Roy is a director of Sales Service Inc. Sales enters into a contract with TeleCenter Corporation in which Roy has a personal interest. Roy must
A. apply the “don’t ask, don’t tell” rule of personal conduct.
B. use the situation to his personal advantage.
C. make a full disclosure of the conflict of interest.
D. none of the choices.
Answer: C
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The ledgers are an example of an accounting book of original entry
a. True b. False Indicate whether the statement is true or false
Consider Figure 5.3. The quota's revenue effect equals
a. $1.60. b. $2.40. c. $3.20. d. $4.00.
A process sheet is a type of:
A) assembly drawing. B) assembly chart. C) route sheet. D) work order. E) bill of material.
On February 3, Smart Company sold merchandise in the amount of $2200 to Truman Company, with credit terms of 3/10, n/30. The cost of the items sold is $1520. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.
| Cash | 1520? | |
| Accounts receivable | 1520? |
B.
| Cash | 1440? | |
| Accounts receivable | 1440? |
C.
| Cash | 2200? | |
| Accounts receivable | 2200? |
D.
| Cash | 2120? | |
| Sales discounts | 46? | |
| Accounts receivable | 2166? |
E.
| Cash | 2134? | |
| Sales discounts | 66? | |
| Accounts receivable | 2200? |