Controls are not designed to provide assurance that:
A. The recorded accountability for assets is compared with the existing assets at reasonable intervals.
B. Access to assets is permitted only in accordance with management's authorization.
C. Fraud will be eliminated.
D. Transactions are executed in accordance with management's authorization.
Answer: C
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Because net income is on an after-tax basis, interest in the return on assets ratio must be placed on a before-tax basis
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true of a capital budgeting project with a negative net present value (NPV)?
A. The project's internal rate of return is also negative. B. The project's discounted payback period is greater than its economic life. C. A firm should invest in a project with a negative NPV if the initial investment outlay is low. D. The project's traditional payback period is greater than the firm's expected payback period. E. The project's internal rate of return is higher than the discount rate used for NPV analysis.
Keltica, a country in Asia, enjoyed a period of great economic boom in the 1980s. The country had robust economic growth, high employment, and abundant business investments during this period. In the context of the business cycle, the economy of Keltica was in _____ during the 1980s.
A. a depression B. the contraction phase C. a recession D. the expansion phase
If a 1:M relationship is mandatory on the 1 side and optional on the M side, which of the following is true?
A) The resulting foreign key can have null (empty) values B) The resulting foreign key cannot have null (empty) values C) The resulting foreign key must have null (empty) values D) No foreign key is created as a result of mapping such a relationship