In general, if inventory increases during an accounting period, ________
A) variable costing will report less operating income than absorption costing
B) absorption costing will report less operating income than variable costing
C) variable costing and absorption costing will report the same operating income
D) both variable costing and absorption costing will show losses
Answer: A
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According to the trade-cycle model, which of the following actions should an organization in a high-income country take when its products mature?
A) shift the location of production to low-wage countries B) innovate to remain competitive in the market C) increase home-country production D) shift the organization's base to emerging countries
Sam received $2,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?
A) Debit Cash; credit Rental Income B) Debit Cash; credit Unearned Rent Revenue C) Debit Unearned Rent, credit Rental Income D) Debit Unearned Rent, credit Cash