On October 1, Lawrence Company borrowed $60,000 from Fourth National Bank on a 1-year, 7% note. If the company's fiscal year ends as of December 31, Lawrence should make an entry to increase
a. interest expense, $4,200.
b. notes payable, $1,050.
c. interest payable, $1,050.
d. prepaid interest, $3,150.
c
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Assigning of the lower-of-cost-or-market to the items that comprise the inventory of merchandise at the end of the account period is an application of which of the following concepts?
a. materiality b. conservatism c. reliability d. full disclosure
As most audience members are not good listeners, if you are giving a presentation and you want your audience to remember your message, you must
a. always speak with a microphone or at a podium. b. use visual aids for each point. c. repeat yourself. d. include the audience as participants.
If detection risk is low, the auditor is more willing to take a higher risk of the substantive audit procedures not detecting a material misstatement
a. True b. False Indicate whether the statement is true or false
If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report
Indicate whether the statement is true or false