The time period assumption:
A. Prescribes that a company record the expenses it incurred to generate the revenue reported.
B. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
C. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
D. Means that a business is accounted for separately from other business entities, including its owner.
E. Means that we can express transactions and events in monetary, or money, units.
Answer: C
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Which one of the following statements is false concerning the retail inventory method?
A) Net markups and markdowns are always added and subtracted in order to compute the retail value of ending inventory. B) Markups and markdowns are recorded only at retail. C) In the lower of average cost or market method, net markups are excluded from the computation of the cost-to-retail ratio. D) In computing the cost-to-retail ratio, purchase discounts affect only the cost of purchases and not the retail amount of purchases.
The evaluation stage of management process includes comparing actual with the established standards
Indicate whether the statement is true or false
Johnson Manufacturing has the following selected information available for the year: Direct material purchased $ 40,000 Direct material used 45,000 Direct labor incurred 75,000 Manufacturing overhead incurred 50,000 Cost of goods manufactured 100,000 In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the
year is: A) $ 80,000. B) $170,000. C) $ 90,000. D) $110,000.
The term dumping refers to the sale of
A. products sold in foreign markets that cannot be sold in the United States. B. products sold in foreign markets at prices above those charged in the United States. C. all discontinued U.S. products in foreign countries. D. products sold in foreign countries at unfairly low prices. E. products sold in foreign markets that cannot pass safety standards in the United States.