A Student Wants to Buy a Smartphone So She Can

question 155

Multiple Choice

A student wants to buy a smartphone so she can share pictures with her friends.An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures,write a report,etc. ) .If they both purchase the same model smartphone,such as an Apple iPhone,which statement is most accurate?

• A)The adjuster is a prospective customer because the smartphone will be used for work;the student is only a secondary user since the purpose of the smartphone is just for entertainment.
• B)Both the adjuster and the student are potential customers because in their own way,they both benefit from the smartphone.
• C)Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers.
• D)The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use.
• E)Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones.

Identify inventory shrinkage and its accounting treatment.

Understand the principles of accounting specific to not-for-profit entities, including the recognition of revenues and expenses.

Comprehend the accounting treatment for contributions, pledges, and gifts in not-for-profit accounting, including conditions for recognition and disclosure.

Identify and classify the various types of financial statements and reports used by not-for-profit entities.

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Definitions:

Office Equipment

Assets like computers, desks, chairs, and printers that are used in an office setting for the operation of the business.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.

Accumulated Depreciation

Overall depreciation expense tallied for a fixed asset since it started being used.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company until payment is made.