On November 15, Great Designs Company purchased an advertising campaign for the month of December. Great Designs paid cash of $2,700 in advance. The advertising campaign ran in December and was completed on December 31. (a) Prepare all necessary journal entries for the advertising campaign for November and December. (b) Explain why you prepared this/these journal entries
(a) Nov. 15 Prepaid Advertising 2,700
Cash 2,700
Dec. 31 Advertising Expense 2,700
Prepaid Advertising 2,700
(b) Under the matching concept, the expense should be recorded in the month of December when the advertising campaign ran, even though the cash was paid in November. Thus, the November journal entry creates an asset, prepaid advertising. The December 31 entry recognizes the advertising expense in December and eliminates the prepaid asset.
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With respect to Capital Projects Funds, which of the following is correct?
A. Capital assets appear in both the government-wide and the fund basis financial statements. B. Neither these funds commonly account for resources provided by long-term debt issues or dedicated taxes; or Capital assets appear in both the government-wide and the fund basis financial statements is correct. C. These funds commonly account for resources provided by long-term debt issues or dedicated taxes. D. These funds commonly account for resources provided by long-term debt issues or dedicated taxes; and Capital assets appear in both the government-wide and the fund basis financial statements.
Building commitment to high-performance work systems is
A. an ongoing activity. B. always costly. C. never based on technology. D. always competitive.
Which of the following would most likely fall under the scope of only an operations manager?
A) research and development B) new product plans C) capital investments D) facility location/capacity E) setting inventory levels
A person who is sued for damages because of alleged negligence may successfully defend herself/himself by proving
a. the plaintiff voluntarily assumed the risk. b. there was no proof of actual causation. c. the injury was not foreseeable by a reasonable person under the circumstances of the case. d. any or all of the above