On November 1, Jovel Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
A) $0.
B) $6,000.
C) $5,000.
D) $16,667.
E) $1,000.
E) $1,000.
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Audit trails cannot be used to
a. detect unauthorized access to systems b. facilitate reconstruction of events c. reduce the need for other forms of security d. promote personal accountability
A company has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management?
A) The liability should be estimated and recorded as an expense. B) The situation should be described in a note to the financial statements. C) The possible liability should be ignored. D) Management should consider resigning.
The organic food sold by Bryant and Anne is of good quality. Also, it is tasty and has long-term health benefits. This information indicates that the organic food sold by Bryant and Anne would fall into the category of ________ products
A) salutary B) mature C) deficient D) desirable E) pleasing
Labor unions are organizations that represent employees in the collective bargaining process with employers over ______.
a. wages, benefits, and working conditions b. wages and benefits but not working conditions c. working conditions but not wages and benefits d. working conditions and wages but not benefits