Which of the following audit procedures is the most appropriate when internal control over cash is weak or when a client requests an investigation of cash transactions?
A) Cash confirmation.
B) Bank reconciliation.
C) Evaluation of ratio of cash to current liabilities.
D) Proof of cash.
Answer: D) Proof of cash.
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Without any change in the demand for labor, how are the following events likely to change the equilibrium wage and employment level in a dairy farm?
a) An increase in the population of the region where the dairy farm is located b) The establishment of a cotton mill that pays higher hourly wages, near the dairy farm c) The shutdown of a rice farm located near the dairy farm
According to a model of intergenerational equity, if future generations are expected to be better off than the current generation, transfers should
A. go from the richer generation to the poorer generation. B. not be done at all. C. go from the poorer generation to the richer generation. D. be weighted by increases in the inflation rate.
Which of the following statements is true?
A. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a smaller dollar burden on the poor than the rich. B. Government failure may occur if voters are rationally ignorant. C. Special-interest group political pressure results only from programs for which benefits outweigh costs. D. Majority-rule voting and benefit-cost analysis result in the same projects being undertaken.
Which of the following is correct about the U.S. tax system?
A. The primary federal tax system is regressive, while the primary state and local tax systems are progressive. B. Both the primary federal tax system and the primary state and local tax systems are regressive. C. The primary federal tax system is progressive, while the primary state and local tax systems are regressive. D. Both the primary federal tax system and the primary state and local tax systems are progressive.