Briefly discuss why financial decision makers must focus on incremental cash flows when evaluating new projects
What will be an ideal response?
Answer: Incremental cash flows describe the total cash effect on the company, looking at the difference between total cash flow to the company with the cash flow, and without the cash flow. The company can then value these cash flows and see if the company is worth more with the project or without the project.
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Which of the following statements regarding Check 21 is false?
a. It allows banks to exchange checks electronically. b. Before this system, paper checks were flown around the country from bank-to-bank to complete the check-clearing process. c. It requires that banks exchange check images. d. It significantly reduced float.
Which is the LEAST effective technique for making presentation slides easy to understand?
a. distributing printouts for the audience to follow b. using only visuals—not text—in the main slide area c. using a text build if the slide contains bullet points d. using one keyword per slide in very large letters
What is a backward integration?
A. Sending information entered into a given system automatically to all upstream systems and processes. B. The integration of data from multiple sources, which provides a unified view of all data. C. Sending information entered into a given system automatically to all downstream systems and processes. D. The integration of a company's existing management information systems.
Reports on service organizations typically
A. Provide reasonable assurance that their financial statements are free of material misstatements. B. Ensure that the entity will not have any misstatements in areas related to the service organization's activities. C. Ensure that the auditee is billed correctly. D. Assess whether the service organization's controls are suitably designed to achieve internal control objectives.