Answer the following statements true (T) or false (F)
1. Endowment funds are invested in perpetuity.
2. Equipment is considered a fixed asset.
3. Accrual basis accounting records financial transactions even when the organization does not have
sufficient cash flow.
4. A statement of financial position shows a snapshot of the organization’s assets and liabilities at a point in time.
5. Endowment management is governed by state law.
1. True
2. True
3. True
4. True
5. True
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Discuss the private key encryption technique and its shortcomings
Which of the following procedures is a substantive procedure that relates to the rights and obligations assertion?
a. Assess management's impairment estimates. b. Examine documents of title. c. Recalculate amortization expense. d. Inquire management about assets that are idle.
Use this information to answer the following question. The transactions below pertain to Broyer Company, whose fiscal year ends September 30. Sept. 10 Received cash for a 90-day, 12 percent, $25,000 note payable. Interest is in addition to the face value. 30 Made end-of-year adjusting entry to accrue interest expense. The entry to record the September 10 transaction (amounts rounded) is:
a. Cash 740 Notes Payable 740 b. Cash 24,260 Accounts receivable 24,260 c. Cash 24,260 Notes Payable 24,260 d. Cash 25,000 Notes Payable 25,000
Which of the following is an example of a topic often discussed in the marketing plan segment of a sales presentation for a reseller?
A. Demonstrations B. Shipping costs C. Guarantees D. List price E. Maintenance