题目内容

Which of the following board members would most likely be considered well chosen based on the principles of good corporate governance?

A board member of Company B who is also the CEO of Company B.
B. A board member of Company B who is a partner in an accounting firm that competes with the firms auditor.
C. A board member of Company A who is president of Company B,when the CFO of Company A sits on Company Bs board.

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The cost of preferred stock is equal to:

A. The preferred stock dividend divided by its par value.
B. [(1-tax rate) times the preferred stock dividend] divided by price.
C. The preferred stock dividend divided by its market price.

Blonnick Corp. has found that its weighted average collection period has increased from 50 days last year to 55 days this year, and its average days of receivables this year is 48 compared to 52 last

A. Blonnick has relaxed its credit standards this year.
Blonnicks credit customers are paying more slowly this year.
Credit sales are a greater part of Blonnicks business this year.

According to Statement on Auditing Standards No.99, Consideration of Fraud in a Financial Statement Audit, which of the following is least likely to be a risk factor related to opportunities to commit

A. Significant related-party transactions.
B. High turnover among accounting and information systems personnel.
C. Aggressive or unrealistic profitability expectations from third parties.

Taking an impairment charge due to a decrease in the value of a long-lived depreciable asset is least likely, in the period the impairment is recognized, to reduce a firms:

A. Net income.
B. Operating income.
C. Taxes payable.

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