In the space below, state whether each situation is a deferral or an accrual. ______
a. Unrecorded interest on savings bonds is $765.
______ b. Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034.
______ c. Legal fees of $2,890 were collected in advance. By year end, 70 percent were still unearned.
______ d. Prepaid Insurance had a $900 balance prior to adjustment. By year end, 25 percent was still unexpired.
______ e. Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655.
______ f. Services totaling $690 have been performed but not yet recorded or billed.
a. Accrual d. Deferral
b. Accrual e. Accrual
c. Deferral f. Accrual
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Ace Industries has the following shareholders' equity accounts at December 31, 2018: Preferred stock, $100 par value, 10% dividend, 50,000 shares issued and outstanding$5,000,000 Common stock, $6 par value, 1 million shares issued and outstanding 6,000,000 Paid-in capital in excess of par 119,000,000 Unrestricted retained earnings 7,500,000 Retained earnings restricted for plant expansion 2,500,000 On December 15, 2018 Ace Industries repurchased 200,000 shares of its common stock for $10 per share. Based on its shareholders' equity accounts, what can be inferred about this purchase?
A. Ace retired the shares by reducing the common stock and paid-in capital accounts. B. Ace is reporting the shares as a $2,000,000 investment on the asset side of the balance sheet. C. Ace is holding $2,000,000 of treasury stock which is being disclosed in the notes to the financial statements. D. Not enough information is provided to determine how Ace recorded the purchase.
The ________ method assumes that communication expenses are just a cost of business and do not promote sales and profit.
A. marginal analysis B. competitive parity C. objective-and-task D. percentage-of-sales E. affordable budgeting
In which of the following countries does the purchase of property by a foreigner entitle the foreigner to receive a visa to do business in that country?
A) China B) Egypt C) Dubai D) India
A court must enforce the terms of a written sales contract, even if they are unfair
Indicate whether the statement is true or false