The purpose of ____ control goals is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.
a. efficiency
b. effectiveness
c. security
d. input
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Q. 2) The adjusting entry for bad debts expense affects __________.
A) the Income statement
B) the Balance sheet
C) the Statement of cash flows
D) both the Income statement and the Balance sheet
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Q. 3) A schedule of accounts payable is prepared from the list of accounts in the accounts receivable ledger.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) Cash transactions related to buying and selling assets that the firm plans to use for longer than one year are investing activities.
Indicate whether the statement is true or false
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Q. 5) On January 1, 2011, Bondz, Inc issued 1,000,000 of 5, 10-year bonds when the market rate of interest was 6. The bonds pay interest annually on December 31.
To calculate the amount of cash that Bondz received, you must use a discount rate of ________.
A) 20
B) 6
C) 5
D) The answer cannot be determined from the information given.
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Q. 6) Generally accepted accounting principles do notnormally allow the use of the direct write-off method ofaccounting for uncollectible accounts.
a. True
b. False
Indicate whether the statement is true or false
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