For each of the following business transactions, list two examples of related accounting information system (AIS) activities:
What will be an ideal response?
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Which of the following questions about a proposed action is NOT a key question in Bagley's ethical decision tree?
A. Is it legal? B. Does it maximize shareholder value? C. Is it ethical? D. Would it be ethical not to do it? E. Should the effect of it be disclosed to shareholders?
Which of the following is not true of accounting allocations?
a. Examples include depreciation and cost of good sold. b. They are arbitrary. c. No method can be proved superior to another method. d. They are not useful in providing financial information.
When the law of one price is applied to interest rates, it suggests that
A. inflation and interest rates do not follow the law of one price. B. inflation is not affected by interest rates. C. interest rates do not differ much across national borders. D. varying interest rates take into account anticipated differences in inflation rates.
If merchandise costing $500 is sold on account for $620, how is this transaction recorded when using a perpetual inventory system?
A. Debit Accounts Receivable and credit Sales Revenue for $620; debit Inventory and credit Cost of Goods Sold for $500. B. Debit Accounts Receivable, credit Sales Revenue for $620; debit Cost of Goods Sold, and credit Inventory for $500. C. Debit Accounts Receivable and credit Sales Revenue for $620. D. Debit Cash and credit Sales Revenue for $620; debit Cost of Goods Sold and credit Inventory for $500.