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Operating expenses are different for merchandising and service enterprises.
Answer:
With the exception of land, plant assets experience a ______________ in service
potential over their useful lives.
Answer:
Gross profit rate is computed by dividing cost of goods sold by net sales.
Answer:
If a company deposits all its receipts in the bank and pays all its bills by check, then the
monthly bank statement balance will always agree with the company's record of its
checking account balance.
Answer:
Frank Jeffries, a new employee of Stine Company, recorded $1,000 in consigned goods
received as part of the firm's inventory. The goods were received one day after the end
of the fiscal period, but Frank reasoned that the goods should be included in inventory
sooner because Stine paid the freight. The mistake was brought to his attention by the
purchasing department who said the goods should not have been recorded as Stine
inventory at all. Frank told Sara Janik, the purchasing supervisor, that nobody needed to
worry, because the mistake would cancel itself out the following month. In Frank's
opinion, there was no reason to get everyone excited over nothing, especially since it
was monthly, and not annual, financial statements that were affected. Sara Janik has
reported the problem to the accounting department.
You are Frank's supervisor. Write a memo to Frank explaining why the error should
have been corrected.
Answer:
