________ is a review of financial and business records to ascertain integrity and compliance with standards and laws, particularly by the U.S. Internal Revenue Service.
A. Scrutiny
B. Assessment
C. Due diligence
D. Audit
Answer: D
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An automobile parts retailer purchases merchandise inventory on account. When using a manual accounting information system, this transaction is recorded in the ________.
A) purchases journal B) general journal C) cash payments journal D) sales journal
Liquidated damages are not permitted under the UCC
a. True b. False Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. Most rapidly growing companies have positive free cash flows because cash flows from existing operations generally exceed fixed asset purchases and changes to net operating working capital. B. Changes in working capital have no effect on free cash flow. C. Free cash flow (FCF) is defined as follows:FCF = EBIT(1 - T)+ Depreciation- Capital expenditures required to sustain operations- Required changes in net operating working capital. D. Free cash flow (FCF) is defined as follows:FCF = EBIT(1 - T) + Capital expenditures. E. Managers should be less concerned with free cash flow than with accounting net income. Accounting net income is the "bottom line" and represents how much the firm can distribute to all its investors-both creditors and stockholders.
For the theory of contestable markets to work, four conditions have to be met: no barriers to market entry, no economies of scale present, consumer willingness to switch between carriers, and
a. sellers and buyers of such small size that price or supply cannot be influenced. b. existing carriers prevented from responding to new entrants' lower prices. c. mutual interdependence between various sellers. d. no one seller controls a significant portion of the market.