The auditor may discover that the recorded cost of inventory exceeds the designated market price when testing which assertion?
a. Existence.
b. Cutoff.
c. Valuation.
d. Rights.
c
You might also like to view...
Adverbs may also modify adjectives or _______________
a. other adjectives b. nouns c. prepositions d. articles
Answer the following statement(s) true (T) or false (F)
1. The elements of the accounting equation (assets, liabilities, and owners’ equity) are reflected in the balance sheet and the income statement. 2. A balance sheet indicates the firm’s financial position as of a particular point in time. 3. Cash, inventory, and store equipment are all included in current assets. 4. All long-term assets, including land, are depreciable. 5. Working capital is the difference between current assets and current liabilities.
A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40 percent, and a net profit margin of 6 percent. The firm's times interest earned ratio is:
A. 16 times. B. 10 times. C. 7 times. D. 11 times. E. 20 times.
?Which of the following pairs of risks have both the components referring to the same kind of risk?
A. ?Market risk and unsystematic risk B. ?Market risk and relevant risk C. ?Firm-specific risk and nondiversifiable risk D. ?Firm-specific risk and systematic risk E. ?Firm-specific risk and market risk