On a statement of cash flows prepared using the direct method, cash paid for income taxes would be income tax expense minus
a. an increase in income taxes payable.
b. a decrease in income taxes payable.
c. beginning income taxes payable.
d. ending income taxes payable.
e. None of these answers is correct.
A
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In a tour of a client's manufacturing facility, the auditor is most likely attempting to satisfy which of the following management assertions related to long-lived assets?
a. Completeness. b. Existence. c. Rights. d. Presentation and disclosure.
If individuals use more positive and rational thoughts, they can challenge what type of beliefs?
a. Mental filters b. Emotional reasoning c. Should statements d. All of the above
Purchase allowances refer to merchandise a buyer acquires but then returns to the seller.
Answer the following statement true (T) or false (F)
The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour. Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060.Required:a. What was the labor rate variance for the month?b. What was the labor efficiency variance for the month?c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.
What will be an ideal response?