Bearing risk collectively is:
A) not very cost-efficient
B) more effective for larger groups
C) not reducing risk
D) only effective when all group members experience the same negative consequences simultaneously
B
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There are many important reasons for diligent audit planning. If an audit firm wrongly skips the planning stage of an audit, what will be the effect relative to fraud detection?
a. The firm will not be able to apply GAAP to the financial statements. b. The firm will not adequately identify the types of fraud that may occur in the client company. c. The firm will not be able to perform direct tests of account balances. d. The firm will lack the competency and technical training necessary to complete the audit in accordance with GAAS.
Jack and Jill were discussing business over lunch when they agreed on the sale of some goods
Since neither of them had any paper with them, Jack wrote the following on a napkin: "Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1, 2005, at a cost of $10,000, payable on delivery." Jill signed the napkin, although Jack did not sign it. Jack delivered the widgets per the contract, but Jill refuses to pay for them. If Jack sues Jill for the price of the goods, the most likely result is: A) Jack will win because the writing is sufficient under the Statute of Frauds. B) Jill will win because Jack did not sign the contract. C) Jack will win because the Statute of Frauds does not apply to this situation. D) Jill will win because this writing is not sufficient under the Statute of Frauds.
Which of the following stockholders' equity disclosures are required under both GAAP and IFRS?
A. restrictions on the repayment of capital B. reacquired shares and rights C. share reserved for future issuances under sales contracts D. revaluation reserve
On September 1, 2016, Joy, Inc. paid $8,000 in advance for an eight-month rental space covering the period of September, 2016 through April 2017. The deferred expense was initially recorded as an asset. Joy, Inc
makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2016 would include a ________. A) debit of $8,000 to Cash B) credit of $8,000 to Prepaid Rent C) debit of $4,000 to Rent Expense D) credit of $4,000 to Rent Expense