Large Company had $18,000 of inventory at the beginning of the year. Purchases of inventory amounted to $125.000 during the year, and $5.000 of these purchases were returned to the manufacturer due to material defects. If the ending inventory was $30.000, what was the Cost of Goods Sold for the year? $108,000 O $113,000 $ 90,000 O$ 95,000 Which of the following concepts is often given as justification not to value plant assets at their current values? The revenue principle Reliability O Relevance Predictive value If a lease effectively transfers ownership of the property to the lessee at the end of the lease term, it will be classified as a capital lease by the lessee. True False Which, if any, of the following is considered a deduction FOR Adjusted Gross Income? Mortgage interest expense Charitable contributions Alimony payments Real estate taxes Unreimbursed employee business expenses Which of the following is the most accurate statement? It is easier for a shareholder to sue a corporate auditor in civil law countries than in the United States because the civil law courts are more efficient than U.S. courts. It is more difficult for a shareholder to sue a corporate auditor in civil law courts than in the United States because the civil law courts are more efficient than U.S.courts. Attorneys play a more important role in civil law courts than they play in U.S. courts and therefore, legal fees should be higher in civil law countries than in the U.S. Civil law judges are generally not required to follow decisions made by other courts in previous cases. O None of the above is true. The main purpose of reporting diluted earnings per share is to O provide a comparison figure for debt holders. indicate earnings shareholders will receive in future periods. distinguish between companies with a complex capital structure and companies with a simple capital structure. Oshow the maximum possible dilution of earnings. In its consolidated financial statements. Telefonica Moviles provides financial information regarding one of its equity-method investees, Tele Leste Celular Participaes SA If Telefonica Moviles uses the proportional consolidation (instead of the equity) method to report its investments in this investee, by how much and in what direction would Telefonica Moviles consolidated net income change? Consolidated net income would increase by an amount equal to the investee's net revenue. Consolidated net income would decrease by an amount equal to TM's share of the investee's net income Consolidated net income would be slightly higher under proportional consolidation because of top-line growth Consolidated net income would increase by an amount equal to TM's share of the investee's net income. Consolidated net income would be the same under both methods
