Prior period adjustments? ________.
A) always increase the beginning balance of retained earnings
B) are shown on the statement of retained earnings as corrections to the beginning balance
C) can be ignored because the financial statements have already been issued
D) must be recorded in the period in which the error occurred
Answer: B) Are shown on the statement of retained earnings as corrections to the beginning balance
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Which of the following solvency ratios is the best measure of a company's ability to pay interest and maturing principal amounts on its long-term debt?
a. Debt-to-equity ratio b. Times interest earned ratio c. Debt service coverage ratio d. Earnings per share
Classic Autos specializes in selling gently used specialty sports cars and uses the specific identification method of determining ending inventory and cost of goods sold. Item 507K was sold for $90,000. Classic purchased the sports car for $51,000 and paid $1,300 for freight in and $1,400 for freight out. What is the cost of goods sold?
A) $37,700 B) $52,300 C) $52,400 D) $51,000
When introduced to the prospect, Jason said, "I'll have to admit that I am new to selling landscape equipment, but I do want to learn as much as I can. What do you think is the most important tool for a professional landscaper to own?" Jason was using the ________ approach.
A. FAB B. opinion C. curiosity D. customer knowledge E. low-profile
Cereals with high sugar and low nutritional values comprised ____% of the food advertising viewed by children in 2007.
a. 5% b. 17% c. 55% d. 92.3%