Consider the Following: Three Men Want to Cross a River;

question 3

Multiple Choice

Consider the following: Three men want to cross a river; they find a boat,but it is a very small boat.It will only carry 200 pounds.The men are named Large (200 lbs) ,Medium (120 lbs) ,and Small (80 lbs) .How can they all get across? They might have to make several trips in the boat (VanLehn,1989) .

• A)two trips
• B)three trips
• C)five trips
• D)cannot be done (evidence for the importance of searching for contradictions)

Prepare and interpret a balance sheet segment related to receivables.

Identify and explain differences between IFRS and GAAP in accounting for cash and receivables.

Record transactions under various methods (gross price, net price, allowance).

Understand and explain the concepts of gross price and net price methods of recording credit sales, including their impact on financial statements.

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Definitions:

Liquidating Dividend

A type of dividend paid by a company to its shareholders out of its capital base, essentially returning a portion of the capital initially invested back to the shareholders.

Earnings Per Share

A metric for assessing a company's earnings, determined by dividing its net income by the total outstanding common stock shares.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Cumulative Preferred Stock

A type of preferred stock whose dividends accumulate if not paid in the agreed periods.