What is the effect on the accounting equation of writing off an uncollectible account of 75?
A) increase assets 75 and decrease liabilities 75
B) decrease assets 75 and decrease liabilities 75
C) decrease assets 75 and increase expense 75
D) no net effect on total assets
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Q. 2) _____________________________
_ provides guidance on how an organization's IT might affect any of COSO's five components of internal control. This standard guides auditors in understanding the impact of IT on internal control and assessing IT-related control risks.
Fill in the blank(s) with correct word
(
Q. 3) Pension payments are required deductions from an employee's gross earnings.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 4) Which of the following expenditures should NOT be capitalized?
A) the costs of testing a new machine to get it ready for use
B) purchasing factory equipment with an estimated useful life of 7 years
C) purchasing a used truck with an estimated 40,000 miles of service life remaining
D) the costs of changing the oil in the company's fleet of delivery trucks
(
Q. 5) In valuing merchandise for inventory purposes, net realizable value is the estimated selling price less any directcosts of disposal.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Ace Electronics sold 350 of merchandise to a customer on account. The sales tax was 6. How much sales revenue did Ace earn?
A) 350
B) 371
C) 329
D) 0
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