Aaron Company uses the periodic inventory system. If Aaron's ending inventory is understated due to an accounting error, what is the effect on net income and the ending balance of retained earnings? Net IncomeRetained EarningsA. Understated UnderstatedB. Understated OverstatedC. Overstated UnderstatedD. Overstated Overstated
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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Bob's Motel shows photos of a wide, sandy beach on its website, leading visitors to assume the motel is located on or near the beach. However, in reality Bob's Motel is located half a mile from the beach. Which of the service quality gaps does this demonstrate?
What will be an ideal response?
During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the estimated warranty expense for the month is:
A. Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800. B. Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400. C. Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. D. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. E. Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000.
Martha and Jim enter into an agreement whereby Jim agrees to paint Martha's car. The contract states that the car is to be painted green. Martha changes her mind and wants the car to be painted blue instead. Jim agrees to paint the car blue
This type of discharge of contract is described as ________. A) accord and satisfaction B) novation C) condition precedent D) condition subsequent
Dalton is studying how to become a critical thinker. Please answer the questions below. To be an effective critical thinker, Dalton needs to develop intellectual ____ which is defined as recognizing the limits of your knowledge and understanding of a situation.
A. knowledge B. humility C. curiosity D. ethics