A company that sells merchandise to customers should normally recognize
A. revenue only after the cash is collected.
B. revenue and the related expenses in the period the revenue earned, whether payment is received or not.
C. both revenue and expenses in the period following sale.
D. expenses in the period the merchandise is sold and revenue in the following period.
Answer: B
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On January 1, 2010, Blanton Company's Valuation Allowance for Trading Investments account has a debit balance of $22,500. On December 31, 2010, the cost of the trading securities portfolio was $80,000. The fair value was $98,000. Which of the following would Blanton report?
A) an Unrealized Loss on Trading Investments of $4,500. B) an Unrealized Gain on Trading Investments of $4,500. C) an Unrealized Gain on Trading Investments of $18,000. D) an Unrealized Loss on Trading Investments of $18,000.
When the direct method is used to determine the cash flows from operating activities, which of the following adjustments must be made to income tax expense to determine total income tax payments?
A. Add increases in income taxes payable and subtract decreases in income taxes payable. B. Add decreases in income taxes payable and subtract increases in income taxes payable. C. Add all changes in income taxes and income taxes payable. D. Subtract all changes in income taxes payable.
Normally, a dissociated member of a limited liability company (LLC) has the right to have his or her interest in the LLC bought by the other members
a. True b. False Indicate whether the statement is true or false
Referring to Scenario D.1, which of the following statements is BEST?
A) Making the cat food out of only eggs is optimal B) Making the cat food out of only eggs is less expensive than making it out of only tomatoes. C) Making the cat food out of only eggs means that the Vitamin B constraint would not be satisfied. D) Making the cat food out of only chicken means the Vitamin B constraint would not be satisfied.