Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NThe stock of Atlantic Oil Co. was trading at $14 per share on March 27 when the company announced that it had recently discovered a large oil reserve. The stock price immediately went up to $28 per share. The company had 10,000,000 shares outstanding. Indicate the effects of this discovery on Atlantic's financial statements.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?
(N) (N) (N) (N) (N) (N) (N)
A change in the market price of common stock that has been issued has no impact on a company's financial statements.
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An example of a current liability that must be accrued is
a. accounts payable. b. current maturity of long-term debt. c. revenue received in advance. d. income taxes payable.
The allowance for uncollectible accounts is necessary because
A) a liability results when a credit sale is made. B) when recording uncollectible accounts expense, it is not possible to predict specifically which accounts will not be collected. C) management should know how many credit losses have been sustained over the years. D) uncollected accounts that are written off must be accumulated in a separate account.
Which of the following statements about challenges in operations management is FALSE?
A) Job specialization is giving way to empowered employees. B) Local or national focus is giving way to global focus. C) Sustainable production is giving way to a low-cost focus. D) Rapid product development is partly the result of shorter product cycles. E) The goal of mass customization is to produce customized products, whenever and wherever needed.
Tamara and Todd Goble, ages 66 and 60, file a joint return. Todd is legally blind. Compute their standard deduction.
A. $21,400 B. $27,000 C. $24,400 D. $25,700