How is the current ratio calculated?
A. Current assets divided by current liabilities
B. Retained earnings divided by current liabilities
C. Current assets divided by total assets
D. Current assets minus current liabilities
Answer: A
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There has been an auditor change at Company X. Which of the following situations may NOT signal a potential fraud problem?
a. Failure to pay an audit fee b. Auditee believing that the auditor's fees are too high c. Suspected fraud or other problems by the auditor d. Auditor-auditee disagreement
The statement of cash flows
a. helps the reader judge a firm's cash flow needs and how a firm has dealt with them. b. reflect the cash flows for the period. c. reports the impact of operations on cash flows. d. reports the impact of investing activities on cash flows. e. accomplishes all of the above.
To develop a strategy for reaching corporate objectives, management must first try to
A. research the market. B. develop scenarios. C. select a viable market segment. D. define the firm's mission. E. quantify them.
In which of the following types of cases can issues of accountant-client confidentiality arise?
A) Civil litigation B) Criminal cases C) Tax disputes D) All of these are situations where it can arise.