Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?
(A)Protection of proprietary information.
(B)Ability to coordinate activities of the subsidiary with other activities.
(C)Ability to maintain quality control.
(D)Minimizes capital investment required.
The statement of cash flow reports are used for the following: (I)Investing activities(I) Financing activities(I)I Operating activities(I) Supplemental activities Mark one answer:
(A)I (B)II (C)III (D)I, II, and III (E)I, II, III, and IV
Correct Answer: E
Which of the following is subtracted from net sales to determine gross profit?
(A)Mark one answer: (B)Cost of goods sold (C)Expenses (D)Both cost of goods sold and expenses (E)Cost of goods sold, expenses, and taxes (F)Taxes
Correct Answer: A
A static budget contains which of the following amounts?
(A)Actual costs for actual output. (B)Actual costs for budgeted output. (C)Budgeted costs for actual output. (D)Budgeted costs for budgeted output.
Correct Answer: D
More CPA Exam Questions
- 1King, CPA, was engaged to audit the financial statements of Newton Company after its fiscal year had ended. King neither observed the inventory count nor confirmed the receivables by direct communication with debtors, but was satisfied concerning both after applying alternative procedures.King’s auditor’s report most likely contained a(n)
- 2Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?
- 3The General Fund pays an invoice for telecommunications that includes charges owed by the Water Utility Enterprise Fund. The Enterprise Fund subsequently remits its share of the telecommunications charges to the General Fund. The General Fund records the amount received from the Enterprise Fund as:
- 4A corporation’s penalty for underpaying federal estimated taxes is
- 5Doug’s Doohickeys sells hardware. His sales have finally reached $1,000,000 annually after years of hard work. Now his accountant has discovered a mistake-Doug misclassified a $2 expense several months ago. His accountant decides to ignore it. What accounting concept does he use to justify this? Mark one answer: