The accountant for Hobson Electrical Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following statements is true?
A) The total revenue will be overstated.
B) The total revenue will be understated.
C) The total expenses will be overstated.
D) The total expenses will be understated.
D
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In performing tests concerning the granting of stock options, an auditor should:
A. verify the existence of option holders in the entity's payroll records or stock ledgers. B. confirm the transaction with the Secretary of State in the state of incorporation. C. determine that sufficient treasury stock is available to cover any new stock issued. D. trace the authorization for the transaction to a vote of the board of directors.
Which of the following suggestions should you follow when writing an effective persuasive claim message??
A) ?Use a deductive sequence. B) ?Begin by asking for an adjustment. C) ?Stress an appeal throughout the message. D) ?Take advantage of the adjusters.
The Equal Protection Test that determines whether the government's unequal classification is "reasonably related" to a legitimate government purpose is the:
A) Strict Scrutiny Test. B) Intermediate Scrutiny Test. C) Rational Basis Test. D) Due Process Test.
A "draft drawn on a bank and payable on demand" is a:
a. promissory note b. note c. certificate of deposit d. deposit slip e. none of the other choices are correct