Act105 - Study guides, Class notes & Summaries

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management? A.Accept responsibility for the effectiveness of the company’s internal control over financial reporting. B.Evaluate the effectiv...

uestion 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management? A.Accept responsibility for the effectiveness of the company’s internal control over financial reporting. B.Evaluate the effective...

Question 1 of 10 10.0/ 10.0 Points Effective internal control systems successfully eliminate all misstatements in financial statements. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points SEC rules do not allow management to assert that a company has effective internal controls if: A.one or more material weaknesses exist. B.two or more material weaknesses exist. C.two or more immaterial weaknesses exist. D.one material weakness and one immaterial weakness exist. ...

Question 1 of 10 10.0/ 10.0 Points If the utility or value of inventory items is less than the cost of those items, departures from cost are justified. A. True B. False Answer Key: True Question 2 of 10 0.0/ 10.0 Points If the beginning inventory exceeds the ending inventory, the net income is overstated. A. True B. False Answer Key: False Question 3 of 10 10.0/ 10.0 Points For 2007, Johnson Company had the following: beginning inventory - $780,000; ending inventory - $830,000; ...

Question 1 of 10 10.0/ 10.0 Points Manufacturing overhead was applied to production at 60 percent of the direct labor cost of $10,000. The entry under perpetual inventory procedure is A.Dr. Work in Process Inventory for $6,000 and Cr. Manufacturing Overhead for $6,000. B.Dr. Finished Goods Inventory for $6,000 and Cr. Manufacturing Overhead for $6,000. C.Dr. Work in Process Inventory for $4,000 and Cr. Manufacturing Overhead for $4,000. D.Dr. Work in Process Inventory for $4,000 and Cr....

Question 1 of 10 10.0/ 10.0 Points The consistency principle implies that a relationship exists between expenses and revenues. A. True B. False Answer Key: False Question 2 of 10 0.0/ 10.0 Points The Trial Balance columns of the work sheet show store fixtures of $4,000. Estimated depreciation for the period is $400. The Store Fixtures amount in the Balance Sheet columns of the work sheet will be a: A.$3,600 debit. B.$3,600 credit. C.$4,400 debit. D.$4,000 debit. E.$4,000 cred...

Question 1 of 10 10.0/ 10.0 Points The most important reason for preparing a statement of cash flows is to compute the change in cash. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points What is the stockholders’ equity to debt ratio for the following data? Total current liabilities (noninterest bearing) - $300,000; bonds payable, 5% (issued in 2007, due in 20 years) - $600,000; preferred 6% stock, $200 par - $240,000; common stock, $20 par - $480,000; premium on ...

Question 1 of 10 10.0/ 10.0 Points Recognizing revenue at the time of completion of production is called the installment basis of accounting. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Many accounting measurements are estimates and involve approximation and judgment. A. True B. False Answer Key: True Question 3 of 10 10.0/ 10.0 Points Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount o...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management? A.Accept responsibility for the effectiveness of the company’s internal control over financial reporting. B.Evaluate the effectiv...

Question 1 of 10 10.0/ 10.0 Points Because automobiles differ so much, their manufacture is likely to be accounted for in a job costing system. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Which of the following would be classified as manufacturing overhead? (1) marketing research; (2) depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect materials; (6) machinery maintenance. A.1, 3, 4 are manufacturing overhead co...