Plant assets are reported on a balance sheet at their book value (acquisition costs less accumulated depreciation), and not necessarily at fair (market) value.
Answer the following statement true (T) or false (F)
True
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An auditor compares information on canceled checks with information contained in the cash disbursements journal. The objective of this test is to determine that:
A. cash disbursements are for goods and services actually received. B. proper cash purchase discounts have been recorded. C. no discrepancies exist between the data on the checks and the data in the journal. D. recorded cash disbursement transactions are properly authorized.
Kater Company manufactures shelving units. The company receives pre-cut wood, drills holes in the wood so that movable shelves may be installed, then assembles and paint the units. Classify each of the following items of factory overhead as either fixed or variable cost
a. Janitorial service (an outside service, not company employees) b. Supervisor of the Drilling Department c. Oil used to lubricate drill press machines d. Propane for forklift trucks used to move the material from the Drilling Department to the Assembly Department e. Natural gas used to heat the plant f. Security guard g. Drill bits used in the drilling department h. Insurance on factory building i. Electricity to power drill press machines j. Rent of factory building
Underpriced products ________
A) produce less revenue than they would if they were priced at the level of perceived value B) sell poorly in the global marketplace C) produce more revenue than they would if they were priced at the level of perceived value D) mostly offer higher value than those with a high markup price E) are characterized by rapidly declining demand
Accounts in the ledger are usually maintained in alphabetical order
Indicate whether the statement is true or false