As described in COSO, elements of a control environment might include the following:
a. commitment to the importance of control
b. reward systems
c. tone at the top of the organization
d. all of the above
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Q. 2) Use the following information for DeltaCo for the year ended December 31, 2011 to answer the questions below. Assume no new common stock was issued during the year.
Expenses for the year 700
Net income 200
Retained earnings, December 31, 2010 600
Retained earnings, December 31, 2011 500
Total shareholders' equity at December 31,2010 900
Total assets at December 31, 2010 1,200
Total assets at December 31, 2011 1,300
1. What were the total revenues for the year?
2. What was the dividend during the year?
3. What were the total liabilities on the balance sheet at December 31, 2011?
4. How much is contributed capital at December 31, 2011?
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Q. 3) To reconcile the bank statement, which of the following amounts would be added to the bank statement balance?
a. service charge
b. outstanding checks
c. deposits in transit
d. amounts collected by the bank for the depositor's account
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Q. 4) If you bank on-line, you can view your bank balance at any time and see exactly how much cash you have available to pay bills.
Indicate whether the statement is true or false
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Q. 5) Generally, the revenue account for a merchandising business is entitled
a. Sales
b. Fees Earned
c. Gross Sales
d. Gross Profit
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Q. 6) Team Shirts, Inc. had the following balances on its balance sheet:
Assets Liabilities
December 31, 2011 300,000 250,000
December 31, 2012 400,000 320,000
During 2012, Team Shirts had revenues of 500,000 and expenses of 420,000. No new stock was issued. The amount of dividends for 2012 was ________.
A) 130,000
B) 50,000
C) 10,000
D) 80,000
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