Fifo is preferred when purchase costs are rising and managers have incentives to report higher income for reasons such as bonus plans, job security, and reputation.

a. True

b. False

When the market does not result in an efficient allocation of scarce resources, economists call this: a market dropout. b market disincentives. c market failure. d market planning. e normative economics.

A consumer has two basic choices in making a trip: rent a car for $30.00 a day and spend two days of travel to the destination, or spend $400 for an airplane ticket and fly to the destination in two hours.

Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000.

Match each type of GDP with its definition. the market value of all final goods and services produced by resources owned by citizens of a particular country in a given year GDP adjusted to base year prices GDP divided by population GDP adjusted for

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Cash balance per bank, 6/30 $13,000 Note receivable collected by bank 4,000 Outstanding checks 7,000 Deposits-in-transit 2,500 Bank service

A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000.

Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Identify the contract with the customer.

Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year.

An amortized loan: Multiple Choice requires the principal amount to be repaid in even increments over the life of the loan. may have equal or increasing amounts applied to the principal from each loan payment.

Why is it easier for a partnership to borrow money than a sole proprietorship?