The remedy of reformation

a. applies only when money damages are inadequate.
b. can be used to correct mistakes in the original contract.
c. is available only if fraud is involved.
d. is a commonly used remedy.


b

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If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report

Indicate whether the statement is true or false

Business

The following data were taken from the accounting records of a company that uses the FIFO method in its process costing system: Beginning work in process inventory: 20,000 units (materials 100% complete, conversion costs 60% complete) Started in process during the period: 80,000 units Ending work in process inventory: 30,000 units (materials 100% complete, conversion costs 70% complete) The

equivalent units are a. materials, 90,000 units; conversion costs, 89,000 units. b. materials, 100,000 units; conversion costs, 91,000 units. c. materials, 60,000 units; conversion costs, 53,000 units. d. materials, 80,000 units; conversion costs, 79,000 units.

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Creditor claims are divided into classes and the highest class must be satisfied in full before going to the next category

Indicate whether the statement is true or false

Business

(I) Prices of longer-maturity bonds respond more dramatically to changes in interest rates

(II) Prices and returns for long-term bonds are less volatile than those for short-term bonds. A) (I) is true, (II) false. B) (I) is false, (II) true. C) Both are true. D) Both are false.

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