If the board of directors authorizes a $100,000 restriction of retained
earnings for a future plant expansion, the effect of this action is to
Question 24
Which one of the following items is not necessary in preparing a
statement of cash flows?
Question 25
Quincy Corp. earned controllable margin of $500,000 on sales of
$6,400,000. The division had average operating assets of $5,200,000.
The company requires a return on investment of at least 8%. How
much is residual income?
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ACC 556 Midterm Part 1 (100% Correct Answers)
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ACC 556 - Midterm part 1
· Question 1
Source documents can provide evidence that a transaction has occurre
d
· Question 2
Expense recognition is tied to revenue recognition.
· Question 3
To obtain maximum benefit from a bank reconciliation, the reconciliat
ion should be prepared by the employee authorized to sign checks.
· Question 4