The ERM framework addresses four categories of management objectives. Which category addresses the effective and efficient use of resources?
a. compliance
b. operations
c. reporting
d. strategic
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Q. 2) A special form of receipt showing the name of the payee, the purpose of the payment, and the account to be charged for each petty cash payment is known as a petty cash voucher.
a. True
b. False
Indicate whether the statement is true or false
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Q. 3) A balance sheet ________.
A) describes the financial situation of a company at a specific point in time
B) is a summary of all of the revenues minus all of the expenses for an accounting period
C) shows the changes that took place in the amount of shareholders' equity during a period
D) is a list of all the cash collected and cash paid during a period
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Q. 4) Preparing a bank reconciliation enables a company to ________.
A) locate any errors, whether made by the bank or by the company
B) make adjustments for transactions that have already been recorded in the accounting records
C) make adjustments in the cash accounts
D) update the bank statements
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Q. 5) Emma Co sold to Isabella Co merchandise on account FOB shipping point, 2/10, net 30, for 15,000 . Emma Co prepaid the 750 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co make to record payment of the merchandise if Isabella Co pays within the discount period?
a. Accounts PayableEmma Co., debit 15,000 Cash, credit 15,000
b. Accounts PayableEmma Co., debit 15,450 Cash, credit 15,450
c. Accounts PayableEmma Co., debit 15,000 Freight In, debit 750 Cash, credit 15,750
d. Accounts PayableEmma Co., debit 15,750 Merchandise Inventory, debit 300 Cash, credit 16,050
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Q. 6) The ERM framework addresses four categories of management objectives. Which category concerns high-level goals, aligned with and supporting its mission?
a. compliance
b. operations
c. reporting
d. strategic
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