Accounting

6 years ago

The board of directors is considering approving a declaration and payment of dividends for the ...

The board of directors is considering approving a declaration and payment of dividends for the second quarter of the year. How will this decision affect the period's cash flows from operationsindirect method?
A) It will not affect this per

majestico 52 1 Reply

6 years ago

A computer server system, which had cost $250,000 and had accumulated depreciation of $170,000, was ...

A computer server system, which had cost $250,000 and had accumulated depreciation of $170,000, was traded for a new system with a fair market value of $245,000. The old system and cash of $210,000 were given for the new system. Prepare the journal e

upton 52 1 Reply

6 years ago

If $15,000 was generated from operations, $7,000 was used for investing activities, and $6,000 was ...

If $15,000 was generated from operations, $7,000 was used for investing activities, and $6,000 was provided by financing activities, the cash balance would:
A) increase by $14,000.
B) increase by $2,000.
C) decrease by $20,000.
D)

Fast2F 52 2 Replies

Fast2F

6 years ago

The section of the statement of cash flows from investing activities includes:

The section of the statement of cash flows from investing activities includes:
A) collecting loans and/or interest.
B) cash received from customers.
C) cash paid for inventory.
D) All of the above

upton 52 1 Reply

6 years ago

The revenue of Carol's Environmental Services for Years 1, 2, and 3 are $40,000, $60,000 and ...

The revenue of Carol's Environmental Services for Years 1, 2, and 3 are $40,000, $60,000 and $80,000, respectively. Year 1 is the base year. The trend percentage for Year 3 is:
A) 150%.
B) 50%.
C) 200%.
D) 133%.

majestico 52 2 Replies

majestico

6 years ago

An interest allowance is based on a partner's individual initial investment of capital.

An interest allowance is based on a partner's individual initial investment of capital.
A) True
B) False

Fast2F 52 1 Reply

Augustis

6 years ago

An interest allowance is based on the beginning capital balance of each partner.

An interest allowance is based on the beginning capital balance of each partner.
A) True
B) False

Fast2F 52 1 Reply

Ompa

6 years ago

Define two types of comparative income statements and compare the information provided by them.

upton 52 1 Reply

Augustis

6 years ago

If management wishes to evaluate the ability of a business to use sales to cover the operating ...

If management wishes to evaluate the ability of a business to use sales to cover the operating expenses, they could use the:
A) times interest earned.
B) rate of return on common stockholders' equity.
C) rate of return on total as

majestico 52 1 Reply

Ompa

6 years ago

Which of the following illustrates the definition of auditing with respect to the evidence analysis ...

Which of the following illustrates the definition of auditing with respect to the evidence analysis process?
A) accumulation and evaluation of evidence about balance sheet accounts
B) learning about different types of computing technology,

Cadish 52 1 Reply

6 years ago

A review of any part of an organization's procedures and methods for the purpose of evaluating ...

A review of any part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is classified as a(n)
A) audit of financial statements.
B) compliance audit.
C) operational audit.
D)

Cadish 52 1 Reply

6 years ago

Ethical dilemmas occur when (Multiple Choice Question)

Ethical dilemmas occur when
A) you know what you want to do but the rules say otherwise.
B) businesses disregard the laws and engage in illegal behaviour.
C) a person chooses to act in his/her own interest.
D) a choice must be tak

Cadish 52 2 Replies

5 years ago

Which one of the following forms of advertisement would violate solicitation rules? PA

Which one of the following forms of advertisement would violate solicitation rules? PA
A) placed an advertisement in a newspaper indicating the opening of a new office.
B) conducted a cold-calling campaign where companies were asked if they

npeelman 52 1 Reply

6 years ago

The assessment against a defendant of that portion of the damage caused by the defendant's ...

The assessment against a defendant of that portion of the damage caused by the defendant's negligence is called
A) separate and proportionate liability.
B) joint and several liability.
C) shared liability.
D) unitary liabilit

Cadish 52 2 Replies

5 years ago

Identify the characteristics that working papers should have. For each characteristic, briefly ...

Identify the characteristics that working papers should have. For each characteristic, briefly explain why it is important.

Cadish 52 2 Replies

5 years ago

Evidence is usually more persuasive for balance sheet accounts when it is obtained

Evidence is usually more persuasive for balance sheet accounts when it is obtained
A) from various times periods throughout the client's year.
B) only from transactions occurring on the balance sheet date.
C) as close to the balan

Cadish 52 2 Replies

5 years ago

Mary is entering a fictitious transaction in the sales data entry system to see if the system will ...

Mary is entering a fictitious transaction in the sales data entry system to see if the system will reject the order for a client that is already exceeding its credit limit. Mary is using
A) observation.
B) analytical procedures.
C) tes

eFishie 52 2 Replies

6 years ago

An example of an external document is

An example of an external document is
A) a cancelled cheque.
B) employees' time reports.
C) inventory receiving reports.
D) the minutes of the Board of Directors' meetings.

eFishie 52 1 Reply

6 years ago

A document which the auditor receives from the client, but which was prepared by someone outside the ...

A document which the auditor receives from the client, but which was prepared by someone outside the client's organization, is a(n)
A) external confirmation.
B) copy of sales invoice.
C) copy of bank note payable.
D) inventor

Cadish 52 2 Replies

5 years ago

During final review of working papers and financial statements, possible oversights in the audit can ...

During final review of working papers and financial statements, possible oversights in the audit can be identified by
A) the partner's knowledge of the client's business combined with effective analytical procedures.
B) conducting

Cadish 52 2 Replies

5 years ago

To determine that sales are accurately charged, the unit prices on the duplicate sales invoices are ...

To determine that sales are accurately charged, the unit prices on the duplicate sales invoices are normally compared with
A) the original invoices.
B) the amounts recorded in the sales journal for that transaction.
C) the amounts post

npeelman 52 2 Replies

npeelman

5 years ago

It is important that sales be billed and recorded in the journal as soon as possible after

It is important that sales be billed and recorded in the journal as soon as possible after
A) the order is received.
B) the order is received and credit is approved.
C) credit is approved and it is verified that there is enough invento

Cadish 52 2 Replies

5 years ago

If the internal controls for recording sales returns and allowances are evaluated as ineffective,

If the internal controls for recording sales returns and allowances are evaluated as ineffective,
A) a larger sample is needed to verify cutoff.
B) sampling is not appropriate.
C) all sales returns must be traced to supporting document

eFishie 52 2 Replies

6 years ago

Your audit client is a large retail chain with its own credit card, with annual sales of about $100 ...

Your audit client is a large retail chain with its own credit card, with annual sales of about $100 million. On December 31, there were approximately 40,000 open accounts with total receivables of approximately $18.5 million. Very few customer balanc

eFishie 52 1 Reply

6 years ago

What is an important benefit of independent preparation of bank reconciliations?

What is an important benefit of independent preparation of bank reconciliations?
A) An opportunity to independently check that cheques have two signatures
B) The client being able to check that the bank is processing transactions correctly

eFishie 52 2 Replies

6 years ago

Outline the audit procedures that would be performed when testing electronic receipts and payments.

Cadish 52 1 Reply

6 years ago

Which of the following is a test of controls?

Which of the following is a test of controls?
A) Review the payroll journal, general ledger, and payroll earnings records for large or unusual amounts
B) Examine time cards for indication of supervisor approval
C) Compare cancelled che

eFishie 52 1 Reply

6 years ago

The normal starting point for the audit of notes payable is

The normal starting point for the audit of notes payable is
A) a discussion with management of any new notes payable for the year.
B) a schedule of notes payable and accrued interest obtained from the client.
C) the assessment of mater

eFishie 52 2 Replies

6 years ago

Describe the risks of error and fraud in the debt or equity accounts.

Cadish 52 1 Reply

6 years ago

When auditing contingent liabilities, the primary objective at the initial stage of the tests is to ...

When auditing contingent liabilities, the primary objective at the initial stage of the tests is to determine
A) the materiality of any liability.
B) what constitutes adequate disclosure of the liability.
C) the likelihood of the liabi

Cadish 52 2 Replies

5 years ago

Which of the following material events occurring subsequent to the balance sheet date would require ...

Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?
A) sale of long-term debt or capital stock
B) loss of a plant as a re

npeelman 52 1 Reply

charleshardt

6 years ago

State three types of information that should be included in a standard letter of inquiry of ...

State three types of information that should be included in a standard letter of inquiry of client's law firms.

eFishie 52 1 Reply

6 years ago

Which of the following auditing procedures is ordinarily performed last?

Which of the following auditing procedures is ordinarily performed last?
A) Reading of the minutes of the directors' meetings
B) Confirming accounts payable
C) Obtaining a client representation letter
D) Testing of the purcha

eFishie 52 2 Replies

6 years ago

Describe the items the auditor is required to report to the audit committee.

eFishie 52 1 Reply

6 years ago

The use of the term "reasonable assurance" is intended to indicate that an audit cannot ...

The use of the term "reasonable assurance" is intended to indicate that an audit cannot be expected to
A) completely eliminate the possibility that a material error or fraud exists.
B) consider or search for minor errors.
C)

Cadish 52 2 Replies

5 years ago

A financial statement review emphasizes four broad areas, one of which is to "Perform ...

A financial statement review emphasizes four broad areas, one of which is to "Perform analytical procedures." State the other three areas emphasized.

npeelman 52 2 Replies

npeelman

5 years ago

Identify the reporting standards for compilation engagements.

eFishie 52 1 Reply