Recording an adjusting journal entry to recognize depreciation would cause which of the following?
A. An increase in liabilities, an increase in expenses, and a decrease in stockholders' equity.
B. An increase in assets, an increase in liabilities, and a decrease in expenses.
C. A decrease in assets, an increase in liabilities, and an increase in expenses.
D. A decrease in assets, a decrease in stockholders' equity, and an increase in expenses.
Answer: D
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When a direct cause-and-effect relationship cannot be established between revenues and costs, the costs are
A) not expensed and remain as assets on the balance sheet. B) expensed among the accounting periods that benefit from the costs. C) expensed immediately in their entirety. D) expensed equally each year.
A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code
a. True b. False Indicate whether the statement is true or false
ABC operates a factory in the United Kingdom. Because the company’s existing factory doesn’t have the capacity to meet the future demands, it is considering various options. Consider the payoff matrix that shows the payoff for each combination of decision and state of nature. Determine the best alternative using the maximax criterion.
a. Expand current facility.
b. Build small factory.
c. Build large factory.
d. Determine a new alternative.
Sleeprite Mattresses Inc. wants to become the largest and most profitable mattress supplier in a three-state area. To do this, Sleeprite should try to create the smallest possible difference between the value that its mattresses create and the expense that the company must spend to produce the mattresses.
Answer the following statement true (T) or false (F)