A critical element of control is monitoring. What is likely to happen if management fails to monitor an internal control?
A) Necessary improvements will not be identified.
B) The inherent risk of an error will increase.
C) The auditor is likely to assume the control is working when it might not be.
D) Personnel are likely to stop observing the control.
D) Personnel are likely to stop observing the control.
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Which of the following will cause an increase in net working capital, other things held constant?
A. A cash dividend is declared and paid. B. Merchandise is sold at a profit, but the sale is on credit. C. Long-term bonds are retired with the proceeds of a preferred stock issue. D. Missing inventory is written off against retained earnings. E. Cash is used to buy marketable securities.
In which of the following situations is the cross-functional challenge likely to be the greatest?
A. a firm selecting employees for Six Sigma quality training B. a firm's decision to obtain its raw materials from a new supplier C. an advertising campaign that has been developed based on another successful advertising campaign and is targeting a similar audience D. a quality control department that has been formed by selecting the most experienced employees of a division E. a company's plan to diversify operations by entering a new industry
To whom must goods shipped under an order bill of lading be delivered: A) The carrier is not liable for damage due to the inherent nature of the goods, such as decay of vegetables
B) to the person whose photo ID matches the information on the order bill of lading. C) to the person who presents the order bill of lading to the carrier at delivery. D) to any employee of the consignee company.
If you wanted to provide more coverage for your family early in life when they need it the most and decrease the amount of benefits in later years, yet continue to pay the same premiums, you should buy a(n) ________ policy
A) whole life B) decreasing-term C) universal life D) variable life