Author Question: Which of the following is a control plan that controls the entry of data by defining the acceptable ... (Read 235 times)

roselinechinyere27m · **on:** Jul 5, 2018

Which of the following is a control plan that controls the entry of data by defining the acceptable format of each data field?
a. document design
b. written approval
c. preformatted screens
d. online prompting

Question 2

Required: Put an X in the appropriate box to indicate the proper accounting treatment for each of the following payments:

Payment Expense Capitalize Neither
Paid 6,700 cash for routine repairs designed to maintain the operating efficiency of an asset
Paid 23,000 to a creditor to satisfy a debt
Paid 9,000 to put a new roof on a warehouse
Purchased rights to a competitor's trademark
Paid 4,500 to completely overhaul a factory machine's engine, extending its useful life by 3 years
Purchased a new automated computer control system for the factory at a cost of 2,300,000
Paid 250 to tune up a home office air conditioner
Incurred a cost of 1,500,000 to build a new addition to an existing building
Paid 3,000 to change the rubber belts on factory equipment as part of normal monthly maintenance
Distributed cash to the owners as a dividend

Ksanderson1296 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

C

Answer to Question 2

Payment Expense Capitalize Neither
Paid 6,700 cash for routine repairs designed to maintain the operating efficiency of an asset X
Paid 23,000 to a creditor to satisfy a debt X
Paid 9,000 to put a new roof on a warehouse X
Purchased rights to a competitor's trademark X
Paid 4,500 to completely overhaul a factory machine's engine, extending its useful life by 3 years X
Purchased a new automated computer control system for the factory at a cost of 2,300,000 X
Paid 250 to tune up a home office air conditioner X
Incurred a cost of 1,500,000 to build a new addition to an existing building X
Paid 3,000 to change the rubber belts on factory equipment as part of normal monthly maintenance X
Distributed cash to the owners as a dividend X