The control environment in an internal control structure is the overall attitude of management and employees aboutthe importance of internal control.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) The periodic inventory method is a method of record keeping that ________.
A) maintains a constant record of the inventory balance
B) updates the inventory records only when a sale is made
C) can be used only in a computerized accounting system
D) involves calculating cost of goods sold only at the end of the period
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Q. 3) Which of the following has the major duties of prioritizing and selecting IT projects and resources?
a. steering committee
b. security officer
c. CIO
d. systems development manager
(
Q. 4) On June 30, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for June:
a. The April 1 balance in the Allowance for uncollectible accounts was (1,200).
b. 300 owed by the Power Pugs had been written off in June.
c. Credit sales for June were 7,000. The accountant for Team Shirts estimated that 3 of the sales would eventually be uncollectible.
1. What is the amount of bad debts expense for June? On which financial statement is it found?
2. What will be the amount in the Allowance for uncollectible accounts at June 30? On which financial statement is it found?
(
Q. 5) The self-employment tax rate is double the rate of
a. Social Security and Medicare taxes.
b. FUTA taxes.
c. SUTA taxes.
d. property taxes.
(
Q. 6) Maxine, Inc. bought a machine on January 1, 2012 for 48,000. The machine is expected to last for 8 years, after which it will be worthless. What is the book value of the machine on Maxine's balance sheet at December 31, 2012?
A) 48,000
B) 44,000
C) 6,000
D) 42,000
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