Which of the following illustrates the internal control procedure—separation of duties? A) Cashiers must not have access to accounting records. B) External auditors will monitor internal controls. C) Electronic devices must be installed to reduce theft. D) The invoices and other documents must be pre-numbered. ANSWER A
Date: September 2nd, 2020
Paramount Event Planning Services collects fees from its customers in advance. On January 1, 2017, the balance of its Unearned Revenue account was $3,000 (CR). During January and February, the company collected $4,000 and $600 as advance fees During the two-month period, it performed services of $5,500 related to the deferred revenue. What is the […]
Date: September 2nd, 2020
Salaries are $6,500 per week for five working days and are paid weekly at the end of the day Fridays. The end of the month falls on a Thursday. The accountant for Dayton, Inc. made the appropriate accrual adjustment and posted it to the ledger The balance of Salaries Payable, as shown on the adjusted […]
Date: September 2nd, 2020
Which of the following describes a firewall? A) a malicious program that enters program code or destroys data without authorization B) when two or more people cooperate together to defraud a company C) a technique for protecting data D) when a company defrauds its suppliers by making false claims ANSWER C
Date: September 2nd, 2020
The use of computer firewalls is an essential element of good internal controls for e-commerce. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The accountant of Zeus Legal Services failed to make an adjusting entry for supplies that had been used for the year. Assume the supplies were initially recorded as an asset. Which of the following statements is true? A) The total liabilities will be overstated. B) The equity will be understated. C) The total assets will […]
Date: September 2nd, 2020
The accountant of Delta, Inc. failed to make an adjusting entry to record $6,000 of unearned service revenue that has now been earned. Assume the deferred revenue was initially recorded as a liability. Which of the following statements is true? A) The total revenue will be overstated. B) The total revenue will be understated. C) […]
Date: September 2nd, 2020
Rally Auto Supplies uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required. June 10 Sold $14,800 of merchandise on account, credit terms are 3/15, n/30 Cost of goods is $6,200. June 14 Received a $900 sales return from the customer. Cost of the goods is $400. June […]
Date: September 2nd, 2020
Which of the following inventory costing methods uses the costs of the oldest purchases to calculate the value of the ending inventory? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out ANSWER C
Date: September 2nd, 2020
When a company uses the last-in, first-out (LIFO) method, the cost of goods sold correlates to the most recently purchased goods, and the ending inventory correlates to the oldest goods in stock. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
