If a company fails to record depreciation expense during its adjusting process, what would be the effect on the balance sheet? OOOOO Liabilities would be too low; stockholders' equity would be too high. Assets would be too low; stockholder's equity would be too low. Assets would be too high; stockholders' equity would be too high. Liabilities would be too high; stockholders' equity would be too low. Assets would be too high; stockholders' equity would be too low. Which of the following statements concerning inventory metric-based analysis is correct? OOOOO A decreasing inventory turnover ratio indicates that a company is improving how efficiently its inventory is managed. Inventory turnover indicates how many times a year a company is theoretically selling all of its inventory. Cost of goods sold for purposes of the inventory turnover metric is calculated by dividing sales revenue by two. Days' sales in inventory can be calcaulated by dividing the inventory turnover by 365. More than one of the above is correct. Which of the following is correct regarding responsibility centers? Controllable costs, as used in a responsibility accounting system, consists only of variable costs. Product line, geographic, and customer base are all considered categories of responsibility centers. If a manager is held responsible for generating revenue and controlling costs, the division is considered both a cost and a profit center. Budget performance reports should only be used to evaluate the performance of cost centers. Responsibility centers are primarily used by companies with decentralized operations. When a company receives cash for services rendered to a customer, which of the following occurs? OOO There's a decrease in assets and a decrease in liabilities. There's an increase in assets and an increase in stockholders' equity. There's a decrease in assets and a decreaset in stockholders' equity. There's an increase in liabilities and a decrease in stockholders' equity. There's an increase in assets and an increase in liabilities. One employee handles cash receipts from customers. Another employee records cash receipts in the accounting records. Which control procedure is illustrated by the above scenario? OOOOO Duties within the accounting department are rotated between employees. Custody of assets and accounting for the assets is separated. Competent employees are hired to perform the duties they are assigned. Procedures are used to safeguard assets. Security measures are used to ensure accounting data is reliable