Which qualitative characteristic pertains wholly to the attitude of board members as opposed to being more directly concerned with specific aspects of information contained in the financial statements?
a. Representational faithfulness
b. Verifiability
c. Consistency
d. Neutrality
ANSWER: D
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Which is the best definition of osmosis?
A. The movement of molecules from an area of their lower concentration to an area of their higher concentration. B. The movement of molecules from an area of their higher concentration to an area of their lower concentration. C. The movement of a substance against its concentration gradient through the release of energy from ATP. D. The movement of water across a semipermeable membrane from an area of higher water concentration to an area of lower water concentration. E. The movement of water across a semipermeable membrane from an area of lower water concentration to an area of higher water concentration.
The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________.
A) unfavorable direct materials cost variance B) favorable direct labor cost variance C) favorable direct labor efficiency variance D) unfavorable direct materials efficiency variance
On January 2, 20x5, Fresh Inc issued 20-year bonds payable with a face value of $1,000,000 and a face interest rate of 10 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable semi-annually on January 1 and July 1. In calculating the present value of the bond issue of January 2, 20x5, the factor used to calculate the present value of the $1,000,000 is
A) 10%, 20 periods. B) 5%, 40 periods. C) 9%, 20 periods. D) 4.5%, 40 periods.
The U.S Federal Sentencing Guidelines for organizations requires organizations to establish a(n)
a. Annual reporting cycle b. Effective compliance program c. Limited accounting principles d. Greater confidence