Creighton, Inc determined that it had incorrectly estimated both the useful life and the estimated residual value of equipment which it purchased 2 years ago. When accounting for the change in its accounting estimates, Creighton must
a. correct the financial statements of prior years affected by the errors in the estimates.
b. determine the book value at the point of change and depreciate that amount over the remaining useful life.
c. add the amount of the error to the amount of the current year's depreciation expense.
d. determine the effect of the error and report it as a loss on the income statement in Other Revenues and Expenses.
b
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For work done during June, Prints Company incurred direct materials costs of $150,000 and conversion costs of $225,000. The company employs a traditional operating philosophy. At the end of August, it was determined that the Work in Process Inventory account had been assigned $2,000 of costs, and the ending balance of the Finished Goods Inventory account was $5,000. There were no beginning
inventory balances. Using the information provided for Prints Company, how much was charged to the Cost of Goods Sold account during June? A) $378,000 B) $380,000 C) $375,000 D) $368,000
Assumption of the risk is a defense a defendant can use against a plaintiff who knowingly and voluntarily participates in a risky activity that results in injury.
Answer the following statement true (T) or false (F)
Which of the following is NOT a dimension of the job characteristics model?
A. Skill variety B. Task identity C. Feedback D. Task significance E. Dependence
Carmen, Westbrook, and Ashton are concurrent owners of a large commercial building. Ashton executes a will that leaves all his property to his son in the event of his death
But after Ashton's death, his ownership interest in the building was acquired by the remaining two tenants of the building. Which of the following kinds of concurrent ownership would allow such a passage of title? A) a tenancy by entirety B) a community property C) a joint tenancy D) a tenancy in common