Which one of the following statements regarding the gross profit method is true?
A) The gross profit method is a complicated method to use in practice.
B) The gross profit method results in a more accurate inventory valuation than the retail inventory method.
C) The gross profit method is an acceptable method to estimate the cost of inventory destroyed by a casualty.
D) The gross profit method is often used to calculate the year-end inventory for financial accounting purposes.
C
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Interviewers can control the length of time after respondents finish a sentence before they pose another question. What is this called?
a. Theme development b. Manipulator c. Admission-seeking d. Silent probe
An inflexible leadership approach ______.
a. never makes sense b. should try to be converted to a flexible approach in a leader c. could be appropriate in a static situation, or one that really doesn’t change much over time d. should only be used if all of a leader’s followers are the same
The term used to describe the amount of a company's annual interest cost that should be capitalized is known as:
a. tangible interest b. actual interest c. average accumulated expenditures d. avoidable interest
Use the following information to answer the question below. On January 1, 20x5, Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 20x5, Falcon purchased 3,100 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2, 20x5
What amount of gain due to these treasury stock transactions should be reported on the income statement for the year ended December 31, 20x5 ? A) $0 B) $21,700 C) $3,100 D) $2,170