Which of the following is a characteristic of a partnership?
A. It is the only organizational form appropriate for service businesses.
B. Its income is taxed twice-once on the partnership's income tax return and again on the partners' individual income tax returns.
C. The profits, taxes, and legal liability are the responsibility of two or more owners.
D. It is a legal entity separate from its owners.
Answer: C
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Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?
A. Many analysts fail to grasp the gravity of the problems facing a company. B. Sell recommendations generate lower commissions than buy recommendations. C. Analysts are often pressured by their superiors to overlook negative information. D. The firms for which analysts work may have lucrative investment banking relationships with the firm.
Sinking funds are provisions included in bond indentures that require companies to retire bonds on a scheduled basis prior to their final maturity. Many indentures allow the company to acquire bonds for sinking fund purposes by either (1) purchasing bonds on the open market at the going market price or (2) selecting the bonds to be called by a lottery administered by the trustee, in which case the price paid is the bond's face value.
Answer the following statement true (T) or false (F)
Regulations adopted by federal administrative agencies are published regularly in the Federal Register
Indicate whether the statement is true or false
Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: FormingAssemblyMachine-hours 19,000 15,000Direct labor-hours 4,000 8,000Total fixed manufacturing overhead cost$129,200$77,600Variable manufacturing overhead per machine-hour$1.60 Variable manufacturing overhead per direct labor-hour $3.00 During the current month the company started and finished Job T288. The following data were recorded
for this job: Job T288:FormingAssemblyMachine-hours 80 10Direct labor-hours 30 40Direct materials$730$380Direct labor cost$900$1,200The total amount of overhead applied in both departments to Job T288 is closest to: A. $1,180 B. $1,688 C. $508 D. $672