On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?
A) Monetary unit assumption.
B) Going-concern assumption.
C) Measurement (Cost) principle.
D) Business entity assumption.
E) Revenue recognition principle.
E) Revenue recognition principle.
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Explain why some critics worry that American multinationals are causing countries around the globe to lose their individual identities. Give an example of the "Americanizing" of the world's cultures
What will be an ideal response?
Which of the following is true regarding SIC 12, "Consolidation--Special Purpose Entities", and FIN 46R, "Consolidation of Variable Interest Entities"?
a. Both pronouncements show evidence of being a principles-based standard. b. Both pronouncements state that the substance of the relationship between an entity and the variable-interest or special-purpose entity is the determining factor in deciding to consolidate a variable-interest or special-purpose entity. c. Both pronouncements state that the entity expected to bear the majority of the expected gains or losses of the variable-interest or special-purpose entity should consolidate the variable-interest or special-purpose entity. d. Both pronouncements state that technical voting control of an SPE is the determining factor in deciding to consolidate a variable-interest or special-interest entity.
By providing trade allowances and discounts, manufacturers can eliminate inventories to make
room for a new product. Indicate whether the statement is true or false
Charger Company's most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is (rounded to two decimals):
A. 1.25 B. 0.56 C. 1.80 D. 0.44 E. 0.80