Describe what is meant by prepaid expenses and give two examples.

What will be an ideal response?


Prepaid expenses are outflows of resources that create benefits that will last beyond the current reporting period. Examples include supplies or rent paid in advance of use.

Business

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What is the effect on net income if a company fails to record a purchase in transit (FOB shipping point) and also fails to include the purchase in physical inventory?

A) Income is overstated. B) Income is understated. C) Income is correct. D) Not enough information is provided to determine the answer.

Business

The ________ sales presentation method is most appropriate when information needs to be gathered from the prospect, as is often the case in selling industrial products.

A. formula B. stimulus-response C. canned D. need-satisfaction E. persuasive

Business

The statute of frauds applies only to executory contracts

Indicate whether the statement is true or false

Business

Loyalty is defined as an active, constructive response to a negative work event in which individuals attempt to improve the situation.

Answer the following statement true (T) or false (F)

Business