Lorenzo is considering two banks for his checking account. Suny Bank requires a minimum deposit of $100 and charges a monthly fee of $8, plus 5 cents a check
Merchants Bank also requires a minimum deposit of $100, it charges a per check fee of 15 cents but no monthly fee. How many checks would Lorenzo need to write each month to make Suny Bank cheaper to use than Merchants?
A) over 50
B) over 60
C) over 70
D) over 80
Answer: D
Explanation: D) 8 monthly charge / 10 cent per check differential = 80 checks break even
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The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is A) a dumping duty
B) an antidumping duty. C) a quota. D) a tariff.
If dividends are not declared for five years, but the company has accumulated earnings each year, the shareholders may:
A) petition the court of law for redress. B) override the board with a two-thirds vote. C) ask for an injunction requiring a dividend to be declared. D) do nothing but sell their stock.
On January 1, 20X8, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 10 percent of the book value of Subsidiary Corporation. On Mar 17, 20X8, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the entire inventory to an unaffiliated company for $120,000 on November 21, 20X8. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 20X8.Based on the information given above, what amount of cost of goods sold will be reported in the 20X8 consolidated income statement?
A. $58,000 B. $90,000 C. $62,000 D. $120,000
An example of a management participation threat is:
A. Establishing and maintaining the budget for audit completion B. Establishing and maintaining internal controls for the client C. Initiating litigation against the client D. Preparing source documents used to generate the client's financial statements