The gross profit (inventory valuation) method requires keeping records of the selling prices of merchandise purchased
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Answer the following statements true (T) or false (F)
1) The Cost of Goods Sold account is credited to write down the inventory as required by the lower-of-cost-or-market rule. 2) The Merchandise Inventory account is debited to write down the inventory as required by the lower-of-cost-or-market rule. 3) Companies often disclose that the LCM rule is followed in notes to their financial statements. 4) An overstatement of ending merchandise inventory in the current period results in an understatement of net income in the current period. 5) An overstatement of ending merchandise inventory in the current period results in an overstatement of net income in the current period.
Budgets:
a. are financial plans for the future. b. are operating plans for the future. c. represent an important aspect of planning. d. include actions needed to achieve objectives. e. All of the answers are correct.
Sarah works in the accounting department for an on-line retailer. Her employer believes that employees should have regular breaks in their work to stay focused, but expects them to return to work immediately afterwards. One time the accounting manager distributed toy guns that shot soft sponges to everyone and when he blew his whistle, the office erupted into a play war zone. Another time, he blew his whistle and dance music was played over the intercom and everyone got up and danced in the hallways and their cubicles for a half hour. All employees are paid well and recognized for their contributions to the company. Sarah looks forward to going to work each day because of the sense of camaraderie and fun that permeates the work environment. Leah works in the accounting department for a
different on-line retailer. She is paid more than Sarah, receives a better benefit package, is permitted to set her own schedule, and can form workgroups with other employees that are managed from within the group to complete projects, but the company expects employees to dedicate all paid time exclusively to work. All employees at Leah's company are paid well and recognized for their contributions to the company. Leah enjoys her job but does not look forward to going to work every day due to the intense pressure to perform. When asked about the unique approach to work, Sarah's manager said that she had discovered that a little fun relieved stress, brought the workforce together, and periodic "wars" or competitions tended to alleviate personal animosities and helped employees work well together. When Leah's manager was asked about his approach to work he said that employees are adults, they know what the performance expectations are, and they are paid well for their work. He added that they are given rewards and freedoms that break up the boredom of doing the same task each day. When comparing Sarah's attitude towards work to Leah's, what is the primary difference? A. Motivation B. Morale C. Self-management D. Productivity
GBH, an accounting firm, was hired to prepare financial statements for E-treme. Great State Bank has asked to see GBH's working papers since it is thinking about extending a $4 million line of credit to E-treme. Which of the following statements is correct?
A) GBH can show the bank the working papers because Great State Bank has a proper purpose. B) GBH can show the bank the working papers because Great State Bank is a known third party. C) GBH cannot show the bank the working papers under any circumstances as they are not finalized. D) GBH cannot show the bank the working papers unless E-treme gives permission.