Assume that Besley Golf Equipment commenced operations on January 1, 2018 and was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 15 years, but in December 2018 management realized that the assets would last for only 10 years. The firm's accountants plan to report the 2018 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements?
A. The firm's reported net fixed assets would increase.
B. The firm's EBIT would increase.
C. The firm's reported 2018 earnings per share would increase.
D. The firm's cash position in 2018 and 2019 would increase.
E. The provision will increase the company's tax payments.
Answer: D
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The amount of interest due on notes and bonds payable owed by the company is adjusted on the work sheet by debiting Interest Expense and crediting Accrued Interest Payable
a. True b. False Indicate whether the statement is true or false
______ order requires you to categorize your materials into those related to the causes of a problem, and those related to its effect.
Fill in the blank(s) with the appropriate word(s).
Gloria Catering provided $1,000 of catering services and billed its client for the amount owed. Determine the general journal entry that Gloria Catering will make to record this transaction.
A.
| Accounts Receivable | 1,000 | |
| Unearned Catering Revenue | 1,000 |
B.
| Unearned Catering Revenue | 1,000 | |
| Catering Revenue | 1,000 |
C.
| Catering Revenue | 1,000 | |
| Accounts Receivable | 1,000 |
D.
| Accounts Receivable | 1,000 | |
| Catering Revenue | 1,000 |
E.
| Accounts Payable | 1,000 | |
| Catering Revenue | 1,000 |
Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
A. locational excellence. B. a sustainable competitive advantage. C. customer loyalty. D. a related diversification opportunity. E. a diversification growth strategy.