The primary accounting issue in the Wetherford International case is:
A. Fraudulent recording of revenues on sales to customers
B. Fraudulent inflation of inventory to reduce losses on the income statement
C. Fraudulent use of company resources by top management for personal purposes
D. Fraudulent inflation of earnings using deceptive income tax accounting
Answer: D
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Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Island has four public relations specialists and office staff. At the beginning of the year, Island estimated the total cost of salaries and benefits for the public relations specialists at $684,000 and a total of 7600 billable hours for the year. The office and administrative costs were estimated at $418,000. The allocation base for office and administrative costs is billable hours. In June, Island signed a contract for a Russian ballet performance. It negotiated a price of $6800 for its services. When the job was complete, Island's records showed that it had logged 37.0 billable hours. What was the actual total cost of the job for Island?
A) $5365 B) $2035 C) $3330 D) $1295
A ____________ strategy in a new market involves setting a high price to recover development costs.
Fill in the blank(s) with the appropriate word(s).
Sarah purchased a Personal Auto Policy with liability limits of 50/100/25. Sarah ran a stop sign and hit a van. The van sustained $15,000 in damages
The following bodily injuries were suffered by passengers in the van: Passenger #1, $15,000; Passenger #2, $60,000; and Passenger #3, $10,000. Sarah sustained $5,000 in medical expenses, and Sarah's car sustained $10,000 in damages. How much will Sarah's insurer pay under Part A: Liability Coverage? A) $90,000 B) $100,000 C) $115,000 D) $125,000
The date today is January 1, 2010. A one-year security maturing on 1/1/11 yields 3%. A two-year security
maturing on 1/1/12 yields 6%. A three-year security maturing on 1/1/13 yields 11%. Calculate the expected annual return on a two-year security beginning 1/1/11 and maturing on 1/1/13.