In periods of inflation, the purchasing power of money declines.
Answer the following statement true (T) or false (F)
True
Purchasing power is a measure of the amount of goods and services that can be purchased for a specific amount of money. When inflation occurs, the general level of prices for products increases, thus reducing the purchasing power of money.
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Which of the following would not appear on a multiple-step budgeted income statement for a manufacturer?
A) gross profit B) income tax expense C) operating income D) salaries payable
Expenses can be matched against revenues:
A) if the earnings process is not complete. B) when cash is collected from the sale of products. C) in the same period as the revenue that it helped to generate. D) when payment is made for costs related to revenue.
Answer the following statements true (T) or false (F)
1. The WTO is a specialized agency for the United Nations focused on the promotion of social justice and internationally-recognized human and labor rights. 2. The WTO provides a forum for negotiating and enforcing global trade agreements between participating countries. 3. For signatory countries to the WTO, quotas limiting imports are considered a trade barrier and therefore should be minimized or eliminated. 4. If a signatory country to the WTO wants to pass a law to establish higher product standards for a particular import, it must be able to produce scientific evidence supporting the need for these standards. 5. Fair trade and free trade are basically the same concepts.
Annie's Catering received $1200 cash from a customer for catering services to be provided next month. Given the choices below, determine the general journal entry that Annie's Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
A.
| Accounts Receivable | 1200? | |
| Catering Revenue | 1200? |
B.
| Cash | 1200? | |
| Catering Revenue | 1200? |
C.
| Cash | 1200? | |
| Unearned Catering Revenue | 1200? |
D.
| Unearned Catering Revenue | 1200? | |
| Catering Revenue | 1200? |
E.
| Cash | 1200? | |
| Accounts Receivable | 1200? |