Question

Hello, I was wondering if you could help me with my True or False accounting questions?

1) Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. True or False

2) Goods on consignment are goods shipped by their owner, called the consignee, to another party called the consignor. True or False

3) TechCom customer RDA Electronics paid off an 8,300 balance on its account receivable. TechCom should record the transaction as a debt to Accounts Receivable, RDA Electronics and a credit to Cash. True or False

4) An internal control system is comprised of the policies and procedures companies use to protect assets, ensure reliable accounting, and promote efficient operations. True or False

5) Before making adjustment entires at the end of an accounting period, some accounts may not show proper financial statement amounts even though all transactions were correctly recorded. True or False

6 Separation of duties divides responsibility for a series of transactions between two or more employees or departments. Despite the increased complexity, separation of duties reduces the risk of error and fraud. True or False

Answer 1

1) True

Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.

2 ) false

Goods on consignment are goods shipped by their owner, called the consignor, to another party called the consignee.

3 ) False

4 ) true

Yes,internal control system is comprised of the policies and procedures companies use to protect assets, ensure reliable accounting, and promote efficient operations.

5 ) true

Yes, Before making adjustment entires at the end of an accounting period, some accounts may not show proper financial statement amounts even though all transactions were correctly recorded.

6 ) true

Separation of duties divides responsibility for a series of transactions between two or more employees or departments. Despite the increased complexity, separation of duties reduces the risk of error and fraud.