Which of the following is a true statement about profitability ratios? (a) All companies have a high

Question:

Which of the following is a true statement about profitability ratios?

(a) All companies have a high inventories turnover ratio.

(b) Auditors will be interested in trends in profitability ratios.

(d) Companies will try to have the same profitability ratio in each month of operation.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Auditing A Practical Approach

ISBN: 9780730364573

3rd Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

See More Books

Question Posted: Nov 10, 2023 12:56 AM

See More Questions

Which of the following is a true statement about activity-based customer costing? a. Customer diversity requires a single driver to trace costs accurately to customers. b. Customers can consume...
Which of the following is a true statement about process cost systems? A. In process cost systems, costs are accumulated but not assigned. B. In process cost systems, costs are summarized on job cost...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
In 2013, Natural Selection, a nationwide computer dating service, had $500 million of assets and $200 million of liabilities. Earnings be-fore interest and taxes was $120 million, interest expense...
Refer to the information in Problem 8-2B. Toronto Company's actual income statement for 2009 follows. Required 1. Prepare a flexible budget performance report for 2009. Analysis Component 2. Analyze...
N = 150, n = 20, k = 30 Compute the mean and standard deviation of the hypergeometric random variable X.
In 2014, political consulting firm Cambridge Analytica developed an app designed to create digital profiles of individuals via their information. Cambridge Analytica collected the data by inviting...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $500,000,...
Find the solution of the equation coth x = a, assuming that a > 1. Express the result in terms of elementary functions of a. [Hint: The result should have the form x = f(a), where f(a) is a specific...
A residential project has the following information: Four major activities are scheduled across a 4-month time span (shown in the below bar chart). Assuming the monthly indirect cost (i.e., site...
Common uses of analytical procedures include: (a) Risk identification during the risk assessment stage. (b) Estimating account balances during the risk response stage. (c) Overall assessment of the...
Adopting an audit strategy that does not rely heavily on substantive testing: (a) Is appropriate when internal controls are minimal. (b) Requires the auditor to conduct extensive control testing. (c)...
An electronics manufacturer buys memory devices in lots of 30,000 from a supplier. The supplier has a long record of good quality performance, with an average fraction defective of approximately...
Questions should be a minimum of 10 lines of information per question and must be written in "essay" format, and in your 0wn w0rds .This means that information must not be used directly from the...
On February 4th, Small Company buys a townhouse in which they immediately rent out for the remainder of the year. The cost of the townhouse was $325,000, of which $50,000 is attributed to the land....
Explain why Continuous premium life insurance has The greatest amount of permanent death protection and the least amount of savings per premium dollar.
Examine a health policy issue of Hospital competition and impacts on prices, use economic theory to support the answer. Graded out of 50 points. In the response, please include : a Compose a clear,...
Belmont Ltd.'s prepaid insurance balance was $20,000 at December 31, Y6 and $10,000 at December 31, Y5. Insurance expense was $8,000 for Y6 and $6,000 for Y5. How much cash paid for insurance would...
Outside Companys quarterly and annual sales for this year follow. Prepare a sales budget for next year based on the estimated percentage increases shown by product class. Show both quarterly and...
Study the pictures/images below. Obviously these was focus on LT sociology, anthropology and poltical science. Try to do some analysis by finding clues that are synonymous with the main concepts....
Andrews, CPA, has been engaged to audit the financial statements of Broadwall Corporation for the year ended December 31, 2022. During the year, Broadwall obtained a long-term loan from a local bank...
When a client does not maintain its own stock records, the auditor should obtain a written confirmation from the transfer agent and registrar concerning: a. Restrictions on the payment of dividends....
When a client does not maintain its own stock records, the auditor should obtain a written confirmation from the transfer agent and registrar concerning: a. Restrictions on the payment of dividends....
Sam just turned 25 and has also has just gotten a job at Fun, Inc. for $70,000 a year. The salary is expected to grow annually at 3%. Fun does not have a retirement age. Employees could continue to...
What is the margin safet in dollars? what is the margin safety percentage?
Taxpayer Lucas is not married. In 2 0 2 3 he supported his younger brother who lived with him the entire year. Lucas younger brother is 2 1 years old and is a full - time college student. Lucas...

Which of the following is a true statement about profitability ratios? (a) All companies have a high

Question:

Step by Step Answer:

b Auditors w...View the full answer

Auditing A Practical Approach

Students also viewed these Business questions