An Example of a Sales-Related Factor That Would Decrease Inherent

question 6

Multiple Choice

An example of a sales-related factor that would decrease inherent risk would be ________.

• A)complicated revenue recognition policies
• B)lax oversight of management by the board of directors
• C)nominal legal compliance issues when making and collecting sales
• D)existence of excessive sales goals/targets

Understand the implications of different CCA (Capital Cost Allowance) classes on leasing and purchasing decisions.

Calculate after-tax lease payments and understand their impact on financial decisions.

Recognize the importance of the cost of borrowed funds and the tax rate in making leasing versus buying decisions.

Determine the incremental annual cash flow associated with leasing relative to purchasing.

---

Definitions:

Optic Nerve

A nerve in the head responsible for carrying sight-related data from the retina to the brain.

Mandible

The lower jawbone, significant in the skeletal structure of the face, involved in chewing and forming the lower part of the skull.

Fractured

The condition of having a broken bone or a crack in a bone.

Rib

One of the long curved bones forming the rib cage, which protects the thoracic cavity and its organs.