A contract modification does not add distinct goods and services. How is the contract modification accounted for?
A) as a separate contract
B) prospective method
C) retrospective method
D) cumulative catch-up method
D
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Which cognitive message strategy works best for a firm that is clearly the brand leader and is the dominant company in the industry?
A) generic B) preemptive C) unique selling proposition D) hyperbole
An accountant is uncertain about the best estimate of an amount for a business transaction. If two amounts are about equally likely, the amount least likely to overstate assets and income is selected. Which of the following qualities is characterized by this action?
a. Comparability b. Conservatism c. Materiality d. Neutrality
Exhibit 14-10 Hawk issued $500,000 of its ten-year 5% bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1. ?Refer to Exhibit 14-10. Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017, would include (rounded to the nearest dollar)
A) ?a credit to Discount on Bonds Payable for $1,396. B) ?a debit to Discount on Bonds Payable for $1,396. C) ?a debit to Interest Expense for $11,580. D) ?a credit to Cash for $12,500.
Diamond Plywood, Inc., manufactures four types of plywood panels. Each product must go through the following operations: patching, grading, gluing, and baking. The time in hours required for each operation for each panel, the total capacity available for each of these operations in a given month, as well as the minimum production requirements and the profit contributions per panel are given in the following table. If Diamond Plywood wishes to reduce its capacity in one of the four operations, which one should it avoid?
A. patching
B. grading
C. gluing
D. baking