Answer the following statements true (T) or false (F)
1. Vacation pay is an example a liability that exists but the exact amount is not known.
2. Because a company usually does not know the amount of the year-end bonus at year-end, no liability
is recorded.
3. Alpine Enterprises estimates that it will pay a 5% bonus on annual net income after deducting the
bonus. The company reports net income of $500,000 before the calculation of the bonus. Employee
Bonus Expense will be debited for $25,000.
4. Since a company usually does not know the amount of the year-end bonus at year-end, the company estimates the amount of the bonus based on a percentage.
5. Jamison Enterprises estimates that it will pay a 5% bonus on annual net income after deducting the
bonus. If Jamison reports net income of $480,000 before the calculation of the bonus, the amount of the bonus is $24,000.
1. True
2. False - The company estimates the amount of the bonus based on a set percentage.
3. False
4. True
5. False
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Many states require contracts to pay debts barred by a bankruptcy discharge or the statute of limitations to be evidenced by a writing.
Answer the following statement true (T) or false (F)
List several factors that are drawing more and more companies into the international arena
What will be an ideal response?
A roughly equal percentage of men and women use the Internet today.
Answer the following statement true (T) or false (F)
Although focus groups should encourage open, free-wheeling information, who has the task of ensuring that the conversation stays focused?
A) focus group manager B) focus group moderator C) focus group gate keeper D) quantitative research assistant (QRA) E) none of the above