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An audit opinion in which the auditors are taking exception to a specific treatment of accounting information is the




1. An audit opinion in which the auditors are taking exception to a specific treatment of accounting information is the;A. adverse opinion.;B. unqualified opinion.;C. qualified opinion.;D. disclaimer of opinion.;2. Land is an example of a;A. long-term asset.;B. current liability.;C. long-term liability.;D. current asset.;3. The _______ method is used to estimate the cost of ending inventory.;A. average cost;B. FIFO;C. gross profit;D. LIFO;4. Which of the following would probably not need to be disclosed in a footnote?;A. Change of inventory methods;B. A material change in estimated shrinkage;C. A 10% increase in sales;D. A change in depreciation method;5. Which element of internal control deals with a company having large amounts of cash on hand?;A. Information and communication;B. Risk assessment;C. Control environment;D. Control activities;6. A new car lot would probably cost its inventory using the _______ method of inventory costing.;A. moving average;B. specific-identification;C. FIFO;D. LIFO;7. In a FOB destination agreement, when will ownership transfer to the buyer?;A. When the buyer physically touches the goods;B. When the buyer has paid for the goods in full;C. When the goods leave the seller's location;D. When the goods arrive at the delivery location;8. ABC Corporation pays an invoice for $350 in time to receive a 3% discount. The journal entry for the payment of this invoice is debit Accounts Payable;A. $340 and credit Cash $340.;B. $340, debit Inventory $10, and credit Cash for $350.;C. $350 and credit Cash $350.;D. $350, credit Inventory $10.50, and credit Cash for $339.50.;9. When merchandise is sold under the perpetual system of inventory, the journal entry to record a sale of merchandise on account includes debiting _______ and crediting _______.;A. Accounts Receivable, Cost of Goods Sold;B. Accounts Receivable, Sales;C. Accounts Receivable, Inventory;D. Cost of Goods Sold, Sales;10. Michelle, a customer of Regal Company, returned $45 of goods that were purchased on account. Under the perpetual inventory system, Regal will record a debit to _______ and a credit to _______ for $45.;A. Sales, Accounts Receivable (Michelle);B. Sales, Cost of Goods Sold;C. Sales Returns and Allowances, Accounts Receivable (Michelle);D. Cost of Goods Sold, Inventory;11. A company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000. Approximately what is the company's gross profit percentage?;A. 0.103;B. 0.127;C. 0.241;D. 0.429;12. Under a perpetual inventory system, transportation charges on incoming merchandise are generally entered to the _______ account.;A. FOB shipping;B. Inventory;C. FOB destination;D. Delivery Expense;13. If the replacement cost of inventory is less than its historical cost, the company will write down the inventory by;A. increasing inventory and decreasing cost of goods sold.;B. increasing cost of goods sold and decreasing inventory.;C. increasing inventory for replacement cost and decreasing inventory for historical cost.;D. making a note in the financial statements only.;14. _______ occurs if a disgruntled employee convinces another to steal from the company.;A. Monitoring;B. The control environment;C. A control activity;D. Collusion;15. Under a perpetual inventory system, when goods are returned to a retailer from a customer, _______ is debited and _______ is credited.;A. Inventory, Sales;B. Sales, Cost Goods Sold;C. Cost of Goods Sold, Sales Returns and Allowances;D. Sales Returns and Allowances, Cost of Goods Sold;16. An employee believes that getting away with fraud without being detected is likely. This best relates to which element of the fraud triangle?;A. Realization;B. Rationalization;C. Perceived pressure;D. Perceived opportunity;17. A method of valuing inventory based on the average of units is called the;A. LIFO method.;B. specific cost method.;C. FIFO method.;D. average cost method.;18. Under the perpetual inventory method, purchased goods are recorded to the;A. Inventory account as a debit.;B. Purchases account as a debit.;C. Cost of Goods Sold account as a debit.;D. Purchases account as a credit.;19. Which of the following is not part of the fraud triangle?;A. Realization;B. Rationalization;C. Perceived pressure;D. Perceived opportunity;20. If net sales decrease and cost of goods sold increases, the gross profit percentage;A. will change based upon the change in total assets.;B. increases.;C. remains the same.;D. decreases.


Paper#18997 | Written in 18-Jul-2015

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