Morgan has calculated the upper and lower limit for control limits in an chart. She doesn't have the software available to create these charts automatically, so she determines what happens to these limits if n decreases. Suppose Morgan is now using a
smaller sample size, but she has forgotten to adjust the upper and lower limits to reflect the smaller sample size. What is likely to occur as she manually plots observations on the chart?
The limits are narrower with larger samples, so she is likely to observe more observations that lie outside these limits. She might decide she is observing out-of-control behavior.
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Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account
a. True b. False Indicate whether the statement is true or false
Which of the following is an advantage of applying the economic value creation perspective to assess a firm's performance?
A. In economic value perspective, analysts not only consider historical costs, but also opportunity costs. B. When the need for "hard numbers" arises, managers and analysts rely on economic value creation perspective to measure competitive advantage. C. Arriving at the economic value created is easy because determining the value of a good in the eyes of consumers is a simple task. D. It is the most efficient tool for assessing corporate-level competitive advantage of highly diversified companies with large product portfolios.
Answer the following statements true (T) or false (F)
1. When a corporation issues stock at par value, the Cash account is debited and the Common Stock account is credited for an amount equal to the number of shares issued times the par value per share. 2. When a company issues stock at an amount greater than the par value, a gain is recorded for the difference between the issue price and the par value. 3. When a corporation sells 9,000 shares of $12 par value common stock for $159,000, Common Stock is credited for $108,000. 4. Stock issued at amounts in excess of par value results in a gain that is reported on the income statement. 5. Most corporations set par value low and issue common stock at a premium.
Which of the following is not one of the attribute standards of the IIA's Standards for the Professional Practice of Internal Auditing?
A. Proficiency and professional care. B. Purpose, authority, and responsibility. C. Integrity and skepticism. D. Independence and objectivity.