Gain or loss realized on the disposition of property is recognized unless the tax law provides a nonrecognition exception.
Answer the following statement true (T) or false (F)
True
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Audit procedures Discuss how each of the following procedures could be used in the audit of fixed assets, e.g., various types of equipment used in the business. Procedure How used Assertion(s) tested Observation Physical examination Inquiry Confirmation Examination of documents Recomputation Reprocessing Vouching Analytical Procedures
Details of the division of net income for a partnership should be disclosed
A) in the asset section of the balance sheet B) in the partners' subsidiary ledger C) in the statement of cash flows D) in the income statement
A company had total sales of $600,000, net sales of $550,000, and an average accounts receivable of $90,000. Its accounts receivable turnover equals:
A. 6.3 B. 54.8 C. 6.1 D. 1.1 E. 63.0
Haupt Inc. manufacturers water pumps. Each pump requires $155 of raw materials and $315 of conversion costs. Each pump is sold for $725. Last month Haupt produced and sold 69 pumps. The journal entry to record cost of goods sold would include:
A. Credit to cost of goods sold of $50,025. B. Debit to sales of $50,025. C. Credit to sales of $32,430. D. Debit to cost of goods sold of $32,430. E. Debit to accounts receivable of $32,430.