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1. Sampling is used heavily in manufacturing and service settings to ensure high-quality products. In which of the following areas would sampling be inappropriate?
Custom cabinet making
Technical support by phone
Cell phone manufacturing
2. The preparation of adjusting entries is:
needed to ensure that the expense recognition principle is followed.
straightforward because the accounts that need adjustment will be out of balance
optional when financial statements are prepared.
only required for accounts that do not have a normal balance.
3. What is an advantage of the correlation coefficient over the covariance?
It falls between -1 and 1.
It is a unit-free measure, therefore making it easier to interpret.
It falls between -1 and 1; and it is a unit free measure, therefore making it easier to interpret.
It falls between 0 and 1.
4. Interest may be included in the acquisition cost of a plant asset:
during the construction period of a self-constructed asset.
if the asset acquisition is financed by a long-term note payable.
if the asset is purchased on credit.
if it is a part of a lump-sum purchase.
5. Which trial balance will consist of the greatest number of accounts?
Adjusted trial balance
Post-closing trial balance
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