Leur AU 14 punte Which of the following statements is correct? Using prenumbered cheques is considered a "documentation" control activity. Page 2 A bank reconciliation is an example of an external review Page 3: Internal and external auditors are both considered independent from the company O Having a second cashier recount the cash drawer of another cashier would be an example of physical control Page 4: Question 14 (1 point) Saved If services are performed on credit, then (all else equal) Page 5 liabilities will increase liabilities will decrease shareholder's equity will increase assets will decrease. AM 1070 DUHU Time Limit: 2:00:00 Time Left:0:20:03 Colby Ltd. purchased equipment and incurred the costs listed below. For which of the costs shown below is it correct to capitalize the cost and include it in the Equipment account balance. Page 2: Training workers to use the equipment Freight cost to ship equipment to Colby, FOB shipping point Cost of additional electricity used by the equipment after it was installed O Annual premium for insurance on the equipment after it is acquired Page 4 Question 16 (1 point) Saved Which of the following statements is true in terms of an internal control system? Page 5: The extent of internal control activities adopted by a company must not be evaluated in terms of cost-benefit. O A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Only large companies need to be concerned with a system of internal control. tonalidade MacBook Air Time Limit 2:00:00 Time Left:0:19.53 LULULL. WOULUH O A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Page 2 Only large companies need to be concerned with a system of internal control. Page 3: An internal control system cannot be considered effective until the possibility of human error has been completely eliminated. Page 4 Question 17 (1 point) Saved Which of the following statements is not correct? A financial liability means there is a contractual obligation to pay cash or provide goods or services in the future. age 5: "Current maturities of non-current debt" refers to the amount of interest on a note payable that must be paid in the current year. Provisions are liabilities of uncertain timing or amount. The classification of a liability as current or non-current may affect the evaluation of a company's liquidity. mit: 2:00:00 Which of the following statements is not correct? The evaluation of the ending inventory affects the current ratio of a company. One of the ratios to determine a company's liquidity is the inventory turnover ratio. O Solvency, like liquidity, addresses a company's ability to settle its current liabilities within one year. Most companies in Canada list their liabilities in order of their due date, starting with those liabilities that are due first. Question 19 (1 point) Saved A credit to a liability account indicates an increase in the amount owed to creditors. must be accompanied by a debit to an asset account. indicates a decrease in the amount owed to creditors. will always increase shareholders' equity. MacBook Air rase A credit to a liability account O indicates an increase in the amount owed to creditors. Page 2: must be accompanied by a debit to an asset account. O indicates a decrease in the amount owed to creditors. Page 3 will always increase shareholders' equity. Page 4 Question 20 (1 point) An accountant has debited an expense account for $4,000 and credited an asset account for $2,000. Which of the following would be the correct way to complete the recording of the transaction? Page 5: Debit an asset account for $2,000 Credit a liability account for $2,000 Debit a liability account for $2,000 Debit a shareholder's equity account for $2,000