If the cash short and over account has a debit balance at the end of the fiscal year, the balance represents a revenue.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Busy Beaver, Inc. purchased land ten years ago for 30,000. At December 31, 2012, similar land has been appraised at 50,000. Answer the following questions:
1. At what amount should land be reported on the balance sheet under U.S. GAAP?
2. Which basis is more reliable, historical cost, 30,000, or fair market value, 50,000?
3. Which basis is more relevant, historical cost, 30,000, or fair market value, 50,000?
4. How might the land be reported using IFRS?
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Q. 3) Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a
a. debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
b. debit to Cash and a credit to Sales
c. debit to Cash, credit to Credit Card Expense, and a credit to Sales
d. debit to Sales, debit to Credit Card Expense, and a credit to Cash
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Q. 4) Supplies on the balance sheet equals the amount of supplies used up during a period.
Indicate whether the statement is true or false
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Q. 5) A computer crime technique called worm involves the systematic theft of very small amounts from a number of bank or other financial accounts.
Indicate whether the statement is true or false
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Q. 6) Audited financial statements have been examined by ________.
A) owners
B) Certified Public Accountants (CPAs)
C) Internal Revenue Service (IRS) agents
D) Securities and Exchange Commission (SEC) examiners
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