Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements
a. True
b. False
Indicate whether the statement is true or false
True
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When the cheerleading squad went to a weeklong cheer camp during their school’s spring break, most of the squad took their textbooks and note with them, knowing there would be a midterm exam when they returned to campus. Tariq was confident that he would have plenty of time to study when the squad returned from the trip and he did not take along his study materials. When the exam results were known, Tariq was very unhappy with his poor performance on the exam. When asked by others on the squad why her did so poorly, he immediately blamed the professor and all the ”trick” questions on that exam for his own poor grade. Tariq was applying which of the following to the situation?
A. standpoint theory B. schemata C. stereotypes D. the self-serving bias
Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer. The credit card company charges a 5% service charge. Recording the transaction in the company's accounting records will have what effect on the accounting equation?
a. Increase assets and equity by $4,750 b. Decrease assets and equity by $250 c. Increase assets by $5,000 d. Increase equity by $5,000
All of the following statements regarding liabilities are true except:
A. Liabilities can involve uncertainty in whom to pay. B. Potential future wages to be paid to employees should be recorded as liabilities. C. For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services. D. A liability is a probable future payment of assets or services. E. Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
When a service is rated high in terms of importance but low in terms of performance, this indicates that:
A) There is an opportunity for reallocating resources B) Service improvements are required C) Customers’ expectations should be lowered D) Resources are allocated appropriately