The rate of return on common stockholders' equity shows how much income is earned for each $1 of total stockholders' equity

Indicate whether the statement is true or false


FALSE

Business

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Most established companies focus on incremental innovation rather than radical innovation

Indicate whether the statement is true or false

Business

Gunner Construction, Inc has consistently used the percentage-of-completion method of recognizing revenue. During 2014, Gunner started work on a $2,500,000 fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31 . 2014: Costs incurred ........................................ $ 465,000 Estimated cost to complete

............................ 2,085,000 Progress billings ..................................... 550,000 Collections ........................................... 350,000 How much loss should Gunner have recognized in 2014? a. $15,000 b. $35,000 c. $50,000 d. $315,000

Business

On January 1, 2017, Ahrens Services issued $169,000 of six-year, 12% bonds when the market interest rate was 11%

The bonds were issued for $172,000. Ahrens uses the effective-interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round your answers to the nearest dollar number.) A) Interest Expense 9,295 Cash 9,295 B) Interest Expense 9,295 Discount on Bonds Payable 845 Cash 10,140 C) Interest Expense 9,460 Premium on Bonds Payable 680 Cash 10,140 D) Cash 10,140 Premium on Bonds Payable 845 Interest Expense 9,295

Business

Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?

A. Full disclosure. B. Expense recognition (matching). C. Evaluation. D. Relevance. E. Materiality.

Business