COSO's _____________________________
_ is the foundation for all other components of internal control, providing discipline and structure.
Fill in the blank(s) with correct word
(
Q. 2) The current ratio measures the ________.
A) amount of revenue recognized in the current accounting period
B) liquidity of a company
C) profitability of a company
D) financial risk of a company
(
Q. 3) Under federal law, employers are required to withhold certain amounts from the total earnings of each employee to be applied toward the payment of the employee's federal income tax.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 4) What is the effect on the accounting equation when a company collects an account receivable?
A) Total assets increase, total liabilities increase, and total shareholders' equity stays the same.
B) Total assets stay the same, total liabilities stay the same, and total shareholders' equity stays the same.
C) Total assets decrease, total liabilities stay the same, and total shareholders' equity decreases.
D) Total assets stay the same, total liabilities increases, and total shareholders' equity decreases.
(
Q. 5) It's notunusual for large companies to use different inventory costing methods for different segments of itsinventory.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Boise Cascade Company purchases 5,000 of merchandise from a vender with credit terms of 2/10, n/30. Assuming that Boise Cascade pays within the discount period, the total cost of the inventory is ________.
A) 5,000
B) 4,900
C) 4,500
D) 3,500
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