For each of the following tests, state whether it is a test of details of account balances or a test of details of transactions. Then note for which property management assertion the test provides evidence.1. Test depreciation calculations for a sample of capital assets2. For assets written off, test amounts charged against income and accumulated depreciation3. Physically examine the capital asset additions4. Vouch transactions included in repairs and maintenance for items that should be capitalized5. Vouch significant additions and dispositions to vendor invoices or other supporting documentation6. Examine or confirm deeds or title documents for proof of ownership
What will be an ideal response?
1. Account balances - Valuation and allocation
2. Transactions - Accuracy
3. Account balances - Existence
4. Transactions - Classification
5. Transactions - Occurrence
6. Account balances - Rights and obligations
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Answer the following statements true (T) or false (F)
1. Manufacturing overhead is allocated by debiting the Finished Goods Inventory account. 2. Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account. 3. Traditionally companies have used direct labor hours, direct labor costs and machine hours as the primary cost drivers of manufacturing overhead costs. 4. The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account. 5. The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.
Close buyer-seller relationships may not make sense because
A. there are situations in which the buyer could get reduced prices by letting suppliers compete for the buyer's business. B. some suppliers do not want to deal with buyers who place small orders. C. not all purchases are important enough to the buyer to justify a close relationship with a supplier. D. flexibility may be reduced for the firms involved. E. All these answers are correct.
An agreement that harms marriage is illegal because it is opposed to ____________________
Fill in the blank(s) with correct word
The Blockbuster business model is slowly dying and so Blockbuster's dividends are expected to grow at a rate of -2% per annum in perpetuity
Blockbuster just (yesterday) paid a dividend of $2.00 per share. Blockbuster pays dividends annually. Stock holders require a rate of return of 10%. What is the fair stock price for Blockbuster today? A) $16.33 B) $25.50 C) $17.00 D) $24.50 E) $16.49