_____________________________
_ is a processeffected by an entity's board of directors, management, and other personneldesigned to provide reasonable assurance regarding the achievement of objectives such as: effectiveness and efficiency of operations, reliability of reporting, and compliance with applicable laws and regulations.
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 insurance expense should appear on the company's balance sheet at December 31, 2011?
A) 7,200
B) 4,200
C) 4,800
D) 0. Insurance expense does not appear on the balance sheet.
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Q. 3) The journal entry to record payroll transactions for the accounting period is to debit Wages and Salaries Expense for the gross pay and credit the appropriate liability and cash accounts.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) Basquets, Inc. purchased land and two factories at a total cost of 800,000. To the right of the appraised values below, show the amount Basquets should record as the cost of each asset:
Asset Appraised values Recorded Values
1. Land 100,000 __________
2. Factory 1 300,000 __________
3. Factory 2 600,000 __________
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Q. 5) When merchandise inventory is shown on the balance sheet, both the method of determining the cost of theinventory and the method of valuing the inventory should be shown.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) Which statement below best explains the credit terms of 2/15, n/30?
A) The buyer will receive a 15 percent discount if it pays within two days of the purchase.
B) The buyer will receive a 15 percent discount if it pays within thirty days.
C) The buyer will receive a 2 percent discount if it pays within fifteen days.
D) The buyer will receive a 2 percent discount if it pays within thirty days.
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