Harkin Ltd. has a $5,000 unfavorable variable overhead spending variance. Give two possible reasons for this variance
· The actual amount spent on variable overhead items was more than what was budgeted.
· Excessive usage of overhead caused by inefficient operations or waste.
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Stealth marketing occurs when:
A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand C) a brand suggests or hints it is associated with a major sporting event when it is not D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?
A. Turnover of senior accounting personnel is low. B. Insiders recently purchased additional shares of the entity's stock. C. The rate of change in the entity's industry is slow. D. Management places substantial emphasis on meeting earnings projections.
On August 1 . a firm assigned $30,000 of its $56,000 of accounts receivable. The finance company advanced 90% of the assigned accounts less a $2,000 fee. Interest is 12% and payable monthly on the beginning-of-period loan balance. A loan payment is remitted at the end of each month. Each payment includes principal and interest. The amount of each loan payment equals the cash collected on
receivables during the month plus interest on the loan balance. If $8,000 was collected on accounts receivable during August, the entry for the first loan payment would include a a. debit to Interest Expense of $280. b. credit to Cash of $8,000. c. credit to Account Receivable Assigned of $8,000. d. debit to Notes Payable of $8,280.
Replevin actions are also possible on goods not identified in the contract
Indicate whether the statement is true or false