The financial statements of Bollinger Corporation for 2014 and 2015 contained the following errors: 2014 2015 Ending Inventory $14,000 overstated $20,000 understated Rent Expense $4,800 understated $6,600 overstated Assuming that none of the errors were detected or corrected, by what amount will 2015 operating income be overstated or understated?
a. $40,600 understated
b. $35,800 understated
c. $27,800 understated
d. $13,400 overstated
A
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The printer ran out of preprinted sales invoice forms and several sales invoices were not printed. The best internal control to detect this error is
a. a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared b. sequentially numbered sales invoices c. visual verification that all sales invoices were prepared d. none of the above will detect this error
The entry for establishing a $300 petty cash fund would be:
A) Cash 300Petty Cash 300 B) Miscellaneous Expense 300Cash 300 C) Petty Cash 300Cash 300 D) Cash 300Miscellaneous Expense 300
Texas Company has established a target rate of return of 16% for all divisions. For the most recent year, San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000 . Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000. Refer to Texas Company. For the most recent year, what was San Marcos Division's return on
investment? a. 20.83% b. 35.71% c. 41.67% d. 50.00%
Which of the following words is NOT an adjective?
A. A B. The C. An D. On