While Reviewing the Books of Edberg Pest Control Service You

question 40

Multiple Choice

While reviewing the books of Edberg Pest Control Service you discover that no adjusting entry was made for estimated bad debts traceable to sales in 2012 the company's first year of operation) .Assuming this error is not corrected which of the following is true at year-end 2012?

• A)Assets are understated,profit is overstated
• B)Liabilities are overstated,profit is understated
• C)Assets are correct,profit is overstated
• D)Assets are overstated,profit is overstated

Grasp the accounting implications of mergers and acquisitions including the treatment of goodwill.

Recognize the consolidation process and its effects on the balance sheet and income statement.

Understand the requirements and effects of depreciating and amortizing the assets of a subsidiary in consolidation.

Understand the principles of effective communication and media relations in public administration.

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Definitions:

Whale Intermediates

Transitional fossil forms that provide evidence for the evolutionary lineage of whales from land-dwelling mammals.

Four-Legged

Pertaining to organisms, primarily terrestrial vertebrates, that have four limbs, a characteristic feature of tetrapods including mammals, reptiles, and amphibians.

Land Dwelling Mammals

Mammals that primarily inhabit terrestrial environments, as opposed to aquatic or aerial settings, adapted to various landscapes including forests, deserts, and mountains.

Ocean Islands

Ocean islands are landforms that rise from the ocean floor and are not connected to a continent, often formed by volcanic activity.