The auditor is required by generally accepted accounting principles (GAAP) to observe the taking of physical inventory
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Using bullets that do not align, different fonts, and other inconsistencies in design techniques are _____ errors
A) systematic B) grammatical C) format D) usage E) typographical
Mahoe Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets: Cash$105,000 $190,000 Accounts receivable, net 255,000 220,000 Inventory 206,000 200,000 Prepaid expenses 44,000 50,000 Total current assets 610,000 660,000 Plant and equipment, net 1,065,000 970,000 Total assets$ 1,675,000 $ 1,630,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$119,000 $110,000 Accrued liabilities 88,000 80,000 Notes payable, short term 53,000 50,000 Total current liabilities 260,000 240,000 Bonds payable 110,000 110,000 Total liabilities 370,000 350,000 Stockholders'
equity: Common stock, $5 par value 250,000 250,000 Additional paid-in capital 70,000 70,000 Retained earnings 985,000 960,000 Total stockholders' equity 1,305,000 1,280,000 Total liabilities & stockholders' equity$ 1,675,000 $ 1,630,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,330,000 Cost of goods sold 890,000 Gross margin 440,000 Operating expenses 393,571 Net operating income 46,429 Interest expense 10,000 Net income before taxes 36,429 Income taxes (30%) 10,929 Net income$ 25,500 Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share.The company's total asset turnover for Year 2 is closest to: A. 6.57 B. 0.15 C. 0.80 D. 1.25
Bill lends Harvey $1,500 and the loan is secured by Harvey's furniture. If Bill files a financing statement on January 30, 2012 how long will it be effective?
a. Until July 30, 2012. b. Until January 30, 2017. c. Until January 30, 2032 d. For 30 days.
Oven Products Company makes microwave ovens. Pico discovers that his Oven Products oven is defective and sues the maker for product liability based on strict liability. To win, Pico must show that
A. Oven Products sold the oven to Pico. B. Pico knew and appreciated the risk caused by the defect. C. Pico suffered an injury caused by the defect. D. the "defect" was a commonly known danger.