If a bond is purchased at a discount,then interest revenue using the effective interest method will be less than the cash interest received.

The margin of safety percentage is computed as:

A) Break-even sales/Total sales.
B) (Total sales - Break-even sales) /Break-even sales.
C) Total sales - Break-even sales.
D) (Total sales - Break-even sales) /Total sales.

Which of the following is true regarding the requirements of ratification?

A) An agent's illegal contract cannot be made binding by the principal's subsequent ratification.
B) An agent should disclose the principal's identity when entering into a contract with a third party.
C) A principal without legal capacity can ratify the unauthorized acts of the agent.
D) An agent's beneficial acts can be ratified by the principal while the detrimental ones can be rejected.

The spending variance for "Other expenses" for March would have been closest to:

A) $500 U
B) $8,844 U
C) $8,844 F
D) $500 F

The ______ approach to determining a company's worth involves looking at what others have paid for comparable businesses.

A) asset-based
B) income
C) market
D) liability-based

Wages of checkout clerk in company-owned retail outlet
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense