Describe the nature and purpose of the three major financial statements.
What will be an ideal response?
The balance sheet shows the financial position (in terms of assets, liabilities, and owners’ equity) as of a given point/date in time. The firm’s ability to pay its debts and remain solvent can be determined through close analysis of the balance sheet. The income statement shows the result of operations (in terms of revenues and expenses) over a given period of time (a week, month, year). The income statement measures profitability of the company and arrives at the bottom line. The statement of cash flows measures the flow of cash into and out of a business during a given period of time. The statement of cash flows allows managers to see the results of their previous decisions in order to make more effective future decisions.
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Which of the following statements regarding larceny is NOT true?
a. Larceny is easier to detect than skimming and is less common. b. Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system. c. Smaller occurrences of larceny are often written off as "shorts" or "miscounts." d. Perpetrators of larcenies must have direct access to inventory or other assets.
A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)
A) $4230 B) $1058 C) $1548 D) $3318
In general, calculating ROI based on the gross book value of assets gives managers an incentive to continue using old, outdated equipment
Indicate whether the statement is true or false
If an employer fails to train an employee, knowing that he is without necessary skills and may injure others, and someone is injured, that person states a claim for:
a. negligent hiring b. negligent background check c. negligent training d. none of these