What determines the independence of Certified Public Accountants (CPAs)?
What will be an ideal response?
They are not employees of the companies they audit and they do not have a financial interest in those companies.
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For accounting purposes, stated value is treated the same way as par value
a. True b. False Indicate whether the statement is true or false
At December 31, 2015, the accounting records of Farmer Corporation contain the following: Accounts payable $ 16,000 Accounts receivable $ 40,000 Land 240,000 Cash ? Capital stock ? Equipment 120,000 Building 180,000 Notes payable 190,000 Retained earnings 160,000 If Cash is $26,000, what is the December 31, 2015 capital stock balance?
a. $272,000 b. $240,000 c. $220,000 d. $400,000
Using lower cost borrowed funds and earning a higher rate of return on those funds than their cost
a. increases the return to the common shareholders. b. is a phenomenon called financial leverage. c. requires the common shareholders to take on more risk in their investment. d. all of the above e. none of the above
Which of the following is necessary for any valid performance measurement?
a. It must be a part of the financial accounting system in use. b. It must be quantifiable. c. It must be financial in nature. d. Goal congruence must be promoted by its use.