Answer the following statements true (T) or false (F)
The relevant circumstance in determining the reporting method for non-consolidated intercorporate equity investments is effective control.
ANSWER: F
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How does the payment of cash dividends to stockholders affect the accounting equation? Is it considered an asset source, asset use, or asset exchange transaction?
What will be an ideal response?
Discuss why qualitative characteristics must be considered when making decisions such as special orders, outsourcing, elimination and replacement decisions, and scarce resource allocation decisions. Give examples.
What will be an ideal response?
In a(n) _____ file, each alphabetic, numeric, or special character is represented with a 7-bit binary number
A) Extended Binary Code Decimal Interchange Code (EBCDIC) B) Unicode C) American Standard Code for Information Interchange (ASCII) D) Extended ASCII
An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision, but the entity refuses to revise or eliminate the material inconsistency, the auditor may
A. Issue an "except for" qualified opinion after discussing the matter with the entity's board of directors. B. Consider the matter closed since the other information is not in the audited financial statements. C. Disclaim an opinion on the financial statements after explaining the material inconsistency in a separate explanatory/emphasis-of-matter paragraph. D. Revise the auditor's report to include a separate explanatory/emphasis-of- matter paragraph describing the material inconsistency.