A company's accountant capitalized a payment that should have been recorded as a revenue expenditure. How will this error affect the company's financial statements?
A) Net income will be overstated.
B) Revenues will be understated.
C) Assets will be understated.
D) Liabilities will be understated.
A) Net income will be overstated.
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The PJC department of McIntyre Company shows gross sales of $730,600 for computer supplies and $934,900 for general office supplies. It has determined that computer supplies cost $534,000 and that general office supplies cost $391,400 . What is the gross profit percentage for the PJC department?
a. $2,590,900 b. 64.32% c. 1.56% d. 44.44%
Regarding the chapter’s strategic planning model, the internal audit seeks to identify ______.
a. the important competitors in the marketplace b. the organization’s core competencies c. key drivers of the accounting department d. ambient conditions.
Because many more women were working outside the home, CEO Andrea Jung of Avon changed the organization’s marketing and distribution strategies. The driving force for this change is best described as?
a. demographic and social b. conflict c. internal forces d. technological
Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: Common stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued…….$2,500,000Paid-in capital in excess of par, common stock...1,000,000Retained earnings……………………………….3,000,000The following selected transactions occurred during the current year:Feb. 15The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.Mar. 9Distributed the stock dividend.May 1A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.June 1Paid the cash dividend.Aug. 20The board decided to split the stock 4-for-1, effective on
September 1.Sept. 1Stock split 4-for-1.Dec. 31Earned a net income of $800,000 for the current year.Prepare a statement of retained earnings as of December 31 of the current year. What will be an ideal response?