Which of the following is not an inherent risk factor for the revenue process?

A. The entity does not follow its stated policies for sales order approvals.
B. Complexity of revenue recognition issues.
C. Difficulty of auditing transactions.
D. Special industry practices.


Answer: A

Business

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A company is expected to generate $175,000 in earnings next period and requires a 20 percent return on equity capital. Using the assumptions of the price-earnings ratio what would be the company's value at the beginning of next period?

a. $781,250 b. $1,250,000 c. $2,000,000 d. $875,000

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Kennedy enjoys her job as receptionist because she is able to help people find the resources they need. She feels that she is able to help people and have a substantial effect on their work flow. According to the job characteristics model, Kennedy enjoys the ______ of her job.

A. task identity B. autonomy C. task significance D. skill variety

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The CISG is inflexible as to making sure that goods are delivered on a specified date

Indicate whether the statement is true or false

Business

An imported item substantially transformed in the United States by the importer before being sold to the ultimate purchaser need not be marked with a foreign country of origin

Indicate whether the statement is true or false

Business