Which of the following is TRUE of product costs?
A) They are expensed in the period they are paid.
B) For external reporting, GAAP requires that they be expensed before the products are sold.
C) They are first recorded in an inventory account.
D) For merchandising companies, product costs do not include freight costs.
C) They are first recorded in an inventory account.
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________ is an agreement between competitors to divide markets or geographic regions.
Fill in the blank(s) with the appropriate word(s).
The Roger Company leased a machine at the beginning of 2016. The machine was properly capitalized by Roger at $73,735. A lease payment of $16,563 is due at the end of each year. The expected life of the machine is seven years, and the term of the lease is five years. At the beginning of 2021, the machine will be returned to the lessor. Both Roger and the lessor use the straight-line method of
depreciation. What amount of depreciation expense should Roger record in 2016 for the machine (round calculations up to the nearest dollar)? A) $14,600 B) $14,747 C) $16,563 D) $17,000
The effect of an unpredictable, rare event will be contained in which component of the time series?
a. Long-term trend c. Seasonal variation b. Cyclical variation d. Random Variation
The legal right to sue for a breach of contract is subject to a statute of limitations.
a. true b. false