Which of the following is not true regarding the fair value option for marketable securities and derivatives?
a. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income.
b. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows.
c. Firms using the fair value option mark the carrying value of the asset to fair value each period.
d. If the change in fair value of the derivative decreases carrying value, then the firm reports the amount of that decrease as a loss during the current period.
e. If the change in fair value of the derivative decreases carrying value, then the cash flow from operations sections shows a subtraction for the loss.
E
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If there were unusual or unexpected relationships, the planned audit procedures (tests of controls, substantive procedures) would be adjusted to address the potential material misstatements
a. True b. False Indicate whether the statement is true or false
A ledger:
a. is a "book of accounts." b. will have total assets equal to total liabilities and equity once revenue and expense accounts have been closed. c. summarizes all transactions related to specific accounts. d. All of the choices are true of the ledger. e. None of the choices are true of the ledger, but are true of master (control) accounts.
Which one of the following words does NOT describe Weber’s ideal bureaucracy?
a. Rationality b. Efficiency c. Hierarchy d. Individualism
Clayton dies without a will. The distribution of Clayton's property, including his farm near Lincoln, Nebraska, is prescribed by
A. a court-appointed executor. B. federal probate statutes. C. state intestacy laws. D. Clayton's relatives.