Which of the following statements included in management's assessment of the effectiveness of internal control over financial reporting would not cause the auditor to disclaim an opinion?
A. The entity plans to implement new controls.
B. Management believes the cost of correcting a material weakness would exceed the benefits derived from implementing the new controls.
C. Disclosure of material weaknesses corrected during the period.
D. Management includes disclosures about corrective actions taken by the entity after the date of management's assessment.
Answer: C
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Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory$123,500? $130,700? Cost of goods purchased 250,700? 278,500? Cost of goods available for sale 374,200? 409,200? Ending inventory 130,700? 135,700? Cost of goods sold$243,500? $273,500? Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,700 and 2) ending inventory at the end of Year 2 was overstated by $6700. Given this information, the correct cost of goods sold figure for Year 2 would be:
A. $295,900 B. $289,200 C. $266,800 D. $280,200 E. $252,500
On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?
A) $1650 B) $3300 C) $825 D) $1100
What are the strategic disadvantages of a backward vertical integration strategy?
What will be an ideal response?
In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and ________ firms.
A. ethnocentric B. transnational C. multidomestic D. meganational E. multiethnic