Failure to record a liability probably will
a. result in an overstated net income.
b. result in overstated total liabilities and stockholders' equity.
c. have no effect on net income.
d. result in overstated total assets.
A
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A contract adds distinct goods and services and the contract price does not reflect the stand-alone selling price of these goods and services. How is the contract modification accounted for?
A) as a separate contract B) prospective method C) retrospective method D) cumulative catch-up method.
A chartered financial analyst would probably have the most interest in which of the following ratios?
a. Times interest earned b. Earning per share c. Return on equity after tax d. Price/earnings ratio
In calculating the accounting rate of return using the straight-line method of depreciation, the annual average investment is calculated as (beginning book value + ending book value)/2.
Answer the following statement true (T) or false (F)
Corporate managers work for the owners of the corporation. Consequently, they should make decisions that are in the best interests of the owners, rather than in their self-interests
What strategies are available to shareholders to help ensure that managers are motivated to make decisions in the interest of shareholders?