Which of the following statements, if made by a seller who knows the statement to be untruthful, would NOT be misrepresentation of material fact resulting in a cause of action for fraud?
A. "This horse is only six years old."
B. "There is no better car in the world."
C. "The tires have less than 5,000 miles on them."
D. "This car gets 28 miles per gallon."
Answer: B
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Which of the following best represents actions that may indicate fraud is pervasive throughout the company under audit?
a. The company's management negotiates deals with vendors in such a manner as to pay lower prices. b. The company's management drives luxury vehicles and takes vacations to exotic places. c. The company's management takes an overly aggressive approach to revenue recognition. d. The company's management estimates bad debts using an aged accounts receivables ledger rather than as a percent of sales.
The ________ is the member of the buying center whose primary function is handling the details of the transaction
A) buyer B) gatekeeper C) decider D) initiator E) influencer
Which statement in the conceptual framework is concerned with the objectives of business financial reporting? Note that SFAC 8 replaces this SFAC.
a. SFAC No. 1 b. SFAC No. 2 c. SFAC No. 3 d. SFAC No. 5
What major discovery did Hawthorne uncover in his research? How did he come across this finding?
What will be an ideal response?