If a company makes a prior period adjustment, which of the following describes how it must be reported?
A) The adjustment is recorded in retained earnings, and previous years' financial statements presented for comparative purposes are not changed.
B) The adjustment is recorded in retained earnings, and previous years' financial statements presented for comparative purposes are adjusted.
C) The adjustment is reported in the current period's income statement as a separate item.
D) The adjustment is recorded as a deferred asset or deferred liability and amortized using the straight-line method.
B
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The ability of a company to adapt its resources to create change and react to change is called
A) financial flexibility. B) return on investment . C) operating capability. D) risk .
A system that locates, extracts, and provides specific answers to user questions expressed in natural language best describes
A) automated question-answer. B) decision support system. C) knowledge location system. D) FAQ.
Goergen Corporation is considering a capital budgeting project that would require an initial investment of $700,000. The investment would generate annual cash inflows of $267,000 for the life of the project, which is 4 years. The company's discount rate is 10%. The net present value of the project is closest to:See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
A. $368,000 B. $846,123 C. $700,000 D. $146,123
Terry gives Brenda 1,000 shares of stock he had purchased several years ago for $5,000 . On the date of the gift, the stock has a fair market value of $4,000 . Brenda sells the 1,000 shares for $5,500 one month after the gift, Brenda realizes a
a. $- 0 - gain or loss b. $500 short-term capital gain c. $500 long-term capital gain d. $1,500 short-term capital gain e. $1,500 long-term capital gain