Which of the following is the most important control procedure over acquisitions of property, plant, and equipment?
A. Analyzing monthly variances between authorized expenditures and actual costs.
B. Establishing a written company policy distinguishing between capital and revenue expenditures.
C. Using a budget to forecast and control acquisitions and retirements.
D. Requiring acquisitions to be made by user departments.
Answer: C
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Part of the listening process involves attaching meaning to the words we hear, often unconsciously. This part of the process is called ______.
a. hearing b. responding c. interpreting d. understanding
A _____ is an independent memory device and is also known as a thumb drive.
A. hard drive B. memory card C. circuitry card D. USB drive
Fraudulent financial reporting can result from the misapplication of accounting principles
Indicate whether the statement is true or false
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The journal entry that Klein makes on March 20 is:
A.
| Cash | 4,500 | |
| Accounts receivable | 4,500 |
B.
| Cash | 7,644 | |
| Sales discounts | 156 | |
| Accounts receivable | 7,800 |
C.
| Cash | 7,056 | |
| Accounts receivable | 7,056 |
D.
| Cash | 7,056 | |
| Sales discounts | 144 | |
| Accounts receivable | 7,200 |
E.
| Cash | 7,800 | |
| Accounts receivable | 7,800 |