chap 7 - 1. Accounting information is useful for several...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. Accounting information is useful for several kinds of decisions. For which decision situation would accounting information NOT be useful? c. Production managers evaluating the quality of materials used in manufacturing. ________________________________________ 2. Gross profit is calculated as: a. Sales - Cost of goods sold. ________________________________________ 3. The term "compound entry" means that the journal entry has: a. more than two accounts involved in the entry. _______________________________________ 4. During 2005, the Latrex Corporation had cash and credit sales of $47,000 and $45,500 respectively. The company also collected accounts receivable of $26,700 and incurred expenses of $68,500, 80 percent of which were paid during the year. In addition, Latrex paid $24,000 for a 12-month building rental, beginning on July 1, 2005. Latrex's accrual- basis net income (loss) for 2005 was: a. $12,000. ________________________________________ 5. Companies that sell stock on the stock exchanges are required to obtain an independent audit of their accounting system and records. This audit must be conducted by a: d. Certified Public Accountant. _______________________________________ 6....
View Full Document

Page1 / 6

chap 7 - 1. Accounting information is useful for several...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online