The risk of material misstatement refers to which of the following?
a. Inherent risk.
b. Control risk and acceptable audit risk.
c. The combination of inherent risk and control risk.
d. Inherent risk and audit risk.
c
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Answer the following statements true (T) or false (F)
1. Those who have the Type A behavior pattern are involved in a chronic, determined struggle to accomplish more in less time. 2. Internals likely would prefer and respond more productively to incentives such as merit pay or sales commissions. 3. Individuals with an external locus of control tend to display greater work motivation, which leads to higher salaries. 4. A smoker who claims that the habit is not as dangerous as antismoking messages suggest, saying "My grandmother smokes and she's in her 80s," is attempting to increase cognitive dissonance.
Exhibit 21-1 The Raymond Corporation reported $11,000 of net income for the current year and also uses the visual inspection method for completing the statement of cash flows. The following additional information relates to Raymond for the year: Subsidiary gain included in investment income under the equity method $ 370 Decrease in inventory 80 Loss on disposal of equipment 900 Proceeds from
disposal of equipment 1,400 Depreciation expense 1,200 Acquisition of treasury stock 650 Increase in accounts payable 290 Acquisition of new securities (accounted for using the equity method) 500 Decrease in deferred income tax liability 210 Early retirement of bonds payable at book value 1,000 Increase in interest receivable 30 ? Refer to Exhibit 21-1. What is Raymond's net cash used by financing activities? A) $(1,240) B) $(1,650) C) $(1,860) D) $(2,150)
The financial statements are prepared from the unadjusted trial balance
Indicate whether the statement is true or false
You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation?
A. Constant demand B. Inelastic demand C. Joint demand D. Elastic demand E. Derived demand