Solved

Valentine's Day Scenario Todd Decided to Propose Marriage to His Girlfriend on Valentine's

question 12

Multiple Choice

Valentine's Day Scenario
Todd decided to propose marriage to his girlfriend on Valentine's Day. He wanted this to be a very special day, so he decided to take her to a fine restaurant. He was not sure which restaurant to go to so he asked his boss, because he dines out at fine restaurants frequently. Because Todd didn't have much experience patronizing fine restaurants, he went through the sequence of events in his mind of what will take place at the restaurant. For example, he knew he would give his car to the valet, be seated by the hostess, be given menus and a wine list, give their drink and food order, eat, pay the bill, and retrieve his car from the valet. He also rehearsed in his mind how he will propose to his girlfriend, wondering if he should get down on one knee like he's seen in commercials. So on the big day, he went to his girlfriend's apartment with a dozen roses in his hands and the ring in his pocket. The restaurant was nice and the food was good, but he thought it was strange that they were playing heavy metal music. That didn't seem to fit his thoughts of what a fine dining restaurant environment should be like. The night was very special, though, and he will always remember how beautiful his girlfriend looked that night and how happy they both were when she accepted his proposal.
-Refer to Valentine's Day Scenario. Which source characteristic of Todd's boss most likely influenced his decision on which restaurant to patronize?

Definitions:

Interest Revenue

Income earned by an entity for lending funds or making financial investments that pay interest.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected on the income statement as a reduction of profits.

Retained Earnings

The accumulated net income that a company decides to keep rather than distribute to shareholders as dividends, often reinvested in the business or used to pay off debt.

Tax-Effect Entry

An accounting entry that reflects the impact of taxes on financial statements.