A depositor is not responsible or liable to the bank for items deposited that are not honored when presented for payment.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 2) A sole proprietorship has more than one owner.
Indicate whether the statement is true or false
(
Q. 3) Calculate income from operations for Jonas Company based on the following data: Sales 764,000 Operating expenses 52,500 Cost of merchandise sold 538,000
a. 485,500
b. 711,500
c. 173,500
d. 226,000
(
Q. 4) The historical-cost principle refers to ________.
A) measuring financial statement items at their cost at the time of the transaction
B) an assumption that a company will continue to be in business in the future
C) using monetary units, such as dollars, to measure the value of financial statement amounts
D) the way revenues and expenses are recognized
(
Q. 5) Expected gross risk is a function of the initial expected gross risk, reduced risk exposure due to controls, and cost of controls.
Indicate whether the statement is true or false
(
Q. 6) Wal-Mart is an example of a service corporation.
Indicate whether the statement is true or false
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