Which of the following is a true statement?
a. Transactions are events that may be either external or internal to an enterprise.
b. Events that are internal to the firm do not require entries in the firm’s accounts.
c. Transactions are economic or financial events that may or may not be recorded in the firm’s accounts.
d. “Simple events” do not have any significant economic variables that lead to essentially different recording.
ANSWER: D
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A. $1,250. B. $0. C. $7,500. D. $3,750. E. $15,000.
A discounted note represents a contingent liability to the original holder
Indicate whether the statement is true or false
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a. on the income statement, only. b. on the balance sheet, only. c. on both the income statement and the balance sheet. d. by a footnote to the financial statements. e. in managements' discussion and analysis.
The corporation can recover any profits made by unapproved competition by a director
Indicate whether the statement is true or false