An error is considered material if it would trigger an IRS audit.

Answer the following statement true (T) or false (F)


False

An error is considered material if it would influence the opinion of the average prudent investor.

Business

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If $110,000 of 12 percent bonds are issued (at face value) one month after the last semi-annual interest date, the entry made to record the issue is:

a. Cash 111,100 Bonds Payable 110,000 Bond Interest Expense 1,100 b. Cash 111,100 Bonds Payable 111,100 c. Cash 105,600 Bond Interest Expense 5,500 Bonds Payable 111,100 d. Cash 115,500 Bonds Payable 110,000 Bond Interest Expense 5,500

Business

On January 1 . 2013 . Pastel Colors Corporation purchased drilling equipment for $11,500 . The equipment has an estimated useful life of four years and a salvage value of $200 . Assuming that Pastel Colors uses the straight-line method of depreciation, if it trades the equipment for new equipment with a list price of $15,500 on December 31 . 2014, and pays $4,050 in the exchange, assuming the

exchange lacks commercial substance, the new equipment should be recorded at a. $15,500. b. $11,450. c. $9,850. d. $9,900.

Business

Inventory cycle time is the time it takes to manufacture a product and deliver it to the retailer.

Answer the following statement true (T) or false (F)

Business

Although domestic firms face political risk, we tend to think the stakes are much higher with foreign operations

Indicate whether the statement is true or false.

Business