On December 1,2010,Commonwealth Industries Received a $10,000 Deposit from a Customer

question 32

Multiple Choice

On December 1,2010,Commonwealth Industries received a $10,000 deposit from a customer for a special order of merchandise to be manufactured and shipped in February,2011.Commonwealth made the following journal entry on December 1,2010: The financial statements dated December 31,2010,would be:

• A)correctly stated
• B)in error,understating liabilities and overstating assets
• C)in error,overstating net income and understating liabilities
• D)in error,understating net income and understating stockholders' equity

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Definitions:

Cohesive

The degree to which members of a group are attracted to, and motivated to remain part of, that group, often leading to increased solidarity and group effectiveness.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Shared Information Bias

A tendency in group decision-making processes to disproportionately discuss information that all members are already familiar with, rather than considering new or unknown information.

Cross-cueing

A mechanism where the presence of one stimulus or cue enhances the recognition or recall of another related cue.