Explain Where Each of the Following Items Should Appear in the Financial

question 71

Essay

Explain where each of the following items should appear in the financial statements of a corporation:
(1)The accounting department discovered that an entry was made last year to Prepaid Insurance instead of to Insurance Expense.The after-tax effect of the charge to Prepaid Insurance was $11,000.
(2)The company grants five of its employees the option to purchase 100 shares of its $5 par value common stock at its current market price of $20 per share anytime with the next five years.None of the employees exercised the options in the current year.

---

Definitions:

Promotional Strategies

Marketing tactics employed by businesses to promote their products or services to consumers.

Lung Cancer Alliance

A non-profit organization dedicated to saving lives and advancing research by empowering those living with and at risk for lung cancer.

Cause Marketing

A partnership between a for-profit business and a non-profit organization for mutual benefit, leveraging the marketing effort to support a social cause or charity.

Person Marketing

Use of efforts designed to attract the attention, interest, and preference of a target market toward a person.