A company had interest expense of $5,000, income before interest expense and income taxes of $17,000, and net income of $9,400. The company's times interest earned ratio equals:
A. 1.8.
B. 0.3.
C. 1.9.
D. 0.5.
E. 3.4.
Answer: E
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Examples of entity-level controls include:
A. the period-end financial reporting process. B. controls to monitor results of operations. C. management's risk assessment process. D. All of these are examples of entity-level controls.
Auro Inc., a manufacturer of lawn mowers, sells a lawn mower model both to retail chain Streetmart and to standalone store Lawnworks in the town of Bayside. Auro sells the model to Streetmart at $5 less per unit than it sells to Lawnworks as Streetmart buys more mowers. Streetmart's retail prices are therefore lower than those of Lawnworks. Which of the following statements is true of this case?
A. Auro is in violation of the provisions of the Parker Doctrine. B. Auro is in violation of Section 2(a) of the Robinson-Patman Act. C. Auro is in violation of Section 3 of the Clayton Act. D. Auro is in violation of the Noerr Doctrine.
A Latino applicant scores 55 points on a job selection exam and is hired based on the results of the exam while a White applicant scores 62 points on the same exam and does not get hired. What illegal activity might have occurred?
A. reasonable accommodation B. race norming C. undue hardship D. disparate impact
Which costing method can only be used when it is possible to identify units as coming from specific purchases?
A) Specific identification B) FIFO C) Average-cost D) LIFO