Use the information below to answer the following question(s):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 = I Decrease = D No Effect = NACole Company uses the direct write-off method. The company wrote off an uncollectible account in the amount of $4,000. The write-off is immaterial in amount.
What will be an ideal response?
(D) (NA) (D) (NA) (I) (D) (NA)
When a company uses the direct write-off method, a write-off decreases assets (accounts receivable) and stockholders' equity (retained earnings). It increases expenses (uncollectible accounts expense), which decreases net income. It does not affect the statement of cash flows.
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At the beginning of 2012 investors had invested $25,000 of common equity in Grant Corpand expect to earn a return of 11% per year. In addition, investors expect Grant Corp to pay out 100% of income in dividends each year. Forecasts of Grant's net income are as follows: 2012 - $3,500 2013 - $3,200 2014 - $2,900 2015 and beyond - $2,750 Using this information what is Grant's residual income
valuation at the beginning of 2012? a. $25,000 b. $26,350 c. $26,151 d. $26,041
Qualitative methods use management judgment, expertise, and opinion to make forecasts
Indicate whether this statement is true or false.
Union unfair labor practices under the Federal Service Labor-Management Relations Act include:
a. threatening the employees. b. discrimination on the basis of age. c. child labor. d. refusing to negotiate in good faith.
An independent contractor is not entitled to the same fringe benefits as an employee.
Answer the following statement true (T) or false (F)