other - 2 The idea that a business is considered to be...

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2. The idea that a business is considered to be separate from its individual owners is known as the: b. entity concept. _______________________________________ 3. The term "compound entry" means that the journal entry has: a. more than two accounts involved in the entry. ________________________________________ 4. On October 1, 2005, the Wolfzorn Company was paid $14,000 for a job that would not be completed until March 1, 2006. On the date they were paid, Wolfzorn credited a revenue account and debited cash. If Wolfzorn fails to make an adjusting entry on December 31, 2005, the effects will be: d. overstatement of revenues and understatement of liabilities. ________________________________________ 5. Which of the following is NOT a valid control procedure? d. Management assurances ________________________________________ 6. The write-off of an account that has been judged to be uncollectible will not affect the net accounts receivable balance unless which of the following methods is used? c. Bad debt expense is recognized when an account is written off.
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________________________________________ 7. Clancy Company sold $12,000 of merchandise to Lee Jones, with terms 2/10, n/30. If Lee paid for one-third of the merchandise within the discount period and two-thirds after the discount period, he paid a total of: c. $11,920. ________________________________________ 8.
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other - 2 The idea that a business is considered to be...

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