All terms of contracts,even "fine-print" provisions of standard form contracts,are always part of the parties' deal and binding on them,because parties have an obligation to read their contracts and are assumed to have done so.

A disbursement account for which the firm maintains no balance, transferring in funds from a master account only when needed to cover demands for payment, is called a _____ account.

A) lockbox
B) cleanup
C) compensating balance
D) zero-balance
E) revolving

The Tse Manufacturing Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500.If the estimated manufacturing overhead for the year was $24,000, and the applied overhead was $26,500, the actual manufacturing overhead cost for the year was:

A) $19,500
B) $22,000
C) $28,500
D) $31,000

Demand legitimacy

A) indicates the extent to which stakeholders need immediate attention.
B) refers to the managers' ability to maximize profits.
C) refers to the shareholders' ability to influence managers.
D) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
E) indicates the validity and legitimacy of a stakeholder's interest in the organization.

Which of the following regarding available-for-sale securities is correct?

A) Available-for-sale securities are reported at cost on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
B) Available-for-sale securities are reported at fair value on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
C) Available-for-sale securities are reported at fair value on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.
D) Available-for-sale securities are reported at cost on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.

A foreign currency quote of $1.00 : 0.85 British pounds is ____.

A) an indirect quote in Great Britain, but a direct quote in the U.S.
B) a direct quote in Great Britain, but an indirect quote in the U.S.
C) a direct quote in both great Britain and the U.S.
D) an indirect quote in both Great Britain and the U.S.

A possible consequence of a rite of enhancement such as an awards ceremony is to:

A) facilitate transition into new roles
B) enhance power and identity
C) reduce power and identity
D) encourage common feelings that bind members together