The AP/CD process is an interacting structure of people, equipment, activities, and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier, support their decision needs, and assist in the preparation of internal and external reports
Indicate whether the statement is true or false
T
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It is acceptable to record cash received in advance of providing products or services to revenue accounts if an adjusting entry is made at the end of the period to bring the liability account balance to the correct unearned amount.
Answer the following statement true (T) or false (F)
Commercial paper consists of secured loans that are sold to the public
Indicate whether the statement is true or false
Firms must designate each derivative as a hedging instrument, or else accounting views the derivative as a nonhedging instrument. Furthermore, firms must designate each hedging instrument as either a fair value hedge or a cash flow hedge. The accounting for nonhedging derivatives
a. remeasures both the hedged item and the derivative to fair value each period and recognize any unrealized gains and losses in net income. b. remeasures the derivative to fair value each period and include the unrealized gain or loss in other comprehensive income to the extent that the derivative instrument is effective in neutralizing risk. When the firm settles the hedged item, transfer the previously unrealized gain or loss from other comprehensive income to net income. c. remeasures the derivative to fair value each period and include the unrealized gain or loss in net income. d. all of the above e. none of the above
Ramos Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the period just ended: Joint processing cost: $800,000Total production: 150,000 poundsShare of joint cost allocated to X: $160,000Share of joint cost allocated to Y: $400,000Which of the following statements is true?
A. The company would have relied on the sales value of each product when allocating joint costs to X, Y, and Z. B. Ramos produced 105,000 pounds of Z during the period. C. Based on the data presented, it is not possible to determine Ramos' production of Z during the period. D. Ramos produced 30,000 pounds of Z during the period. E. Ramos produced 45,000 pounds of Z during the period.