The Purchase of Short-Term Investments

question 45

Multiple Choice

The purchase of short-term investments:

• A) increases assets
• B) increases liabilities
• C) increases equity
• D) has no effect on assets

Evaluate the impact of beginning and ending work in process inventories on equivalent units and cost per equivalent unit under the FIFO method.

Interpret operating data to calculate equivalent units of production for materials and conversion costs.

Understand the construction and purpose of the cost reconciliation report under the FIFO method.

Analyze the effects of changes in production costs and work in process inventories on FIFO process costing outcomes.

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Definitions:

Descriptive Norm

A perception of what is commonly done in specific situations, which influences individuals' behavior in social contexts.

Affiliation Goal

The motivation to build relationships or be connected with others.

Injunctive Norm

Social norms that are perceived as being approved of by other people, influencing behavior by suggesting what is socially acceptable.

Extended Fishbein Model

An advanced form of the Fishbein attitude model that considers not only beliefs and attitudes but also the role of behavioral intentions and subjective norms in predicting behavior.