An ad for Sylio, a prescription medicine for people with scoliosis, uses a visual representation of the drug's action and effect on the human body. The ad states that the drug is made with natural active ingredients, and that side effects, if any, are all minor and short term. The ad is an example of a(n)
A. recency appeal.
B. fear appeal.
C. emotional appeal.
D. primacy appeal.
E. rational appeal.
Answer: E
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When a subsequent event provides evidence about conditions that existed at the balance sheet date, what is the best course of action for the auditor to follow?
a. Assign a specialist. b. Ensure that the financial statements are adjusted to reflect the information, including any necessary footnote disclosures. c. Shop for an opinion that fits the desired type of event. d. Provide management with a new engagement letter to document the terms of the revised arrangement.
Ragged Edge Arts is considering replacing its long-arm sewing machine. The new long-arm machine costs $150,000 . The expected life of the machine is expected to be 5 years, the residual value will be negligible, and the machine will generate an annual cash flow of $50,000 and annual operating income of $45,000 . What is the estimated cash payback period for the machine?
a. 4 years b. 3 years c. 1 year d. 2 years
Answer the following statements true (T) or false (F)
1. The legal enforceability of an arbitrator's decision when a contract includes a binding arbitration clause was established by a series of Supreme Court cases known as the Beck doctrine. 2. The grievance arbitration process is about helping the parties to problem-solve their differences regarding the interpretation of the contract and not a judicial activity where the arbitrator uses existing law to interpret the contract. 3. The concept of past practice is one where arbitrators use their own prior experience and decisions to help decide a particular arbitration case. 4. In making a decision about the merits of a particular grievance, the arbitrator's role is to set aside his own personal beliefs and simply interpret and apply the contract as it was written by the parties. 5. Arbitration hearings are essentially court hearings where the traditional rules of evidence are strictly followed.
An undisclosed principal may result in which of the following?
a. Liability of the agent for any contract made on behalf of such a principal. b. The agent's being declared incompetent by a court of law. c. A declaration order by the court for the principal to show a guarantee. d. All of these.