A company's accountant capitalized a payment that should have been recorded as a revenue expenditure. How will this error affect the company's financial statements?
A) Net income will be understated.
B) Expenses will be overstated.
C) Assets will be overstated.
D) Liabilities will be overstated.
C) Assets will be overstated.
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With reference to cosmetics and over-the-counter drugs, what should the plaintiff prove for the court to conclude that the defendant is guilty of negligent failure to warn?
What will be an ideal response?
Josh is conducting market research into consumer buying patterns. He observes people as they walk around the store and periodically stops to ask them questions. Josh is conducting ________ research.
Fill in the blank(s) with the appropriate word(s).
Authentic pride
a. is based on specific accomplishments that produce genuine feelings of self-worth b. can motivate leaders to be more altruistic c. is a “deadly sin” that encourages unethical behavior d. both “a” and “b”
Oregon Co. began operations on January 1, Year 1, by issuing $10,000 in common stock to the stockholders. On March 1, Year 1, Oregon received $36,000 cash in advance from a client for services and promised to perform those services for a one-year period beginning April 1, Year 1. During Year 1, services in the amount of $32,000 were provided to customers on account, and 80% of this amount was collected by year-end. During Year 1, operating expenses incurred on account were $24,000, and 60% of this amount was paid by year-end. During the year, Oregon paid $1,200 to purchase supplies. By year-end, $1,080 of the supplies had been used. Dividends to stockholders were $2,000 during the year. During Year 1, Oregon paid salaries of $28,000, and on December 31, Year 1, the company accrued
salaries of $2,800. Oregon recorded all appropriate adjusting entries at year end.Required:1) What would Oregon report for service revenue for Year 1?2) What would Oregon report for salaries expense for Year 1?3) What would Oregon report for supplies expense for Year 1?4) What would the amount be for net cash flows from operating activities for Year 1?5) What is the net income for Year 1?6) What would the balance in the retained earnings account be at December 31, Year 1? What will be an ideal response?