With liability fraud, which of the following is most likely to occur?
a. Liabilities will be overstated
b. Balances in general that relate to this fraud will tend to be low
c. Items will be expensed rather than capitalized
d. Net income will be understated
b
FEEDBACK: a. Incorrect. Liabilities will be understated.
b. Correct. Balances related to liability fraud will tend to be low.
c. Incorrect. Items will be capitalized rather than expensed.
d. Incorrect. Net income will be overstated.
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Donellan Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead. Selected data for the February production activity follows: Budgeted fixed factory overhead costs $ 70,000 Actual factory overhead incurred $250,000 Variable factory overhead rate per direct labor hour $ 7 Standard direct labor hours 25,000 Actual direct labor hours 26,000 The
flexible-budget variance for February is: a. $5,00 . favorable. b. $5,00 . unfavorable. c. $2,00 . favorable. d. $2,00 . unfavorable.
In marketing research, attitudinal data obtained from rating scales are often treated as ________ data
A) nominal B) ordinal C) interval D) ratio
In a period of rising prices, how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inventory valuation?
The best source of information concerning cash flows about stock transactions and dividends is the
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