An overstatement of ending inventory in one period results in
a. an overstatement of the ending inventory of the next period.
b. an understatement of gross margin of the next period.
c. an overstatement of gross margin of the next period.
d. no effect on gross margin of the next period.
B
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At the beginning of 2019, Elliott Company has the following account balances:
Accounts Receivable $44,000 (debit balance) Allowance for Bad Debts $5000 (credit balance) Bad Debts Expense $0 During the year, credit sales amounted to $850,000. Cash collected on credit sales amounted to $790,000, and $16,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts is ________. A) $5000 B) $5250 C) $8750 D) $10,250
Which of the following accounts will be credited by the borrower when a promissory note is issued?
A) Note Payable B) Note Receivable C) Interest Payable D) Cash
?Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
A. ?dogs. B. ?cash cows. C. ?stars. D. ?question marks. E. ?pigs.
A not-for-profit (NFP) organization acting as a financial intermediary receives a contribution. Under the FASB Codification the NFP would be most likely to recognize the contribution as a liability under which of the following situations?
A. The NFP is financially interrelated with the organization on whose behalf it received the contribution. B. The NFP has a 51 percent interest in the organization on whose behalf it received the contribution. C. The NFP is acting as an agent, receiving the contribution on behalf of another organization. D. The NFP has variance power.