Which line item would be found on a merchandiser's income statement and not on a service firm's?

A. Inventory
B. Depreciation Expense
C. Cost of Goods Sold
D. Service Revenue


Answer: C

Business

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If the federal funds rate is below its target, the Fed is likely to  ____ securities in the open market, which will cause the federal funds rate to ____.

A. buy; increase B. buy; decrease C. sell; decrease D. sell; increase

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Although the general rule for transfer prices is the outlay cost plus opportunity cost, many companies instead use negotiated prices to price their goods and services. When are negotiated transfer prices used? Are such prices consistent or inconsistent with responsibility accounting? Explain.

What will be an ideal response?

Business

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these ________ factors will influence consumers' purchase decisions.

A. atmospheric B. social C. extended habitual D. interpersonal E. postpurchase dissonance

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Which of the following organizations is primarily responsible for establishing GAAP in the United States?

A) Securities and Exchange Commission (SEC) B) Financial Accounting Standards Board (FASB) C) International Accounting Standards Board (IASB) D) Internal Revenue Service (IRS)

Business