Part A. Yamaha used and paid for the services the services of its employees. As a result which of the following occurred.

A. Assets decreased, and stockholder's equity increased.

B. Assets decreased, and stockholder's equity decreased.

C. Assets increased, and stockholder's equity decreased.

D. Assets increased, and stockholder's equity increased.

Part B. Which of the following statements is correct as it pertains to the judgement and flexibility in selecting accounting methods and applying accounting standards.

A. Financial statement information is not enhanced by allowing flexibility in the choice of accounting methods used.

B. Flexibility in the selection of methods and application of accounting standards allows management to best reflect the economic realities of a company.

C. Accounting standards allow very little flexibility in the choice of methods as accounting rules tend to be strict and clear minimizing the opportunity for management judgement.

D. Flexibility makes it difficult if not impossible to prepare financial statements that allow users to compare the results of operations of similar companies in the same industry.