Identify whether the following tests are substantive analytical procedures, tests of details of transactions, or tests of details of account balances.1) Trace a sample of payroll checks to the master employee list to verify occurrence.2) Recalculate the mathematical accuracy of a sample of payroll checks.3) Test a sample of bank reconciliations for the payroll bank account.4) Estimate sales commissions by applying commission formulas to recorded sales totals.5) Compare amounts accrued to supporting documentation, such as payroll tax returns.6) Compare payroll costs as a percentage of sales to industry data.
What will be an ideal response?
1) Tests of details of transactions.
2) Tests of details of transactions.
3) Tests of details of account balances.
4) Substantive analytical procedures.
5) Tests of details of account balances.
6) Substantive analytical procedures.
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The ________ has the authority for certifying or decertifying a union through an election.
A. Selective Service System (SSS) B. National Labor Relations Board (NLRB) C. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) D. Federal Trade Commission (FTC) E. Small Business Association (SBA)
Risingstar Corporation currently has 129,000 shares outstanding of $3 par value common stock. The stock was originally issued for $14 per share. On March 15, the board of directors declares a 13% stock dividend when the stock is selling for $22 per share. Which of the following is the correct journal entry to record this transaction? (Do not round intermediate calculations.)
A) debit Common Stock Dividend Distributable $50,310, debit Paid-In Capital in Excess of Par—Common for $318,630 and credit Retained Earnings $368,940 B) debit Stock Dividends $368,940 and credit Common Stock Dividend Distributable $368,940 C) debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par—Common $318,630 D) debit Paid-In Capital in Excess of Par—Common $368,940 and credit Retained Earnings $368,940
The frequency of advertising provides a major and distinct advantage over publicity
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
Minimizing reported income would not be a motive guiding the selection of accounting methods.