Absorption cost per unit is the best product cost to use for one-time-only special order decisions. – False:
Variable cost per unit
How are general ledger account titles listen on a trial balance? – Same order as in the chart of accounts
Stock Options – Options given to key employees to motivate them to focus on company performance, take a long-run perspective, remain with the company
Accounts payable ledger – A subsidiary ledger containing only accounts for vendors from whom merchandise is purchased on account or other items are bought on account
property – is anything of value that is owned or controlled.
Which of the following is not a required disclosure for related-party transactions? – The impact of the transactions on current year's income.
Interest payable – Liabilities
Which of the following statements about the IASB and FASB conceptual frameworks is not correct?
A. IFRS does not allow use of fair value as a measurement basis.
B. The FASB and IASB agree that the objective of financial reporting is to provide useful information to investors and creditors.
C. The IASB conceptual framework does not identify the element comprehensive income.
D. The existing IASB and FASB conceptual frameworks are organized in similar ways. – A. IFRS does not allow use of fair value as a measurement basis.
Cash Flows from Financing Activities – cash flows associated with raising and paying back money to investors and creditors
In determining Cost of goods sold
A. Purchase Discounts are deducted from Net Purchases
B. Freight-out is added to Net Purchases.
C. Purchase Returns and Allowances are deducted from Net Purchases.
D. Freight-in is added to Net Purchases. – D
Sole Proprietorship – a single owner business
Main purpose of adjusting – for internal use
Refining a cost system includes:
a. classifying as many costs as indirect costs as is feasible
b. creating as many cost pools as possible
c. identifying the activities involved in a process
d. seeking a lesser level of detail – c. identifying the activities involved in a process
Cost variance;positive – unfavorable
Callable Bonds – allows Issuer (Company) to early retire bonds prior to maturity
accounting systems – The branch of accounting that covers the review of a firm's entire information system, not just the accounting system
When a company pays cash in June to a vendor for goods purchased in May, the transaction will – decrease accounts payable and decrease cash
FIFO – An inventory costing method that assumes that the earliest goods purchased are the first to be sold.
establishing petty cash – petty cash debit cash credit