A $200 credit to Interest Payable was instead recorded in error as a $200 credit to Cash in an adjusting entry, which has been posted to the ledger accounts. Which of the following is the result of this error?
A. The trial balance is out of balance by $200.
B. Total liabilities are overstated by $200.
C. Total assets are understated by $200.
D. Net income is overstated by $200.
Answer: C
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Donald, a resident of Louisiana, is robbed in Oklahoma County, Oklahoma. The robber, a resident of the state of Texas, is soon apprehended. Which of the following is the proper venue to hear this case?
A. state court in Louisiana because the plaintiff is from Louisiana B. state court in Texas because the defendant is from Texas C. Oklahoma federal court because the robber has committed a federal crime D. Oklahoma county court because it is nearest in location to the scene of the crime
Squid Lips, Inc wants to measure the relationship between profitability and the investment made by stockholders. Squid Lips should use the
a. return on stockholders' equity ratio. b. earnings per share. c. profit margin. d. statement of retained earnings.
A schedule of accounts payable is prepared from the list of accounts in the accounts payable ledger
Indicate whether the statement is true or false
Bond A has a 9% annual coupon, while Bond B has a 7% annual coupon. Both bonds have the same maturity, a face value of $1,000, and an 8% yield to maturity. Which of the following statements is CORRECT?
A. Bond A trades at a discount, whereas Bond B trades at a premium. B. If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today. C. If the yield to maturity for both bonds immediately decreases to 6%, Bond A's bond will have a larger percentage increase in value. D. Bond A's current yield is greater than that of Bond B. E. Bond A's capital gains yield is greater than Bond B's capital gains yield.