There has been a recent trend toward "blue-skying" on the part of

An investor is faced with the decision of whether to invest in a stock with an expected return of 14% or a stock in the same industry with an expected 20% return. Which of the following seems most likely?

A) the 20% stock is a better investment. B) Both stocks are priced correctly given their perceived risk. C) the 14% stock is overpriced. D) Both stocks will have approximately the same return.

The accountant for Belden Jewelry Repair Services, Inc. forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error?

A) Total assets are understated. B) Revenues are overstated. C) Total assets are overstated. D) Net income is understated.