List three disadvantages of borrowing.
What will be an ideal response?
1. Debts must be paid during unprofitable years as well as profitable years.
2. Unlike cash dividends, which are optional payments to stockholders, the interest payments on bonds payable are required.
3. Without the cash necessary to make the interest payment, a company could have to declare bankruptcy.
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Unqualified audit reports For each of the following situations, define the type of problem encountered and provide an explanation as to the type of report which was issued. Situation Report Issued The auditor is unable to confirm three customer accounts
receivable. Unqualified Standard The client forgot to accrue a contingent liability. Unqualified Standard The auditor believes there is substantial doubt regarding the client's ability to continue as a going concern. Unqualified with Explanatory Paragraph The client properly adopts a new accounting principle promulgated by the FASB Unqualified with Explanatory Paragraph
Compute the asset turnover (rounded to two decimal places) for Titania Corporation's investment center from the information given below. Titania Corporation Total sales $1,600 Operating income $100 Average assets invested $900 Profit margin ? Asset turnover ? ROI?
A) 1.78 B) 0.56 C) 0.11 D) 9.00
EDGAR is the computer system established by the SEC to perform automated collection, validation, and dissemination of required reports
a. True b. False Indicate whether the statement is true or false
A party to a contract may be able to avoid the contract if:
A) there is a mutual mistake, and the party undertook to bear the risk by conscious allocation. B) there is a unilateral mistake, and the party undertook to bear the risk by conscious ignorance. C) there was a mistake and the mistaken party was at fault in not discovering the problem before making the contract. D) None of these.