Which of the following statements regarding budgets is true?
A. Budgets are meant for poor people only.
B. Budgets need software to be effective.
C. Budgets are forward looking.
D. Budgets do not need to be revised.
E. Budgets provide long-term financial forecasts.
Answer: C
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In determining earnings per share, interest expense, net of applicable income taxes, on convertible debt which is dilutive should be
a. ignored for diluted earnings per share. b. added back to net income for diluted earnings per share. c. deducted from net income for diluted earnings per share. d. none of these.
A ________ is a situation in which a person holds an interest in another person's property without actually owning any part of the property
A) present possessory interest B) future interest C) reversion D) nonpossessory interest
Wendy is a consumer who files for, and is granted, a discharge of her debts in bankruptcy. The consequences to Wendy of this discharge are most likely to include
A. blemished credit ratings for up to ten years. B. favorable publicity. C. lower interest charges for new debts. D. unexpected job offers from potential employers.
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:a.The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b.Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c.The ending finished goods inventory equals 30% of the following month's sales. d.The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e.Regarding raw materials purchases, 40% are paid for in
the month of purchase and 60% in the following month. f.The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g.Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h.The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. The estimated net operating income (loss) for February is closest to: A. $81,620 B. $41,000 C. $11,620 D. $29,640