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quester [9]
3 years ago
7

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Business
1 answer:
Step2247 [10]3 years ago
4 0

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.

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Barney Corporation recognized a $100 million preferred stock balance on 12/31/2019.
mrs_skeptik [129]

Answer:

C. $120m

Explanation:

As per the given situation, the calculation of the ended year the preferred stock is shown below:

Ending preferred stock balance

= Beginning balance of preferred stock + new issuance of preferred stock

= $100 million + $20 million

= $120 million

Therefore, for computing the ending preferred stock balance we simply applied the above formula and ignore all other values as they are not relevant. So the correct answer is C.

5 0
4 years ago
All of the following are accurate statements about credit reports EXCEPT:
Paha777 [63]

Answer:

A. Consumers are not allowed to see their credit reports.

Explanation:

A credit report communicates how reliable an individual or an entity in repaying their debts. It assesses individual creditworthiness by assigning a credit score to each potential borrower. A high credit score shows the individual is reliable in settling their obligations.

Individuals are often encouraged to counter check their credit report to confirm accuracy. Credit bureaus do share credit reports with customers on-demand or at regular intervals. An inaccurate credit report may be a hindrance to obtaining credit facilities such as a loan or a mortgage.

3 0
3 years ago
[Maggie] called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repa
Nina [5.8K]

Answer:

A,D,E

Explanation:

Took on Edgen2021

7 0
3 years ago
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part fr
miss Akunina [59]

Answer:

$480,000

Explanation:

Calculation to determine what total relevant costs to make the part internally are

First step is to calculate Relevant cost per unit:

Relevant cost per unit:

Direct materials $6

Direct labor $24

Variable manufacturing overhead $12

Fixed manufacturing overhead ($15 × 0.40) $6

Relevant manufacturing cost $48

Now let determine the Total relevant costs to make the part internally

Total relevant costs to take the part internally=($48 × 10,000)

Total relevant costs to make the part internally = $480,000

Therefore total relevant costs to make the part internally are $480,000

5 0
3 years ago
Why is it important to site? Name at least three reasons
Lapatulllka [165]

Answer:

It gives proper credit to the author, it helps you avoid plagiarism, and it helps to create more ideas in your mind.

8 0
4 years ago
Read 2 more answers
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