Question 14 Pate Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment? Select one: A. $205,000 B. $500,000 C. $950,000 D. $2,550,000 E. $3,050,000
Question 15 PD Co. has a capital budget of $1,000,000. The company wants to maintain a target capital structure which is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend payment? Select one: A. $100,000 B. $200,000 C. $300,000 D. $400,000 E. $500,000
Question 10 The type of transaction most suitable for batch processing is Answer airline reservations credit authorization payroll processing adjustments to perpetual inventory
Who is responsible for establishing and maintaining the internal control system? the internal auditor the accountant management the external auditor
Question 2 Skimming involves stealing cash from an organization before it is recorded stealing cash from an organization after it has been recorded manufacturing false purchase orders, receiving reports, and invoices a clerk paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor
Question 3 Which of the following best describes lapping? applying cash receipts to a different customer’s account in an attempt to conceal previous thefts of funds inflating bank balances by transferring money among different bank accounts expensing an asset that has been stolen creating a false transaction
Question 4 The purpose of the Transaction Processing System includes all of the following except converting economic events into financial transactions recording financial transactions in the accounting records distributing essential information to operations personnel to support their daily operations measuring and reporting the status of financial resources and the changes in those resources
Question 5 An example of a non financial transaction is sale of products cash disbursement log of customer calls purchase of inventory
The toll-free number you call to check on your motel reservation D
Question 6 Which document is not a type of source document? a sales order an employee time card a paycheck online payday loans in MD a sales return receipt
Question 7 Which of the following is not an internal control procedure? Authorization Management’s operating style Independent verification Accounting records
Question 8 A physical inventory count is an example of a preventive control detective control corrective control feed forward control
Question 9 Which of the following is a preventive control? credit check before approving a sale on account bank reconciliation physical inventory count comparing the accounts receivable subsidiary ledger to the control account
Question 1 Which of the following statements about the service sector of the American economy is true? A. Over the next two decades the service sector in the U.S. will decline in monetary importance. B. The service sector accounts for fewer than 30 percent of all jobs in the U.S. C. Spending in the service sector today captures almost 20 cents of every consumer dollar. D. The service sector in the U.S. produces a balance-of-trade surplus annually.
Question 2 Which of the following is the BEST example of a service product? A. Your motel stay B. The delivery of your luggage to the motel room
Question 3 Which of the following is the BEST example of a service? A. Surgery to correct nearsightedness B. The complementary newspaper left outside your hotel room door C. A transcontinental airplane trip D. Repairs made to your lawn mower