Other income and expenses are items that are not related to the primary operating activity
Indicate whether the statement is true or false
True
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EPS is an ambiguous measure of profitability because it reflects operating performance in the numerator and ________________________________________ in the denominator
Fill in the blank(s) with correct word
Although expensive to install and maintain, a standard cost accounting system can save a company considerable amounts of money by reducing resource waste
Indicate whether the statement is true or false
______ is a test used by various federal courts, the Department of Labor, and the EEOC to determine whether disparate impact exists in an employment test.
A. OUCH test B. Pattern or practice C. Four-Fifths Rule D. Reverse discrimination
A general principle of disclosure is that material related-party transactions should be disclosed. As the auditor of the Clarence Company, you have noted the following transactions entered into by Clarence during the past fiscal year: I. Clarence borrowed $1,000,000 from the Southwest Bank issuing a noninterest-bearing note. II. Clarence borrowed $2,000,000 from BH Savings at a rate significantly
above the market rate prevailing at that time for such a borrowing. III. Clarence borrowed $500,000 from First Bank with no scheduled terms for how or when funds will be repaid. Assuming all of the above transactions are material, which transaction or transactions above most likely would be a related party transaction requiring disclosure in Clarence's financial statements? a. Only I above. b. Both II and III above. c. Both I and III above. d. Only III above.