Answer the following statements true (T) or false (F)
1) The entry to close Sales Discounts Forfeited will include a debit to Income Summary.
2) The last step of the closing process of a merchandiser is to make the expense accounts equal zero via the Income Summary account.
3) When using the perpetual inventory system, the entry to close Cost of Goods Sold will include a debit to Income Summary.
4) The entry to close Sales Revenue includes a debit to Income Summary.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
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Inventory costing methods place primary reliance on assumptions about the flow of
A) costs. B) goods. C) resale prices. D) values.
Under the provisions of the Sarbanes-Oxley Act, auditors must do which of the following?
A. Be hired by company management. B. Provide nonaudit services for their clients. C. Maintain working papers for at least seven years following an audit. D. Audit public companies whose chief executives worked for the audit firm in the preceding year.
Last year, RC Rancho's revenue was $120,000,000, variable costs were $90,000,000 and fixed costs were $15,000,000. RC Rancho's contribution margin ratio was 25 percent
Indicate whether the statement is true or false
Under the Securities Act of 1933, at the latest, a final prospectus must be provided to a purchaser
of securities by the time the sale is confirmed. Indicate whether the statement is true or false