Which of the following is true of freight in? A) It is an administrative expense. B) It is a selling expense. C) It is the transportation cost on purchases. D) It is the transportation cost on sales. ANSWER C
Date: September 2nd, 2020
A company purchased inventory for $3,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $300 cash for freight in. The company then returned damaged goods worth $300 The invoice was then paid eight days after the purchase. Assuming that there was no beginning inventory balance, […]
Date: September 2nd, 2020
The Public Company Accounting Oversight Board oversees the work of auditors of public companies. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is a requirement of the Sarbanes-Oxley Act? A) An outside auditor must evaluate the client’s internal controls and report on the internal controls as part of the audit report. B) The Public Company Oversight Board must conduct audits of public companies. C) The accounting firm that audits a public client must […]
Date: September 2nd, 2020
The Sarbanes-Oxley Act requires all private companies in the United States to maintain an internal control system. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Under which of the following inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out ANSWER D
Date: September 2nd, 2020
If the total debits equal the total credits on the trial balance, the individual account balances will be error free. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A journal entry for a $50 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? A) The sum of the credits will equal the sum of the debits. B) The sum […]
Date: September 2nd, 2020
Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $7,120 with useful life of eight years; Furniture: Cost, $22,800 with useful life of 12 years; and Computer: Cost, $12,000 with useful life of four years (Assume residual value of all the assets is zero.) Ursula’s monthly depreciation expense calculated using the straight-line […]
Date: September 2nd, 2020
Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $13,440 with useful life of 4 years Assume the residual value of all the assets is zero and the straight-line method is used. Ariel’s […]
Date: September 2nd, 2020
