Which of the following practices would not be considered ethical?
A. Adjusting the accounts after a trial balance has been prepared.
B. Recording 31 days of sales in April.
C. Failing to record an expense even though cash has been paid.
D. Using the cash basis of accounting.
Answer: B
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Which of the following is not true?
a. Accrual accounting measures the effects of transactions and events in the periods when they occur. b. Cash-basis accounting recognizes only cash receipts and disbursements. c. Under accrual accounting, firms recognize revenues when an arrangement satisfies the revenue recognition criteria, increasing net assets but not necessarily cash at the time of revenue recognition. d. Under accrual accounting, firms recognize expenses when an arrangement satisfies the expense recognition criteria, decreasing net assets but not necessarily cash at the time of expense recognition. e. Accrual accounting often uses the amount of cash received or paid in some period to measure the amount of revenues and expenses recognized during the current period, and the timing of revenue and expense recognition coincides with the timing of cash receipts and disbursements.
Advertisements that focus on selling a product or service and which can take three forms - pioneering (or informational), competitive (or persuasive), and reminder - are referred to as
A. cooperative advertisements. B. persuasive advertisements. C. service advertisements. D. institutional advertisements. E. product advertisements.
Financial ratios cannot be used to evaluate the creation of shareholder wealth because they are
based on accounting numbers that reflect historical cost and not current market values. Indicate whether the statement is true or false
Which of the following accurately represents referral programs used by online companies?
A. They always easily target customers with price resistance. B. They can offer compensation to the customer who recommends, but not to the new customer. C. They are high-cost. D. They are simple to use. E. They cannot experiment with various compensation plans.