All of the following statements are true about the integrated test facility (ITF) except
a. production reports are affected by ITF transactions
b. ITF databases contain "dummy" records integrated with legitimate records
c. ITF permits ongoing application auditing
d. ITF does not disrupt operations or require the intervention of computer services personnel
A
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If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause:
A. An understatement of liabilities. B. An overstatement of net income. C. An overstatement of equity. D. An overstatement of assets. E. An overstatement of liabilities.
The most likely situation in which reported earnings are positive but operations are consuming rather than generating cash would be a
a. rapidly growing company. b. company reporting large noncash expenses. c. company using very conservative accounting standards that lower earnings. d. company paying large cash dividends to its shareholders.
A company had the following purchases and sales during its first year of operations: PurchasesSalesJanuary:10 units at $1206 unitsFebruary:20 units at $1255 unitsMay:15 units at $1309 unitsSeptember:12 units at $1358 unitsNovember:10 units at $14013 unitsOn December 31, there were 26 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the value of cost of goods sold? (Assume all sales were made on the last day of the month.)
A. $8,670. B. $5,400. C. $5,470. D. $5,305. E. $5,130.
Acme Global provides its employees with the opportunity to experience job rotation. This allows the employees to see more of what goes on in the organization and how each job functions. Acme Global is developing its employees through ________.
A. formal education B. experience C. informal education D. employee assessment E. alternative assessment