For reporting purposes, the personal assets and debts of a business owner should be combined with the assets and debts of the business

Indicate whether the statement is true or false


False

Business

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Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure.

Answer the following statement true (T) or false (F)

Business

Use this information to answer the following question. Chupka Company experienced the following events during the period: 1 . A tabulation of invoices at the end of the day showed $800 in MasterCard invoices, which were deposited in a bank account at full value less a 5 percent discount. 2 . Made a sale on American Express card for $400 and mailed invoice to American Express for payment. The

discount charged by American Express is 4 percent. The entry to record transaction 1 would include an increase in a. Credit Card Expense for $40. b. Sales for $760. c. Cash for $800. d. Accounts Receivable for $760.

Business

When the number of withholding allowances claimed on Form W-4 increases, the amount of income tax withheld decreases.

Answer the following statement true (T) or false (F)

Business

Mungo Pet Supplies makes cat trees for several pet store chains. They order rolls of carpet (used to cover the trees) from a supplier. Mungo’s management has decided to use an EOQ model. The annual demand for carpet is estimated to be 1,000 rolls. The purchase price per roll is $20 and estimated inventory carrying cost rate is 25%. The cost to place an order from the supplier is $30. What is the average inventory amount that Mungo can expect to hold at any one time?

a. 54.7 b. 1000 c. 109.5 d. 500

Business