is not recorded. D. Collection of an accounts receivable is not recorded.