The only reason a company needs to create an internal control system is to deter intentional fraudulent acts
a. True
b. False
Indicate whether the statement is true or false
False
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Griffith Corporation is considering an investment in a labor-saving machine. Information on this machine follows: Cost $30,000 Salvage value in five years $0 Estimated life 5 years Annual depreciation $6,000 Annual reduction in existing costs $8,000 Refer to Griffith Corporation. What is the payback period on this investment?
a. 4 years b. 2.14 years c. 3.75 years d. 5 years
Under the perpetual inventory system, two journal entries are used to record the sales of merchandise. One entry records the Sales Revenue and another entry records the Cost of Goods Sold
Indicate whether the statement is true or false
Tangypop and Fizzmania, two giant soft drink companies in Brazil, join together to form a new company out of the two previously independent firms. They take this step to reduce competition, leverage economies of scale, and increase their size and market power within the soft drink industry. This association is most likely an example of a _____.
A. sole proprietorship B. horizontal merger C. conglomerate merger D. divestiture
A U.S.-based multinational corporation has 100% owned subsidiary in Argentina. The subsidiary
operates only domestically, that is, all transactions occur within Argentina. Therefore, the U.S. multinational corporation A) is exposed to translation risk only. B) is most concerned with transactions exposure. C) is not exposed to exchange rate risk because the subsidiary operates 100% domestically. D) is exposed to both translation exposure and economic exposure.