Outside auditors _____
a. have a complete understanding of departmental operations
b. have prime responsibility to another job position
c. have limited independence
d. require time lags while gaining familiarity
d
You might also like to view...
Ian transfers a note, for consideration, to Jock by blank indorsement and delivery. Jock transfers the note to Kelly, who takes it in good faith. What does Ian warrant to Kelly?
What will be an ideal response?
Jeff, the CEO of Francostico Inc., decides to set up a system that would help its managers with decision making. To design this system, his programmers ask skilled and proficient managers to explain how they solve problems. Then, they devise a program to mimic the specialists' approach, incorporating various rules or guidelines that the specialists use. In this scenario, Jeff seeks to develop a(n) _____ for the managers.
A. business intelligence system B. data warehouse C. cybermediary D. expert system
If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is the probability of the last unit being sold?
A. Greater than 0.90 B. Greater than 0.25 C. Greater than 0.85 D. Greater than 0.75 E. None of these
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2017, for $105,000 when the book value of Gates was $600,000. During 2017 Gates reported net income of $150,000 and paid dividends of $50,000. On January 1, 2018, Dodge purchased an additional 25% of Gates for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2017 but Dodge has deemed it necessary to change to the equity method after the second purchase. During 2018 Gates reported net income of $200,000, and reported dividends of $75,000.Which of the following is true regarding the change from the fair-value method to the equity method?
A. Dodge must record a debit to additional paid-in capital for $15,000. B. Dodge must retrospectively apply the equity method to interests reported under the fair-value method. C. Dodge must record a credit of $15,000 to the Gates Investment Account. D. Dodge must record a debit of $200,000 to the Gates Investment Account. E. Dodge must record a debit to additional paid-in capital in the amount of $200,000.