A) must follow GAAP
B) may rely on estimates and forecasts
C) is prepared for users outside the organization
D) always reports on the entire entity
A) Number of days in the discount period
B) Full amount of the invoice
C) Number of days when the entire amount is due
D) Percent of the cash discount.
Correct Answer: D) Percent of the cash discount.
A) how many shares of stock to issue.
B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
D) how much inventory to keep on hand.
E) how much money should be kept in the checking account.
A) Bonds do not affect owners’ control.
B) Interest on bonds is tax-deductible.
C) Bonds can increase return on equity.
D) It allows firms to trade on equity.
E) Bonds pay periodic interest and the repayment of par value at maturity.
The accounting principle upon which deferrals and accruals are based is Options a. Conservatism b. Matching Principle c. Price-Level Adjustment d. Cost [bg_collapse_level2 view=”button-orange” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ] The Correct Answer is b. Matching Principle [/bg_collapse_level2] Explanation Accruals Accruals are those expenses incurred or services received but payments … Read more
A. Two-year Notes Payable
B. Bonds Payable
C. Mortgage Payable
D. Unearned Rent
D. Unearned Rent
Which method almost always produces the most depreciation in the first year?| Accounting Quiz | Management Notes The various options for the question “Which method almost always produces the most depreciation in the first year?” are as below: A. Straight-lineB. Double-declining-balanceC. Units-of-productionD. All produce the same depreciation in the first year. The correct answer … Read more
Which of the following is most closely linked to accounting conservatism? | Accounting Quiz | Management Notes The various options for the question “Which of the following is most closely linked to accounting conservatism?” are as below: a. Lower-of-cost-or-market ruleb. Materiality conceptc. Disclosure principled. Consistency principle The correct answer to this question is an option (b) … Read more
The various options for the question “Which of the following is not characteristic of a corporation?” are as below:
A. The financial loss that a stockholder may suffer from owning stock in a public company is limited.
B. Cash dividends paid by a corporation are deductible as expenses by the corporation.
C. A corporation can own property in its name.
D. Corporations are required to file federal income tax returns.
The correct answer to this question is an option (B) Cash dividends paid by a corporation are deductible as expenses by the corporation.