Because of its size, cost of goods sold normally has a significant impact on the amount of net income that is reported on the income statement. since the reported balance in the inventory account has a direct effect on the amount of cost of goods sold, inventory manipulation is a target for unscrupulous managers seeking to control the amount of reported earnings. these statements are

true

false

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Palmer frosted flakes company offers its customers a pottery cereal bowl if they send in 3 boxtops from palmer frosted flakes boxes and $1. the company estimates that 60% of the boxtops will be redeemed. in 2012, the company sold 675,000 boxes of frosted flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. if the bowls cost palmer company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?

Which of the following comes after a period of recession in the business cycle? a. stagflation b. a drought c. a boom d. recovery