Identify and define the five sources of power. Provide an example of how each might be used, and by whom.
What will be an ideal response?
The five sources of power are:
Legitimate: power from a person's formal position within an organization.
Reward: power from the ability to reward another person.
Coercive: power from the ability to punish another person.
Expert: power from one's specialized information or expertise.
Referent: power from one's personal attraction.
The student should then give an example of each type of power.
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If the auditor is performing substantive procedure to determine whether the long-lived asset balance is reflected on the balance sheet in the noncurrent section, which of the following assertions is being tested?
a. Existence. b. Completeness. c. Presentation and Disclosure. d. Rights and Obligations.
Stephanie owns a 25% interest in a qualifying S corporation. Stephanie's basis in the stock was $40,000 at the end of the year after adjustments are made for capital contributions and distributions (but not operating results). Stephanie also loaned the S corporation $10,000 this year. The S corporation incurred a $240,000 ordinary loss this year. Assume that next year the S corporation's ordinary income is $160,000. Stephanie's basis in her stock at the end of next year is
A. $10,000. B. $20,000. C. $30,000. D. $40,000.
Adjusting entries are designed primarily to correct accounting errors.
Answer the following statement true (T) or false (F)
What are the motivations for using simulation for analyzing processes?
What will be an ideal response?