Which of the following are limitations of using the MUS sampling method?
a. MUS is not very useful in testing for understatement.
b. MUS is not very useful in testing for zero and negative amounts.
c. N MUS is not very useful in testing if the auditor expects numerous misstatements.
d. All of the above.
d
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The process of sending and receiving information without the use of written or spoken language is called what?
A) Listening B) Selective perception C) Nonverbal communication D) Selective participation E) Process communication
U.S. GAAP and IFRS permit firms to account for notes and bonds under which of the following approach(es)?
a. Amortized Cost. b. Fair Value. c. Amortized Cost and Future Value. d. Non-amortized cost and Fair Value. e. Amortized Cost and Fair Value.
Accrued interest earned should be accounted for at the end of the accounting period by an adjusting entry debiting Cash and crediting Interest Revenue
Indicate whether the statement is true or false
Deacon Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,289,500? $1,265,200? Total liabilities$556,000? $461,200? Total stockholders' equity$733,500? $804,000? Net operating income (income before interest and taxes)$69,224? Interest expense$28,000? The company's debt-to-equity ratio at the end of Year 2 is closest to:
A. 0.62 B. 0.76 C. 0.43 D. 0.40