Woods Company made an ordinary repair to a delivery truck at a cost of $500. Woods' accountant debited the asset account, Equipment. Was this treatment an error, and if so, what will be the effect on Woods' financial statements?
A. Yes, in the years following, net income will be overstated.
B. No, the repair was accounted for correctly.
C. Yes, the error understated net income.
D. Yes, the error overstated assets and net income.
Answer: D
You might also like to view...
Define brand equity
What will be an ideal response?
________ refers to an extraneous variable that occurs when test units with extreme scores move closer to the average score during the course of the experiment
A) Instrumentation B) Statistical regression C) Selection bias D) None of the above
What were the major market niches within telephony applications that the company could address with its technology? How would firms in these niches use SR Corp’s technology? How would SR Corp reach these firms and help them to use the technology? What would the structure of the business relationship look like?
What will be an ideal response?
Dahlia works for a large company in the petroleum industry. It is a centralized organization with many levels of authority. What best describes the company's organizational culture?
A. Flexibility is valued. B. Managing by exception is a common practice. C. Employees may have too much decision-making responsibility. D. Emphasis is placed on obeying authority. E. Innovation is a priority.