Use the following descriptive phrases to determine the account name that would be used for each. In addition, classify the account as an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E)
a. Amount due to creditor for merchandise purchased
b. Coins and currency
c. Property to be used in the business
d. An amount paid to stockholders resulting from profits
e. Income recorded for performance of legal services
f. Amount due to bank for loan to purchase building
g. Stationery, pencils, etc., purchased but not yet used
h. Stationery, pencils, etc., that have been consumed (used)
i. An insurance premium paid covering the next two years
j. Representation of stockholders' investments in a business
a. Accounts Payable (L)
b. Cash (A)
c. Land (A)
d. Dividends (SE)
e. Legal Fees Earned (R)
f. Mortgage Payable (L)
g. Office Supplies (A)
h. Office Supplies Expense (E)
i. Prepaid Insurance (A)
j. Common Stock (SE)
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If the nominal interest rate is 3 percent and the cost of going to the ATM is $1.50, someone who has a 12 percent probability of having his cash lost or stolen and has a total cost of holding cash equal to (547.50/T) + (0.375 ×T) spends ____ daily. Assume that the individual visits the ATM once in every T days.
A. $20 B. $15 C. $10 D. $5
Theories can grow when there is a deeper and more nuanced understanding of the original principles. This is known as ______.
A. induction B. deduction C. intension D. extension
Dirty surplus items in U.S. GAAP typically arise from all of the following except:
a. changes in investment security fair values b. foreign currency exchange rates c. interest rates d. realized gains
Variable costing is the only acceptable basis for both external reporting and tax reporting.
Answer the following statement true (T) or false (F)