Bad debts are recognized according to which of the following expense recognition principles?
a. Immediate recognition
b. Direct matching
c. Systematic and rational allocation
d. Critical event recognition
B
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A merger of Parker Corporation with Jones Corporation that results in only Parker Corporation surviving normally would require approval of:
A) Parker's and Jones's boards. B) Parker's shareholders. C) Jones's shareholders. D) All of these.
Which of the following is false about condominiums?
A) Association dues are required. B) An individual owner must mow the grass or make any repairs to the common areas when needed. C) They share common areas such as a pool, tennis court, and club house. D) They combine funds for maintenance.
X Corp dumps run-off from its parking lots and storage lots around its candy factory into the Seneca River. The citizens of Henderson, located on the river downstream, wish to stop the discharge. The common law rule under which the citizens are most likely to be successful is:
a. private nuisance b. public nuisance c. negligence d. invasion of privacy e. fraud
Answer the following statements true (T) or false (F)
1. A known obligation of an uncertain amount that can at least be reasonably estimated is reported as an estimated liability. 2. Accrued vacation benefits are a form of estimated liability for an employer. 3. A liability is incurred when income is earned because income tax expense is created by earning income. 4. A corporation has a $40,000 credit balance in the Income Tax Payable account. Period end information shows that the actual liability is $47,000. The company should record an entry to debit Income Tax Expense for $7,000 and credit Income Taxes Payable for $7,000. 5. Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.