A retail business has a percentage lease based on 5% of gross income of up to $25,000 per month and 21?2% of gross income above that amount. The minimum to be paid is $1,000 per month. For a month in which the business has a gross income of $47,000, what will be the rent payment?

Employee empowerment is defined as:

A. the movement of women and minorities into managerial positions. B. giving employees responsibility and authority to make decisions. C. leading employees by the strength of one's charisma. D. the act of continually learning and improving one's skills and abilities.

A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability. If this was not reported in the notes to the financial statements, what is the effect on the financial reporting of the company?

A) There would be no effect. B) The liabilities on the balance sheet would be understated. C) The information about the transaction would be inadequately disclosed in the notes. D) The net income of the company would be understated.