A company borrowed $10,000 by signing a six-month promissory note at 5% interest. The amount of interest to be paid at maturity is $25.
Answer the following statement true (T) or false (F)
False
$10,000 × .05 × 6/12 = $250
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All of the following statements are true except:
a. IFRS requires that estimates of residual value and the life of the asset be reviewed at least annually and revised if necessary. b. The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually. c. IFRS does not have a specific rule that requires residual value and asset life to be reviewed annually. d. The FASB generally requires operating assets to be recorded at acquisition cost, less depreciation, and the assets' values are not changed to reflect their fair market values or selling prices.
Within each cycle, the audit is designed around the specific audit procedures required by the PCAOB general standards
a. True b. False Indicate whether the statement is true or false
The firm's purpose for holding certain securities may change, requiring it to transfer securities from one category to another. The firm transfers the securities at _____ at the time of the transfer
a. future value b. net realizable value c. amortized cost d. fair value e. present value of future cash flows
While preparing a traditional income statement, the costs are shown into which of the two categories?
A) Direct materials and indirect materials B) Product and period C) Variable and fixed D) Avoidable and unavoidable