A Pure Risk is defined as:
A) an event that offer no opportunity for financial gain
B) the chance a loss will occur
C) a diversifiable risk
D) a contingency that increases the chance of a loss
A
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Explain what job withdrawal is and discuss the four types of conditions that lead up to it.
What will be an ideal response?
All of the following can provide evidence of an economic event except
a. source document b. turn-around document c. master document d. product document
The allowance for doubtful accounts will not be precise by either the client or the auditor because of which of the following reasons?
a. It is an accounting estimate based upon judgment. b. GAAP is not clear on the calculation of the allowance. c. It is merely a reserve that is reversed by the client as income is needed for profitable results. d. The precision is determined by the results of confirmation responses.
Chris is CEO of Higdon’s Bait and Tackle shop in New Roads, Louisiana. CB is the Vice President of Live Bait at Higdon’s Bait and Tackle. They are at odds over the best live bait to stock in the store. Chris is adamant that they should carry live worms. CB thinks live worms are outdated as fishing bait and he wants to carry live crickets. Jen has been hired as an outside consultant to help them reach a compromise. In order to facilitate negotiations, Jen’s first step should be to ask each of them to
a. Provide supporting evidence to support their positions b. Outline the goals and objectives they would each like to achieve c. Prepare position papers of no longer than three pages d. Shape their expectations to a realistic nature