AC 241 T/Th - Quiz CH 1
Indicate whether each of the following is true (T) or false (F) in the space provided.
1. (LC. 1) The essential characteristics of accounting include identification and
2. (LC. 1) Fi
False. Partnerships are fairly easy to form; they can be formed simply by a verbal
3. False. Companies that produce soft drinks and computer chips would use
5. False. Job order costing and process cos
For which type of trust is the income taxed in the grantor's individual income tax
Inter vivos trust.
A gift that is specified in a will as "I leave my co
The following gifts are received in Year One by a not-for-profit organization:
I. $2,000 specified by the donor to be used to pay salaries.
II. $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
A five-year lease is signed by the City of Wachovia for equipment with a seven-year
life. The asset will be returned to the lessor at the end of the lease. The present
value of the lease is $20,000, and annual payments of $5,411.41 are payable
Which group of governmental financial statements reports all revenues and all costs
of providing services each year?
GAAP-Based Financial Statements.
Fund Financial Statements.
Cost-Based Financial Statements.
Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just
before filing a bankruptcy petition and requesting liquidation:
Of the salaries payable, $30,000 was owed to an officer of the company. The remaining