Ashton Company uses the perpetual method. The company's inventory account had a $6,600 balance as of December 31, Year 1. A physical count of inventory shows only $5,900 of merchandise in stock at December 31, Year 1. How does the related adjusting entry affect the financial statements?
A. Assets increase.
B. Cash flow from operating activities decreases.
C. Expenses increase.
D. All of these answer choices are correct.
Answer: C
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The CEO of your firm, a distributor for a domestic beer manufacturer, has asked you to take on a special project. She has been hearing about a growing trend toward corporate social responsibility, but she wonders if this is a reasonable investment for the firm. Outline the costs and benefits in general terms and draw your own conclusion for her consideration.
What will be an ideal response?
When incorporating a graphic in the body of your report, you should ________
A) use large amounts of color to improve readability B) manipulate the visual to make data look more dramatic C) include a reference to the graphic in the text D) assume that the reader will draw the same conclusions you did from the set of data
Which of the following factors does the Court consider in order to determine if a partnership exists?
A) whether there is a joint contribution to the capital to start a business B) whether the parties have an intention to share profits and losses C) whether there is joint participation in the management of the business D) A and B E) all of the above.
A loss on the constructive retirement of a parent's bonds by a subsidiary is effectively recognized in the individual accounting records of the parent and its subsidiary: I. at the date of constructive retirement II. over the remaining term of the bonds.
A. II B. I C. Both I and II D. Neither I nor II