Which of the following is true regarding modified accrual accounting?
A. Revenues are recognized when measurable and available to finance expenditures of the current period; and expenditures are generally recognized as the related goods or services are received.
B. Expenditures are generally recognized as the related goods or services are received.
C. Revenues are recognized when measurable and available to finance expenditures of the current period.
D. None of the choices.
Answer: A
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Answer the following statement true (T) or false (F)
From the lessee's viewpoint, which of the following is not an advantage of leasing?
A) If a lease is recorded as a capital lease, the calculated rate of return on the total assets ratio and the current ratio will be improved. B) A lease agreement may reduce the risk of obsolescence for a lessee. C) In many cases, an asset may be leased without requiring the lessee to make a substantial down payment. D) The lessee may be able to claim larger tax deductions through leasing the asset than if the asset were purchased.
With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?
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Agendas for formal meetings are sent out prior to the meeting
Indicate whether the statement is true or false