A letter written by a company's bank to the company's foreign supplier, stating that the bank will guarantee payment of an invoiced amount if all the underlying agreements are met is called ________.
A) a letter of invoice
B) a letter of intent
C) a letter of credit
D) commercial paper
C) a letter of credit
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The allocation of net income and its impact on partners' equity balances should be disclosed on the
a. income statement. b. balance sheet. c. statement of partners' equity. d. work sheet.
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 2018:The service cost was $750,000 during 2018 and $1,125,000 during 2019. The contribution to the pension plan was $600,000 on December 31, 2018 and $1,200,000 on December 31, 2019. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 2018 were not granted to the employees. What is the balance of the projected benefit obligation as of December 31, 2019?
A. $1,200,000 B. $2,062,500 C. $1,950,000 D. $1,875,000
As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle.
Answer the following statement true (T) or false (F)
A donor made an unconditional pledge in 2016 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2017 for unrestricted use in 2017. The organization should:
A. record the pledge as unrestricted revenue in 2016. B. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017. C. record the pledge receivable and deferred revenue in 2016. D. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017, but only in an amount equivalent to the amount that is spent in 2017.