The AICPA's Practice Alert No. 94?2: Auditing Inventories?Physical Observations describes several circumstances that constitute inventory fraud. Which of the following is not an example of inventory fraud?
a. including items in inventory when the corresponding payable has not been recorded
b. adjusting inventory to lower-of-cost-or-market
c. increasing counts for items that auditors did not test count
d. counting obsolete inventory as salable or usable
B
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An examination of visible customer actions including making store visits and purchases is called:
A) respondent behavior evaluation B) pre-testing C) message evaluation D) message synthesis
A LIFO liquidation during periods when prices are increasing results in a company
a. recording a large inventory write down. b. recording higher earnings than it would have if it had used FIFO. c. recording lower earnings than it would have if it had used FIFO. d. having operational problems, but no financial statement effects.
According to Gartner Inc., dirty data is an MIS problem, not a business problem.
Answer the following statement true (T) or false (F)
[The following information applies to the questions displayed below.]On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums.Assuming Wayne issued the bonds for 102.5, what is the carrying value of the bonds on the December 31, Year 1 balance sheet?
A. $616,500 B. $613,500 C. $601,500 D. $615,000