Glass Corporation retired $7,500,000 of long-term debt at maturity. The income statement shows no gain or loss on retirement of debt. The statement of cash flows classifies the transaction as a(n)
a. operating activity
b. investing activity.
c. financing activity.
d. exchange transaction.
e. lending activity.
C
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Aggregate planning occurs over the medium or intermediate future of 3 to 18 months
Indicate whether the statement is true or false
The auditors are using mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,000 receivable accounts with a total book value of $800,000. The auditors estimate the population's standard deviation as being equal to $25. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $40,000, and that a risk of incorrect rejection of .10 (risk coefficient = 1.64) and a risk of incorrect acceptance of .15 (risk coefficient = 1.04) should be used.Required:a. Calculate the required sample size.Now ignore your sample size calculation in part "a," and assume that your answer was a sample size of 289 (the square root of 289 is 17) and that you obtained the following results:Average
audited value of items in sample: $76.50Average book value of items in sample: $78Standard Deviation in the sample (audited values): $24Standard Deviation in the sample (book values): $26b. Using mean-per-unit sampling, calculate the projected misstatement for the population.c. Using mean-per-unit sampling, calculate the allowance for sampling risk and use it to form a statistical conclusion concerning the book value of the population ($800,000). That is, calculate an interval and either "accept" or "reject" the client's book value. What will be an ideal response?
All of the following statements about class rating are true EXCEPT
A) Exposures with similar characteristics are placed in the same underwriting class. B) The rate charged for each class reflects the average loss experience for that class. C) The complexity of class rating makes it inappropriate for personal lines coverages. D) It is based on the assumption that future losses to insureds will be determined by the same classification factors currently in use.
If you have a table with a set of columns named "Child01", "Child02" and "Child03", the table is likely to have the multivalued, multicolumn problem
Indicate whether the statement is true or false