ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 68

ACC 556 - Midterm part 1

· Question 1
Source documents can provide evidence that a transaction has
occurred
· Question 2
Expense recognition is tied to revenue recognition.
· Question 3
To obtain maximum benefit from a bank reconciliation, the
reconciliation should be prepared by the employee authorized to sign
checks.
· Question 4
An aging of accounts receivable schedule is based on the premise that
the longer the period an account remains unpaid, the greater the
probability that it will eventually be collected.
· Question 5
A concentration of credit risk is a threat of nonpayment from a single
customer or class of customers that could adversely affect the
financial health of the company.
· Question 6
Which of the following is not a common way that managers use the
balance sheet?
· Question 7
Financing activities include the purchase or sale of long-lived assets
or the purchase or sale of investment securities.