Net income is misleading when revenue is overstated or expenses are understated by significant amounts

Indicate whether the statement is true or false


True

Business

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When testing a standard cost system, the auditor does not normally make which of the following inquiries?

a. The method for developing standard costs. b. The method for identifying components of overhead and of allocating overhead to products. c. The method for identifying sales cutoff. d. The method used for allocating variances to inventory and cost of goods sold.

Business

Market size is defined as ________

A) the total annual revenue of the buyers in an established industry B) the total number of available sellers of a product within a given market C) the total number of potential buyers of a product within a given market D) the total annual revenue of all suppliers in an established industry

Business

As long as you use privacy settings on social networking sites, you do not need to worry about personal sensitive information being shared

Indicate whether the statement is true or false

Business

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

A. inelastic demand, which is tied to the cost of the components of the pallets. B. derived demand, which is tied to the sales of appliances. C. reactive demand, which is tied to the sales of appliances, not the sale of the pallets. D. unitary demand, which is tied to the sales of appliances. E. elastic demand, which is tied to the cost of the components of the pallets.

Business