In testing plant and equipment balances, an auditor may physically inspect new additions listed on the summary of plant and equipment transactions for the year. This procedure is designed to obtain evidence concerning management's assertions about classes of transactions and events, and specifically, which assertion?
A. Authorization.
B. Occurrence.
C. Classification.
D. Cutoff.
Answer: B
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If a company is using accrual basis? accounting, when should it record? revenue?
A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) when services are performed and cash is received D) when cash is received, 30 days after the completion of the services
Which of the following statements is true regarding the product life cycle (PLC)?
A) A product/service is in the same stage of the PLC in all the countries at the same time. B) PLC cannot be rejuvenated by marketing. C) PLC is a conceptual framework. D) It sketches the profit margin history of the product category over time.
Use the following information to answer the question below. When Langston Corporation was formed on January 1, 20x5, the corporate charter provided for 100,000 shares of $10 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1. The corporation issued 400 shares of stock to its lawyer in full payment of the $10,000
bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2. The company issued 16,000 shares of stock at a price of $50 per share. 3. The company issued 14,000 shares of stock in exchange for equipment that had a fair market value of $320,000. The entry to record transaction 3 is: A) Equipment 320,000 Common Stock 320,000 B) Common Stock 140,000 Equipment 140,000 C) Equipment 140,000 Common Stock 140,000 D) Equipment 320,000 Common Stock 140,000Additional Paid-in Capital 180,000
Cost control concerns have largely been replaced with concern for nonfinancial measures in JIT settings
Indicate whether the statement is true or false