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3 years ago

A strong internal control system will reduce the amount of substantive testing that must be performed.A ) True B ) False

Business

1 answer:

Doss [256]3 years ago

4 0

Answer:

A) True

Explanation:

The internal control structure deals with the rules, laws, procedures, practices that vary from company to company that are necessary to attain an organization's goals and objectives.

The substantive testing is an audit process aimed at checking the accuracy and reliability of the financial statements. To check if the financial statements are free from any errors, mistakes, fraud, etc. that can change users' decisions.

The financial statements should be relevant, reliable and finalize in all respects.

Therefore, a strong internal system will reduce the quantity of substantive testing required.

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Rowdy's Restaurants cash flow (in millions) Cash received from: Customers $4,200 Interest on investments 360 Sale of land 260 Sa

uranmaximum [27]

Answer:

$440 millions

Explanation:

The computation of the net cash inflows (outflows) from operating activities is shown below:

Cash flow from Operating activities

Cash received from Customers $4,200

Interest on investments $360

Less: Cash paid

Interest on debt -$460

Income tax -$240

Purchase of inventory -$2,600

Operating expenses -$820

Net Cash flow from Operating activities $440 millions

8 0

3 years ago

The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $34,000 and accounts receivable of $

Alexxandr [17]

Answer:

Ending balance in inventory= $22,000

Current liabilities= $88,000

Explanation:

The current assets section of stibblr pharmaceutical company included cash of $34,000 and accounts receivables of $54,000

The company's current ratio is 2.5

The acid test ratio is 2.0

Acid test ratio = cash + account receivables /current liabilities

2.0= ($34,000+$54,000)/current liabilities

2.0= 88,000/current liabilities

Current liabilities = 88,000/2

= $44,000

Current ratio= cash + account account receivables + inventory /current liabilities

2.5= $34,000+$54,000 + inventory/$44,000

2.5= $88,000+Inventory /44,000

2.5×44,000= 88,000 + inventory

110,000= 88,000 + Inventory

Inventory = $110,000-88,000

= $22,000

Hence the current liabilities is $88,000 and inventory is $22,000

3 0

3 years ago

Suppose that Marie is buying bananas. She decides that she would like to purchase three bananas at the price of $0.25 per banana

navik [9.2K]

Answer:

Marginal thinking

Explanation:

The economic foundation of marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. And according to this principle, Marie´s benefits of the first three bananas is higher than its cost, but the fourth banana will provide less benefit than the third and this is less than it cost.

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3 years ago

An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the follo

Sidana [21]

Answer:

"The rigidity of rules and regulations " is the appropriate response.

Explanation:

Rigidity seems to be a distinguishing characteristic of the disposition among people with autism or disabilities.
The same kind of perspective also requires an individual to implement strict guidelines to circumstances that require uncertainty as well as consistency.

That being said, regulations, as well as standards, seldom operate stringently, with little difference throughout circumstances and conditions.

6 0

2 years ago

Which events listed below would terminate a brokerage relationship where a broker represented a seller

sertanlavr [38]

The events listed that would terminate a brokerage relationship where a broker represented a seller are:

The house sold and the transaction closed
The owner declares personal bankruptcy

<h3>Who is a broker?</h3>

Broker is a person or a company whose work is to sell a company's products hence charge a commission for each product sold. He is like an intermediator between the company and the client.

An agency relationship creates a fiduciary duty owed by the agent to the principal, hence must act in the best interest of his principal at all times.

However, a brokerage relationship may be dissolved where the owner of an item is declared bankruptcy and also were transaction have been completed or closed.

Learn more about brokerage here: brainly.com/question/7284696

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5 0

2 years ago