A properly designed internal control system:
A) Lowers the company's risk of loss.
B) Insures profitable operations.
C) Eliminates the need for an audit.
D) Requires the use of non-computerized systems.
E) Is not necessary if the company uses a computerized system.
A) Lowers the company's risk of loss.
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Which of the following is true about the Statement of Cash Flows (SCF)?
a. The SCF is more subject to manipulation than the income statement. b. Cash flow from financing activities is considered to be the most important part of the SCF. c. Classification rules prevent manipulation of cash flows from operating activities on the SCF. d. Flexibility in applying classification rules on the SCF allows companies in the same industry to give vastly different perspectives.
When a firm diversifies into different product lines and geographies, a ________ structure is preferred.
A. functional B. multidivisional C. simple D. network
The tax ____________________ workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.
Fill in the blank(s) with the appropriate word(s).
Which of the following explains the general shape of the yield curve?
A) Expectations theory B) Perfect market theory C) Capital asset pricing theory D) Securities market theory