According to auditing standards, accounts receivable confirmations are required to be used in which of the following situations?
a. On every audit engagement.
b. If the client agrees in writing to the procedure.
c. If the balance is material.
d. If environmental risk is low.
c
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A company's current assets are $23,620, its quick assets are $14,000 and its current liabilities are $14,200. Its quick ratio equals:
A. 1.67. B. 2.68. C. 1.68. D. 0.99. E. 1.00.
In the Carmody v. Toll Bros., Inc case discussed in the text, the Delaware Court of Chancery analyzed the question of the legality of a dead-hand pill under Delaware law. In striking down the dead-hand pill, the court ruled that:
a. the directors appropriately used the dead-hand pill which guaranteed that majority shareholders in place before a hostile bidding attempt were entitled to vote to block any later proposed vote on a merger. b. the directors appropriately used the dead-hand pill because directors are entitled to use any means necessary in order to block a hostile takeover. c. the dead-hand pill violated the state general corporation law for a number of reasons including that it violated the directors' duty of loyalty. d. the dead-hand pill, which could only be redeemed by directors in office after a hostile bidder gained control or by their designated successors, violated the state general corporation law because it prejudiced directors in place prior to the takeover.
When a buyer breaches a contract, the risk of loss remains with the seller.
Answer the following statement true (T) or false (F)
"Everybody else does it" is a valid test for determining whether conduct is ethical
Indicate whether the statement is true or false