Management Can Override Controls by

question 33

Multiple Choice

Management can override controls by

• A)suggesting fictitious journal entries (particularly at year end)
• B)inappropriately changing assumptions and methods used to estimate account balances
• C)omitting,advancing,or delaying modification of events that occurred during the reporting period
• D)failing to disclose facts that could affect the amounts recorded in the financial statements
• E)engaging in complex transactions designed to represent the financial condition of the company
• F)both A and C
• G)both B and D
• H)both C and E

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or raw materials.

Input Decrease

A reduction in the amount, quality, or efficiency of any raw material, capital, or labor used in the production process.

Derived Demand

Demand for a factor of production or good that results from the demand for another related good or service.