After the auditor has prepared a flowchart of the internal controls surrounding sales and evaluated the design of the system, the auditor would perform tests of controls on all control activities:
A. that the auditor plans to rely on.
B. documented in the flowchart.
C. considered to be weaknesses that might allow errors to enter the accounting system.
D. that would aid in preventing fraud.
Answer: A
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The 100% rule suggests that before a PERT chart is done, a project manager must:
A. Make sure that each person on the project team got 100% on their project management final exam. B. Make sure 100% of the project tasks are defined. C. Make sure 100% of the project is funded. D. Make sure the project team is devoted solely or 100%, to this project.
___________________ data result from firsthand experience and observation
Fill in the blank(s) with correct word
Financial statements for Maraby Corporation appear below:Maraby CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets: Cash and marketable securities$220 $190 Accounts receivable, net 190 160 Inventory 140 150 Prepaid expenses 70 80 Total current assets 620 580 Noncurrent assets: Plant & equipment, net 1,180 1,150 Total assets$1,800 $1,730 Current liabilities: Accounts payable$100 $120 Accrued liabilities 100 70 Notes payable, short term 160 160 Total current liabilities 360 350 Noncurrent liabilities: Bonds payable 450 500 Total liabilities 810 850 Stockholders' equity: Common stock, $5 par 160 160 Additional
paid-in capital 200 200 Retained earnings 630 520 Total stockholders' equity 990 880 Total liabilities & stockholders' equity$1,800 $1,730 Maraby CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,960 Cost of goods sold 1,370 Gross margin 590 Selling and administrative expense 230 Net operating income 360 Interest expense 50 Net income before taxes 310 Income taxes (30%) 93 Net income$217 Maraby Corporation's inventory turnover for Year 2 was closest to: A. 9.4 B. 11.2 C. 7.8 D. 13.5
Use the following information as of December 31 to determine equity. Cash$57,000 Buildings 175,000 Equipment 206,000 Liabilities 141,000
A. $57,000. B. $438,000. C. $297,000. D. $141,000. E. $579,000.