The section of Sarbanes Oxley that sets forth criminal penalties applicable to CEOs and CFOs of up to 5 million and up to 20 years imprisonment if they knowingly or willfully certify false or misleading periodic reports is _____________________________
_.
Fill in the blank(s) with correct word
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Q. 2) Fair Play, Inc paid 3,600 on September 1, 2011 for an 18-month insurance policy beginning on that day. The company recorded the entire amount as prepaid insurance.
How much insurance expense should the company show on its income statement for the year ended December 31, 2011?
A) 200
B) 600
C) 800
D) 3,600
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Q. 3) A purely manual system of record keeping is one in which all records, journals, and ledgers are prepared by hand.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) In the allowance method, the adjustment used to write off an uncollectible account ________.
A) decreases net income
B) has no effect on net income
C) reduces total assets
D) decreases liabilities
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Q. 5) During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a lower amountof net income than would result from the use of the FIFO method.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) Clean Sweep agreed to clean an office building on a weekly basis for 1,000 per week. The contract began on August 15, and Clean Sweep cleaned the building twice during August. Clean Sweep received 1,000 cash in August.
During August, Clean Sweep spent 400 on wages for the workers who cleaned the building, 90 for the cleaning supplies used, and 4,000 to purchase specialized cleaning equipment. How much revenue should Clean Sweep recognize in August using accrual accounting?
What will be an ideal response?
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