If cash is paid to a trustee who administers a sinking fund, the corporation would credit the Bond Sinking Fund for the amount of cash paid
a. True
b. False
Indicate whether the statement is true or false
False
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Which one of the following would the auditor consider to be an indication of a potential going-concern problem?
a. Loss of the controller to a competitor. b. Improper reporting of internal controls by management. c. Adverse key financial ratios. d. Large increase to sales in the month previous to year-end.
On January 1, Year 1, Stiller Company paid $80,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively?
A. $10,000 and $30,000 B. $10,000 and $50,000 C. $16,000 and $32,000 D. $16,000 and $48,000
The statement of stockholders' equity has more information than the statement of retained earnings because it reports the changes in all stockholders' equity accounts
Indicate whether the statement is true or false
To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable power drills-adding several new or improved features and three new models. Apparently, Delta Tool is pursuing a ________ opportunity.
A. combiner B. product development C. market penetration D. market development E. diversification