A restrictive endorsement means that the check is payable to any bearer.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 2) The accounting rule which requires that only the business transactions of Team Shirts be shown on the balance sheet is the ________.
A) separate-entity assumption
B) going-concern assumption
C) monetary-unit assumption
D) historical-cost principle
(
Q. 3) Gross profit is equal to
a. sales plus cost of merchandise sold
b. sales plus selling expenses
c. sales less selling expenses
d. sales less cost of merchandise sold
(
Q. 4) Identify the three forms of business organization.
What will be an ideal response?
(
Q. 5) Under the Sarbanes Oxley Act of 2002, the section on Auditor Independence establishes an independent board to oversee public company audits.
Indicate whether the statement is true or false
(
Q. 6) The going-concern assumption refers to ________.
A) measuring the financial statement items at their cost at the time of the transaction
B) an assumption is made that a company will continue to be in business in the future
C) the use of monetary units, such as dollars, to measure the value of financial statement amounts
D) the way revenues and expenses are recognized
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