For the year ending June 30, 2010, Island Clinical Services mistakenly omitted adjusting entries for $1,200 of supplies that were used, (2 ) unearned revenue of $6,000 that was earned, and (3 ) insurance of $5,000 that expired. What is the combined effect of these errors on (a) revenues, (b) expenses, and (c) net income for the year ended June 30, 2010?
(a) Revenues were understated by $6,000.
(b) Expenses were understated by $6,200 ($1,200 + 5,000).
(c) Net Income was overstated by $200 ($6,200 - 6,000).
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The workshop where Randy works has a sign that says “Employees cannot have weapons on company premises.” Which of the following types of plans is this statement?
a. policy b. procedure c. rule d. program
The number of times interest charges are earned is computed as:
A) net income plus interest charges, divided by interest charges. B) income before income tax plus interest charges, divided by interest charges. C) net income divided by interest charges. D) income before income tax divided by interest charges.
In 2007-2008, more than 12,000 members of the Writers Guild of America went out on strike after contract negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) came to impasse. The strike started in November, 2007 and concluded in February, 2008 and, by some estimates, cost the industry around $2 billion. Given the expense of the strike to the industry and lost income to the writers, what other alternatives might the writers have considered in their quest to pressure the AMPTP to make concessions? Why do you think the Writers Guild decided to strike instead of pursuing these less costly alternatives?
What will be an ideal response?
A manager weighs three options for capacity cushion as depicted in Figure 4.1. If the dollar amounts expressed in the figure are costs, what is the optimal decision?
A) large cushion B) medium cushion C) small cushion D) Not enough information is given to select an option.