Which of the following situations has the best chance of being detected when a CPA computes the ratio of repairs and maintenance expense to the related property, plant, and equipment accounts, compares to prior years' ratios, and investigates all changes exceeding a fixed percentage?
A. Because of worsening economic conditions, the current year provision for uncollectible accounts was inadequate.
B. The cashier began lapping accounts receivable in the current year.
C. The company is failing to capitalize major repairs that increase the useful life of equipment.
D. Depreciation has not been taken on some assets.
Answer: C
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A. An increase in the income tax rate for future years that was enacted during the time period for a company reporting a deferred tax liability at the end of the period. B. An increase in the income tax rate for future years that was enacted during the time period for a company reporting a deferred tax asset at the end of the period. C. A decrease in the deferred liability account during the period. D. An increase in the deferred tax asset account during the period.
Salvage value is:
A. A factor relevant to determining an asset's useful life. B. An estimate of the asset's value at the end of its benefit period. C. Not a factor relevant to determining depletion. D. A factor relevant to amortizing an intangible asset with an indefinite life. E. A factor relevant to determining depreciation under MACRS.
____ systems integrate a company’s ordering, planning, and production scheduling to ensure optimization of resources. They also help reduce overall IT costs by consolidating the various functions under a single application.
a. PERT b. SCM c. ERP d. MRP
Copyrights are addressed separately by different state laws
Indicate whether the statement is true or false