A computer crime technique called _____________________________
_ involves the systematic theft of very small amounts usually by rounding to the nearest cent in financial transactions such as the calculation of interest on savings accounts.
Fill in the blank(s) with correct word
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Q. 2) Clean Sweep, Inc. paid 7,200 on May 1, 2011 for 12 months' insurance coverage starting May 1. How much prepaid insurance should appear on the company's balance sheet at December 31, 2011?
A) 7,200
B) 2,400
C) 3,000
D) 4,800
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Q. 3) Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) X Company has the following accounting balances at the end of the year before adjustments:
Accounts receivable 50,000
Allowance for uncollectible accounts (1,000)
Net sales 100,000
Bad debts expense 0
The company estimates that 2 of net sales will be uncollectible. After the correct adjusting entry has been made, which of the following is correct about Bad debts expense for the year and Allowance for uncollectible accounts at the end of the year?
A) Bad debts expense will be 2,000 on the income statement and Allowance for uncollectible accounts will be (3,000) on the balance sheet.
B) Bad debts expense will be 3,000 on the income statement and Allowance for uncollectible accounts will be (2,000) on the balance sheet.
C) Bad debts expense will be 3,000 on the balance sheet and Allowance for uncollectible accounts will be (3,000) on the income statement.
D) Bad debts expense will be 1,000 on the income statement and Allowance for uncollectible accounts will be (2,000) on the balance sheet.
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Q. 5) Inventory errors, if not discovered, will self-correct within two years.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) Long-term assets refer to assets that will last and provide benefits for more than one year.
Indicate whether the statement is true or false
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