Answer: False
Explanation:
Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.
One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.
The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.
Your way, inc is a furniture store located in Dallas, Texas, United States, it makes unique and fine pieces of furnitures, they also repair and recover them.
Answer:
The $50,000 must be reported as assets with donor restrictions.
Explanation:
Donor imposed restrictions can be temporary or perpetual; the $50,000 are perpetually restricted since they must be invested and the income received should be used for its program of promoting adoption of young girls.
This statement is false. The notes receivable account should
only include those notes which can still be collected. Notes that have not
matured yet is still included in the notes receivable account because there is
still the probability of collection. Dishonored notes should not anymore be
included because there is no more probability of collection.
<u>"Limited liability companies" </u>are companies that are similar to s corporations but are not restricted with similar eligibility requirements.
A limited liability company is a corporate structure whereby the individuals from the organization are not actually obligated for the organization's obligations or liabilities. Limited liability companies are half and half elements that join the attributes of an enterprise and an association or sole proprietorship. While the constrained risk include is like that of an enterprise, the accessibility of move through tax assessment to the individuals from a LLC is a component of organizations.
