Jiang, an accountant, is assigned by Wanley Inc. to perform an audit and prepare an annual report for its shareholders. Jiang fails to execute his duty with sincerity as he fails to discover embezzlement by a chief accountant of the firm, which is later discovered by the firm's creditors. In this scenario, Jiang's breach of duty might also trigger an action in breach of the contract between Jiang and Wanley Inc. because:
A. liability of the accountant is never civil or criminal in nature.
B. the relationship between the accountant and the client is contractual in nature.
C. a breach of duty always follows generally accepted accounting principles.
D. the relationship does not have an express agreement.
Answer: B
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Ryan is sitting in a seminar where a speaker is explaining the company's retirement plan options. Ryan is only 24 years old, and he thinks retirement is so far away that he doesn't think he needs to pay attention to the speaker. He starts texting his friends and updating his Facebook page; he even slumps in his chair. He has completely tuned out of the presentation. Ryan's listening style in this case is best described as
A. detached. B. active. C. involved. D. passive. E. passive-aggressive.
Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?
a. The direct method b. The indirect method c. Both the direct method and the indirect method d. Neither the direct method nor the indirect method
The view that defines economic development as a reduction of poverty and unemployment as well as an increase in income is known as the __________.
Fill in the blank(s) with the appropriate word(s).
Orchard has forecast sales to be $250,000 in February, $270,000 in March, $300,000 in April, and $280,000 in May. The average cost of goods sold is 70% of sales. All sales are made on credit and sales are collected 60% in the month of sale, and 40% the month following. What is the budgeted Accounts Receivable balance on May 31?
A. $168,000 B. $112,000 C. $196,000 D. $117,600