Monro Inc. uses the accrual method of accounting. Here is a reconciliation of Monro's allowance for bad debts for the current year.Beginning allowance for bad debts?$ 61,150??Actual write-offs of accounts receivable during the year?(80,000)?Addition to allowance? 88,500??Ending allowance for bad debts?$ 69,650??Because of the difference between the GAAP and the tax rules for accounting for bad debts, Monro Inc. has an:
A. $8,500 permanent excess of taxable income over book income.
B. $8,500 temporary excess of taxable income over book income.
C. $8,500 temporary excess of book income over taxable income.
D. $8,500 permanent excess of book income over taxable income.
Answer: B
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Bruce lived in Tennessee and had an appliance store in Tennessee. Bruce's residence and the appliance store, however, were within twenty miles of the Virginia state line. Bruce advertised heavily in both Tennessee and Virginia. Susan, one of his customers from Virginia, had an unfortunate experience with a refrigerator purchased from Bruce in that the refrigerator caught on fire and burned down
Susan's house which was worth $200,000 . Susan obtained proof that the refrigerator had actually been returned to Bruce because it malfunctioned and that, rather than repair the refrigerator and sell it as used, Bruce sold the refrigerator to her as new without repairs. Susan sued Bruce in federal district court in Virginia on a number of theories. Bruce opposed the lawsuit on the basis that it could only be filed in a state court and also on the basis that he was not subject to jurisdiction in Virginia. Which of the following is the most likely result in regard to Bruce's claim that the lawsuit could only be appropriately filed in a state court? a. The court would likely rule that federal court jurisdiction failed to exist because the parties were not all residents of the same state. b. The court would likely rule that federal court jurisdiction failed to exist because the amount in controversy was excessive.. c. The court would likely rule that federal court jurisdiction existed based on the presence of a consumer complaint. d. The court would likely rule that federal court jurisdiction existed based on diversity of citizenship.
A firm may introduce or withdraw a product during any stage of the product life cycle.
Answer the following statement true (T) or false (F)
Great State Bank loans money to Seth, securing the loan with property owned by Seth. Great State Bank is advised by its attorney to file a financing statement. Great State Bank doesn't understand why it should spend the extra money for this filing, since Seth has told them that he has no other creditors. Why should Great State Bank file a financing statement?
A) There are criminal penalties for failing to file. B) The financing statement allows Great State Bank to repossess the collateral on default without a court order. C) The financing statement will protect Great State's priority rights with other creditors by giving notice to other creditors that it claims a security interest in the collateral. D) Filing the financing statement is necessary to complete the attachment requirement in order to create a security interest.
The process of transferring data from a journal to a ledger is known as ________.
Fill in the blank(s) with the appropriate word(s).