In which of the following circumstances would the use of the negative form of accounts receivable confirmation most likely be justified?
A. A substantial number of accounts may be in dispute and the accounts receivable balance arises from sales to a few major customers.
B. A small number of accounts may be in dispute and the accounts receivable balance arises from sales to many customers with small balances.
C. A substantial number of accounts may be in dispute and the accounts receivable balance arises from sales to many customers with small balances.
D. A small number of accounts may be in dispute and the accounts receivable balance arises from sales to a few major customers.
Answer: B
You might also like to view...
Which of the following is a criticism of the behavioral approach?
A. there is no instrument to identify leader behaviors B. the universal style of team leadership is best C. the wide range of research on leadership behaviors gives it credibility D. the research has not shown how leader’s behaviors correlate with performance outcomes
The highly competent, highly committed follower benefits from ______.
A. a leader who provides a high level of support B. a leader who directs tasks carefully C. a leader who stays out of the day-to-day tasks and provides low levels of support D. a leader who is both a cheerleader and authoritarian
?Which of the following statements is true when a project's discounted payback is less than its useful life?
A. ?The terminal value of the future cash flows that the project is expected to generate is less than the future value of the initial cost of the asset. B. ?The future cash flows that the project is expected to generate are less than the initial cost of the asset. C. ?The present value of the future cash flows that the project is expected to generate exceeds the initial cost of the asset. D. ?The future value of the cash flows from the resale of the asset acquired for the project is expected to exceed the initial cost of the asset. E. ?The cost recovery from the project is expected to exceed the maximum cost-recovery time established by the firm.
At the end of year 1 firm XYZ has TA=$325 bn., and it is financed with debt with a book value of $125 mn. and equity with a book value of $200 mn. The firm must pay 10% interest annually on its debt. In year 2, the firm had a net income of $55 mn
The firm's year 2 ROA was (i), and the firm's year 2 ROE was (ii). ROA ROE a. 12.0% 27.5% b. 12.0% 17.1% c. 16.9% 27.5% d. 16.9% 17.1% FORMULAS: ROA=NI/TA; ROE=NI/BEQ