Acme, Inc. accepted a promissory note from NadirCo, who promised to pay Acme 5,000 plus 6 interest at the end of four months. When Acme first accepts the note, it should record Interest receivable of ________.
A) 300
B) 100
C) 0
D) 150
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Q. 2) The purpose of security controls is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.
Indicate whether the statement is true or false
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Q. 3) On January 1, Needem, Inc. borrows 10,000 and agrees to repay the loan plus 8 interest in two years. If the proper adjustment is not made at the end of the first year, what will be wrong with the financial statements?
A) Nothing will be wrong with the financial statements.
B) Cash will be overstated on the balance sheet.
C) Expenses will be overstated on the income statement.
D) Liabilities will be understated on the balance sheet.
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Q. 4) The alphabetical or numerical listing of customer accounts and balances, known as a(n) ____________________, is usually prepared at the end of the month.
Fill in the blank(s) with correct word
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Q. 5) Match each of the following terms with the appropriate situation below. Each term is used only once.
a. zero-interest bonds
b. bond premium
c. bond discount
d. par value
______ 1. Jon-med Company sold 40,000 worth of bonds for 40,500.
______ 2. Jon-med Company sold 40,000 worth of bonds for 39,500.
______ 3. Jon-med Company sold 40,000 worth of bonds for 40,000.
______ 4. Jon-med Company issued bonds that sold at a discount and will not pay interest during the life of the bond issue.
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Q. 6) Control effectiveness addresses how individual control plans achieve multiple control goals.
Indicate whether the statement is true or false
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