Pawn Shops Unlimited Recorded the Following Four Transactions During April

question 154

Multiple Choice

Pawn Shops Unlimited recorded the following four transactions during April.Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?

• A)Purchased $500 of office supplies on account (supplies were used in May and paid for in May).
• B)Paid $1,800 for a six-month insurance policy covering the period July 1-December 31.
• C)Paid $700 for an advertisement that appeared in the May 17 edition of the Las Vegas Sun newspaper.
• D)Received $300 from customers for services performed in March.

Know the ethical and legal considerations of conducting interviews.

Understand how to effectively use open-ended, closed-ended, and leading questions.

Grasp the responsibilities of a paralegal in the context of interviews.

Comprehend the impact of non-verbal communication in interviews.

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Definitions:

Employment Contract

A legal agreement between an employer and an employee that outlines the terms of employment, including duties, duration, and compensation.

Binding

A term referencing agreements or legal decisions that are enforceable and must be adhered to by the parties involved.

Fiduciary Duty

The legal obligation of one party to act in the best interest of another when entrusted with care of money or property.

Utmost Good Faith

A legal doctrine requiring all parties to a contract, especially in insurance, to act honestly and disclose all relevant facts.