According to COBIT, IT resources include applications, information, infrastructure, and people.
Indicate whether the statement is true or false
(
Q. 2) Identify the effects of each transaction on total assets, total liabilities, and total shareholders' equity by writing increase or decrease.
Shareholders' equity
Transaction Total assets Total liabilities Contributed capital Retained earnings
a. Received cash and issued common stock.
b. Purchased inventory for cash.
c. Purchased supplies for cash.
d. Sold inventory to customers for cash.
e. Paid advertising for the month.
(
Q. 3) A multi-column form used to assemble, compute, and summarize data for all employees at the end of the payroll period is a(n)
a. payroll register.
b. employee earnings record.
c. payroll ledger.
d. payroll check.
(
Q. 4) Liabilities are ________.
A) recorded only when the exact amount of the obligation is determined
B) usually not disclosed until they are settled
C) recorded even if the exact amount is not known
D) recorded in the period the obligation is due
(
Q. 5) If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is
a. 800
b. 650
c. 750
d. 700
(
Q. 6) Perch X, Inc purchased goods with an invoice price of 3,000. Purchase terms are 1/10, n/30 and the invoice is paid one week after it was received. The shipping terms are FOB shipping point and the shipping costs are 300.
The cost of the inventory purchased equals _______.
A) 3,000
B) 3,300
C) 2,700
D) 3,270
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