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It Was Late on a Friday Afternoon When Chloe Pike

question 47

Multiple Choice

It was late on a Friday afternoon when Chloe Pike got a call at the help desk for Taggart Corp.A man with an edge of panic in his voice was on the phone."I'm really in a bind and I sure hope that you can help me." He identified himself as Joe Andrew from the accounting department of Taggart Corp.He told Chloe that he had to work on a report that was due on Monday morning and that he had forgotten to bring a written copy of his new password home with him.Chloe knew that Taggart's new password policy required that passwords be at least fifteen characters long,must contain letters and numbers,and must be changed every sixty days,had created problems for many users.Consequently,Chloe provided the password to Joe.The caller turned out not to be Joe Andrew,and Chloe was a victim of

Definitions:

After-Tax Net Income

The amount of profit left over after all expenses, including taxes, have been deducted from total revenue; represents the bottom line for a company.

Cost Method

An accounting approach used for investments where the investor has little to no influence over the investee, recording the investment at cost and recognizing income only when dividends are received.

Elimination

In accounting, the process of removing intercompany transactions and balances from the financial statements of a group of companies consolidated as one entity.

Intercompany Profits

Profits that arise from transactions between companies within the same group, which are not realized from the perspective of the consolidated entity.