Assume that no dividends were declared during the current year. Which of the following statements about the effect of a net loss on the closing process is correct?
A. When closing entries are prepared, Common Stock is debited if a company has a net loss.
B. If a company has a net loss, the closing entry will include debits to the revenue accounts, credits to the expense accounts, and a credit to Retained Earnings.
C. If a company has a net loss during the current accounting period, then the ending Retained Earnings will be smaller than the beginning Retained Earnings.
D. If a company has a net loss, the amount of revenues to be closed will be greater than the amount of expenses to be closed in the closing process.
Answer: C
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Answer the following statements true (T) or false (F)
1.Employee engagement is a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time. 2.Effectiveness is the amount of output that an organization gets per unit of input, with human input usually expressed in terms of units of time. 3.In the present view of the field, human resource management deals primarily with improving the effectiveness of the people within an organization. 4.Knowledge workers gather and interpret information to improve a product or process. They are known for using “their head more than their hands.” 5.Sustainable competitive advantage is a capability that creates value for customers that rivals can’t copy quickly or easily and that allows the organization to differentiate its products or services from those of competitors.
Operating risks
a. include variability in sales from changing economic conditions (cyclicality risk). b. include variability in sales from short product life cycles (because of technological change or changes in consumer taste). c. include variability of earnings that arises when the firm has a high proportion of fixed costs that do not change as sales change. d. Answers a, b, and c are correct. e. None of these answer choices is correct.
The ratio of fixed assets to long-term liabilities can indicate the ability of the business to borrow additional funds on a long-term basis
Indicate whether the statement is true or false
What lessons did researcher’s draw from the Hawthorne studies concerning informal relations in the workplace?
a. That changing lighting in a workplace increased productivity of workers b. That the interior design of a workplace is critical to worker productivity c. That when workers form social relations at work, their productivity increases d. That if workers are allowed to become too social their productivity decreases