Squid Roe, Inc. paid 500 cash for janitorial services. The effect of this transaction on the accounting equation is:
A) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
(500) cash No effect No effect (500) expense
B) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
500 supplies
(500) cash No effect No effect No effect
C) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
(500) cash (500) expense No effect No effect
D) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
No effect (500) expense No effect (500) cash
Question 2
Failing to record a customer's order for the purchase of inventory violates the control goal of:
a. ensure input accuracy
b. ensure input completeness
c. ensure input validity
d. ensure input accuracy and input validity
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