A control that may be implemented to ensure all sales that occur are recorded in the general ledger includes which of the following?
a. Use of prenumbered shipping, invoice and sales documents.
b. Use of prenumbered statements, inventory lists and credit memos.
c. Reconciliation of invoices with customer statements.
d. Use of pre-authorized price lists.
a
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Morton Corporation reported the following information for the year ended December 31, 2015: Net income $10,000 Dividends 6,000 Retained earnings at December 31, 2015 25,000 What was the balance of Morton's' retained earnings at January 1, 2015?
a. $21,000 b. $29,000 c. $31,000 d. $35,000
Devaluation means that more of the home-country's currency is now needed to buy the same amount of a foreign currency
Indicate whether the statement is true or false
A lot of 1,000 items is on the loading dock. A single-sampling plan calls for a sample size of 10. The following table gives the probability of acceptance for the plan over a range of possible quality levels
Proportion Defective Probability of Acceptance 0.01 0.97 0.02 0.85 0.03 0.60 0.04 0.50 0.05 0.24 0.06 0.05 What is the average outgoing quality limit for this plan? A) less than or equal to 0.018 B) greater than 0.0180 but less than or equal to 0.0200 C) greater than 0.0200 but less than or equal to 0.0220 D) greater than 0.0220
Firms generally choose to finance temporary current operating assets with short-term debt because
A. short-term interest rates have traditionally been more stable than long-term interest rates. B. a firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short term. C. the yield curve is normally downward sloping. D. short-term debt has a higher cost than equity capital. E. matching the maturities of assets and liabilities reduces risk under some circumstances, and also because short-term debt is often less expensive than long-term capital.