Identify the situation below that will result in a favorable variance.
A. Actual costs are higher than budgeted costs.
B. Actual income is lower than expected income.
C. Actual expenses are higher than budgeted expenses.
D. Actual revenue is higher than budgeted revenue.
E. Actual revenue is lower than budgeted revenue.
Answer: D
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Which of the following is an attribute of the internal control procedure—assignment of responsibilities?
A) To validate their accounting records, a company should have an audit by an external accountant. B) The company should separate the custody of assets from accounting. C) The external auditors will monitor internal controls. D) Each position has clearly assigned responsibilities.
If the replacement cost of inventory is greater than its historical cost, the increase in value does not affect the company's financial statements.
Answer the following statement true (T) or false (F)
Two approaches to drawing a conclusion in a hypothesis test are?
A. ?p-value and critical value. B. ?one-tailed and two-tailed. C. ?Type I and Type II. D. ?null and alternative.
When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to
a. assets minus liabilities. b. assets minus owners' equity. c. assets minus (liabilities plus owners' equity). d. zero.