COSO's _____________________________
_ is a process that assesses the quality of internal control performance over time.
Fill in the blank(s) with correct word
(
Q. 2) Identify each of the following items as either an accrual or deferral.
a. Accrual
b. Deferral
_____ 1. Account receivable
_____ 2. Account payable
_____ 3. Prepaid insurance
_____ 4. Interest receivable
_____ 5. Prepaid advertising
(
Q. 3) Deductions for U.S. savings bond purchases, pension plan payments, and Social Security taxes are considered voluntary deductions.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 4) Team Shirts had an unadjusted balance in its Allowance for uncollectible accounts of (875) on August 31. This amount was left over at the end of August because not as many accounts were written off as previously anticipated.
An aging of accounts receivable at August 31 revealed an estimate of 1,000 for uncollectible accounts. Using the accounts receivable allowance method, bad debts expense for August should be:
A) 125.
B) 275
C) 1,000.
D) 1,875.
(
Q. 5) The use of the lower-of-cost-or-market method of inventory valuation increases net income for the period in whichthe inventory replacement price declined.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) All of the following account titles are found in the computerized accounting system of GTV Company. Identify the account that would be a long-term asset.
A) cash
B) accounts receivable
C) building
D) inventory
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