What control helps to verify the existence location and condition of all property listed in the accounts quizlet?

Which of the following statements is not typical of property, plant, and equipment as compared to most current asset accounts?

a. A property, plant, and equipment cutoff error near year-end has a more significant effect on net income
b. Relatively few transactions occur in property, plant, and equipment during the year
c. The assets involved with property, plant, and equipment ordinarily have relatively longer lives
d. Property, plant, and equipment accounts typically have a higher dollar value

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Thunder Cat Services specializes in training and veterinary services to household pets, such as dogs, birds, lizards, fish, horses, and of course, cats. After the first 11 months of operations in 2018, Thunder Cat has the following account balances: $$ \text{THUNDER CAT SERVICES}\\ \text{Trial Balance}\\ \text{November 30, 2018}\\ \begin{matrix} \text{Accounts} & \text{Debits} & \text{Credits}\\ \hline \text{Cash} & \text{$\$ 19,400$} & \text{ }\\ \text{Supplies} & \text{$1,500$} & \text{ }\\ \text{Prepaid Rent} & \text{$7,200$} & \text{ }\\ \text{Equipment} & \text{$83,700$} & \text{ }\\ \text{Buildings} & \text{$240,000$} & \text{ }\\ \text{Accounts Payable} & \text{ } & \text{$\$9,800$}\\ \text{Deferred Revenue} & \text{ } & \text{$2,000$}\\ \text{Common Stock} & \text{ } & \text{$125,000$}\\ \text{Retained Earnings} & \text{ } & \text{$75,500$}\\ \text{Dividends} & \text{9,000} & \text{ }\\ \text{Service Revenue} & \text{ } & \text{264,000}\\ \text{Salaries Expense} & \text{$65,000$} & \text{ }\\ \text{Advertising Expense} & \text{$18,200$} & \text{ }\\ \text{Utilities Expense} & \underline{32,300} & \text{\_\_\_\_\_}\\ \text{Totals} & \underline{\underline{\$ 476.300}} & \underline{\underline{\$ 476,300}}\\ \end{matrix} $$ The following transactions occur during December 2018: $$ \begin{matrix} \text{December 1- 31} & \text{Throughout the month, Thunder Cat provides services to customers for cash, $\$ 27,400$.}\\ \text{December 4} & \text{Purchase pet supplies on account, $\$ 2,900$ .}\\ \text{December 8} & \text{Pay for fliers to be distributed to local residences to advertise the company's services, $\$ 3,200$}\\ \text{December 9} & \text{Pay for supplies purchased on December $4 .$}\\ \text{December 12} & \text{Issue additional shares of common stock for cash, $\$ 5,000$ .}\\ \text{December 16} & \text{Pay cash on accounts payable, $\$ 6,300$ .}\\ \text{December 19} & \text{Purchase equipment with cash, $\$ 7700$ .}\\ \text{December 22} & \text{Pay utilities for December, $\$ 4,500 .$}\\ \text{December 24} & \text{Receive cash from customers for services to be provided next January, $\$ 2,300$ .}\\ \text{December 27} & \text{One of Thunder Cat's trainers takes a part-time job at the zoo and earns a}\\ \text{ } & \text{salary of $\$ 1,200$ . The zoo and Thunder Cat Services are separate companies.}\\ \text{December 30} & \text{Pay employee salaries for the current month, $\$ 7,000$ .}\\ \text{December 31} & \text{Pay dividends to stockholders, $\$ 3,000$ .}\\ \end{matrix} $$ 1. Record each transaction. 2. Post each transaction to the appropriate T-accounts. 3. Calculate the balance of each account at December 31. 4. Prepare a trial balance as of December 31.

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Posting errors are identified in the following table. In column [1], enter the amount of the difference between the two trial balance columns [debit and credit] due to the error. In column [2], identify the trial balance column [debit or credit] with the larger amount if they are not equal. In column [3], identify the account[s] affected by the error. In column [4], indicate the amount by which the account[s] in column [3] is under- or overstated. Item [a] is completed as an example. $$ \begin{matrix} & \text{Description of Posting Error} & \text{[1] Difference between Debit and Credit Columns} & \text{[2] Column with the Larger Total} & \text{[3] Identify Account[s] Incorrectly stated} & \text{[4] Amount That Account[s] Is Over-or Understated}\\ \text{a.} & \text{\$3,600 debit to Rent Expense is posted as a \$1,340 debit.} & \text{\$2,260} & \text{Credit} & \text{Rent Expense} & \text{Rent Expense understated \$2,260}\\ \text{b.} & \text{\$6,500 credit to Cash is posted twice as two credits to Cash.}\\ \text{c.} & \text{\$10,900 debit to the Dividends account is debited to Common Stock.}\\ \text{d.} & \text{\$2,050 debit to Prepaid Insurance is posted as a debit to Insurance Expense.}\\ \text{e.} & \text{\$38,000 debit to Machinery is posted as a debit to Accounts Payable.}\\ \text{f.} & \text{\$5,850 credit to Services Revenue is posted as a \$585 credit.}\\ \text{g.} & \text{\$1,390 debit to Store Supplies is not posted.}\\ \end{matrix} $$

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What control is necessary that will lead to proper usage of property plant and equipment quizlet?

What documentary evidences are usually available to the auditors in the client's office to substantiate the legal ownership of property plant and equipment?

What is the importance of internal control over plant and equipment?

Which of the following is the purpose of the auditor's test of repair and maintenance expense to determine the propriety and consistency of these charges?