An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. ()
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The principles of internal control include: establish responsibilities, maintain adequate records, insure assets, separate recordkeeping from custody of assets, and perform regular and independent reviews. ()
The income statement reports all of the following except ()
A. Revenues earned by a business.
B. Expenses incurred by a business.
C. Assets owned by a business.
D. Net income or loss earned by a business.
Assets, liabilities, and equity accounts are not closed; these accounts are called()
A. Nominal accounts.
B. Temporary accounts.
C. Permanent accounts.
D. Contra accounts.
An adjusting entry could be made for each of the following except: ()
A. Prepaid expenses.
B. Depreciation.
C. Unearned revenues.
D. Owner withdrawals.