Fischers, Inc. purchased a 5-year insurance policy for $2,900. What would the adjusting entry be at the end of the first year?
A) Debit Insurance Expense $2,900, credit Prepaid Insurance $2,900
B) Debit Insurance Expense $2,900, credit Cash $2,900
C) Debit Insurance Expense $580, credit Prepaid Insurance $580
D) Debit Insurance Expense $580, credit Cash $580
C) Debit Insurance Expense $580, credit Prepaid Insurance $580
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Buy-side systems are designed to allow a company to market, sell, deliver and service goods and services to customers throughout the world via the Internet
Indicate whether the statement is true or false
The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. All documents attached to an invoice approval form are canceled before a check is signed
a. Adheres to sound internal control procedures b. Violates sound internal control procedures c. Neither strengthens nor violates internal control
For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer. The movie theater has the following policy. Tickets are sold by the cashier. The ticket stubs are collected by the ticket taker. The ticket stubs are stored in a locked box, and the accounting personnel match the number of ticket stubs to the number of tickets sold.
What will be an ideal response?
Dover Enterprises has two products, Chalk V and Alabaster X, that come from a joint process, blending. Alabaster X undergoes additional curing after the split-off before it can be sold. The entry to account for the movement of products from the blending department is:
a. Debit - Finished Goods Credit - Work in Process - Blending b. Debit - Finished Goods Debit - Work in Process - Curing Credit - Work in Process - Blending c. Debit - Work in Process - Curing Credit - Work in Process - Blending d. Debit - Work in Process - Curing Credit - Factory Overhead