A company ships goods to a customer and pays transportation costs. To the seller, the transportation costs are A) freight out B) freight in C) sales commission D) brokerage ANSWER A
Date: September 2nd, 2020
A system cannot be overcome or broken into if its internal controls are properly designed and structured. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Before any internal control procedure is initiated, which of the following questions must be primarily addressed by a company? A) Will this put an end to theft? B) Is this the best security money can buy? C) How much benefit will be derived from the cost of the procedure? D) Will this prevent accounting errors? […]
Date: September 2nd, 2020
Violators of the Sarbanes-Oxley Act may be sentenced to prison for making false sworn statements. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Burglar alarms, fire alarms, and security cameras improve internal control. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Lewis, Inc had the following balances and transactions during 2016: Beginning Merchandise Inventory 150 units at $80 March 10 Sold 50 units June 10 Purchased 300 units at $82 October 30 Sold 130 units What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2016 if […]
Date: September 2nd, 2020
Under the weighted-average method for inventory costing, the cost per unit is determined by ________. A) dividing the cost of goods available for sale by the number of units available B) dividing the cost of goods available for sale by the number of units in beginning inventory C) multiplying the number of units purchased with […]
Date: September 2nd, 2020
A merchandiser sold merchandise inventory on account. The journal entry to record sales allowances in the books of the merchandiser, using the perpetual inventory system would be: A) Sales Returns and Allowances XX Accounts Receivable XX B) Merchandise Inventory XX Sales Revenue XX C) Cost of Goods Sold XX Sales Returns and Allowances XX D) […]
Date: September 2nd, 2020
On October 1, 2016, Smith Service Company paid $5,000 in rent for the next five months, beginning with October 2016. On that date, Smith debited Prepaid Rent and credited Cash If Smith fails to make an adjusting entry on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income. Understated, Overstated, No […]
Date: September 2nd, 2020
During December 2016, Carroll Service Company performed $1,500 of services, but as of December 31, 2016, Carroll has not yet billed the clients If Carroll fails to make an adjusting entry on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income. Understated, Overstated, No Effect Assets Liabilities Equity Net Income What […]
Date: September 2nd, 2020
