Which one of the following is not a recognized method of recognizing assets as expenses in a particular accounting period?
a. Customers' account balances in accounts receivable are assigned to expense in the period in which each
customer pays.
b. Prepaid insurance is assigned to expense as the insurance expires.
c. A building is depreciated and its cost is assigned to the current and future accounting periods in which the building is expected to be used.
d. Merchandise inventory is assigned to cost of goods sold in the period the goods are sold.
a
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Cook, Inc, a manufacturer of tires, has given you its most recent annual report in an effort to obtain a sizable loan. The company is very profitable and appears to have a sound financial position. Based on a report presented on prime-time television last night, you are aware that Cook is a defendant in several lawsuits related to its defective tires that cause vehicles to overturn. The
information presented on television is an example of financial information that is a. Relevant b. Consistent c. Predictable d. Comparable
Direct labor is a
A) non-production cost. B) period cost. C) nonmanufacturing cost. D) product cost.
The ________ is a federal statute primarily designed to prevent fraud in the trading of securities after they are issued
A) Securities Act of 1933 B) Securities Exchange Act of 1934 C) Sarbanes-Oxley Act of 2002 D) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Which of the following is true regarding the liability of the partners in a limited partnership?
A) Both the limited and general partners have unlimited liability for the partnership debts. B) If a corporation is a partner, its shareholders have unlimited liability for the partnership debts. C) The limited partners have limited liability and the general partners have unlimited liability for the partnership debts. D) The limited partners have unlimited liability and the general partners have limited liability for the partnership debts. E) Neither the limited nor the general partners have unlimited liability for the partnership debts.