Identify and describe the two main groups involved in establishing generally accepted accounting principles.
What will be an ideal response?
The Financial Accounting Standards Board (FASB) is the private-sector group that has been delegated the task to set both the broad and specific principles of GAAP. The Securities and Exchange Commission (SEC) is a government agency that has the legal authority to set GAAP and oversees proper use of GAAP by companies that issue stock and debt to the public.
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To achieve coherence, effective writers use different terms for the same idea, such as manager and supervisor
Indicate whether the statement is true or false
The Laspeyres index is a weighted aggregate price index where the weight for each item is its
a. current-period quantity b. base-period price c. current-period price d. base-period quantity
Which of the following best describes German consultation rights?
A. Employees have the right to consult their elected government officials about changes to the nature of their work. B. German companies must consult with the government before making any changes that could affect the economy. C. German companies must consult with their employer association before bargaining with employees. D. German companies must consult with the employees before making any changes in the nature of their work.
Pravis Corporation owns 30% of Kuster Corporation. Pravis Corporation received $9,000 in cash dividends from Kuster Corporation. The entry to record receipt of these dividends is:
A. Debit Unrealized Gain-Income, $9,000; credit Cash, $9,000. B. Debit Cash, $9,000; credit Interest Revenue, $9,000. C. Debit Cash, $9,000; credit Equity Method Investments, $9,000. D. Debit Cash, $9,000; credit Dividend Revenue, $9,000. E. Debt Equity Method Investment, $9,000; credit Cash, $9000.