Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice
A. restricts the normal operation of the free market.
B. gives an unfair advantage to smaller companies.
C. encourages free trade.
D. reduces the amount of taxes paid by the parties involved.
E. gives an unfair advantage to larger corporations.
Answer: A
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Answer the following statement true (T) or false (F)
On April 1, Garcia Publishing Company received $1,548 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the second year?
A. debit Unearned Fees, $387; credit Fees Earned, $387. B. debit Unearned Fees, $129; credit Fees Earned, $129. C. debit Unearned Fees, $1,161; credit Fees Earned, $1,161. D. debit Unearned Fees, $516; credit Fees Earned, $516. E. debit Unearned Fees, $1,548; credit Fees Earned, $1,548.
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Indicate whether the statement is true or false