On January 1, 2015, Frost Corp

question 19

Multiple Choice

On January 1, 2015, Frost Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a $700,000 increase in the January 1, 2015 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2015

• A) retained earnings statement as a $490,000 addition to the beginning balance.
• B) income statement as a $490,000 cumulative effect of accounting change.
• C) retained earnings statement as a $700,000 addition to the beginning balance.
• D) income statement as a $700,000 cumulative effect of accounting change.

Grasp the importance of the financial arrangement clarity when borrowing from friends and family as it relates to crowdfunding.

Differentiate crowdfunding platforms based on their focus areas such as technology, science, and creative projects.

Recognize the importance of early and effective communication of product or service ideas to potential backers.

Understand the implications of rewards and equity sharing in crowdfunding campaigns and their effects on campaign approval and backer expectations.

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Definitions:

Fair Procedures

Practices and policies that are impartial, equitable, and just in decision-making processes or dispute resolutions.

Collective Information-processing Model

A model that describes how groups gather, share, and evaluate information to make decisions collectively.

Social Loafing

The phenomenon where individuals expend less effort when working in a group than when working alone.

Bay Of Pigs

The location of a failed invasion attempt by Cuban exiles, supported by the U.S. government, in 1961 aimed at overthrowing Fidel Castro's regime in Cuba.