Noncompete agreements are when an employer has employees sign agreements not to compete with the employer in the future
a. True
b. False
Indicate whether the statement is true or false
True
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Fenchurch Corp uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?
a. Assets and liabilities decrease. b. Assets and owners' equity decrease. c. Owners' equity decrease and liabilities increase. d. No effect; assets increase and decrease by the same amount.
For service-oriented businesses, pricing is determined using cost-based approaches that add the cost of overhead to materials, parts, and labor via markup percentages
Indicate whether the statement is true or false
Which account can sometimes be skipped when a good is produced for a particular customer?
A) Raw Materials B) Work-in-Process C) Finished Goods D) Cost of Goods Sold E) Accounts can never be skipped
Harrod Company paid $6100 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $6100, and no adjustments had been made previously. The adjusting entry required on December 31 is:
A. Debit Prepaid Insurance, $1525; credit Insurance Expense, $1525. B. Debit Prepaid Insurance, $3050; credit Insurance Expense, $3050. C. Debit Cash, $6100; Credit Prepaid Insurance, $6100. D. Debit Insurance Expense, $3050; credit Prepaid Insurance, $3050. E. Debit Insurance Expense, $1525; credit Prepaid Insurance, $1525.