Under the securities law, liability for misstatements:
a. can be imposed on securities offerors, but not corporate officials
b. can be imposed for overly optimistic statements made by executives that are not soundly grounded
c. would not be imposed for misstatements in press releases due to First Amendment protection of media d. none of the other choices
e. all of the other choices
b
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Chemistry is the feeling that an advertising agency and a client company will work well together
Indicate whether the statement is true or false
Which of the following is a cash inflow from an operating activity on a statement of cash flows prepared using the direct method?
A) sold treasury stock for cash B) issued common stock C) received interest revenue in cash D) borrowed money on a long-term note
A manager with a production orientation would
A. have production managers handle all marketing activities. B. get the production department to work closely with other departments. C. find out what product customers want to buy, and then produce that product. D. take production decisions guided by customers' needs. E. think of customers as existing to buy the firm's output.
The auditors have calculated the total uncorrected identified misstatements as $445,000; materiality for the audit is $450,000. The client has declined to record the related journal entries. In this situation it is most likely that the auditors will:
A. Issue a disclaimer of opinion. B. Perform additional audit procedures to reduce audit risk to an appropriately low level. C. Conclude that the financial statements are not materially misstated. D. Resign from the audit.