Liquidity refers to the ability to quickly convert an asset into cash without lowering the selling
price.
Indicate whether the statement is true or false
TRUE
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An internal control system consists of all the following policies and procedures except:
a. Those necessary to ensure the safeguarding of an entity's assets. b. Those necessary to ensure that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations. c. Those necessary to ensure the reliability of its accounting records. d. Those necessary to ensure the accomplishment of its overall objectives.
If equipment costing $90,000 with accumulated depreciation of $75,000 is sold for $17,000, the entry to record this sale would include a
a. credit to Accumulated Depreciation, $75,000; b. debit to Cash, $90,000; c. credit to Gain on Sale of Equipment, $2,000; d. debit to Loss on Sale of Equipment, $15,000; e. none of these
Which of the following best describes the term "Madison and Vine"?
A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising
Murton Industries Murton Industries, Inc reported the following information on its recent balance sheet. Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding Refer to the information for Murton Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared?
A) A stock dividend has no impact on any of the stockholders' equity accounts. B) Total stockholders' equity increases $75,000. C) Cash increases $300,000. D) Retained earnings decreases by $225,000.