If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an other incomeitem on the income statement.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Enoch, Inc began operations on July 1, 2011. On August 1, it received 12,000 in advance for services to be performed evenly over the next 12 months.
How much of this revenue should the company report on its income statement for the MONTH ended August 31, 2011?
A) 12,000
B) 1,000
C) 11,000
D) 5,000
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Q. 3) The segregation of duties control plan consists of separating all of the following event-processing functions except:
a. planning events
b. authorizing events
c. executing events
d. recording events
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Q. 4) The amount recorded as the cost of a long-term asset includes all costs reasonable and necessary for putting the asset in a working condition.
Indicate whether the statement is true or false
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Q. 5) Indicate with an X whether each description results in the reporting of a definitely determinable liability, an estimated liability or neither on the company's Balance Sheet. Assume a December 31, 2011 yearend.
Definitely determinable Estimated Neither
1. Amount owed to employees for work performed in the last week of December 2011.
2. Amount of loan payment due in 2012.
3. The estimated amount owed for utilities; the exact amount will not be known until January 2012 when the bill is received.
4. A three-year note payable due in January 2014.
What will be an ideal response?
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Q. 6) When all taxes have been paid, the Social Security Tax Payable account will have
a. a debit balance.
b. a credit balance.
c. a zero balance.
d. equal debit and credit balances.
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