The practice of ____________________ states that when in doubt, choose the reporting technique that is least likely to overstate assets or net income
Fill in the blank(s) with correct word
conservatism
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A firm is required to estimate a liability for repairs for products sold with a warranty. If the firm's accountants later find that the estimated amount for repairs has been overstated, the correct accounting procedure is to
a. make an adjusting entry to reduce the amount of estimate. b. make a correcting entry because the overstatement is an error. c. show the amount of overstatement on the income statement as a loss. d. do nothing for the year in question and modify the next year's estimate.
The Uniform Guidelines on Employee Selection Procedures define the concept of “tests for employment” that are used in either the ______ process or other employment actions.
A. selection B. simulation C. validity D. reliability
A process cost accounting system accumulates costs for each of the departments or processes within the factory
Indicate whether the statement is true or false
Buckley Corporation's most recent comparative balance sheet appears below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$19 $20 Accounts receivable 26 27 Inventory 56 51 Property, plant, and equipment 686 550 Less accumulated depreciation 430 363 Total assets$ 357 $ 285 Liabilities and stockholders' equity: Accounts payable$30 $34 Bonds payable 43 40 Common stock 54 50 Retained earnings 230 161 Total liabilities and stockholders' equity$ 357 $ 285 The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own
common stock.The free cash flow for the year was: A. $128 B. $308 C. $14 D. $(8)