Control tests should be applied to samples of transactions and control procedures ________.
A) that occur primarily close to reporting period ends such as year-end or quarter-end
B) selected by management as being representative of all transactions processed
C) that occurred during the interim audit so that they provide direct auditor's
knowledge
D) throughout the period being audited
D) throughout the period being audited
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The statement of stockholders' equity
a. is one of the required financial statements for the annual report, when changes have occurred in the stockholders' equity accounts. b. shows the changes in retained earnings for the period, which includes the increase or decrease as a result of net income or loss for the period, and dividends for the period. c. includes accounts, such as the retained earnings and common stock accounts, but not changes to the retained earnings account, since those items are reported on the statement of retained earnings. d. is used only if a corporation frequently issues common stock.
[APPENDIX] Debbie and Alex formed a new partnership. The partnership agreement specified that income should be allocated in a 2-to-1 ratio, with Debbie receiving the larger portion. If revenue for the first year was $90,000 and expenses were $60,000, how much would be allocated to each partner?
a. Debbie—$45,000; Alex—$45,000 b. Debbie—$20,000; Alex—$10,000 c. Debbie—$60,000; Alex—$30,000 d. Debbie—$40,000; Alex—$20,000
Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few years and will often write positive reviews on his blog about Hollister's merchandise. From a strictly marketing perspective, Matt's positive reviews reflect
A. motivation. B. self-actualization. C. brand extension. D. brand loyalty. E. social marketing.
Heavyweight boxers Mike Tyson and Evander Holyfield met in 1997 in Las Vegas for a championship match. During the third round of the fight, a desperate Tyson bit off a piece of Holyfield's ear. The fight continued until moments later when Tyson bit Holyfield's other ear. Tyson was disqualified. Some fans were so outraged that they sued Tyson and the fight promoters seeking a refund. They sued on
the basis of, among other theories, a claim to being third-party beneficiaries to various contracts into which the defendants had entered. The fans: a. Can recover as third party done beneficiaries b. Can recover as third party creditor beneficiaries c. Can recover as third party intended beneficiaries d. Cannot recover as they are merely incidental beneficiaries with no rights in the contracts to which Tyson was a party.