An example of a detective control is requiring that the cash drawer be compared with the sales recorded by the register.
Indicate whether the statement is true or false
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Q. 2) If Beginning Inventory (BI) + Purchases (P) Ending Inventory (EI) = Cost of Merchandise Sold (COMS), anequivalent equation can be written as
a. BI + P = COMS EI
b. BI P = COMS + EI
c. BI + P = COMS + EI
d. EI + P = COMS BI
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Q. 3) On December 31, IOU Corporation issued 100,000 of 10-year, 8 bonds at 98. The bonds pay interest annually on December 31. These bonds sold at 98 because ________.
A) the stated interest rate was higher than the market rate of interest
B) the stated interest rate was lower than the market rate of interest
C) the bond was issued six months after yearend
D) this is an installment note
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Q. 4) Systems documentation provides an overall description of the application, including the system's purpose; an overview of system procedures; and sample source documents, outputs, and reports.
Indicate whether the statement is true or false
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Q. 5) Which of the following assets can NOT be depleted?
A) timber
B) coal
C) diamonds
D) copyright
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Q. 6) One-half of the self-employment tax is really a personal expense to the owner of the business.
a. True
b. False
Indicate whether the statement is true or false
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