Which of the following is not a reason why the auditor needs to take special care to review significant estimates in the financial statements?
a. Organizations may try to use the estimates to "smooth" earnings.
b. Organizations may create hidden reserves in unusually good years that can be used in years when real profits do not meet expectations.
c. Companies may underestimate liabilities or impairment of asset values to achieve reported earning goals in years when real profits to not meet expectations.
d. Companies may try to overestimate liabilities in computing leverage ratios.
d
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If fixed costs are $80,000, the contribution margin is $25 per unit, and the targeted profit is $30,000, then the required unit sales are
a. 4,400 units. b. 2,000 units. c. 4,500 units. d. 2,500 units.
A 60 percent markup at retail equals what markup at cost?
a. 75 percent b. 150 percent c. 300 percent d. 400 percent
Solar Sports is excited about expanding its export opportunities to Cuba, since the United States has renewed trade relations with Cuba, and plans to utilize a(n) _______, which links buyers and sellers in different countries but is not involved in manufacturing and does not own assets related to manufacturing.
A. trading company B. contract manufacturing C. licensing D. outsourcing
With respect to negotiability, a mere reference to another writing or record makes a promise conditional
Indicate whether the statement is true or false