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Which of the following statements concerning users of accounting information is incorrect?
Management is considered an internal user.
Present and prospective creditors are considered external users.
Regulatory authorities such as the SEC are considered internal users.
Taxing authorities are considered external users.
financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would you treat the following items in computing this ratio?
1. Prepare a differential analysis report, dated October 11, 2010 for the make or buy decision. 2. On the basis of the data presented, would it be advisable to make the carrying cases or to continue buying them? Explain.
The trust reports on a calendar tax year and distributes the $60,000 of 2007's net accounting income to Marty on January 20, 2008. No other distributions are made the current year. Marty's taxable income from the trust this year is:
Signed a three-month, zero-interest-bearing note on November 1, 2010 for the purchase of $150,000 of inventory. The face value of the note was $152,205.
Identify two major control weaknesses in the Family Support Center's cash receipts procedures. For each weakness you identify, suggest a method to correct that weakness. Your solution must be specific-identify which specific employees should do..
Evaluate the number of shares to be employed in determining diluted earnings per share for 2013.
Explain how organizations in the not-for-profit sector differ from organizations in the public sector or for-profit business sector. Provide an example of an entity in each sector.
If Dizbert Company concluded that an investment originally classified as available for sale would now more appropriately be classified as held to maturity, Dizbert would:
Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. What is the product cost per meal under absorption and under variable costing?
Davis Corporation has a sales budget for next month of $600,000. Cost of goods sold is expected to be 30 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.
Assuming Hydra uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?
If the company plans to sell 270,000 units during the year, compute the number of units it would have to manufacture during the year.
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