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(D) What is the most likely alternate procedure auditors will perform when replies have not been received on accounts receivable confirmation requests? Choice (D) is the best answer because inspection of shipping records provides evidence that the merchandise was in fact shipped to the customer. Choice (A) is incorrect because an auditor may look at the cash receipts journal after year end to see if the customer has paid the receivable, but reviews of the balance prior to year-end will not provide evidence on accounts unpaid as of year-end. Choice (B) is flawed because the lack of a reply to the confirmation can mean a lot of things, many beyond the control of the auditor, so it does not make sense to automatically assume that procedures should be modified. Choice (C) is mistaken because the lack of a reply does not necessarily mean the account is misstated.
Calculate the rate of price change between 2000 and 2001 and label this rate as either deflation, disinflation, or hyperinflation. Calculate the rate of price change between 2001 and 2002 and label this rate as either deflation, disinflation, or h..
Suppose a country has a money demand function (Md/P) = kY where k is a constant parameter. The money supply grows by 12 percent per year and real income grows by 4 percent per year. What is the inflation rate
If perfectly competitive firm chooses its level of output so that the price equals marginal revenue, the value of the marginal product of labor will equal the wage rate. True or false?
If we examine the market for rice in USA during the year2007 and 2009, the demand of rice was higher in the year 2007 but it felldown during the year 2009, due to the drop in the export demand of rice.
For simplicity, assume MSRP is the cash purchase price. The vehicle will be driven 1,000 miles per month and you hope to can sell either vehicle after 36 months for 70% of the purchase price (use the MSRP). Sales tax of 8.4% is paid at time zero a..
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent.
Last year, Maria's income was $1,800. Milk cost $1 per gallon. Bread, which is very expensive where Maria lives, cost $3 per loaf. This year, her income is $3,600. The price of milk increased to $2 per gallon, and the price of bread increased to $..
Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what (interpolated) rate would the NPV become zero What is such a rate called Also, calculate the payback periods,
Suppose that the Phillips curve is given by ft-?t^e= 0.1-2ft where ft^e=ft-1 Suppose that inflation in year t-1 is zero. In year t, the authorities decide to keep the unemployment rate at 4% forever. 1. Compute the natural rate of unemployment
Likelihood a non-doping rider will get cut from a team for under-performance: 50% Staying clean while everyone else is clean (High Payoff) Expected value- Value of competing for one year: $1 million Expected penalties- None $0 million Staying clea..
1. short answera. agree or disagree and justify your answer if the distribution of u in a population regression model
You are a manager of a firm with a following demand and cost functions in a perfectly competitive market. The price in your market is $35. Your total cost curve is: TC = 10 + 2Q + 0.5Q^2
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