The concept of materiality would be least important to an auditor when considering the:
A. Total value of the account being audited.
B. Discovery of weaknesses in a client's internal control.
C. Adequacy of disclosure of a client's illegal act.
D. Effects of a direct financial interest in the client upon the CPA's independence.
Answer: D
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Which of the following statements about Internet usage in the United States is not true?
A. In 2018, around 280 million people of all ages had access to the Internet. B. In 2018, the growth in the number of new online users was less than 2%. C. Over 90% of all U.S. Internet users access the Internet using a mobile device. D. Adults in the 25-to-54-age group have the highest percentage of Internet use.
Which of the following is an organizational development intervention in which people reflect on peak experiences and visualize the future?
A. team building B. workout C. appreciative inquiry D. process consultation
A cost that is part selling cost and part manufacturing cost is referred to as a mixed cost.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. Suppose a firm that has been earning $2 and paying a dividend of $1.00, or a 50% dividend payout, announces that it is increasing the dividend to $1.50. The stock price then jumps from $20 to $30. Some people would argue that this is proof that investors prefer dividends to retained earnings. Miller and Modigliani would agree with this argument. B. Other things held constant, the higher a firm's target dividend payout ratio, the higher its expected growth rate should be. C. Miller and Modigliani's dividend irrelevance theory says that the percentage of its earnings that a firm pays out in dividends has no effect on its cost of capital, but it does affect its stock price. D. The federal government sometimes taxes dividends and capital gains at different rates. Other things held constant, an increase in the tax rate on dividends relative to that on capital gains would logically lead to a decrease in dividend payout ratios. E. If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a high dividend payout ratio.