Hoff Company uses the allowance method. An account that had been previously written-off as uncollectible was recovered. How do the two parts of the recovery (reinstate receivable and collect the receivable) affect the elements of the financial statements when the two parts are considered together?
A. Has no effect on total assets, total liabilities or stockholders' equity
B. Increase total assets and decrease total liabilities
C. Increase total assets and stockholders' equity
D. Decrease total liabilities and increase stockholders' equity
Answer: A
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Which of the following is an example of a mission statement?
A. "to create a world where the family farm is valued over the large-scale production of agribusiness" B. "to become a beacon of hope for those suffering from mental hardship" C. "to make education accessible to everyone in the world" D. "to engage in business practices that are not only legal but also ethical" E. "to offer the lowest prices on new hardcover books, anywhere in the world"
Which of the following statements is true of essay appraisals?
A. They provide an opportunity to describe aspects of performance that are not thoroughly covered by an appraisal questionnaire. B. They involve selecting statements from a list that best describe an employee's characteristics and ranking these statements. C. They are unaffected by the quality of the writing skills of a supervisor. D. They are the most popular method of performance appraisal.
Which of the following related party transactions need to most carefully examined for fraud?
a. Transactions that generate operating income b. All transactions that appear anywhere within the company c. Absence of loans or other financing transactions between related entities d. Transactions that result in goodwill being recognized in the financial statements
The marketing budget will depend on a number of factors such as the size of the business, time the venture has been operating, type of business, and resources available.
Answer the following statement true (T) or false (F)