Undistributed stock dividends should be reported as
a. a current liability.
b. an addition to capital stock outstanding.
c. a reduction in total stockholders' equity.
d. a note to the financial statements.
B
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Which of the following relatively small misstatements most likely would have a material effect on an entity's financial statements?
A. A piece of obsolete office equipment that was not retired. B. A petty cash fund disbursement that was not properly authorized. C. An uncollectible account receivable that was not written off. D. An illegal payment to a foreign official that was not recorded.
Karen, a software engineer, finds out that some of the laptops that his colleagues are using for software testing have been infected by a type of virus that has slowed down their work to a large extent. Karen writes a report with a solution to the problem and presents it to her manager. This type of report is an example of a(n) _____.
A. justification report B. letter report C. external proposal D. unsolicited proposal
Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income StatementMaterials cost ($10 per unit)Depreciation on manufacturing equipmentCompany president's salarySalaries of administrative personnelLabor cost ($4 per unit)Research and development costsAdvertising costs (150,000 per year)Real estate taxes on factoryShipping and handling ($0.15 per unit)Inspection costsEaston can currently purchase the scooters it makes from another company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. Which of the following costs would be classified as a facility-level cost?
A. Materials cost B. Inspection costs C. Shipping and handling D. Company president's salary
Jenny, an employee of Toucan Company, used company assets for her own personal gain. This is an example of:
A. employment perks. B. fraud. C. internal control. D. employee advance. E. ethics.