1) Which of the following statements concerning materiality is true?
a. Generally accepted accounting principles are violated if estimates are used in end-of-period adjustments.
b. Each year the Financial Accounting Standards Board (FASB) publishes the dollar amount considered "material" for each industry.
. Immaterial items should be handled in the most expedient manner, even if resulting financial statements are not completely precise.
Accountants should not waste time and money in recording transactions involving small dollar amounts.
2) Which of the following transactions will appear in the bank statement but generally not have been recorded by the depositor?
Outstanding checks.
Service charges.
Deposits in transit.
Both outstanding checks and deposits in transit.
3) An asset purchased on January 1, 2012 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2015 of:
$60,000.
$24,000.
$36,000.
$42,000.