The quick ratio is useful for analyzing inventory accounts

a. True
b. False
Indicate whether the statement is true or false


False

Business

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Which of the following is not a factor adding to the complexity of materiality judgments made by auditors?

a. Regulators pay particular attention to the judgmental aspects of auditor materiality decisions. b. SEC regulators do not believe it is appropriate to use percentage terms to substitute for a full analysis of all relevant considerations regarding the magnitude of misstatement. c. Regulators focus on how materiality decisions can affect client financial results. d. SEC regulators have few requirements for auditors to comply with since the AICPA fills that role.

Business

You should always use the indirect pattern when writing a bad-news message

Indicate whether the statement is true or false

Business

Which of the following is an example of an exculpatory clause?

a. Creditor charges 38% interest on a loan. b. Seller is not responsible for property damage regardless of the cause of the injury. c. Buyer agrees to pay any costs of litigation. d. Employee agrees to never work for a competing company.

Business

Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations:    Selling price$111   Units in beginning inventory 0Units produced 7,500Units sold 7,200Units in ending inventory 300    Variable costs per unit:  Direct materials$24Direct labor$34Variable manufacturing overhead$1Variable selling and administrative expense$5Fixed costs:  Fixed manufacturing overhead$217,500Fixed selling and administrative expense$115,200 What is the net operating income for the month under absorption costing?

A. $(12,000) B. $14,400 C. $8,700 D. $5,700

Business