Why does the accrual basis of accounting require adjustments, while the cash basis does not?
Adjustments are necessary under the accrual basis because income represents the amounts that are earned during the period, not just collected in cash. Accrual basis includes expenses that have been incurred regardless of whether payment has been made. Net income under the accrual basis represents the net effect of amounts earned, less amounts incurred, while under the cash basis only receipts and payments of cash are recorded.
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A company had average total assets of $887,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover equals:
A. 1.23. B. 0.81. C. 1.09. D. 0.89. E. 1.13.
Which of the following is true of the U.S. Census Bureau data?
A) It can be used to identify heavy users of specific products. B) It includes information about the use of over 8,000 brands. C) The full data collection process occurs only every 10 years. D) The data is only available to paying subscribers. E) It can be used to search for information from major media outlets.
Jackie purchased a condominium. When she bought it, she realized the homeowner's association had a variety of rules and regulations that she would need to follow. One regulation was that no children were allowed to live in the complex. Two years after
buying the condominium, Jackie gave birth to a child. She was immediately served with papers notifying her to move out of the complex. Discuss the constitutionality of the homeowner association's action.
The decision to enroll in the Medicare prescription drug plan requires:
A) very little information, because it's best for 75% of all Americans B) a lot of information about the income tax bracket of the individual participant C) an analysis of the individual's prescriptions and their costs D) a brain surgeon