Which of the following businesses must use the accrual method of accounting?
I.Pryor and Ransom, a local law firm with annual gross receipts of $650,000II.Mayson Manufacturing, which has annual gross receipts of $30,000,000?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. Neither statement is correct.
Answer: B
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All of the following statements are true EXCEPT
A. high agreeableness underlies harmony. B. high conscientiousness underlies deliberation. C. high extroversion underlies communication. D. high neuroticism underlies stability. E. high openness to experience underlies creativity.
An owner of a stable of racehorses has been earning below-average returns for more than 15 years. To a colleague, he expressed his determination to stay in horse racing until he died because "racing is in my blood." This individual is probably still racing horses because of:
A. high barriers to exit. B. high switching costs. C. high fixed costs. D. low levels of competitive rivalry.
Customary international law is applicable domestically only after it is adopted by legislation, court decision, or local usage. This is called the ________
A. constitutive doctrine B. declaratory doctrine C. doctrine of transformation D. doctrine of incorporation
If Standard & Poor's ratings of a firm's bonds is below BBB, the _____.
A. firm will find it difficult to find potential investors when issuing new bonds B. default risk premium associated with the bonds will be less than the risk premium associated with bonds rated AAA C. firm will easily find investors when issuing new bonds because bonds with high yields have no risk associated with them D. default risk associated with the bonds is less than that of bonds that are rated AAA E. firm will immediately have to exercise the call provision and issue new bonds