Due to a weakness observed in internal control over recording retirements of equipment, the auditor may decide to
A. Inspect certain items of equipment in the plant and trace those items to the accounting records.
B. Review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year.
C. Trace additions to the "other assets" account to search for equipment that is still on hand but no longer is being used.
D. Select certain items of equipment from the accounting records and locate them in the plant.
D. Select certain items of equipment from the accounting records and locate them in the plant.
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Which of the following factors does not affect customers' perceptions of service quality?
A. Reliability B. Assurance C. Triviality D. Responsiveness E. Tangibility
In counting the number of days in a note term, ________.
A) do not count the maturity date B) do not count the interest periods C) count the date the note was issued D) None of the statements are correct.
Two of the decentralized divisions of Gamberi Electronics Corporation are the Plastics Division and the Components Division. The Plastics Division sells molded parts to both the Components Division and to customers outside the corporation.Assume that the Plastics Division is currently operating with idle capacity. Also assume that the Components Division wants to purchase from Plastics all of the additional parts that could be made with this idle capacity. In order to increase its current level of profitability, the Plastics Division should accept any transfer price on these additional parts that is above the:
A. variable cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation. B. variable cost of the additional parts. C. full (absorption) cost of the additional parts. D. full (absorption) cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation.
The total bases of all distributed property in the partner's hands following a nonliquidating distribution is limited to
A) the partner's predistribution basis in his partnership interest. B) the FMV of the property distributed. C) the partnership's bases in the distributed property. D) the predistribution FMV of the partner's partnership interest.