Which of the following is not one of the independent auditor's objectives regarding the examination of inventories?
A. Ascertaining the physical quantities of inventory on hand.
B. Verifying that inventory counted is owned by the entity.
C. Verifying that all inventory owned by the entity is on hand at the time of the count.
D. Verifying that the entity has used proper inventory pricing.
Answer: C
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Smith, Inc. has a pension plan with the following data available for 2018 and 2019: 20182019Service cost$30,000 $34,000 Interest cost$18,000 $20,000 Actual return on plan assets$15,000 $21,600 Beginning of year plan assets$200,000 $240,000 Discount rate 8% 8%Expected return on plan assets 8% 8%If the beginning cumulative net actuarial gains are $30,000, the fair value of the plan assets is $200,000 at the beginning of 2018, and the average remaining service period of active employees is 10 years, the amortization of actuarial gains for 2018 is:
A. $1,000. B. $0. C. $2,000. D. $750.
A major disadvantage of the observation method of analyzing cost behavior is:
a. It bases its solution on only two observations. b. It results in its analyzed cost being treated as either fixed or variable, based on which type of behavior it more closely resembles. c. Two persons could draw different lines through the data points. d. It enables non-representative points, called outliers, to be identified.
Brendan Company sold merchandise worth $1,600 on credit, terms n/15 and on the next day the customer returned merchandise worth $100, which cost $60 for Brendan Company. What is the required journal entry to record the merchandise returns under the perpetual inventory system?
A) Accounts Receivable 100 Sales Returns and Allowances 100Cost of Goods Sold 60Merchandise Inventory 60 B) Sales Returns and Allowances 100 Accounts Receivable 100Merchandise Inventory 60Cost of Goods Sold 60 C) Accounts Receivable 100 Merchandise Inventory 100Cost of Goods Sold 60Sales 60 D) Merchandise Inventory 100 Sales 100Sales 60Cost of Goods Sold 60
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