Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAMiller Co. declared and distributed a stock dividend.AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (NA)
Declaring and distributing stock dividends increases one stockholders' equity account, common stock (and possibly paid-in capital in excess of par value-common) and decreases another stockholders' equity account, retained earnings, so it has no net effect on the elements of Miller's financial statements.
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In defending its strategy of production outsourcing, Apple Inc. notes that
a. U.S. import tariffs and import quotas are too high. b. the export subsidies of the U.S. government are too low. c. there are not enough American workers with the skills the company needs. d. wages are too low in the United States to motivate people to work hard.
Identify whether the following tests are tests of controls, substantive analytical procedures, tests of details of transactions, or tests of details of account balances.1) Select a sample of customer receivables and send positive confirmations to each customer.2) Examine monthly bank reconciliations for the internal auditors' initials indicating internal verification and review of the reconciliation.3) Select a sample of entries in the sales journal and trace each to the shipping documents.4) Compute receivable turnover and compare with previous years.5) For a sample of new customers, determine whether credit approval was properly administered and documented.6) Compare the dates on a sample of sales invoices with the dates of shipment and the dates the transactions were recorded in the
sales journal. What will be an ideal response?
Indirect costs are often pooled, and not allocated individually because:
A. individual allocation would be more timely. B. the benefits of individual allocation of indirect costs are greater than the costs. C. individual allocation would be tedious. D. individual allocation would be more accurate.
According to the Pygmalion effect, managers can boost performance by ______.
A. raising expectations B. raising pay C. raising equity D. raising satisfaction