When a company receives interest revenue on a long-term investment in bonds, ________.
A) long-term assets decrease
B) long-term assets increase
C) equity increases
D) current assets decrease
C) equity increases
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Multiple internal control deficiencies in the same cycle may actually decrease the likelihood of misstatement in that cycle
a. True b. False Indicate whether the statement is true or false
Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & PaidYear 1$0Year 2$6,000Year 3$32,000The amount of dividends paid to preferred and common shareholders in Year 2 is:
A. $4,200 preferred; $1,800 common. B. $3,500 preferred; $2,500 common. C. $6,000 preferred; $0 common. D. $0 preferred; $6,000 common. E. $3,000 preferred; $3,000 common.
MacKenzie Company sold $340 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:
A. Debit Cash $331.50 and credit Sales $331.50. B. Debit Accounts Receivable $340 and credit Sales $340. C. Debit Cash of $340 and credit Accounts Receivable $340. D. Debit Cash of $340 and credit Sales $340. E. Debit Cash $331.50; debit Credit Card Expense $8.50 and credit Sales $340.
Johnson entered into a contract to sell his computer to Madison for $950 . Johnson then changed his mind and refused to deliver the computer to Madison as agreed. Johnson's failure to deliver the computer is considered to be
a. an acceptance. b. a breach of contract. c. a quasi agreement. d. a performed contract.