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Trading securities are valued on the balance sheet at market value.
A job order cost card can be used to record all product costs incurred during production.
A promissory note may be issued for an amount to be determined at a future date.
A reduction in carrying value as a result of impairment is recorded as a loss.
Storage time is the time a product spends waiting to be worked on once it arrives at the
next operation.
A company using the periodic inventory system records cost of goods sold when
products are sold.
When bonds are sold between interest dates, the interest collected when the bonds are
sold is returned to investors on the next interest payment date.
Limited liability can be viewed as both an advantage and a disadvantage.
When the average costing method is used in process costing, all costs incurred by a
department or production process are divided by the equivalent units produced during
the period to determine the average cost per unit produced.
Partnership income or loss can be divided solely on the basis of salaries or interest.
When a loss is closed into the partners' Capital accounts, Income Summary is debited.
The present value of a bond is determined by subtracting the discounted value of the
payment at maturity from the discounted value of a series of fixed interest payments.
In a common-size income statement, net sales is represented by 100 percent.
Merchandisers usually end their fiscal year during the peak season.
The statement of cash flows shows the effects on net income of a company's operating,
investing, and financing activities for an accounting period.
