**Internal Controls and Financial Statements Quiz**1) The main objective of internal controls is to protect the company's assets and financial data. (True or False) [____]2) An asset cost $10,000, with a $2,000 salvage value and 5-year useful life. Would it be correct for the balance sheet to show $9,000 in accumulated depreciation? (Yes or No) [____]3) A company spent $10,000 on improving equipment and extending the useful life of that equipment. Which financial statement would this cost be a part of, the Income Statement or Balance Sheet? [____] ### Financial Accounting Concepts#### Question 4A company spent $2,000 servicing a piece of equipment for normal wear and tear. This type of repair work happens regularly and is expected to maintain the equipment. Which financial statement would this cost be a part of: the Income Statement or the Balance Sheet? *Answer area provided for response.*#### Question 5Allowance for Doubtful Accounts is a temporary account that gets zeroed out at the end of each accounting period. (True or False) *Answer area provided for response.*

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Answered: 1) The main object of internal controls…

Business

Accounting

1) The main object of internal controls is to protect the company's assets and financial data. (True or False)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Internal Controls and Financial Statements Quiz**

1) The main objective of internal controls is to protect the company's assets and financial data. (True or False) [____]

2) An asset cost $10,000, with a $2,000 salvage value and 5-year useful life.

Would it be correct for the balance sheet to show $9,000 in accumulated depreciation? (Yes or No) [____]

3) A company spent $10,000 on improving equipment and extending the useful life of that equipment.

Which financial statement would this cost be a part of, the Income Statement or Balance Sheet? [____]

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