Under which of the following circumstances would an auditor be most likely to intensify an examination of a $500 imprest petty cash fund?
A) Reimbursement occurs twice each week.
B) Reimbursement vouchers are not prenumbered.
C) The custodian occasionally uses the cash fund to cash employee checks.
D) The custodian endorses reimbursement checks.
Answer: A) Reimbursement occurs twice each week.
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Long lags associated with the legislative process in implementing fiscal policy make it more difficult to use than monetary policy
Indicate whether the statement is true or false
The number of firms in a monopolistically competitive market means that
A) all firms will have substantial monopoly power since there are so few firms in the industry. B) each firm has a relatively small share of the total market since there are many firms in the industry. C) the firms will be likely to collude since there are only a few firms in the industry. D) firms will have a hard time earning non-negative profits since there are many firms in the industry.
Supporters of advertising claim that it:
a. makes demand for a firm's product more elastic. b. is a barrier to entry. c. promotes better quality products. d. all of these.
The supply-side checklist includes
a. higher taxes b. more government regulation c. more government spending d. less union power in wage determination e. raising transfer payments