Seldon Industries amortizes its copyright of $65,000 over 40 years. Ms. Alice, the bookkeeper, mistakenly recorded the amortization twice in the current year. The effect of this mistake causes:
A. retained earnings to be overstated.
B. liabilities to be understated.
C. assets to be understated.
D. cash to be overstated.
Answer: C
You might also like to view...
In a nonconsumer transaction, a holder in due course takes the instrument free from:
a. only personal claims. b. all defenses of any party with whom he has not dealt, except for a limited number of defenses that are available against anyone, including a holder in due course. c. the defense of incapacity, duress, or illegality that renders the obligation void. d. no claims.
Perfect Poultry Company agrees to sell chicken, turkey, and other meats to Quik Markets, Inc, to sell to its customers. Normally, their contract would not be en¬forceable unless it includes
a. the duration of the deal. b. the price of the goods. c. the quantity of the goods. d. the shipping arrangements.
It is important for a retail store to quickly resume operations after a direct loss primarily because:
A) looting will occur B) retail merchandise goes out of style quickly C) most property insurance contracts demand that operations resume immediately, or as soon as possible, after a direct loss D) customers can be quickly and permanently lost if operations do not continue
Medicaid is health insurance for people with low income and is administered by each state within certain broad federal requirements and guidelines
Indicate whether the statement is true or false.