Which of the following statements is true regarding ethical issues accompanying budgeting?
A. Easy target incentives are eliminated through budgeting.
B. The conflicts of biased budgeting can be avoided in a decentralized firm.
C. Conflicts of interest do not arise when employees are asked for input to help establish a budget.
D. If budget targets are difficult to meet, employees could turn to fraudulent financial reporting.
Answer: D
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A purchase is recognized in the accounting records when
A) payment is made for the item purchased. B) the purchase requisition is sent to the purchasing department. C) title transfers from the seller to the buyer. D) the buyer receives the seller's bill.
Which of the following is not true regarding a Certified Public Accountant?
A. Cannot hold any certificate other than a CPA. B. Must exhibit ethical character. C. Must meet education and experience requirements. D. Must pass an examination. E. May also be a Certified Management Accountant.
If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected
Indicate whether the statement is true or false
The basic promotion objective of informing consumers corresponds to which stage(s) of the AIDA model?
A. getting Attention and arousing Desire B. getting Attention and holding Interest C. holding Interest D. obtaining Action E. getting Attention