Which of the following factors is assessed using the debt ratio? A) expenses B) revenues C) risk D) income ANSWER C
Date: September 2nd, 2020
The accountant for Jones Auto Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following is an effect of this omission? A) The net income will be overstated. B) The total assets will be understated. C) The net income […]
Date: September 2nd, 2020
Camile Plastics Company had the following total assets, liabilities, and equity as of December 31 Assets $430,000 Liabilities 132,000 Equity 298,000 What is the company’s debt ratio as of December 31? (Round your percentage answer to two decimal places.) A) 30.70% B) 69.30% C) 100.00% D) 44.30% ANSWER A .Debt ratio = Total liabilities / […]
Date: September 2nd, 2020
Which of the following components of internal control consists of work performed by internal and external auditors? A) monitoring of controls B) information systems C) control procedures D) control environment ANSWER A
Date: September 2nd, 2020
A company sold merchandise with a cost of $231 for $480 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________. A) a debit to Sales Revenue and a credit to Cash for $480 B) a debit to Cash and a credit to Sales […]
Date: September 2nd, 2020
The environment is the culture of a business, and it starts with the CEO or CFO and the top managers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts? What will be an ideal response ANSWER The revenues, expenses, and the Dividends accounts are closed. The closing process gets these accounts ready for the next period and updates the Retained Earnings account balance for net […]
Date: September 2nd, 2020
Bryan Consultants had the following balances before preparing adjusting entries in the books on December 31, 2017 Cash $6,000 Dividends $3,000 Accounts Receivable 2,000 Service Revenue 10,600 Office Supplies 1,800 Salaries Expense 4,000 Equipment 15,000 Rent Expense 800 Accumulated Depreciation— 9,000 Depreciation Expense— 1,500 Equipment Equipment Common Stock 15,000 Supplies Expense 500 Prepare the adjusted […]
Date: September 2nd, 2020
External auditors evaluate company controls to ensure the financial statements are presented fairly, in accordance with Generally Accepted Accounting Principles. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The ability of a company to repay its liabilities can be determined from its ________. A) bankers B) creditors C) debt ratio D) journal ANSWER C
Date: September 2nd, 2020
