Bailey Corp sold investments for $204,000 cash that cost $180,000. The journal entry to record the transaction which correctly shows the increase in cash flow is:
A) Cash 204,000 Investments 180,000Gain on Sale of Investments 24,000
B) Cash 180,000 Loss on Sale of Investments 24,000Investments 204,000
C) Investments 204,000 Cash 204,000
D) Cash 180,000 Investments 180,000
A
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After the auditor has prepared a flowchart of the internal controls surrounding sales and evaluated the design of the system, the auditor would perform tests of controls on all control activities:
A. that the auditor plans to rely on. B. documented in the flowchart. C. considered to be weaknesses that might allow errors to enter the accounting system. D. that would aid in preventing fraud.
In a decision tree, outcome points are under direct control of the decision maker and show the results of choices
Indicate whether the statement is true or false.
When Ikea was poised to open a flagship store outside Moscow in 2001, its executives were approached by employees of the public local utility. If Ikea wanted electricity for its planned grand opening, the public utility officials needed individual cash payments
a. Ikea could pay the money as a facilitation payment and not violate any anti-bribery laws b. Ikea and other companies from Sweden do not follow the OECD requirements on bribery so Ikea could pay the officials and not violate any laws c. The payment to the public officials would be a bribe and would violate Swedish law d. The anti-bribery provisions apply only when a company offers to pay them, not when public officials request payments
Glenn and Haji sign a written contract. Glenn claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under
A. the doctrine of promissory estoppel. B. the "main purpose" exception. C. the "partial performance" exception. D. the Statute of Frauds.