A Report on an Entity's Internal Control Over Financial Reporting

question 13

Multiple Choice

A report on an entity's internal control over financial reporting

• A)is required for all companies whether they report to the SEC or not.
• B)is optional for all companies whether they report to the SEC or not.
• C)is required by the PCAOB for large public companies and may be performed by a CPA for nonpublic companies.
• D)is limited to inquiry and analytical procedures for reports for non-SEC companies.

Analyze the components of total costs and their impact on profits.

Determine the effect of opportunity costs on the profitability of a business.

Evaluate the condition of a firm based on its profit/loss status.

Identify the characteristics of a firm's operational phase (short run or long run).

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Definitions:

Hostile Takeover

An acquisition attempt by a company or individual without the consent or cooperation of the target company's board of directors.

Investment Banking Firm

An establishment engaged in finance that helps people, businesses, and government bodies acquire funds by underwriting or serving as the representative of the client in the release of securities.

Defensive Strategy

A business approach aimed at protecting the existing market share, products, and profitability against competitors' actions.

Congeneric Merger

Involves firms that are interrelated but that do not have identical lines of business. One example is Advanced Micro Devices' acquisition of ATI Technologies.