Readers of financial statements must scrutinize the note disclosures,and the financing activities section of the cash flow statement,for evidence of dispositions of receivables that may be masking overly aggressive revenue recognition policies or bad receivables management.

Purchase requisitions for Purchasing and the number of payroll checks for Payroll Accounting are examples of activity bases.

Absenteeism has become a problem at the Smelly Cheese Company, so the human resource manager has decided to do something about it.He has decided to choose the first solution he comes across that will get the level of absenteeism to what it was in the previous year.What is this an example of?

A) Anchoring effect
B) Satisficing
C) Sunk costs
D) Framing
E) Confirmation bias

Which of the following would be considered as a prevention cost

A) Rework costs.
B) Scrap costs.
C) Inspection of completed products prior to shipment to customers.
D) Supplier management.

The facts of a case heard by the Supreme Court of Canada are as follows: Mr. and Mrs. H were induced to sign a mortgage in favour of M.C.R. Ltd. by Johnston, a man living with their daughter. Johnston led them to believe that the document was an unimportant amendment to an existing mortgage when, in reality, it was a second substantial mortgage on their home. Neither read the document or questioned it. When the payments were in arrears, the mortgagee took an action for foreclosure (to take their home). Mr. and Mrs. H. pleaded non est factum. Would this defence succeed? Why or why not?

When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will:

A) always be less than the tax.
B) always be more than the tax.
C) always be less than if a similar tax were imposed on firms in a competitive market.
D) not always be less than the tax.