Amortizing a bond discount will ________.
A) decrease the unamortized bond discount
B) increase the unamortized bond discount
C) decrease the carrying value of the bond
D) decrease the unamortized bond discount and decrease the carrying value of the bond
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Q. 2) Intrusion-prevention systems (IPS) actively block unauthorized traffic using rules specified by the organization.
Indicate whether the statement is true or false
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Q. 3) Tiny Toy Company makes toys and sells them to retail stores on account. The company has a December 31 year-end. In the past, Tiny Toy always sold on account but never offered sales discounts to its customers.
However, this year on November 1, the beginning of the holiday sales season, Tiny Toy began offering stores terms of 2/90, n/120. The stores can return anything, no questions asked, but only AFTER December 31.
Required:
A. Why would Tiny Toy offer such a liberal credit and return policy?
B. Put an X in the appropriate box to describe the effect of this credit and return policy on Tiny Toy's financial statements for this year.
Financial statement item Increase Decrease No effect
Sales
A/R
Inventory
C. Is Tiny Toy's new credit and return policy ethical?
What will be an ideal response?
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Q. 4) In most states, the state unemployment tax is levied only on employers.
a. True
b. False
Indicate whether the statement is true or false
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Q. 5) A positive balance in the allowance for uncollectible accounts before an adjusting entry for bad debts expense is recorded means management understated its bad debts expense in the prior period.
Indicate whether the statement is true or false
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Q. 6) Too much inventory on hand
a. ties up funds that could be used to improve operations
b. increases the cost to safeguard the assets
c. increases the losses due to price declines
d. all of these
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