Proper management of accounts payable will guarantee that a firm
A) pays some bills early and some late to obtain an average payment of on time.
B) pays the maximum due to each vendor.
C) pays the minimum due to each vendor.
D) pays each bill early to avoid penalties and interest.
C
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Plesco Corporation acquired 80 percent of Slesco Corporation's voting common stock on January 1, 20X7. On January 1, 20X8, Plesco received $350,000 from Slesco for equipment Plesco had purchased on January 1, 20X5, for $400,000. The equipment is expected to have a 10-year useful life and no salvage value. Both companies depreciate equipment on a straight-line basis.Based on the preceding information, in the preparation of the 20X8 consolidated financial statements, equipment will be:
A. debited for $25,000. B. credited for $70,000. C. debited for $50,000. D. debited for $40,000.
Slater Company uses the cash basis of accounting. Slater Company collected $950,000 from its customers during 2015. Customers owed Slater $150,000 of accounts receivable at the beginning of 2015, and $190,000 of accounts receivable at the end of 2015. What is Slater's sales revenue for 2015 under the accrual basis of accounting?
A) $810,000 B) $950,000 C) $990,000 D) $940,000
Opening statements should be what?
A) Detailed B) Brief and to the point C) Neutral D) Hedge sentences E) Apologetic
Which of the following statements best describes the act of collusion?
A) Collusion is caused by an overstatement of ending inventory. B) Collusion is an intentional act of two or more employees to accomplish theft of company assets. C) Collusion is one of the necessary outcomes of a system of internal control over financial reporting. D) Collusion is enhanced by an effective system of independent reconciliations and other checks on recorded amounts.