Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.Increase = IDecrease = DNot Affected = NA(Note that "Not Affected" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Sierra Mining is the defendant in a $3 million lawsuit involving damage to the environment. Sierra's attorneys have advised the company that the outcome of the lawsuit is probable, and the likely settlement will be $750,000.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(NA) (I) (D) (NA) (I) (D) (NA)
If the likelihood of a future obligation arising is reasonably possible but not likely, or if it is probable but cannot be reasonably estimated, no liability is reported on the balance sheet. If a future obligation is probable and reasonably estimable, accruing that liability increases liabilities (contingent liabilities) and decreases stockholders' equity (retained earnings). It increases expenses, which decreases net income. It does not affect the statement of cash flows.
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Which of the following is a reason why large corporations have the ability to influence legislation?
A. Their size, resources, and sophistication give them the capability to purchase this ability. B. Corporate managers are always aware of the effects of their products or production processes. C. There are no limits on the law's ability to control irresponsible corporate behavior. D. The state legislatures cannot enact hostile regulatory legislation.
In the context of the Rocket Model, teams with low levels of buy-in have team members who believe in what the team is trying to accomplish and will enthusiastically put forth the effort needed to complete their assigned tasks and make the team successful.
Answer the following statement true (T) or false (F)
U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. ___________companies are entering international markets and quickly realizing as much as 70% of their sales outside the domestic market within two years.
A. Joint venture B. Born global C. Internationally integrated D. Export E. Trading
Explain why closed-end funds can sell at prices other than the fund's NAV
What will be an ideal response?