Companies are required to recognize warranty expense at the time of sale due to the matching principle.
Indicate whether the statement is true or false
(
Q. 2) A small organization that does not have enough personnel to adequately segregate duties must rely on alternative controls, commonly called _____________________________
_.
Fill in the blank(s) with correct word
(
Q. 3) Depreciating an asset means recognizing the cost of the asset as an expense over more than one accounting period.
Indicate whether the statement is true or false
(
Q. 4) Reductions in the price of merchandise granted by the seller because of defects or other problems with the merchandise are called merchandise sales.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 5) A statement NOT required by FASB to comply with GAAP is ________.
A) a balance sheet
B) an income statement
C) a statement of cash flows
D) a cash budget
(
Q. 6) The state charter of Vest Corporation allows the corporation to sell 500,000 shares. Vest has issued 425,000 shares of stock. There are 15,000 shares of treasury stock. The number of outstanding shares is ________ shares.
A) 15,000
B) 410,000
C) 425,000
D) 500,000
Quick Reply
