Heidi and Ian Are Directors and Shareholders of Globe Software

question 17

Multiple Choice

Heidi and Ian are directors and shareholders of Globe Software, Inc.Heidi's written authorization to Ian to vote Heidi's shares at a Globe shareholders' meeting is

• A)a violation of the duty of loyalty.
• B)a stock certificate.
• C)a proxy.
• D)a quorum.

Apply cost flow assumptions (FIFO, LIFO, Average Cost) in determining inventory value and cost of goods sold.

Understand the application of the lower of cost or net realizable value (LCNRV) rule on ending inventory.

Grasp the concept of the LIFO reserve and its effects on converting LIFO to FIFO.

Understand the impact of inventory errors on net income, assets, and stockholders' equity.

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Definitions:

Void Contract

A legal agreement that is invalid or unenforceable from the outset.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential for abuse and harm.

Smuggle

The act of illegally transporting goods or people across borders, typically to avoid taxes or regulations.

Offeree

The party to whom an offer is made, in the context of contract law, who has the option to accept or reject the proposal.