If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause:
A. An overstatement of liabilities.
B. An understatement of liabilities.
C. An overstatement of net income.
D. An overstatement of equity.
E. An overstatement of assets.
Answer: A
You might also like to view...
Megastar Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $18.25 per share.
What would be the balance in the Common Stock account after the issuance of a 10% stock dividend?
A) $334,000
B) $604,800
C) $739,200
D) $672,000
Kingsland is a country that has been exporting apples to the United States for over a century, shipping 300 tons to Georgia each month. However, last month, Kingsland violated a trading norm which was not condoned by Georgia. Which of the following measures should be taken to regulate apple imports from Kingsland?
A. Georgia should stop trading with Kingsland after serving a notice. B. Georgia should stop trading with Kingsland without serving a notice. C. Georgia should appeal to the federal authority which can stop imports from Kingsland. D. Georgia should make Kingsland export its apples to North Carolina.
For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor and (2) the expected return as seen by the marginal investor must equal this investor's required return.
Answer the following statement true (T) or false (F)
All of the following are approaches that are typically associated with demand management except?
a. Discounting prices to increase demand during slow demand periods b. Reservation systems c. Having customers form waiting lines (queues) d. Providing next-day delivery options