Which of the following is not an application of accrual accounting?
A) Recording advertising fees earned at the time the work is done.
B) Adjusting unearned advertising fees to the proper balance at the end of the month.
C) Recording advertising fees earned at the time the cash payment is received.
D) Recording telephone expense in the accounting period covered by the monthly bill.
C
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Merchandise Inventory increased $28,000 and Accounts Payable decreased $19,600 during the year. Accounts Payable relates only to the acquisition of merchandise inventory. Sales were $796,000 and Cost of Goods Sold was $549,700. Compute the payment made to the suppliers for inventory.
A) $577,700 B) $569,300 C) $597,300 D) $47,600
The marketing research process follows five steps, and researchers
A. may follow the process by completing all steps at once instead of planning the process first. B. often collect data before defining the research objectives. C. may not always go through them in the exact sequence if the situation changes or new information is discovered. D. should be prepared to present the results before completing the analysis if they are under a great deal of pressure to meet a deadline. E. should maintain the integrity of the process by following each step sequentially and thoroughly.
When is a trial balance usually prepared?
A) after each entry is journalized B) before the financial statements are prepared C) after the financial statements are prepared D) at the beginning of an accounting period
The transfer price that should be used by top management in evaluating whether a division should buy within the company or from an outside supplier is the:
A. transfer price based on variable cost. B. transfer price based on an open market price. C. negotiated transfer price. D. transfer price based on full cost.