At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a)
the income statement for April and (b) the balance sheet as of April 30 . Also indicate whether the items in error will be overstated or understated.
(a) Rent revenue (or revenues) will be understated. Net income will be understated.
(b) Shareholders' equity at the end of the period will be understated. Unearned rent (or liabilities) will be overstated.
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Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable costing, ________.
A) its operating income for the period will be higher than under absorption costing B) its operating income for the period will be lower than under absorption costing C) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing D) its operating income will be the same as under absorption costing
Temporary investments are reported on the balance sheet at cost
Indicate whether the statement is true or false
Which of the following would most likely be classified as a current liability?
A) Two-year notes payable B) Bonds payable C) Mortgage payable D) Portion of long-term debt due within one year
In Japan, person-based factors (seniority, ability, and performance) carry important weight in setting base pay.
Answer the following statement true (T) or false (F)