Reporting format of managerial accounting is flexible and driven by user's needs

Indicate whether the statement is true or false


True

Business

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Sales orders should be prenumbered documents

Indicate whether the statement is true or false

Business

A company had revenues of $59,000 and expenses of $46,000 for the accounting period. Dividends of $6500 were paid in cash during the same period. Which of the following entries could not be a closing entry?

A. Debit Income Summary $59,000; credit Revenues $59,000. B. Debit Revenues $59,000; credit Income Summary $59,000. C. Debit Retained earnings $6500; credit Dividends $6500. D. Debit Income Summary $13,000; credit Retained earnings $13,000. E. Debit Income Summary $46,000; credit Expenses $46,000.

Business

From the four selections below, identify which are necessary to develop the value chain of a product or service. 1 . Processes 3 . Nonvalue-adding activities 2 . Departments 4 . Value-adding activities

a. 1 and 3 b. 2 and 4 c. 1 and 4 d. 1 and 2

Business

 A company holds $40,000 of 7% bonds as a held-to-maturity security. The journal entry to record receipt of a semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800.

Answer the following statement true (T) or false (F)

Business