Evidence of fraud, whether or not material, on the part of senior management, would likely cause the auditor to conclude that the client had a material weakness in internal control over financial reporting
a. True
b. False
Indicate whether the statement is true or false
True
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A computer company buys a hard-drive manufacturer. This is an example of:
A. horizontal integration B. conglomerate integration C. forward integration D. backward integration
Quick Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Quick Tools, Inc. The company would be part of what type of business market?
A. Reseller B. Producer C. Consumer D. Government E. Supply
Which of the following is an advantage of debt financing?
A. The interest payments a firm makes on debt are up to 30% tax-deductible. B. A firm using debt financing is not required to make fixed payments. C. It is less risky than equity financing. D. It is more flexible than equity financing.
Moses Inc. purchased office furniture for $8,200 plus $492 sales tax and a $150 delivery charge. Which of the following is true?
A. Moses' tax basis in the furniture is $8,842. B. Moses' tax basis in the furniture is $8,200, and it can deduct the sales tax and delivery charge. C. Moses' tax basis in the furniture is $8,692, and it can deduct the delivery charge. D. Moses' tax basis in the furniture is $8,350, and it can deduct the sales tax.