Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination?
A. Additional Paid-In Capital.
B. Common Stock.
C. Investment in Subsidiary.
D. Goodwill.
E. Equipment.
Answer: C
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Which of the following is not a characteristic of accrual basis of accounting?
A) Revenues and expenses are reported in the period in which cash is received or paid B) Revenues are reported in the income statement in the period in which they are earned C) Supports the matching concept D) All are correct.
The ________ is a federal statute that authorizes the EPA to regulate facilities that generate, treat, store, transport, and dispose of hazardous wastes.
A. Resource Conservation and Recovery Act (RCRA) B. Clean Water Act C. Toxic Substances Control Act D. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
The root cause of the principal-agent problem between senior executives and lower-level employees can be explained by the
A. operational expertise of lower-level employees in concentrated areas of a particular field. B. informational advantage of the lower-level employees. C. higher number of lower-level employees than senior executives. D. knowledge of employees regarding day-to-day tasks.
An agent has a duty to follow all lawful instructions of the principal
Indicate whether the statement is true or false