Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = I Decrease = D No Effect = NA (Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element is offset by a decrease in that same element.)A transaction recorded as a debit to Cash and a credit to Common Stock.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(I) (NA) (I) (NA) (NA) (NA) (I)
Debits increase asset accounts, such as cash, and credits increase stockholders' equity accounts, such as common stock.
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Which of the following occurs when, based on sample results, control risk is assessed excessively high?
a. Audit inefficiency. b. A less expensive audit. c. Reduction of substantive testing. d. Errors that are more likely to occur than anticipated.
Whirlwind Fan Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct material cost is $85, and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows:
What is the cost of materials handling per ceiling fan? (Round any intermediate calculations and your final answer to two decimal places.)
A) $1.60
B) $6.00
C) $4.00
D) $10.00
A bondholder that owns a $1,000, 10%, 10-year bond has:
A. The right to receive dividends of $1,000 per year. B. The right to receive $1,000 at maturity. C. Ownership rights in the issuing company. D. The right to receive $10,000 at maturity. E. The right to receive $10 semiannually until maturity.
Violation of a statute designed to protect underage, unlicensed drivers, as well as innocent third parties, from the consequences of juvenile car theft and "joy riding," by prohibiting car owners from leaving the keys in their car if the car is unattended, is likely to be characterized as:
a. negligence per se. b. res ipsa loquitur. c. contributory negligence. d. assumption of risk.