A company reported that its bonds with a par value of $50,000 and a carrying value of $64,500 are retired for $69,000 cash, resulting in a loss of $4500. The amount to be reported under cash flows from financing activities is:
A. $(69,000).
B. $(64,500).
C. $(4500).
D. $(14,500).
E. $14,500.
Answer: A
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The auditor notices significant fluctuations in key elements of the company's financial statements. If management is unable to provide an acceptable explanation, the auditor should:
A. consider the matter a scope limitation. B. intensify the examination with the expectation of detecting management fraud. C. withdraw from the engagement. D. perform additional audit procedures to investigate the matter further.
Joseph, a small café owner, is facing possible bankruptcy due to a severe decrease in business in his restaurant. Tom, a friend of Joseph, approached him about hiring illegal immigrants because Joseph can pay those workers a lower pay rate and save on payroll. Discuss some of the legal and ethical issues involved in this situation. How should Joseph respond to his ethical dilemma—should he hire the illegal immigrants or not? Explain your answer.
What will be an ideal response?
Surveys suggest that approximately what percentage of consumers prefer to buy products from companies that are perceived as helping the environment?
a. 10% b. 25% c. 50% d. 80%
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register "calltalk" as its domain name. Later, CallTalk's less successful competitor, CellTalk Company, chooses to use and register "caltalk" (an intentional misspelling of "calltalk") as its domain name. Still later, Call&Talk, Inc, uses the domain name "callltalk" (also a deliberate misspelling of "calltalk") without
CallTalk's authorization, to sell pornographic phone conversations. Refer to Fact Pattern 7-2. By using a domain name similar to CallTalk's, CellTalk is most likely A) diminishing the quality of CallTalk's mark. B) making a fair use of CallTalk's mark. C) licensing the use of CallTalk's mark to itself. D) engaging in smart competitive conduct.