Users of financial statements should consider which of the following when evaluating the quality of accounting information?
a. Economic faithfulness of accounting measurements and classifications.
b. Reliability of the measurements.
c. Reasonableness of the estimates made in applying GAAP or IFRS.
d. All of these should be considered.
D
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A company must repay the bank a single payment of $35,000 cash in 3 years for a loan it entered into. The loan is at 6% interest compounded annually. The present value of 1 (single sum) at 6% for 3 years is 0.8396. The present value of an annuity (series of payments) at 6% for 3 years is 2.6730. The present value of the loan (rounded) is:
A. $49,345. B. $29,386. C. $93,555. D. $13,094. E. $35,000.
Domestic support obligations are generally nondischargeable in bankruptcy.
Answer the following statement true (T) or false (F)
Moon Company purchased equipment on November 1 . 2013 . by giving its supplier a 12-month, 9 percent note with a face value of $48,000 . The December 31 . 2013 . adjusting entry is
a. debit Interest Expense and credit Cash, $720. b. debit Interest Expense and credit Interest Payable, $720. c. debit Interest Expense and credit Interest Payable, $1,080. d. debit Interest Expense and credit Interest Payable, $4,320.
Some international firms spend much time in college recruiting because
a. they are looking for candidates who already have such qualifications as language proficiency and overseas experience. b. they are looking for young, naive individuals who are less likely to experience stress when leaving their home country. c. college students are more likely to have characteristics such as adaptability, flexibility and empathy than older persons. d. students lack negative experiences that would influence their decisions about going abroad for business.