Which of the following is not a reason that a business needs an effective internal control system?
A. Protect assets by reducing the risk of fraud.
B. Produce reliable and timely accounting information for use by people external to the organization.
C. Ensure that work is completed efficiently and effectively.
D. Identify ways to circumvent applicable laws and regulations.
Answer: D
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Robin is a human resource manager at Techtronic, a software company. She receives a call from an HR manager at another software company asking about Megan, a software engineer who used to work at Techtronic and has applied for a job at the caller's company. Robin checks the company's records and sees that a coworker had accused Megan of racial discrimination, but an investigation did not turn up any evidence to support the charge. Megan left the company two months later, saying she was no longer comfortable there. Robin is concerned about sharing the details of this situation with the caller. If telling the information to the caller leads to the other company not hiring Megan, what potentially unlawful behavior could Megan accuse Techtronic of engaging in?
A. defamation B. misrepresentation C. fraud D. negligence E. misappropriation
Jackson Transportation purchases many pieces of office furniture with an individual cost below $200 each. Jackson chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant and independent CPA agree that no accounting principle has been violated. What accounting justification
allows Jackson to expense the furniture? a. Conservatism b. Matching c. Materiality d. Verifiability
In ________ approaches to collecting perception data, the respondents are asked to use their own criteria to judge how similar or dissimilar the various brands or stimuli are
A) direct B) preference C) derived D) Likert
Which of the following is not true regarding an asset that lasts longer than its estimated life?
a. It is not depreciated past the point at which its carrying value equals its residual value. b. Its total accumulated depreciation will exceed its total depreciable cost. c. If the asset is fully depreciated and its residual value is zero, its carrying value is zero. d. Its cost and accumulated depreciation remain on the books until it is disposed of.