Which of the following errors would most likely lead to an overstatement of income in the current accounting period?
A. Recording revenue next period when the cash is collected although it is earned in the current period.
B. Recording a current-period expense in the following year when cash is paid.
C. Failure to adjust deferred rent revenue account for the portion of rent earned this year.
D. All of the above lead to overstated income this period.
Ans: B. Recording a current-period expense in the following year when cash is paid.
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Specialty Packaging Corporation began business in 2007 by issuing 20,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2007 balance sheet, Specialty Packaging would report
a. Common Stock of $200,000. b. Common Stock of $100,000. c. Common Stock of $160,000. d. Paid-in Capital of $150,000.
________ assumes that the primary source of most employee motivation is monetary, with security as a strong second.
a. Theory X b. Theory Y c. Equity theory