In a periodic inventory system, the cost of purchases is recognized as
a. an increase in an asset account.
b. an increase in the inventory account.
c. the only part of the calculation of cost of goods sold.
d. an integral part of the calculation of cost of goods sold.
d
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Which of the following is not a leading reason that employees resist change?
A. Individual predisposition toward change B. Climate of mistrust C. Fear of failure D. Lack of personal ethics E. Nonreinforcing reward systems
Cash flows from operating activities include all of the following except:
A. payments to employees for hours worked. B. a purchase of land. C. collections from customers on account. D. receipt of cash dividends.
A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is:
A. $13,200 unfavorable. B. $1,200 unfavorable. C. $1,200 favorable. D. $15,200 favorable. E. $13,200 favorable.
A company has net income of $130,500. Its net sales were $1,740,000 and its average total assets were $2,750,000. Its total asset turnover equals 4.7%.
Answer the following statement true (T) or false (F)