Equipment acquisitions that are misclassified as maintenance expenses most likely would be detected by a control activity that provides for
A. Segregation of duties of employees in the accounts payable department.
B. Independent verification of invoices for disbursements recorded as equipment acquisitions.
C. Investigation of variances within a formal budgeting system.
D. Authorization by the board of directors of significant equipment acquisitions.
C. Investigation of variances within a formal budgeting system.
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A customer returned damaged goods for credit. Which of the seller's accounts decreases?
a. Sales Returns b. Purchase Returns c. Accounts Receivable d. Sales Revenue
In moving from the measurement model to the structural model the endogenous constructs
become exogenous. Indicate whether the statement is true or false
Better management of receivables can be assessed from:
a. better advertising. b. better collections. c. choosing better customers. d. better allowances.
Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year
The following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits: $100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for Pierre's Ice Cream Company? a. 6.67 percent b. 10 percent c. 22 percent d. 28 percent