WorksheetsQuiz Box 3: Easy Round
Total questions: 6
Worksheet time: 3mins
Welcome Quiz Boxers! Are you ready? Can you see this question?
Yes and yes!
Hala, no.
Individuals and corporations are tax-exempt on interest income on long-term deposits.
True
False
In determining whether the realized profit in the beginning inventory is to be apportioned or not:
I. If the seller is the subsidiary, apportionment is not necessary since the parent does not have non-controlling interest
II. If the seller is the parent, apportionment is necessary since the subsidiary has non-controlling interest
True; True
True; False
False; True
False; False
The level of accounts receivable will most likely increase as
Cash sales increase and number of says sales.
Credit limits are expanded, credit sales increase, and credit terms remain the same.
Credit limits are expanded, cash sales increase, and aging of the receivables is improving.
Cash sales increase, current receivables ratio to past due increases, credit limits remain the same.
I. License fee is a charge imposed under police power.
II. Special assessment is levied on lands only.
True; True
True; False
False; True
False; False
A is planning to raise its transfer price to $50 per unit. Division B can purchase units at $40 each from outsiders,but doing so would idle A's facilities now committed to producing units for B. Division A cannot increase its sales to outsiders. From the perspective of the company as a whole, from whom should Division B acquire the units, assuming B's market is unaffected?
outside vendors
Division A, but only at the variable cost per unit
Division A, but only until fixed costs are covered, then should purchase from outside vendors
Division A, in spite of the increased transfer price
