Author Question: The control plan called key verification is designed to reduce the possibility that data will be ... (Read 91 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
The control plan called key verification is designed to reduce the possibility that data will be misread or miskeyed during data entry.
  Indicate whether the statement is true or false

Question 2

Team Shirts, Inc recognized 4,690 of insurance expense for the year. At the beginning of the year, the balance in Prepaid insurance was 400. At the end of the year, the balance was 775.
 
  How is the accounting information for these items reported on the statement of cash flows using the INDIRECT method?
  What will be an ideal response?



tmlewis4706

  • Sr. Member
  • ****
  • Posts: 295
Answer to Question 1

T

Answer to Question 2

The net increase in Prepaid insurance of 375 is subtracted from net income in the operating activities section of the statement. The 4,690 is not reported on the statement of cash flows separately because it has already been deducted in arriving at net income.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

For a complete list of videos, visit our video library