In which of the following situations would the largest amount be recorded as an expense of the current year? (Assume accrual basis accounting.)
A. $4,000 is paid in January for equipment with a useful life of four years.
B. $1,800 is paid in January for a two-year fire insurance policy.
C. $1,200 cash dividends are declared and paid.
D. $900 is paid to an attorney for legal services rendered during the current year.
A
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Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2011, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2011, Ohlman should report a liability in the amount of the
a. excess of the projected benefit obligation over the fair value of the plan assets. b. excess of the accumulated benefit obligation over the fair value of the plan assets. c. projected benefit obligation. d. accumulated benefit obligation.
The statement "If I increase my advertising budget by 15 percent, then overall sales volume should increase by 20 percent." is indicative of using the causal research method.
a. true b. false