Under federal law, employers are required to withhold a percentage of the employees' wages for pensions.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Net income on the income statement will always be greater than net income on the statement of changes in shareholders' equity.
Indicate whether the statement is true or false
(
Q. 3) The section of Sarbanes Oxley that makes it a felony to knowingly destroy, alter, or create records and or documents with the intent to impede, obstruct, or influence an ongoing or contemplated federal investigation and offers legal protection to whistle-blowers is _____________________________
_.
Fill in the blank(s) with correct word
(
Q. 4) Which statement below is TRUE about the cost principle?
A) The cost principle says that all costs associated, directly or indirectly, with buying and using a long-term asset should be permanently capitalized.
B) The cost principle says that all costs reasonable and necessary to place an asset into a working condition should be capitalized.
C) The cost principle says that all costs associated with purchasing a long-term asset should be expensed in the period of the purchase.
D) The cost principle says that only the cash paid to acquire a long-term asset should be capitalized.
(
Q. 5) During periods of rapidly rising costs, the use of the LIFO method results in illusory or inventory profits.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Nadir Company sold 2,000 of merchandise to Acme Company, with terms of 3/10, n/30. Five days later, Acme returned 500 of the merchandise. If Acme does NOT pay within the discount period, how much cash will Nadir receive?
A) 2,000
B) 1,940
C) 1,500
D) 1,455
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