Jim, an accountant, contracts to perform services for Kasey. Jim acts in good faith and conforms with generally accepted accounting principles, but makes a mistake in judgment. Jim is most likely
A. liable if Jim failed to discover a defalcation.
B. liable if Jim failed to discover a fraud.
C. liable if Jim failed to discover an impropriety.
D. not liable.
Answer: D
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Which one of the following statements is not accurate about goodwill impairment valuations?
a. Goodwill arising from acquisitions can be netted into one test at the operating segment level, but not netted at the company level. b. Market valuation may be volatile. A temporary decline in market value may not be a good indicator of FMV. c. FMV might not exist, might require independent appraisals by investment bankers or estimates using cash flow and discounted present value factors. d. No assumptions are required about competition, economic development, product placement, and so forth.
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
A) when the new product requires a major investment B) when management lacks confidence in the new product C) when management lacks confidence in the marketing strategy D) when the product has no substitutes and is new in its category E) when the costs of developing and introducing the product are low
At the end of the day, the cash register's record shows $2,050, but the count of cash in the cash register is $2,058. The correct entry to record the cash sales is
A. Debit Cash $2,058; credit Sales $2,058. B. Debit Cash $2,050; debit Cash Over and Short $8; credit Sales $2,058. C. Debit Cash Over and Short $8, credit Sales $8. D. Debit Cash $2,050; credit Sales $2,050. E. Debit Cash $2,058; credit Cash Over and Short $8; credit Sales $2,050.
When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at
A) a premium B) their face value C) their maturity value D) a discount