On what information does the auditor base a going concern evaluation?
a. On separate procedures.
b. On the management discussion and analysis (MD&A).
c. On information obtained from normal audit procedures performed to test management's assertions.
d. On the statement of cash flows for the current period.
c
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Answer the following statements true (T) or false (F)
The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows:
Nighty Night, Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs.
Which of the following is not true about China, compared to India?
A. China has a higher level of manufacturing productivity than does India. B. China has a larger population, at 1.37 billion people, than does India. C. China is ranked third in the world in sales of luxury goods, ahead of India. D. China has 1.12 million millionaires versus 182,000 in India as of the beginning of 2014. E. China attracted five times more foreign direct investment from 2000 to 2013 than did India.
International trade allow more efficient use of ____________ resources.
Fill in the blank(s) with the appropriate word(s).
Buyer enters a paint store and tells the clerk that she needs paint that will cover and stick to a
stucco wall. The seller tells her that brand X paint will do the trick. Buyer purchases brand X paint and paints her stucco wall, but three weeks later the paint peels off. This would be a breach of which kind of warranty? A) An express warranty B) Implied warranty of fitness for a particular purpose C) Implied warranty of no infringements D) Implied warranty of merchantability