Which of the following statements is not correct?
A. The worksheet is the source of data for the general journal entries required to close the temporary accounts.
B. In the closing process, the balance of the Purchases account is transferred to the Merchandise Inventory account.
C. In the closing process, the balance of the owner's drawing account is transferred to the debit side of the owner's capital account.
D. Closing the Revenue accounts is the first step in the closing process.
Answer: B
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An auditor would consider internal control over an entity's payroll procedures to be ineffective if the payroll department supervisor is responsible for:
A. updating employee earnings records. B. having custody over unclaimed paychecks. C. hiring subordinate payroll department employees. D. applying pay rates to time tickets.
Reliability refers to the extent to which a scale produces valid results if repeated measurements are made
Indicate whether the statement is true or false
Under which of the following conditions is a contract said to have legal value?
A) the promisor receives a legal benefit B) the promisor suffers a legal detriment C) both promisor and promisee receives a legal benefit D) both promisor and promisee suffers a legal detriment
Dweeby Manufacturing has noticed a steady decline in product sales this last quarter. With the realization that their clientele may be changing, they decide to run an ad campaign featuring gay couples using their products. Dweeby Manufacturing is adapting to which organizational force for change?
a. Management changes b. Demographic characteristics c. Social and political pressures d. Technological advancements