Which of the following inventory frauds is not identified by Practice Alert No. 94-2: Auditing Inventories?Physical Observations?
a. double-counting inventory
b. counting obsolete inventory as salable
c. including inventory for which the corresponding payable has not been recorded
d. employee theft of inventory item having high sales volume
D
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When constraints are nonlinear, any local optimum is also a global optimum
a. True b. False
LeGo Financials offer two investment plans. Investment A pays 9 percent interest compounded monthly, whereas Investment B pays 10 percent interest compounded semiannually. What are the effective annual rates of Investment A and Investment B?
A. 9.38 percent and 10.50 percent, respectively B. 9.38 percent and 10.25 percent, respectively C. 9.75 percent and 10.25 percent, respectively D. 9.75 percent and 10.50 percent, respectively E. 9.94 percent and 10.45 percent, respectively
Tangshan China Company's stock is currently selling for $80.00 per share. The expected dividend one year from now is $4.00 and the required return is 13 percent
What is Tangshan's dividend growth rate assuming that dividends are expected to grow at a constant rate forever? A) 8% B) 9% C) 10% D) 11%
Managers for an organic grocery chain were deciding whether to open a new store in a neighborhood currently unserved by any competitors. One manager felt that the lack of competitive presence was an opportunity to capture the newest customers. Another manager viewed the lack of a competitor in the area as an indicator that the local community may not be interested in organic products. This difference in perspective illustrates the concept of
A. ambiguity. B. confirmation bias. C. illusion of control. D. groupthink. E. satisficing.