Which of the following types of risk is of critical importance to auditors in performing tests of controls?
A. The risk of assessing control risk too low.
B. The risk of incorrect acceptance.
C. The risk of incorrect rejection.
D. The risk of assessing control risk too high.
Answer: A
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Which constraint represents transshipment through the distribution center?
A) 2X13 + 3X23 = 900 B) 2X13 + 3X23 + 5X34 + 4X35 + 3X36 = 0 C) X13 + X23 - X34 - X35 - X36 = 0 D) X13 + X23 - X34 - X35 - X36 ? 0
The President of the United States has the authority to issue laws, which are called:
a. Restatements of law. b. executive orders. c. Constitutional amendments. d. codes.
The transshipment problem is a maximization problem
Indicate whether the statement is true or false
On January 1, 2017, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2017 and 2018, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes.What is the net effect on net income as a result of consolidating adjustments made in 2017 with respect to the equipment transfer?
A. Decrease net income by $12,000. B. Increase net income by $2,000. C. Decrease net income by $14,000. D. Increase net income by $10,000. E. Decrease net income by $10,000.