Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Acquisition and retirements
Capital lease
Goodwill
Net income
Ownership
Property tax
Repairs and maintenance
Retirement work order
Revenue
Subsidiary ledger
Working papers

Transcribed Image Text:Select the necessary words from the list of possibilities to complete the following statements.
Statements
Ans
1. The plant and equipment budget is designed to control
of property items.
A company may not actually own property recorded as an asset, instead the company may have rights to the
2.
asset under the terms of a
A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end.
3.
Such an error does not usually result in a significant misstatement of
A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing
4.
between capital and
expenditures.
In the auditors' first examination of a new client that has changed auditors, the beginning balances of property,
5.
plant, and equipment accounts may be substantiated by referring to the predecessor auditors'
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