_____________________________
_ is a process by which organizations select objectives, establish processes to achieve objectives, and monitor performance.
Fill in the blank(s) with correct word
(
Q. 2) When reporting accounts receivable, the amount reported should be ________.
A) the accounts receivable collected during the period
B) the amount of accounts receivable that a company expects to collect
C) the accounts receivable charged for the current month
D) the amount of accounts receivable minus credit card expense
(
Q. 3) Every individual who performs services for a business is considered to be an employee.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 4) Rent-a-Wreck, Inc. paid 36,000 cash for a two-year insurance policy on April 1, 2011. What adjustment should the company make before preparing its annual financial statements on December 31, 2011?
A) Decrease Cash and increase Prepaid insurance by 36,000.
B) Decrease Prepaid insurance and recognize Insurance expense of 18,000.
C) Decrease Prepaid insurance and recognize Insurance expense of 13,500.
D) Decrease Cash and recognize Insurance expense of 13,500.
(
Q. 5) The choice of an inventory costing method has no significant impact on the financial statements.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements.
Indicate whether the statement is true or false
Quick Reply
