Explain how each of the following items should be reported by a corporation: (1) The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance. The after-tax effect of the charge to Insurance Expense was $5,000.(2) The accounting department determined the depreciable lives of equipment will be five years instead of the original estimate of seven years.
What will be an ideal response?
(1) This is an error that should be reported as a prior period adjustment. Accordingly, it should be reported in the statement of retained earnings, net of taxes, as a reduction from the beginning retained earnings balance.
(2) Accounted for in the current and future periods.
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Entering foreign markets is an example of a:
A) product development strategy. B) market penetration strategy. C) market development strategy. D) market modification strategy.
In which of the following cases is crowdsourcing used for new product development?
A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.
Suppose the standard for a given cost during a period was $80,000. The actual cost for the period was $72,000. Under what circumstances would you consider the variance from budget to be a positive performance indication?
A) The cost is fixed, and actual production was 90 percent of the standard level of budgeted production. B) The cost is variable, and the standard cost noted above is the cost at a production level lower than the actual production level. C) The cost is variable, and actual production was 90 percent of the standard level of production. D) The cost is variable, and actual production was 75 percent of the standard level of production.
Service desks often combine or integrate tools and technologies to more easily and quickly transfer data between systems and to automate routine tasks.
Answer the following statement true (T) or false (F)