Accountants normally recognize revenue when cash is received
Indicate whether the statement is true or false
F
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On September 1, Bud's Painting Service borrows $150,000 from Highlands Bank on a 4- month, $150,000, 6% note. What entry must Bud's Painting Service make on December 31 before financial statements are prepared?
a. Interest Payable 3,000 Interest Expense 3,000 b. Interest Expense 9,000 Interest Payable 9,000 c. Interest Expense 3,000 Interest Payable 3,000 d. Interest Expense 3,000 Notes Payable 3,000
Safari Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown here:
Which of the following statements would be the most meaningful interpretation of this data?
A) The Boat Division's performance is better than that of the Trailer Division because it has higher assets.
B) The Boat Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment.
C) The Boat Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income.
D) The Boat Division is financially more successful than the Trailer Division because it shows an increase in assets.
Andy, a regional manager for an office supply retail company, must formally evaluate each one of his immediate employees every year. This process is known as
A. benchmarking. B. feedback interview. C. 360-degree feedback. D. discipline documentation. E. performance appraisal.
With which of the following methods of accounting for a business combination does a minority interest category not arise?
a. Pooling of interests b. The purchase method c. The new entity approach d. Proportionate consolidation