What effect does "recognizing an accrued liability for utilities at the end of the accounting period" have on the accounting equation?
a. Assets decrease and stockholders' equity decreases.
b. Liabilities increase and stockholders' equity increases.
c. Assets decrease and liabilities decrease.
d. Liabilities increase and stockholders' equity decreases.
d
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Doro Fill Company fabricates automobiles
Each auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 800 units per month Variable cost per unit $6 per unit Fixed costs $13,000 per month A factory in Indonesia has offered to supply Doro Fill with ready-made units for a cost of $12 each. Assume that Doro Fill's fixed costs are unavoidable and that the company will not be able to use the excess capacity in any profitable manner. In order to maximize operating income, Doro Fill should not outsource. Indicate whether the statement is true or false
A Japanese firm is ready to sell its recent technological innovation to the U.S. government. But it has asked for 80 percent in cash and the rest in mica. The Japanese firm is looking to enter into a(n) ________ with the U.S. government
A) functional discount B) compensation deal C) buyback arrangement D) offset agreement E) barter deal