Management by exception directs the management's attention to important differences between the actual and the budgeted amounts
Indicate whether the statement is true or false
TRUE
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An investor purchased 500 shares of common stock, $25 par, for $19,250 . Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
a. $3,500 gain b. $350 gain c. $350 loss d. $500 gain
A reliable measurement generates consistent results.
Answer the following statement true (T) or false (F)
Which of the following advantages is the greatest advantage of observation methods?
A) If the observed phenomenon occurs frequently or is of short duration, observational methods may be cheaper and faster than survey methods. B) The data obtained are reliable because the responses are limited to the alternatives stated. C) Observational methods permit measurement of actual behavior rather than reports of intended or preferred behavior. D) Coding, analysis, and interpretation of data are relatively simple.
Plant assets are depreciated because:
A) the accrual basis of accounting requires matching of costs to revenues. B) cash basis of accounting requires depreciation. C) the book values equal market values. D) the replacement cost of plant assets may fluctuate over time.