The fact that Procter & Gamble has broadened its product offerings to include household cleaning products, laundry products, snack products, and hair care products is an example of diversification.
Answer the following statement true (T) or false (F)
True
Diversification strategies seek to attract new customers by offering new products that are unrelated to the existing products produced by the organization.
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The auditor performs substantive procedures related to property, plant and equipment to determine if the assets have been pledged as collateral or title has transferred. What is the primary assertion the auditor is testing?
a. Valuation. b. Rights. c. Completeness. d. Existence.
Quality of earnings is affected by all of the following except
A) executive compensation. B) accounting methods. C) accounting estimates. D) one-time items.
Which of the following is not a true statement?
a. There is empirical evidence that future cash flows are better forecasted with accrual data than with cash flow data. b. Accrual accounting numbers incorporate the attribute that determines firm valuation-net cash flow data. c. Changes in reported accounting earnings affect firm valuation through changes in stock prices. d. The value to investors of the information in financial reporting lies in its role as an historical record.
Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial statements because they are not involved with the day to day operations of the firm.
Answer the following statement true (T) or false (F)