Jane, a financial analyst at a small food-processing company, was asked by the Chief Financial Officer to forecast the costs of the company's required raw materials over the next five years. You would advise her to
A. collect data carefully, use a simple forecast model, rely on increased accuracy farther into the future.
B. collect data carefully, use a simple forecast models, do not allow for any unexpected events.
C. collect data carefully, use a complex forecast model, do not rely upon it and it alone.
D. collect data carefully, use simple forecast models, and make multiple forecasts to get an average.
E. collect data carefully, use complex forecast models, and make multiple forecasts to get an average.
Answer: D
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The accounting department reports that the balance of accounts receivable is $210,000. You are willing to accept that balance if audit sampling suggests it is within $15,000 of the actual balance. Using a classical variables sampling plan, you compute a 95% confidence interval of $208,000 to $225,000. You would therefore:
A. not be able to determine the acceptability of the receivable balance. B. accept the $210,000 balance because the confidence interval is within the materiality limits. C. accept the balance but with a lower level of confidence. D. take a larger sample before totally rejecting the balance and requiring adjustments.
Of the three widely used inventory costing methods (FIFO, LIFO, and average), the LIFO method of costing inventory is based on the assumption that costs are charged against revenues in the reverse order in which they were incurred
Indicate whether the statement is true or false
The law concerning liens is primarily:
a. federal common law b. federal regulatory law c. federal statutory law d. administrative law e. none of the other choices
You sign a simple discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What are the proceeds?
A) $6,125 B) $7,875 C) $875 D) $3,500