Prospective adjustments are expected to
A) impact financial statements of only previous years.
B) impact financial statements of previous years and current years as if the accounting principle had always been used.
C) produce no impact on the financial statements of previous years.
D) impact the financial statements of the current year only.
C
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A hardware store is interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient, who like to work with their hands, or the ________ category
A) Believers B) Strivers C) Survivors D) Experiencers E) Makers
Which of the following is TRUE of Finished Goods Inventory?
A) Finished Goods Inventory is an account used by a manufacturer and includes completed goods that have not yet been sold. B) Finished Goods Inventory is an account used by a merchandiser and includes completed goods that have not yet been sold. C) Finished Goods Inventory is an account used by service companies in lieu of raw materials inventory. D) Finished Goods Inventory is an account used by a manufacturer in lieu of raw materials inventory.
May Retailers purchased merchandise with a list price of $100,000, subject to a trade discount of 20 percent and credit terms of 2/10, n/30 . At what amount should May record the cost of this merchandise if the gross method is used?
a. $100,000 b. $78,400 c. $98,000 d. $80,000