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- White booked a flight for a business trip with his company’s travel agent. He filled out two expense reports for this trip,and on each report, he requested reimbursement for the cost of the ticket. On one report,he attached his airline stub as support for the expense. On the other report, he attached the travel agency’s invoice as support.What kind of scheme was White attempting? a. A false billing scheme b. A mischaracterized expense scheme c. An overstated expense scheme d. A multiple reimbursement schemeWhich of the following statements about the Securities Act of 1933 is not true?(1) The third-party user does not have the burden of proof that she/he relied on thefinancial statements.(2) The third party has the burden of proof that the auditor was either negligent orfraudulent in doing the audit.(3) The third-party user does not have the burden of proof that the loss was causedby the misleading financial statements.(4) The auditor will not be liable if he or she can demonstrate due diligence inperforming the audit.Which of the following is not an objective of administration? A. To rescue a company in financial difficulty to allow it to continue as a going concern B. To realise property to pay one or more secured or preferential creditors C. To wind up the company and cease its operations D. To achieve a better result for the creditors
- Accounting Ethics Case: Andy Frame and his supervisor are sent on an out-of-town assignment by their employer. At the supervisor’s suggestion, they stay at the Spartan Inn, across the street from the Luxury Inn. After three days of work, they settle their lodging bills and leave. On the return trip, the supervisor gives Andy what appears to be a copy of a receipt from the Luxury Inn for three nights of lodging. Actually, the supervisor indicates that he prepared the Luxury Inn receipt on his office computer and plans to complete his expense reimbursement request using the higher lodging costs from the Luxury Inn.Required: What are the ethical considerations that Andy faces when he prepares his expense reimbursement request and how often do you think this happens in the real world? Your post should be at least a couple of paragraphs.Which of the following is/are true?I. An entity shall present any items of the income and expenses as extraordinary in the notes to financialstatement.II. An entity shall not present any items of the income and expenses as extraordinary in the face of incomestatement or statement of comprehensive income.III. An entity shall present any items of the income and expenses as extraordinary in the face of the incomestatement or statement of comprehensive income.IV. An entity shall not present any items of the income and expenses as extraordinary in the notes to financialstatement. a. I and IIb. II and IIIc. I and IVd. II and IVtrue or false 1. Captive insurer may be used to insure loss exposures that the parent firm finds it difficult to insure with private insurers. 2. Ali incorporated his business so that he has unlimited liability to shield him against personal liability claim by the creditors 3. For the safety of the residents of the apartment, a barrier is installed at the entrance of the apartment. Only the vehicles belong to the residents are allowed to pass through. This physical barrier system is a risk management technique called loss prevention 4. Applying first-aids to an injured worker while waiting for an ambulance to send him to hospital is a risk management technique called salvage.
- The “Compliance with Standards Rule” requires that a member who performs professional services, including consulting services, comply with standards promulgated by bodies designated by Council, regardless of whether the member is holding out as a CPA. The standards applicable to members performing consulting services are set forth in the Statements on Standards for Consulting Services (SSCSs) and specifically state that such standards apply to members holding out as a CPA while providing consulting services. Would a member who does not hold out as a CPA be in compliance with “Compliance with Standards Rule” if the member did not comply with the SSCSs while performing consulting services for a client? Yes or NoIs it possible to be used partly for public purpose and partly private purpose without violating the limitation that a tax must be for public purpose?A. No, the purpose shall either be private or public. It cannot be bothB. Yes, The purpose is not important as long as the tax of the property can be accounted forC. No, the purpose to be accomplished by taxation need not be exclusively public. To benefit private individuals will be tantamount to deprivation of property of those who paid the tax without due processD. Yes, The purpose to be accomplished by taxation need not be exclusively public. Although private individuals are directly benefited such as the victims of flood victims, the tax will be valid provided such benefit is only incidentalWhich of the following premortem actions can increase the liquidity of a decedent's estate? Making certain that a client's will is executed with all of the required legal formalities Stating reasons in a client's will why a close family member is not receiving any part of the client's estate Urging a client to keep written current records of payments made by the client on debts owed to third parties Urging a client to require written security for a promissory note given to the client for assets purchased from the client A) I, II, and IV B) I and II C) I, II, III, and IV D) III and IV
- TRUE OR FALSE. Write True if the statement is true. Otherwise, write false.1. Business advertisement is a valid offer.2. Deaf-mutes have no capacity to give consent.3. Fraud voids a contract.4. If B gives his consent due to A’s threat of exposing his marital affairs, there will be nocontract because consent is vitiated.5 Exaggerations in trade are not fraudulentThe difference between fraud and errors is: a. the timing of the transaction b. the materiality of the value involved. c. intent of those involved. d. whether it affects owners’ equity or not.Your insured lives in an apartment but takes a temporary position in another city and must store some me for fur ture items in a storage ware apartment is sublet to a friend. Subsequently, the warehouse is broken into and some of your Insured's furniture is stolen. What Would a Tenant © A) The actual cash value or replacement cost of the property stolen less the policy deductible, subject to the 10% limitation on property temporanlite O B Nothing. The loss is not covered © C The actual cash value or replacement cost of all the personal property stolen, less the policy deductble, subject to the polis limit © D That proportion of the loss which the value of the property at the warehouse bears to the total value of all of his her personal property