Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase.
b. Assets increase and stockholders' equity increases.
c. Liabilities increase and stockholders' equity decreases.
d. Liabilities decrease and assets decrease.
b
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Past performance is rarely a good indicator of future performance
Indicate whether the statement is true or false
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Fixed element per monthVariable element per client-visitRevenue - $38.20 Personnel expenses$33,600 $11.00Medical supplies 1,900 6.20Occupancy expenses 10,200 1.90Administrative expenses 6,600 0.30Total expenses$52,300 $19.40?Actual results for January: ?Revenue$127,218 Personnel expenses$71,860?Medical supplies$24,058?Occupancy expenses$17,371?Administrative expenses$7,547???The net operating income in the
flexible budget for January would be closest to: A. $13,500 B. $6,364 C. $13,312 D. $6,400
Substituted contracts immediately discharge the original contracts
a. True b. False Indicate whether the statement is true or false
Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing B) increased productivity C) lower rework and scrap costs D) lower warranty costs E) All of the above are aspects of reduced costs by quality improvements.