Questions from Financial Accounting

Q: 1. Service Revenue for the year = $80,000

1. Service Revenue for the year = $80,000. Of this amount, $70,000 is collected during the year and $10,000 is expected to be collected next year. 2. Salaries Expense for the year = $40,000. Of this a...

Q: Below are several statements about the Sarbanes-Oxley Act (SOX

Below are several statements about the Sarbanes-Oxley Act (SOX). 1. SOX represents legislation passed in response to several accounting scandals in the early 2000s. 2. The requirements outlined in SOX...

Q: Companies are increasingly making their accounting information, especially their annual reports

Companies are increasingly making their accounting information, especially their annual reports, available through their websites. Select a well-known publicly traded company and go to its website. Lo...

Q: Below are amounts (in millions) for Glasco Company and Sullivan

Below are amounts (in millions) for Glasco Company and Sullivan Company. Both companies have total revenues of $2,500, $3,000, and $3,500 in each year. Required: Make a prediction as to which firm wil...

Q: Below are several statements about internal controls. 1. The

Below are several statements about internal controls. 1. The components of internal control are built on the foundation of the ethical tone set by top management. 2. Once every three months, managers...

Q: Below are several scenarios related to control activities of a company.

Below are several scenarios related to control activities of a company. 1. A manufacturing company compares total sales in the current year to those in the previous year but does not compare the cost...

Q: Below are several amounts reported at the end of the year.

Below are several amounts reported at the end of the year. Required: Calculate the amount of cash to report in the balance sheet.

Q: Douglas and Son, Inc., uses the following process for its

Douglas and Son, Inc., uses the following process for its cash receipts: The company typically receives cash and check sales each day and places them in a single drawer. Each Friday, the cash clerk re...

Q: Goldie and Kate operate a small clothing store that has annual revenues

Goldie and Kate operate a small clothing store that has annual revenues of about $100,000. The company has established the following procedures related to cash disbursements: The petty cash fund consi...

Q: Janice Dodds opens the mail for Ajax Plumbing Company. She lists

Janice Dodds opens the mail for Ajax Plumbing Company. She lists all customer checks on a spreadsheet that includes the name of the customer and the check amount. The checks, along with the spreadshee...