_____________________________
_ is a process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
Fill in the blank(s) with correct word
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Q. 2) On November 27, Acme, Inc ordered merchandise from Zenith Company. Zenith shipped the merchandise to Acme on November 29, FOB shipping point. The merchandise arrived at Acme's warehouse on December 1. Acme paid for the merchandise on January 2.
When should Zenith recognize revenue?
A) November 27
B) November 29
C) December 1
D) January 2
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Q. 3) Compensation for managerial or administrative services usually is expressed in biweekly, monthly, or annual terms and is called wages.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) Using Lox Stock & Bagel Company's financial statement above, determine the amount of the owners' claims that have been contributed to the company.
A) 10,000
B) 39,910
C) 11,910
D) 21,910
(
Q. 5) Prepaid rent is a(n) ________.
A) expense representing rent used up during the period
B) liability representing an obligation to pay for rent
C) part of shareholders' equity
D) asset representing rent that has been paid but not used
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Q. 6) The specific identification inventory method should be used when the inventory consists of identical, low-cost unitsthat are purchased and sold frequently.
a. True
b. False
Indicate whether the statement is true or false
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