Answers;
In scrutinizing a statement of cash flows in an attempt to gain a better understanding of the client, the auditor should evaluate to check if the client is meeting interest payments when they are due. The auditor may use information about the client's industry. This is done to evaluate whether significant changes is made in the company from prior periods, including changes in its internal control over financial reporting, affect the risks of material misstatement.
Answer:
A. that involves double-counting.
Explanation:
Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.
<u>Answer: </u>True
<u>Explanation:</u>
Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.
Net proceeds from sale of units = 425000 - 150000
=$275,000
It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.
This statement is true. Teenagers have a higher price elasticity than do adults.
This is because teenagers does not have much income to spend so they can shift to other products also. Teenagers are also not addict to smoking or any other habits , Therefore price affects the demand of the product.
Price elasticity is defined as the ratio of the percentage change in quantity demanded due to percentage change in price.
Elasticity having more than 1 are relatively more elastic.
Adults have more income to spent so the demand do not effects due to change in price. As adults are more addicted to smoking then teenagers ,
addicted people did not consume less due to its price change.
To know more about price elasticity:
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