Which of the following statements about various types of surety bonds is true?
A) A judicial bond guarantees that a public official will faithfully perform his or her duties for the protection of the public.
B) A payment bond guarantees that the bonded person will appear in court.
C) A license and permit bond guarantees that the bonded party will comply with all the laws and regulations governing his or her activities.
D) A bid bond guarantees that the principal will complete a construction project on time.
Answer: C
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Profits or losses incurred by an organization are represented in its
A. income statement. B. expense budget. C. ratio analysis. D. capital expenditures budget. E. balance sheet.
Lithgow and Harris, CPAs are performing the audit of WildFlower Grocery Stores. Lithgow and Harris relates annual revenue by sales per square feet and sales per customer. What type of analysis is Lithgow and Harris most likely performing?
a. Ratio analysis. b. Critical analysis. c. Reasonableness tests. d. Non-statistical analysis.
Rex, an accountant, enters into a contract to provide services to Sofi. Rex does not finish the work within the contract's deadline. Sofi pays a penalty for the missed deadline and hires Trey to complete the job. Rex is most likely liable for
A. nothing. B. Sofi's penalty and the cost to hire Trey. C. Sofi's penalty only. D. the cost to hire Trey only.
All of the following is a financing factor that impacts the firm's leverage EXCEPT:
A) debt financing. B) new equity. C) suppliers. D) marketing.