Which of the following is NOT an example of a good?
A) a pair of shoes
B) a print ad
C) a dozen farm-fresh eggs
D) a barrel of oil
E) a stack of diner pancakes
Answer: B
Explanation: B) Goods are tangible products that can be touched. While a print advertisement can be seen and touched, customers pay for the services that create the ad.
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A party may enter a plea of ________, whereby the accused agrees to the imposition of a penalty but does not admit guilt.
A. nolo contendere B. actus reus C. not guilty D. res ipsa loquitur
Channel stuffing is an improper practice used to boost sales by inducing distributors to buy more inventory than they can promptly resell.
Answer the following statement true (T) or false (F)
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.
The Statement of Cash Flow shows cash inflows and outflows from
a. operating, investing, and financing activities. b. operating, investing, and sending activities. c. merchandising, financing, and investing activities. d. investing, financing, and borrowing activities.