Inherent risk
a. exists because all control structures are flawed in some ways.
b. is the likelihood that material misstatements exist in the financial statements of the firm.
c. is associated with the unique characteristics of the business or industry of the client.
d. is the likelihood that the auditor will not find material misstatements.
C
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Roman Industries' plant operates five days per week with a daily payroll of $6,000 . Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, March 31 . What is the amount of Wages Expense recorded on the next payday, Saturday, April 3?
a. $ -0- b. $ 30,000 c. $ 12,000 d. $ 18,000
On January 1, 2015, Moose Co purchased for $360,000 a patent that had been granted two years earlier. On January 1, 2017, legal costs of $64,000 were incurred in a successful defense of the patent. Assuming the maximum period allowable is used for patent amortization, what is Moose's patent amortization expense for 2017?
A) $18,000 B) $20,000 C) $21,555 D) $24,000
Opportunity cost is the benefit ________.
A) received by selling goods on behalf of another division B) received by selling goods to one of the other divisions within the company C) given up by purchasing goods at a price lower than its total manufacturing cost D) given up by choosing an alternate course of action
The most important part of a negative-news message is the section that explains the reasons for the bad news
Indicate whether the statement is true or false