In the accounting records of a defendant, lawsuits:
A. Should never be recorded.
B. Should always be disclosed.
C. Should be recorded if payment for damages is probable and the amount can be reasonably estimated.
D. Are known liabilities.
E. Should always be recorded.
Answer: C
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As the world grows smaller economically and technology increases, the chances of having contact on the job with people from other cultures decreases.
Answer the following statement true (T) or false (F)
Column totals are called footings
Indicate whether the statement is true or false
Which of the following would decrease variable costs?
a. Reduction in rent expense b. Reduction in research expenditure c. Reduction in salaries of administrative department d. Reduction in wages paid as direct labor
Weston Company had the following stock investments with insignificant influence in its portfolio at December 31, Year 1. Weston had several investment transactions during year 2.(1) Determine the amount Weston should report on its December 31, Year 1 balance sheet for its stock investments.(2) Determine the amount Weston should report on its December 31, Year 2 balance sheet for its stock investments.(3) Prepare the necessary adjusting entry to record the fair value adjustment at December 31, Year 2.Stock InvestmentsCostFair Value40,000 shares of Beach common stock$ 497,500$ 488,90015,000 shares of Danfield common stock410,200412,60018,000 shares of Cardinal common stock399,600382,500Jan. 22Sold 9,000 shares of Cardinal common stock for $202,150. Nov. 01Purchased 12,000 shares of Cliff
common stock for $223,950. The shares represent a 10% ownership.Dec. 31At December 31, Year 2, the fair values of its investments are: Beach, $502,500; Danfield, $411,800; Cardinal, $203,100; Cliff, $224,750. What will be an ideal response?