Arena, Inc uses straight-line depreciation for its equipment. Arena purchased equipment for $300,000 and estimated its useful life at 8 years. The bookkeeper failed to consider the residual value of $50,000 . What is the impact on earnings per share and operating income of failing to consider the residual value?
a. Earnings per share will be overstated and operating income will be understated.
b. Earnings per share will be understated and operating income will be overstated.
c. Both earnings per share and operating income will be overstated.
d. Both earnings per share and operating income will be understated.
d
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An unfunded pension liability is reported on the balance sheet as
a. current liability b. owner's equity c. long-term liability d. current liability or long-term liability, depending upon when the pension liability is to be paid
Garden Gate is a one-location nursery business, selling plants and flowers for home gardeners. The new owners want to grow through either a product development or diversification strategy. What will the owners likely do if they pursue either strategy?
What will be an ideal response?
Guy Yamoto, who was certified in first-aid techniques, observed an accident scene as he was driving to work. Although no one was offering help at the accident site, it did not appear to Guy that the accident was very serious and so he drove on. He later learned that a person died who probably could have been saved easily through proper application of first aid. If the heirs of the deceased
discovered that Guy had passed the scene without offering to help, then they would a. not have a cause of action, because the law generally does not require that a person not a party to an accident volunteer to render aid. b. have a cause of action only if the state had a so-called "Good Samaritan" statute. c. have a cause of action because Guy was certified in first-aid techniques. d. none of the above
Medicaid requires recipients to exhaust all other assets before they can receive benefits
Indicate whether the statement is true or false