A material loss should be presented separately as a component of income from continuing operations when it is
a. infrequent in occurrence but not unusual in nature.
b. infrequent in occurrence and unusual in nature.
c. a cumulative effect-type change in accounting principle.
d. an extraordinary item.
A
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In 2016, Baloga Heating Company sold 400 water heaters for $350 each. The water heaters carry a 2-year warranty for repairs. Baloga estimates that repair costs will average 2% of the total selling price. How much is recorded in the warranty liability account as a result of selling the water heaters during 2016?
a. $4,200 b. $2,800 c. $1,400 d. No liability should be recorded until the water heaters are brought back for repairs.
Fresh Foods, a chain of international supermarkets, has operations in 20 countries around the world. Fresh Foods always encourages the rapid development of local management and retains few expatriates in its overseas operations. Fresh Foods' management ranks are truly international. Which of the following is most likely a reason for the success of Fresh Foods in international markets?
A. Rigidity B. Capital assets C. A global culture D. Adaptability E. Financial resources
Which positive psychological attribute is also one of the major leadership traits in Chapter 2?
A. hope B. confidence C. optimism D. integrity
Proper reporting of revenues and expenses in a period is due to the accounting period concept
Indicate whether the statement is true or false