Statement 1: In the absence of any errors or reconciling item, or when transactions between the home office and the branch are properly recorded, it is expected that the reciprocal account, home office and branch accounts, are of the same amount. Statement 2: Excessive freight costs for interbranch transfers should be absorbed as an expense by the office directing the transfers, because it represents management mistakes or inefficiencies. O False, False O True, False O True, True O False, True
Statement 1: In the absence of any errors or reconciling item, or when transactions between the home office and the branch are properly recorded, it is expected that the reciprocal account, home office and branch accounts, are of the same amount. Statement 2: Excessive freight costs for interbranch transfers should be absorbed as an expense by the office directing the transfers, because it represents management mistakes or inefficiencies. O False, False O True, False O True, True O False, True
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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