A not-for-profit secondary school sends a 8-page brochure to the parents and alumni of the school. The brochure describes the school's programs and discusses the achievements of some of its graduates.
Five pages list the names of all contributors during the previous year and the last page contains an appeal for funds. How should the organization report the expense of printing and mailing the brochure?
a. All costs should be reported as program expenses.
b. All costs should be reported as fund-raising expenses.
c. The costs should be allocated between program and fund-raising expenses, using appropriate cost accounting techniques.
d. All costs should be reported under a single caption Program and fund-raising expenses.
Question 2
A computerized accounting system will not allow which of the following types of journalizing errors?
a. entering an amount in an incorrect account
b. reversing the debit and credit accounts in a transaction
c. processing a transaction that has unequal debits and credits
d. entering a transaction with an incorrect date
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