Your company contracted for a 30-second commercial (an advertisement) that aired during the Super Bowl at a cost of $1.2 million. It is legally obligated to pay for the commercial, but has not yet done so. How is your company's balance sheet affected on the day the commercial aired?
A. It increases both assets and liabilities by $1.2 million.
B. It increases liabilities and decreases stockholders' equity by $1.2 million each.
C. It increases assets and decreases stockholders' equity by $1.2 million each.
D. It does not affect the balance sheet.
Answer: B
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Rather than the image of a cigar-chomping, well-connected insider handing out stacks of cash in the halls of government, which of the following is a more accurate description of what lobbyist do?
A. Researching legislators' positions on issues B. Creating information to educate and persuade related to these issues C. Studying government, legislative process, public policy and public opinion D. Mobilizing like-minded folks "back home," referred to as "grassroots lobbying" E. All of the above
A company may recognize a revenue or expense without a corresponding cash collection or payment in the same accounting period.
Answer the following statement true (T) or false (F)
The Magnuson-Moss Warranty Act
a. abolishes the application of the UCC in consumer's sales transactions. b. applies only to implied warranties. c. created the term "Lemon Laws.". d. specifies what must be included in any warranty called a full warranty.
What is the value of "B"?
A) 6 B) 5 C) 3 D) 2