What does it mean for a firm to reverse a portion of a previously accrued charge, such as the expense creating a warranty liability or a restructuring liability? What is the effect of a reversal on the firm's income statement, balance sheet, and statement of cash flows in the period of the reversal?
A reversal implies that the previously accrued charge turned out to be too
high, in light of the new information (including realized expenditures).
Because the reversal lowers the amount of expense reported in the current
period, it increases income.
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A member's distributional interest in an LLC is ________ and may be transferred in whole or in part.
A. a vote B. a proxy C. personal property D. an authority in management
Ping attacks flood the network with bogus communication traffic
Indicate whether the statement is true or false
The board of directors of Midwest Foods has declared a dividend of $3,500,000. The company has 300,000 shares of preferred stock that pay $2.85 per share and 2,500,000 shares of common stock. After finding the amount of dividends due the preferred shareholders, calculate the dividend per share of common stock
A) $1.06 B) $1.57 C) $13.50 D) $4.50
Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures greater than $1,000 (1% of total expenditures) have to be capitalized; less than $1,000 expensed. Steve is under pressure to report high earnings. He takes one $600 and $900 expenditure, adds them together, and records a capital expenditure for $1,500. Which of the following reasons and rationalizations might Steve use for his action:
A. One-time request B. Standard Practice C. Representational faithfulness D. Materiality