A savings ratio calculated from an income and expense statement represents the:
A. percentage of gross income saved.
B. ability to cover immediate debt when there is an interruption in income.
C. percentage of after-tax income saved.
D. percentage of tax-deferred income earned annually.
E. percentage of asset value salvaged.
Answer: C
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When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, a major difference is that the direct method
A) uses a percentage of sales method to estimate uncollectible accounts. B) is used primarily by large companies with many receivables. C) is used primarily by small companies with few receivables. D) uses an allowance account.
When you use the indirect strategy to deliver bad news, the recommended order of ideas is A) buffer, reasons, bad news, and closing
B) ?buffer, bad news, reasons, and closing. C) reasons, buffer, bad news, and closing. D) ?bad news, reasons, buffer, and closing.
Ordering costs include ______.
a. warranty costs b. the cost of inspecting goods received for quality and quantity c. costs of scrap d. costs of rework
Alton Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?
A. A, 6,000; B, 6,000. B. A, 4,800; B, 4,800. C. A, 6,000; B, 4,800. D. A, 6,000; B, 0. E. A, 4,800; B, 0.