Hartman, who worked for Aratize Inc for 25 years, decides to retire. Upon hearing the news of his retirement, the president of Aratize announces a bonus of $250,000 to Hartman for his exceptional services toward Aratize thus far
But upon retiring, Hartman isn't paid the bonus. Hartman decides to sue the president and Aratize to recover the promised bonus. Which of the following is true in this case?
A) It will be enforceable in court because it is a gift promise.
B) It will not be enforceable in court because of past consideration.
C) It will not be enforceable because the president is not authorized to make such a promise.
D) It will not be enforceable because it is an unlawful consideration.
B
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As a result of analytical procedures conducted during the planning phase, the independent auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. The auditor should:
A. Express an opinion that is qualified due to the inability of the company to continue as a going concern. B. Consider the possibility of an error in the financial statements. C. Evaluate management's performance in causing this decline. D. Require footnote disclosure.
Which of the following is NOT an accurate description of modern marketing?
A) Marketing is the creation of value for customers. B) Marketing involves managing profitable customer relationships. C) Marketing emphasizes selling and advertising exclusively. D) Marketing involves satisfying customers' needs. E) Marketing is building value-laden exchange relationships with customers.
The five work organization system levels included in MBIE include all but the following levels:
a. Higher management b. Supervisor c. Organization d. National
[The following information applies to the questions displayed below.]On January 1, Year 1, Hanover Corporation issued bonds with a $70,500 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year.The journal entry used to record the interest payment on December 31, Year 2 would be:
A.
| Discount on Bonds Payable | 423 | |
| Cash | 423 |
B.
| Interest expense | 6,063 | |
| Discount on Bonds Payable | 423 | |
| Cash | 5,640 |
C.
| Interest expense | 5,640 | |
| Discount on Bonds Payable | 423 | |
| Cash | 5,217 |
D.
| Interest expense | 423 | |
| Cash | 423 |