Which of the following could test the existence assertion for payroll-related liabilities?
A. Examine payroll tax returns to determine that the expense was recorded in the proper period.
B. Search for unrecorded liabilities.
C. Compare items in accrued payroll taxes to the supporting payroll tax return.
D. Review payroll liabilities for proper classification as short- or long-term.
Answer: C
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The direct charge-off method of recognizing uncollectible accounts is not in accordance with generally accepted accounting principles
Indicate whether the statement is true or false
The variance Var(x) for the binomial distribution is given by equation
A. np(n - 1). B. np(1 - np). C. n(1 - p). D. np(1 - p).
Which of the following is/are true?
a. Management can sell securities with unrealized holding gains (or losses) and transfer through net income to Retained Earnings the entire unrealized holding gain (or loss)—that is, management can affect the timing of gain or loss recognition in net income for securities available-for-sale, but not for trading securities. b. The timing ability is asymmetric in that impairment rules preclude indefinite deferrals of the recognition in income of unrealized losses, but not unrealized gains. c. Users of the financial statements should be alert to the accounting effect on net income in evaluating the profitability of firms with both trading securities and securities available-for-sale. d. all of the above e. none of the above
________ are an example of real property
A) Buildings B) Patents C) Automobiles D) Works of art