Increase expense on the income statement. Economic entity consumption b Cost principle d. Explain the components of internal control; evaluate internal controls Each of the following situations reveals an internal control weakness: Decrease Decrease Increase c.
The entity is waiting until mine is exhausted to determine the success or failure of the business. The information in the financial statements is expressed in units of money adjusted for changing purchasing power.
Merchandising and trading concerns 32 The primary purpose for using an inventory cost flow assumption is to: TCO A Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships.
Merchandise costing P, was sold on an installment basis on December Matalino Ako Company uses Philippine peso as its functional currency. An assessment of this situation indicates A.
Which of the following would be subtracted from the balance per bank on a bank reconciliation. After five years at the minimum of storage and fermentation process, the extracts were packed in well crafted wine bottles. The United States d. Most of the material in the answer is irrelevant.
After a physical inventory count, inventory is credited for any missing inventory. Deposits in transit b. The allowance for doubtful accounts includes a discount element. A separate revaluation reserve 20 c. Change in accounting policy c. The relationship between selling price and cost of goods sold is similar to prior years.
Keeping the amount of inventory on hand constant but increasing sales. An equal amount of retained earnings should be appropriated. Recognized as other expense in the period the write-down or loss occurs. Prevent fraud 5 b Produce correct financial statements d. Students with approved accommodations must inform their professors at the beginning of the term.
Depreciation 55 Under PAS 36, which of the following statements relating to an active market is true. Reliability and comparability 78 Which of the following accounting concepts states that an accounting transaction shall be supported by sufficient evidence to allow two or more qualified individuals to arrive at essentially similar conclusions.
TCO D Please describe the purpose of the Income Statement and the interrelationship between the income statement and the other major financial statements that we covered in this class.
Each item of income or expense recognized directly in equity as required by the standard Bank statement provide information about all of the following, except a. Question 10 Bad Debt Expense is considered A.
TCO A When a corporation dist. Under FIFO, the ending inventory is based on the latest units purchased. Purchases are recorded as debit to the inventory account. Neither the buyers nor sellers inventory balance. Excess of the principal amount of the loan over its carrying amount. This supply will suffice for the production throughout the remaining months in Debts to be liquidated from funds that have been accumulated and are reported as non-current assets.
Increasing the amount of inventory on hand. Materials and supplies awaiting use in the production process Costs that are incurred in bringing the inventories to their present location and condition are capitalized as cost of inventories and these include a.
ACC MIDTERM PART 1 & 2 /ACC MIDTERM PART 1 & 2. $ Question 23 Receivables are Which of the following is the best explanation of this type of internal control principle over cash receipts?
Physical controls. Documentation procedures. Segregation of duties. ch08 - Download as Powerpoint Presentation .ppt), PDF File .pdf), Text File .txt) or view presentation slides online.
ch ACC Midterm Part 1 and 2. Bad debts are estimated to be 6% of outstanding receivables.
What amount of bad debt expense will the company record? Which of the following is the best explanation of this type of internal control principle over cash receipts? · Question Which statement is incorrect? Gordon received $55, cash and issued common stock to the stockholders.
3 Purchased supplies, $3, and equipment, $5, on account. 4 Performed services for a client and received cash, $6, 7 Paid cash to acquire land, $37, 11 Performed services for a customer and billed the customer.
Includes topics on cash flow statement, cash and accrual accounting concepts, merchandising operation, internal control and ethics, reporting and accounting for receivables, payables, long-term assets and liabilities, inventory, depreciation, stockholders’ equity, stocks and bonds.
Quick Study Solutions to accompany Fundamental Accounting Chapter 7 Internal Control and Cash; Chapter 7 Cash and Receivables; Chapter 6 Accounting for Sales; Read More. Chapter 7: Internal Control Scribd Chapter. 8 Cash and Internal Control SOX created the Public Company .Internal control cash receivables midterm