When a company discontinues and disposes of a component segment of its operations, the gain or loss from disposal should be reported as:
a. an adjustment to retained earnings.
b. a sale of fixed assets in "other" expense.
c. an extraordinary item.
d. an accounting change.
e. a special item after continuing operations and before extraordinary items.
E
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Cloud Solutions had the following accounts and balances as of December 31:AccountDebit CreditCash$20,000 Accounts Receivable 2,000 Salaries Expense 500 Accounts Payable $4,000 Lodging Revenue 7,000 Utilities Expense 500 Prepaid Insurance 1,400 Supplies 1,500 Common Stock 14,900 Totals$25,900 $25,900 Using the information in the table, calculate the total assets reported on the balance sheet for the period.
A. $25,900. B. $23,400. C. $22,500. D. $25,400. E. $24,900.
InvestCo purchases 30% of NewCo's stock on January 1, Year 1, for $100,000 . In Year 1, NewCo paid total dividends of $30,000 and had a net income of $70,000 . In Year 2, NewCo suffered a loss of $20,000 and paid no dividends. On January 1, Year 3, InvestCo sells its investment in NewCo for $105,000 . How is the sale recorded?
a. Cash 105,000 Loss on Sale 1,000 Investment in NewCo 106,000 b. Cash 105,000 Loss on Sale 4,000 Investment in NewCo 109,000 c. Cash 105,000 Loss on Sale 10,000 Investment in NewCo 115,000 d. Cash 105,000 Gain on Sale 14,000 Investment in NewCo 91,000 e. Cash 105,000 Treasury Stock 14,000 Investment in NewCo 91,000
You are faced with a work-related ethical dilemma. In deciding what action to take, you would:
a. Check the company code of ethics to see if the action is prohibited. b. Check legal implications and the company code of ethics, and then decide if the action is personally ethical. c. Check with colleagues to see if they would take the action. d. Check the legal implications and feel free to take the action if it is not illegal.
In considering whether a product contains a defective design, the courts will consider all of the
following except: A) The likelihood of injury. B) The profitability of the product. C) The social utility of the product. D) The degree of danger posed by the design. E) None of the above