A change in a reporting entity is accounted for by a prospective adjustment so that all financial statements are presented for the same entity
Indicate whether the statement is true or false
False
You might also like to view...
Outsourcing strategies ________.
A. are nearly always a more attractive strategic option than merger and acquisition strategies. B. carry the substantial risk of raising a company's costs. C. carry the substantial risk of making a company overly dependent on its suppliers. D. increase a company's risk exposure to changing technology and/or changing buyer preferences. E. involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.
Mark the correct answer. In cash basis accounting, for tax purposes:
a. Income is recognized when it is actually or constructively received and expenses are recognized when they are actually or constructively incurred, regardless of when paid. b. Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred. c. Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid. d. The cash basis is not allowed for businesses reported on Schedule C.
__________ refer to the cognitive ability to see the organization as a whole system and the relationships among its parts.
Fill in the blank(s) with the appropriate word(s).
The Robbins Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $35,000 which cost $140,000 and had a book value of $45,000 at the time of sale. In recording the sale, the foundation should:
A. record a gain of $5,000. B. record a gain of $10,000. C. record a loss of $10,000. D. record a loss of $5,000.