The current FASB's financial reporting objectives states that the principal purpose of financial reports is to provide information to make investment and credit decisions
Indicate whether the statement is true or false
T
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Chips-n-Bits Company sells service contracts for personal computers. The service contracts are for a one-year, two-year, or three-year period. All sales are for cash and all receipts are credited to Unearned Service Contract Revenues. This account had a balance of $144,000 at December 31 . 2012 . before year-end adjustment. Service contract costs are charged as incurred to the Service Contract
Expense account, which had a balance of $36,000 at December 31 . 2012 . Service contracts still outstanding at December 31 . 2012 . expire as follows: During 2013 ............................................. $30,000 During 2014 ............................................. 45,000 During 2015 ............................................. 20,000 What amount should be reported as unearned service contract revenues in Chips-n-Bits December 31 . 2012 . balance sheet? a. $49,000 b. $59,000 c. $95,000 d. $108,000
"Actual cash value" means "historical cost less depreciation."
Indicate whether the statement is true or false
In the wake of public bailouts executed for the automotive and financial services industries to stabilize the national and global economies during the Great Recession, there was intense public outcry at ________________________________ at firms who received bail¬out funds.
a. the lack of productivity b. poor allocation of resources c. profit margins d. the compensation received by executives
A form of income statement in which the total of all expenses is deducted from the total of all revenues.
What will be an ideal response?