According to COBIT, IT resources must be managed by IT control processes to ensure that an organization has the information it needs to achieve its objectives.
Indicate whether the statement is true or false
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Q. 2) On May 1, Counts, Inc has a balance of 1,000 in office supplies. During May, the company pays 500 for more supplies. On May 31, the company counts the supplies and finds 200 of supplies remaining.
What will the company report on its statement of cash flows for the month of May?
A) Supplies expense of 500
B) Supplies of 500
C) Cash paid for supplies of (500)
D) Accounts payable of 500
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Q. 3) Detective controls include ________.
A) separating the duties of cash collection from the duties of recording cash transactions in the books
B) bank reconciliations (comparing the company's accounting records for cash to its bank statement)
C) limiting access to assets
D) requiring passwords to access the computerized accounting records
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Q. 4) The account that is debited for the total amount of the gross earnings of all employees for each pay period is
a. Wages and Salaries Expense.
b. Payroll Taxes Expense.
c. Miscellaneous Expense.
d. Withdrawal Expense.
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Q. 5) Residual (salvage) value means the ________.
A) value an asset has for generating revenue
B) costs capitalized into an asset account
C) cost of an asset plus its accumulated depreciation at the end of its useful life
D) estimated value an asset will have at the end of its useful life
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Q. 6) When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is:
a. debit Cost of Merchandise Sold; credit Sales
b. debit Cost of Merchandise Sold; credit Merchandise Inventory
c. debit Merchandise Inventory; credit Cost of Merchandise Sold
d. No journal entry is made to record the cost of merchandise sold.
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