Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?
A. The chief executive officer and the chief financial officer are jointly responsible for establishment and enforcement of internal controls.
B. The company's external auditors are required to attest to the accuracy of the internal controls report.
C. The company's external auditor is charged with the ultimate responsibility for the accuracy of the company's financial statements and accompanying footnotes.
D. Companies are required to report on the effectiveness of their internal controls.
Answer: C
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Answer the following statements true (T) or false (F)
1. Sensitivity analysis empowers managers with better information for decision making by analyzing how various business strategies will affect profits earned by the company. 2. Managers can use CVP relationships to conduct sensitivity analysis. 3. An increase in sales price per unit decreases the contribution margin per unit. 4. An increase in sales price per unit increases the number of units required to break even. 5. When the variable cost per unit decreases, the contribution margin on each unit sold also decreases.
A common-size income statement permits an analysis of changes or differences in the relations between revenues, expenses, and net income and identifies relations that the analyst should explore further, such as
a. time series analysis. b. economic analysis. c. cross-section analysis. d. both choices a and c. e. both choices b and c.
Warrior Dash Express Inc owns a moving van that originally cost $500,000 and currently has $450,000 of accumulated depreciation. The fair value of the moving van is $120,000 . Warrior Dash Express Inc exchanges the van plus $480,000 in cash for a new moving van costing $600,000 . The entry to record the transaction is as follows:
a. Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .450,000 Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000 Gain on Trade-in of Old Van . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 b. Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .450,000 Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000 c. Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .380,000 Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000 d. Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000 Gain on Trade-in of Old Van . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Accumulated Depreciation (old van) . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 e. Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,000 Cash . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000 Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . . . . . . . . 450,000
Regardless of the depreciation method, the amount that will be depreciated during the life of the asset will be the same
Indicate whether the statement is true or false