) Newell Company has acquired land and paid $500 as a brokerage commission to acquire the land. However, the company's accountant has recorded the $500 as a revenue expenditure. What is the effect of this error?
A) Net income is understated by $500.
B) Liabilities are overstated by $500.
C) Revenue is overstated by $500.
D) Assets are overstated by $500.
A) Net income is understated by $500.
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A. mass action B. class action C. consolidation D. arbitration
Gamma Company and Chi Company are similar and similar-sized companies operating in the same industry. At the end of the most recent year, Gamma's price-earnings ratio was 22.0, and Chi's price-earnings ratio was 14.2. What conclusion would you draw based on the difference in price-earnings ratios for the two companies?
What will be an ideal response?
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A. continuous B. discrete C. nominal D. mixed type
"Framing" borrowed material means:
a. showing where you start using someone else's words or ideas b. showing where you stop using someone else's words or ideas c. both of the above d. none of the above