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Working capital equals current assets, including inventory, minus current liabilities.
Horizontal analysis expresses each item as a percentage of the current year’s sales or total assets.
Dividends are expensed on the declaration date, not on the payment date.
Internal controls are the responsibility of the external auditor.
The triple bottom line is so named because it consists of financial, environmental, and economic activity.
The production budget should be prepared before the direct labor budget.
Poor quality materials are a common cause of favorable materials price variances.
As variable costs increase, fixed costs per unit decrease.
In all cases in which FIFO is used, the cost of goods sold is the same whether a perpetual or periodic system is used.
The FASB’s Accounting Standards Codification creates a new set of generally accepted accounting principles.
Intraperiod tax allocation relates the income tax expense of a fiscal period to the specific items that give rise to the amount of the tax provision.
The unknown present value is always a larger amount than the known future value because dollars received currently are worth more than dollars to be received in the future.
