Proof of a PMSI is the burden of the creditor claiming priority
Indicate whether the statement is true or false
True
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Which of the following might be detected by an auditor's review of the entity's sales cutoff?
A. Excessive goods returned for credit. B. Lapping of year-end accounts receivable. C. Unrecorded sales discounts. D. Overstated sales for the year.
What is the normal year-end treatment of immaterial variances recognized in a cost accounting system utilizing standards?
a. Reclassified to deferred charges until all related production is sold b. Closed to cost of goods sold in the period in which they arose c. Allocated among cost of goods manufactured and ending work in process inventory d. Capitalized as a cost of ending finished goods inventory
Jark Corporation has invested in a machine that cost $60,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.):
A. 9.5% B. 7.2% C. 8.3% D. 25%
Which of the following statements relating to insurance companies is correct?
a. Under GAAP, the balance sheet of an insurance company is classified by current assets and current liabilities. b. The largest liability on the balance sheet is generally unearned premiums. c. Under statutory accounting practices, real estate, not used in operations, is valued at market value on the balance sheet. d. For long-duration contracts, revenue is recognized when the premium is due from the policyholder.