A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue?

A) Continue producing at the current output level, because it maximizes its total revenue by producing in the elastic portion of its demand curve.
B) Reduce price, because if it reduces price and demand is elastic, total revenue will increase.
C) Increase price, because if it increases price and demand is elastic, total revenue will increase.
D) Continue selling at the same price, but increase the amount it produces.

An overly optimistic sales budget may result in

A) increases in selling prices late in the year.
B) insufficient inventories.
C) increased sales during the year.
D) excessive inventories.

To find out your company's average monthly utility bill over the last year,you would need to calculate the ________ of the last twelve bills.

A) mean
B) median
C) mode
D) highest

Which statement is true regarding Chris's statement that the CEO could not be held liable for violations of the act?

A) Chris is correct. Under no circumstances can a CEO be held personally responsible for violations under the act. Any fines would be imposed upon the business entity.
B) Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect but claims that they are truthful, can be heavily fined. There are no penalties, however, for destruction of financial documents.
C) Chris is incorrect. The act provides for harsh penalties, and a CEO who destroys or changes financial documents to mislead can be heavily fined. There are no penalties, however, for misstatements of a company's financial reports because the company is solely responsible for its statements.
D) Chris is incorrect, but any fine against a CEO under the act cannot exceed a nominal amount of $1,000.
E) Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect, but who claims that they are truthful, can be heavily fined. Additionally, a CEO who destroys or changes financial documents to mislead can be heavily fined.

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

A component that is valuation-relevant and expected to persist into the future is a permanent earnings component.

Gurtner Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

A) $170,000
B) $167,000
C) $203,000
D) $163,000

A stock dividend results in a decrease in

A) current liabilities.
B) net income.
C) share capital.
D) retained earnings.