How does providing services for cash affect the accounting equation? Is it considered an asset source, asset use, or asset exchange transaction?
What will be an ideal response?
Providing services for cash increases assets and increases equity. It is considered an asset source transaction.
Providing services for cash increases cash, an asset, and revenue increases equity (retained earnings).
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Cool Runnings operates a chain of frozen yogurt shops. The company pays $5,000 of rent expense per month for each shop. The managers of each shop are paid a salary of $3,000 per month and all other employees are paid on an hourly basis. Relative to the number of shops, the cost of rent is which kind of cost?
A. Opportunity cost B. Mixed cost C. Fixed cost D. Variable cost
Unlike directors and shareholders, officers are agents of a corporation
Indicate whether the statement is true or false
Downloading copyrighted photos onto the Internet for use on websites is not a copyright violation so long as copies of the photos are not sold
a. True b. False Indicate whether the statement is true or false
As per the Age Discrimination in Employment Act, the burden of proof always lies with the person who faces discrimination.
Answer the following statement true (T) or false (F)