Which of the following creates an opportunity for fraud to be committed in an organization?
a. Management demands financial success.
b. Poor internal control.
c. Commitments tied to debt covenants.
d. Management is aggressive in its application of accounting rules.
b
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Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Decrease in Accounts Payable—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
a. Add to net income to arrive at net cash flows from operating activities b. Subtract from net income to arrive at net cash flows from operating activities c. Not used to adjust net income to calculate net cash flows from operating activities
Which of the following is an approach to third-party negligence actions?
A. Strict privity approach B. Reasonable person approach C. Near privity approach D. No delegation approach
An arrangement in which the owner of a trademark licenses others, under specified conditions or limitations, to use the trademark in purveying goods or services is a(n): ______
A) corporation. B)limited partnership. C)unincorporated association. D)franchise.
Some credit card companies will waive the annual fee on a credit card if
A) you use the card infrequently. B) you carry a large balance from month to month. C) you pay your bills in a timely manner. D) Credit card companies never waive annual fees.