The fundamental assumption of cost-volume-profit (CVP) analysis is that, in the long run, fixed costs become variable costs
Indicate whether the statement is true or false
FALSE
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Which of the following is an example of a debit memorandum?
a. Service charge notice b. Interest earned on the account balance c. Outstanding check d. Company error in recording a $500 deposit as $600
The following are users of accounting information:
a. stakeholders b. creditors c. investors d. all of the above
On January 1, 2011, XYZ Corporation sold a piece of equipment for $30,000 which it had used for several years. The equipment had cost $45,000, and its accumulated depreciation amounted to $20,000 at the time of the sale. What are the net effects on the accounting equation of selling the equipment?
A) Assets and equity increase $30,000 B) Assets decrease and equity increases $5,000. C) Assets and equity increase $5,000. D) Assets and equity decrease $5,000.
When an activity becomes something a company has learned to perform proficiently and capably, the company is said to have a
A. key value chain proficiency. B. resource advantage. C. competitive advantage over rivals. D. distinctive capability. E. competence.