What does it mean when an income statement is labeled as a consolidated income statement? The statement includes more than one year of data. The statement includes only major category totals, and does not include any details of the revenues and expenses. The statement does not show subtotals for Gross Profit and Operating Income The statement includes the data for a parent company and its subsidiaries. Which of the following statements regarding internal controls systems is false? Effective internal control systems provide absolute assurance against the occurrence of material frauds and embezzlements. Internal control systems depend largely on the competency and honesty of people within the organization. Because internal control systems have a cost, management should evaluate the cost/benefit of the components of the system. The development of an internal control system is the responsibility of management Kyle, whose wife died in December, 2002. properly filed a joint income tax return for 2002. He did NOT remarry, but has continued to maintain his home in which his two dependent children also live. What is Kyle's filing status for 2007? Head of household Surviving spouse Single Married filing separate An obligation that is contingent on the occurrence of a future event should be reported in the balance sheet as a liability if the future event is likely to occur. the amount of the obligation can be reasonably estimated the occurrence of the future event is at least reasonably possible and the amount is known the occurrence of the future event is probable and the amount can be reasonably determined. To meet stockholder expectations for the year, management records fictitious revenues as well as fictitious receivables. In doing this, management violates which of the following financial statement assertions? Materiality Ownership Completeness O Presentation and Disclosure O Valuation When management changes the estimate of an asset's useful life. depreciation expense for all past periods must be recalculated and reported as prior period adjustments. there is no change in the amount of depreciation expense recorded for any past or future years only the depreciation expense in the remaining years is changed None of the above are true. What does it mean when an income statement is labeled as a consolidated income statement? The statement includes more than one year of data. The statement includes only major category totals, and does not include any details of the revenues and expenses. The statement does not show subtotals for Gross Profit and Operating Income The statement includes the data for a parent company and its subsidiaries. Which of the following statements regarding internal controls systems is false? Effective internal control systems provide absolute assurance against the occurrence of material frauds and embezzlements. Internal control systems depend largely on the competency and honesty of people within the organization. Because internal control systems have a cost, management should evaluate the cost/benefit of the components of the system. The development of an internal control system is the responsibility of management Kyle, whose wife died in December, 2002. properly filed a joint income tax return for 2002. He did NOT remarry, but has continued to maintain his home in which his two dependent children also live. What is Kyle's filing status for 2007? Head of household Surviving spouse Single Married filing separate An obligation that is contingent on the occurrence of a future event should be reported in the balance sheet as a liability if the future event is likely to occur. the amount of the obligation can be reasonably estimated the occurrence of the future event is at least reasonably possible and the amount is known the occurrence of the future event is probable and the amount can be reasonably determined. To meet stockholder expectations for the year, management records fictitious revenues as well as fictitious receivables. In doing this, management violates which of the following financial statement assertions? Materiality Ownership Completeness O Presentation and Disclosure O Valuation When management changes the estimate of an asset's useful life. depreciation expense for all past periods must be recalculated and reported as prior period adjustments. there is no change in the amount of depreciation expense recorded for any past or future years only the depreciation expense in the remaining years is changed None of the above are true