Marini is in the business of buying stationary directly from the manufacturer and then reselling to...

  

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Marini is in the business of buying stationary directly from the manufacturer and then reselling to retailers. Which one of the following transactions is MOST likely to violate the Generally Accepted Accounting Principles (GAAP)? (1) Marini buys three months' worth of cleaning supplies in March and expenses the total amount. (2) Marini buys 30 boxes of pens in June and expenses the total amount before they are resold Marini buys a printer for the office and expenses it according to its expected useful life. Marini buys annual insurance for the business and expenses the cost over the entire year. (3) (4) Harry orally offered to give Mary a one-hour piano lesson for $25. Which of the following statements is TRUE? (2) (1) If Susan overhears Harry's offer, and Mary is not interested in accepting, Susan can accept. If Mary accepts, and Harry does not honour the contract, Mary cannot successfully sue Harry because the contract was not in writing. (3) If Harry did not specify a time limit for acceptance, Mary can accept at any future date. (4) None of the above Marini is in the business of buying stationary directly from the manufacturer and then reselling to retailers. Which one of the following transactions is MOST likely to violate the Generally Accepted Accounting Principles (GAAP)? (1) Marini buys three months' worth of cleaning supplies in March and expenses the total amount. (2) Marini buys 30 boxes of pens in June and expenses the total amount before they are resold Marini buys a printer for the office and expenses it according to its expected useful life. Marini buys annual insurance for the business and expenses the cost over the entire year. (3) (4) Harry orally offered to give Mary a one-hour piano lesson for $25. Which of the following statements is TRUE? (2) (1) If Susan overhears Harry's offer, and Mary is not interested in accepting, Susan can accept. If Mary accepts, and Harry does not honour the contract, Mary cannot successfully sue Harry because the contract was not in writing. (3) If Harry did not specify a time limit for acceptance, Mary can accept at any future date. (4) None of the above

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Marini Option 2 is the correct answer Explanation This stateme... View the full answer