After the break in the MCC caused by using up retained earnings, the schedule can be expected to remain flat indefinitely. Is that statement right or wrong? If wrong, explain what can be expected to happen to the MCC and why.
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- An accrual of wages expense would have what effect on the balance sheet? Select one: O O O O A. Decrease liabilities and increase equity B. Increase assets and increase liabilities C. Increase liabilities and decrease equity D. Decrease assets and decrease liabilities E. None of the aboveHow do you Calculate "Change in Retained Earnings"? (Ignore the number I have down in second column for Change in R/E, it is wrong)The political cost hypothesis dictates that managers will use accounting policies that a. Report the future earnings as current earnings. O b. Report the future earnings as past earnings. Oc. Report the past earnings as current earnings. O d. Report the current earnings as future earnings.
- True or False. If the adjustment for accrued salaries at the end of the period is inadvertently omitted, both liabilities and stockholders' equity will be understated for the period.I put this in my last question but it wasn’t answered. What financial statement will you find the Beginning-of-period retained earnings balance?How do you find beginning retained earnings when the previous years earning was not given? Is there a formula for this?
- Revenue will be recognized when the following occurs as a result of a business activity with a customer: a) There is an increase in assetsb) There is an increase in liabilities c) There is a decrease in assetsd) none of theseWHICH STATEMENT IS FALSE?A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings.B. Equity is also the net assets.C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings.D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.What does an increase in the allowance for receivables result in? A A decrease in current liabilities B An increase in net profit C An increase in working capital D A decrease in working capita
- 1. The company has an arregement under which revenue should be deferred, but it doesn't defer the revenue. Or, a company could defer to much revenue to shift income into future periods.Which if the following is not an inclusion in gross income? a. Payment for lost salaries b. Payment for loss of earning capacity c. Recovery of bad debts previously written off d. Moral damagesTRUE OR FALSE? A prior period error is not included in profit or loss but treated as an adjustment of the beginning balance of retained earnings.
