Expenses provide future benefits, and assets measure the consumption of those benefits
Indicate whether the statement is true or false
F
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In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor is not obligated to:
A. search for significant deficiencies in the operation of the internal control. B. perform procedures to understand the design of the internal control policies. C. document the understanding of the entity's internal control components. D. determine whether the control activities have been placed in operation.
Select the statement that does not challenge the narrow view of the economic model of corporate social responsibility.
A. Business's only responsibility is to maximize profit within the law, and in so doing, fulfills its role within a market system, which, in turn, serves the greater overall social good. B. The "costs" of pollution are typically borne by parties external to the economic exchange, so free market exchanges cannot guarantee optimal results. C. Public goods such as a stable climate, clean air, and ocean fisheries have no established market price. D. Important ethical and policy questions can be missed if policy decisions are left solely to the outcome of individual decisions.
Answer the following statements true (T) or false (F)
1. The balance sheet shows the balance in Bonds Payable plus any discount or minus any premium. 2. The debt to equity ratio measures the proportion of total liabilities relative to the total equity. 3. The lower the debt to equity ratio, the greater the company's financial risk. 4. If the debt to equity ratio is greater than 1, the company is financing more assets with equity than with debt. 5. The fact that invested cash earns interest over time is called the time value of money.
Answer the following statements true (T) or false (F)
1. Some firms do not have a board of directors. 2. In an organization’s environment, internal stakeholders include the customers of an organization. 3. Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson. 4. The two parts of the external environment are the task environment and the socio-political environment.