Chapter 16- Auditing

what expense account relates to inventories?

purchases, COGS, and payroll

what revenue account is related to intangible assets?

royalties

what expense account relates to accounts and notes receivable?

uncollectible accounts and notes expense

payroll activities include which separate functions?

1. employment (HR) 2. timekeeping 3. payroll preparation and record keeping 4. distribution of pay to employees

conservatism

An accounting doctrine for asset valuation in which the lower of two alternative acceptable asset valuations is chosen.

what revenue account is related to notes receivable?

Interest

what revenue account is related to PP&E?

Rent, gain on sales

what expense account is related intangible assets?

amortization

what are some examples of miscellaneous revenue?

collection of previously written-off accounts, write-offs of old outstanding checks or unclaimed wages, proceeds from sales of scrap metal, rebates or refunds of insurance premiums, proceeds from sales of plant assets

what expense accounts is related to accrued liabilities?

commissions, fees, bonuses, product warranty expenses, and others

what expense account relates to PP&E?

depreciation, repairs and maintenance, and depletion

what revenue account is related to securities and other investments?

interest, dividends, gains on sales, share of investees income