Which of the following is not among the ways discussed in the text to understate accounts payable?
a. Make it appear as if liabilities have been paid off when they have not.
b. Overstate purchase returns.
c. Understate purchase discounts.
d. Not record purchases.
c
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On January 1, Jewel Company buys $177,000 of Marcelo Corp. 8%, 36-month notes. Interest is paid on the last day of each month. The notes are classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On December 31, the notes have a fair value of $180,800. The journal entry to record the receipt of the monthly interest on January 31 is:
A. Debit Cash $1180; credit Debt Investments-AFS $1180. B. Debit Cash $1180; credit Interest Revenue $1180. C. Debit Cash $1180; credit Fair Value Adjustment-AFS (ST) $1180. D. Debit Cash $14,160; credit Debt Investments-AFS $14,160. E. Debit Cash $1180; credit Fair Value Adjustment-AFS (LT) $1180.
The primary reason for offering customers credit is to
A) increase the predictability of cash flows. B) stimulate sales. C) smooth billing cycles. D) reduce the risk of nonpayment. E) speed cash flows.
Answer the following statement(s) true (T) or false (F)
Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.