The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following statements is true regarding dividends on preferred stock?
A) Preferred shareholders are guaranteed an annual dividend. B) Preferred shareholders will receive a dividend if common shareholders are paid. C) Preferred dividends in arrears are a current liability. D) Preferred dividends in arrears are either a current or long-term liability, depending upon when the corporation last declared a dividend.
According to Oliver (1990) organizations collaborate for six main reasons: Necessity, Asymmetry, Reciprocity, Efficiency, Stability, and Legitimacy. The reason organizations collaborate to achieve otherwise unachievable levels of stability is __________.
a. Asymmetry b. Stability c. Necessity d. Legitimacy
The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders
Indicate whether the statement is true or false.
The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue$46,482Cash 41,516Accounts Receivable 7,296Interest Expense 2,299Accounts Payable 5,000Operating Expenses 37,460Deferred Revenue 1,178Equipment 18,048Income Tax Expense 2,326The following activities occurred in 2019:1. Performed advertising services on account, $55,000. 2. Received cash payments on account, $10,400. 3. Received deposits from customers for advertising services to be performed in 2020, $2,500. 4. Made payments to suppliers on account, $5,000. 5. Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the
year. Which of the following is the journal entry that will be used to record activity #4? A. Debit Accounts Payable and credit Operating Expense for $5,000. B. Debit Operating Expense and credit Cash for $5,000. C. Debit Accounts Payable and credit Cash for $5,000. D. Debit Cash and credit Accounts Payable for $5,000.