Adjusting entries are
A) the same as correcting entries
B) needed to bring accounts up to date and match revenue and expense
C) optional under generally accepted accounting principles
D) rarely needed in large companies
B
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Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year
a. $25,000 b. $10,000 c. $0 d. $30,000
Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications
Fill in the blank(s) with correct word
Lighting Company sold an old machine on December 31, 2011, for $22,000 cash. The following data was available when the truck sold: Acquisition cost $100,000 Estimated salvage value at time of acquisition 8,000 Accumulated depreciation on December 31, 2011, after adjustment 85,000 When this transaction is recorded, it should include:
A) debit of $7,000 to the loss on disposal account. B) credit of $22,000 to the truck account. C) credit of $7,000 to the gain on disposal account. D) credit of $15,000 to the gain on disposal account.
Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.
Answer the following statement true (T) or false (F)