The Accountant at Abco, Inc

question 16

Multiple Choice

The accountant at Abco, Inc. made an adjusting entry at the end of February to accrue interest on a note receivable from a customer. The effect of this entry is to:

• A) decrease ROI for February.
• B) increase ROI for February.
• C) decrease working capital at February 28.
• D)decrease the acid-test ratio at February 28.

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Definitions:

Sherman Act

A landmark federal statute in the U.S. antitrust law prohibiting monopolistic practices and promoting competition.

Restrain Trade

Involves activities or agreements that restrict or limit competition within a market, often considered illegal under antitrust laws.

Antitrust Violations

Illegal activities under antitrust laws that lead to unfair competition, such as price fixing, monopolies, and other practices that significantly reduce market competition.

Sherman Act

A foundational piece of antitrust legislation in the United States, aimed at preventing monopolies and promoting competition.