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A stock dividend exceeding 20 to 25 percent is properly treated as a stock split.
The weighted-average contribution margin is computed by multiplying each product's
unit contribution margin by the sales mix percentage of each product.
It is considered unethical to use the estimate for bad debts to purposely manipulate the
amount of net income.
Revenues have the effect of increasing owner's capital.
Under the accounts receivable aging method, the balance in Allowance for
Uncollectible Accounts must be considered prior to adjusting for estimated
uncollectible accounts.
The use of prenumbered documents is important to a good system of internal control.
Although a garbage can that costs $25 is a long-term asset, it can be expensed because
the amount is immaterial and will not affect anyone's decision making.
The first step in the incremental analysis is to eliminate all relevant revenues and costs.
A cost that changes between the alternatives is known as a differential cost.
In horizontal analysis, the base year is the most current year being examined.
When a bond sells at a discount, what is probably
Period costs are also called noninventoriable costs.
A stock split results in a transfer of the market value of the stock from Retained
Earnings to Contributed Capital.
