The shareholders can vote to pay themselves a dividend." True False Cumulative preferred shares carry the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders." True False Which of the following is NOT a principle of internal control? Responsibilities should be clearly established Adequate records should be maintained Responsibility for related transactions should be divided Assets should be insured and employees bonded Audits should always be conducted by employees internal to the organization A cheque that was outstanding on last month's bank reconciliation was not among the cancelled cheques returned by the bank this month. As a result, in preparing this month's reconciliation, the amount of this cheque should be Added to the book balance of cash Deducted from the book balance of cash Added to the bank balance of cash Deducted from the bank balance of cash Noted as a memo During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is used to account for bad debts? No effect on net income or on total assets Decrease in net income; no effect on total assets Decrease in net income, decrease in total assets Increase in net income; no effect on total assets No effect on net income: decrease in total assets Accounts receivable turnover measures How long it takes to sell inventory on credit How often a company converts its average accounts receivable balance into cash Measures the relationship of cash sales to edit alles How long it takes to sell inventory on credit and how often a company converts its average accounts receivable balance into cash during the period How often a company converts its a counts receivable balance into cash during the period and measures the relationship of cash sales to credit sales On October 1 of this year, Sports World purchased a delivery van for $23,000 with a residual value of $3.000. The van has an estimated useful le of years. Using straight-line depreciation and the hall year rule, how much depreciation expense should Sports World recognize on December 31 of this year $1.000 Sports World purchased a machine for $190 000. The machine has a useful le of 8 years and a residual value of $10,000. Sports World estimates that the machine could produce 750.000 units of product over its useful life. In the first year, 96,000 units were produced. In the second year, production increased to 111.000 units Using the units of production method. what is the amount of depreciation that should be recorded for the second year?" 525.640 A main accounting issue for property, plant and equipment is The cost of property, plant and equipment Testing property, plant and equipment for impairment Accounting for repairs and improvements to property, plant and equipment Disposal of property, plant and equipment All of these Buying shares in a corporation is attractive to investors because Shareholders are not liable for the corporation's actions and debts. Shares are easily transferred. A corporation has unlimited Shareholders are not agents of the corporation A dividend preference for preferred shares means that Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders Preferred shareholders are guaranteed dividend Dividends are paid quarterly Only preferred shareholders will receive dividends All of these Bruce Corporation issued 8,000 Omon shares in exchange for land that has a fair market value of $184,000. The entry to record this transaction would include A debit to Common Shares for $8,000 Adebit to Land for $8000 Acredit to Land for $184.000 Acredit to Common Shares for $184,000 A debit to Common Shares for $184.000
