A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability. If this was not reported in the notes to the financial statements, what is the effect on the financial reporting of the company?
A) There would be no effect.
B) The liabilities on the balance sheet would be understated.
C) The information about the transaction would be inadequately disclosed in the notes.
D) The net income of the company would be understated.
C
Business
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A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. While doing so, the Cash balance can be taken from the ________
A) operational budget B) budgeted income statement C) cash budget D) sales budget
Business
Which of the following type of job evaluation plans is used when the company chooses to assign job pay rates that are neither too low nor too high relative to the market?
A) market-based B) internally consistent C) job-based D) hybrid
Business