A debit journal entry to the cash short and over account is used to record a cash shortage.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) How is net income calculated and on what financial statement(s) is it reported?
What will be an ideal response?
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Q. 3) In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is
a. debit Cost of Merchandise Sold; credit Sales
b. debit Cost of Merchandise Sold; credit Merchandise Inventory
c. debit Merchandise Inventory; credit Cost of Merchandise Sold
d. debit Accounts Receivable; credit Merchandise Inventory
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Q. 4) On May 31, Team Shirts pays a 600 dividend to its shareholders. The dividend ________.
A) increases assets by 600
B) reduces retained earnings by 600
C) is classified as dividend expense of 600
D) increases net income by 600
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Q. 5) Ensuring the security of resources is the control goal that seeks to provide protection of organization's resources from loss, destruction, disclosure, copying, sale, or other misuse of an organization's resources.
Indicate whether the statement is true or false
(
Q. 6) The Financial Accounting Oversight Board is the group that oversees the audits of publicly traded companies.
Indicate whether the statement is true or false
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