What are the four contingency variables that an organization's structure depends on?
A. strategy, size, technology, and equity
B. management, technology, equity, and degree of environmental uncertainty
C. management, funding, technology, and degree of environmental uncertainty
D. strategy, size, technology, and environmental uncertainty
Answer: D
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All of the following are classified as definitely determinable liabilities except
a. sales tax payable. b. estimated property tax payable. c. the current portion of long-term debt. d. unearned revenue.
When a company changes from one acceptable accounting method to another, the change is reported
A) in the statement of retained earnings, as a correction to the beginning balance. B) in the income statement, below income from continuing operations. C) in the income statement, above income from continuing operations D) through a retroactive restatement of prior period earnings.
Jack and Jill were living together. Jack wanted to start a small retail store, but did not have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so he could borrow the money to start the business. Jack used business cards
that stated he was the "owner" of the business. He and Jill filed separate tax returns. Jack stated he was self-employed and claimed the business was a sole proprietorship. The money that was earned from the store was placed into a joint checking account owned and used by Jack and Jill. When there were significant decisions to be made about the business, such as deciding to franchise the business, the decision was made jointly by Jack and Jill. Five years after the business was started, Jill left Jack. She claimed she was entitled to one-half the business's profits since she and Jack were partners. Jack disagreed and claimed they never had a partnership. Discuss Jill's claim.
When a stock underwriter acts as the company's agent in selling stock, it is called a
a. company underwriting. b. express underwriting. c. firm commitment underwriting. d. best efforts underwriting.