Mitchell Company prepares monthly financial statements and will record.a prepaid account for each of the following except:
a. Mitchell paid for three months of window washing services in advance.
b. Mitchell purchases a four-year casualty insurance policy.
c. A tenant that pays Mitchell for six months of rent in advance.
d. Mitchell purchases office supplies to last for several months.
c
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Under which of the following conditions would material flood damage be considered an extraordinary item for financial reporting purposes?
a. Only if floods in the geographical area are unusual in nature and occur infrequently. b. Only if the flood damage is material in amount and could have been reduced by prudent management. c. Under any circumstances as an extraordinary item. d. Flood damage should never be classified as an extraordinary item.
Effectively governed organization must have mechanisms in place that oversee the long-term strategy of the company
a. true b. false