Select the necessary words from the list of possibilities to complete the following statements. Statements 1. A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end. Such an error does not usually result in a significant misstatement of for plant and equipment, consisting of a separate record for each unit W 2. A company should maintain a of property. 3. A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing between capital and expenditures. 4. To provide assurance that the accounting department is notified of property retirements, a system of serially numbered should be used by the company. 5. The auditors' principal objective in analyzing should have been capitalized. expense accounts is to discover property items that 6. In the auditors' first examination of new client that has changed auditors, the beginning balances of property, plant, and equipment accounts may be substantiated by referring to the predecessor auditors' 10 7. The plant and equipment budget is designed to control 8. Possession of a deed is not proof of present of property. 9. Good evidence of ownership of property often found by examining current The intangible asset known as arises in accounting for a business combination, and should be amortized as its value becomes impaired over the years. of property items. bills. 11. A company may not actually own property recorded as an asset; instead the company may have rights to the asset under the terms of a Answer
Select the necessary words from the list of possibilities to complete the following statements. Statements 1. A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end. Such an error does not usually result in a significant misstatement of for plant and equipment, consisting of a separate record for each unit W 2. A company should maintain a of property. 3. A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing between capital and expenditures. 4. To provide assurance that the accounting department is notified of property retirements, a system of serially numbered should be used by the company. 5. The auditors' principal objective in analyzing should have been capitalized. expense accounts is to discover property items that 6. In the auditors' first examination of new client that has changed auditors, the beginning balances of property, plant, and equipment accounts may be substantiated by referring to the predecessor auditors' 10 7. The plant and equipment budget is designed to control 8. Possession of a deed is not proof of present of property. 9. Good evidence of ownership of property often found by examining current The intangible asset known as arises in accounting for a business combination, and should be amortized as its value becomes impaired over the years. of property items. bills. 11. A company may not actually own property recorded as an asset; instead the company may have rights to the asset under the terms of a Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Select the necessary words from the list of possibilities to complete the following statements.
Statements
1.
A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end. Such
an error does not usually result in a significant misstatement of
for plant and equipment, consisting of a separate record for each unit
W
2.
A company should maintain a
of property.
3.
A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing between
capital and
expenditures.
4.
To provide assurance that the accounting department is notified of property retirements, a system of serially
numbered
should be used by the company.
5.
The auditors' principal objective in analyzing
should have been capitalized.
expense accounts is to discover property items that
6.
In the auditors' first examination of new client that has changed auditors, the beginning balances of property,
plant, and equipment accounts may be substantiated by referring to the predecessor auditors'
10
7. The plant and equipment budget is designed to control
8. Possession of a deed is not proof of present
of property.
9. Good evidence of ownership of property often
found by examining current
The intangible asset known as
arises in accounting for a business combination, and should be
amortized as its value becomes impaired over the years.
of property items.
bills.
11. A company may not actually own property recorded as an asset; instead the company may have rights to the
asset under the terms of a
Answer
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