When bonds are called for retirement, any excess of the bonds' call price over the bonds' carrying value is reported as a gain on the income statement
Indicate whether the statement is true or false
False
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Which one of the following procedures would not be appropriate for an auditor in discharging his or her responsibilities concerning the entity's physical inventories?
A. Obtaining written representation from the entity as to the existence, quality, and dollar amount of the inventory. B. Confirmation of goods in the hands of public warehouses. C. Supervising the annual physical inventory count. D. Carrying out physical inventory procedures at an interim date.
The two factors that affect the task of interviewing a much larger number of respondents than originally anticipated to achieve the desired net sample are random rate and standard rate
Indicate whether the statement is true or false
Which of the following taxes must be paid by both the employee and the employer?
a. Social security tax (FICA) b. State unemployment tax c. State withholding tax d. Federal unemployment tax
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klein will make on March 12 is (are):
A.
| Accounts receivable | 7,800 | |
| Sales | 7,800 | |
| Cost of goods sold | 4,500 | |
| Merchandise Inventory | 4,500 |
B.
| Sales | 7,800 | |
| Accounts receivable | 7,800 | |
| Cost of goods sold | 4,500 | |
| Merchandise Inventory | 4,500 |
C.
| Sales | 7,800 | |
| Accounts receivable | 7,800 |
D.
| Accounts receivable | 7,800 | |
| Sales | 7,800 |
E.
| Accounts receivable | 4,500 | |
| Sales | 4,500 |