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