Part I: Write “true” if the statement is correct or “false” if it is incorrect on the answer sheet. (5 points) 1. When the future revenue producing ability of the inventory is above its original cost the companies should reports their inventory value with LCNV method.
2. Enhancing qualitative characteristics are complementary to the fundamental qualitative characteristics.
3. Building held for sale is reported under the property, plant and equipment section of the Statement of Financial position.
4. A long-lived tangible asset is impaired when a company is not able to recover the asset’s carrying amount either through using it or by selling it.
5. Companies record short term notes at face value less allowance, ignoring the interest implicit in the maturity value.

When slick heating company switched to an activity based costing system, it realized that it was allocating a much lower percentage of factory overhead to a product line that the marketing department was trying to push. the product line may contain which type of products?

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)