If an auditor makes a disclaimer of opinion, this means that the auditor is ________
A) favorable to the company's financial statement matching its performance but notes a few departures from Generally Accepted Accounting Principles (GAAPs)
B) unfavorable about the financial statement representing the company's position
C) unable to draw a conclusion about the accuracy of the company's financial records owing to lack of information
D) favorable of the company's financial statements representing its performance
C
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Which of the following types of appeals is used to develop an image-oriented advertisement which is used for product categories where it is difficult to establish tangible differential advantages?
A) feature/benefit appeals B) competitive advantage appeals C) news appeals D) emotional appeals
Identify which error will cause the trial balance to be out of balance.
A. A $75 cash receipt from a customer in payment of her account posted as a $75 debit to Cash and a $75 credit to Cash. B. An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash. C. A $100 cash receipt from a customer in payment of her account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. D. A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. E. A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
In a trend analysis, an index number of 139 for 20x5 sales indicates that
A) sales for 20x5 were 139 percent higher than sales for the same company in the base year. B) sales for 20x5 for this company were 139 percent of the sales figure of another company being used in the comparison. C) sales for 20x5 were 139 percent of the sales for the same company in the base year. D) actual sales for 20x5 exceeded budgeted sales for 20x5 by 39 percent.
Which of the following is covered under a fire insurance policy without any extended coverage?
A. A fire caused by extreme heat in desert areas B. A fire caused by an electrical fault in a factory C. Smoke arising out of a singed electrical circuit D. Smoke damage as a result of excessively overcooked food