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Jim's Jeans decided to shut down their Jimmy Jean Division. Where on the income statement would this closing be addressed? Mark one answer:

(A)Under extraordinary items at the bottom of the income statement.

(B)As a note on the operating income section of the income statement.

(C)Under discontinued operations at the bottom of the income statement.

(D)As a deduction in the Net Profit section of the income statement.

(E)An entry would be on the operating income section of the income statement.

A static budget contains which of the following amounts?

(A)Actual costs for actual output. (B)Actual costs for budgeted output. (C)Budgeted costs for actual output. (D)Budgeted costs for budgeted output.

Correct Answer: D

Another name for an income statement is a: Mark one answer:

(A)Statement of cash flows (B)Balance sheet (C)Operating statement (D)Statement of owner’s equity (E)Profit & loss statement

Correct Answer: E

Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?

(A)Protection of proprietary information. (B)Ability to coordinate activities of the subsidiary with other activities. (C)Ability to maintain quality control. (D)Minimizes capital investment required.

Correct Answer: D