A CPA reviews an entity's payroll procedures. The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:
A. distributing payroll checks to employees.
B. initiating requests for salary adjustments for subordinate employees.
C. hiring subordinate employees.
D. reviewing and approving time reports for subordinate employees.
Answer: A
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On January 1, Biden, Inc.'s Work-in-Process Inventory account had a balance of $31,900. During the year, $58,500 of direct materials was placed into production. Manufacturing wages incurred amounted to $85,000, of which $64,500 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $90,300. Jobs costing $220,800 were completed during the year. What is the December 31 balance of Work-in-Process Inventory?
A) $154,900 B) $31,900 C) $232,300 D) $11,500
Harold was terminated by his employers for poor performance. A clause in his employment agreement stated that Harold would be barred from working for a rival firm for a period of 1 year from the date of termination. This clause is an example of a:
A. payback clause. B. noncompete clause. C. nonsolicitation clause. D. nondisclosure clause.
NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston. This funding is an example of:
A. corporate social responsibility B. ethical conveyance C. a duty to engage in cause marketing D. a right to engage in social marketing E. multiculturalism
According to the expectations theory, the interest rate on a long-term bond is the average of the short-term interest rates expected over the life of the long-term bond
Indicate whether the statement is true or false