An auditor would test control over the objective of the occurrence of sales transactions by sampling recorded revenues and tracing them back to invoices and shipping documents
a. True
b. False
Indicate whether the statement is true or false
True
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For each of the items below, determine whether the items are temporary differences or permanent differences. Also, for each temporary difference, determine whether a deferred tax asset or deferred tax liability is created by the temporary difference described. Assume that each of the temporary differences described is an originating difference. Municipal bond interest
Accrued warranty expense Sales revenues received in advance Prepaid insurance where the tax deduction in future years will be less than the book expense Tax depreciation expense exceeds GAAP (book) depreciation expense Accrued bad debt expense The dividends received deduction Sales revenue recognized currently for GAAP, recognized for tax purposes in future years) Life insurance payments for executives for which the company is the beneficiary Fines paid for law violations What will be an ideal response?
Because discontinued segments of a business will not be part of the company's future operations, discontinued operations are disclosed separately on the income statement
a. True b. False Indicate whether the statement is true or false
The account Unrealized Loss on Temporary Investments in Stock should be included in the
A) Income statement B) Balance sheet as an addition to Temporary Investments in Stock C) Balance sheet as a deduction in Stockholders' Equity D) Statement of Retained Earnings
Presenting the strongest arguments at the beginning of an advertising message assumes that a ________ is operating.
A. compliance hierarchy B. recency effect C. sleeper effect D. credibility effect E. primacy effect