The concept of reasonable assurance suggests that
a. the cost of an internal control should be less than the benefit it provides
b. a well-designed system of internal controls will detect all fraudulent activity
c. the objectives achieved by an internal control system vary depending on the data processing method
d. the effectiveness of internal controls is a function of the industry environment
A
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Studies reveal that honesty levels in advaned countries are decreasing. What do these findings indicate for the future regarding fraud?
a. Rationalizations will become more sophisticated. b. Pressures to commit fraud will increase. c. Less perceived opportunity will have to be present. d. Honesty tests in the workplace will increase.
The purpose of an interperiod income tax allocation is to
a. allow reporting entities to fully utilize tax losses carried forward from a previous year. b. allow reporting entities whose tax liabilities vary significantly from year to year to smooth payments to taxing agencies. c. recognize an asset or liability for the tax consequences of temporary differences that exist at the balance sheet date. d. amortize the deferred tax liability shown on the balance sheet.
When dealing with the number of occurrences of an event over a specified interval of time or space, the appropriate probability distribution is a _____ distribution.
A. Binomial B. Poisson C. Normal D. Hypergeometric probability
When is a tenant wrongfully evicted?
A) when the landlord breaches the tenant's right to quiet enjoyment B) when the landlord fails to maintain the leased premises properly C) when the tenant violates a building code statute D) when the tenant sublets the premise without permission of the landlord