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NEW QUESTION: 1
A. Option D
B. Option C
C. Option A
D. Option B
Answer: C
NEW QUESTION: 2
Which of the following are substantive purposes for conducting post-audit procedures in capital budgeting situations? Choose the best answer.
I. Improving forecasts
II. Shifts in the Security Market Line
III. Improving operations
IV. Controlling management
V. Adhering to Bond Covenants
VII. Ensuring adherence to governmental guidelines for performance presentation
A. I, V, VII, VIII
B. I, II, III, IV, VII, VIII
C. I, III, IV, VIII
D. I, III, IV
E. II, IV, VIII
F. I, III
Answer: F
Explanation:
Explanation/Reference:
Explanation:
An important aspect of the capital budgeting process is the post-audit, which involves comparing actual results with those forecasted and determining why any discrepancies exist. The post-audit process has two main purposes. First, the post-audit process is used to improve the forecasting capacity of the firm.
Second, this process is used to improve the operations of the firm. "Shifts in the Security Market Line" has little to do with the post-audit process. Additionally, remember that aside from AIMR PPS and other suggested performance presentation guidelines, there are no real "guidelines for research and performance presentation." There are certainly no "governmental guidelines" for performance presentation; therefore, answer VII is incorrect.
NEW QUESTION: 3
You indicate that you're posting to the ledger group of an extension ledger.
How many ledgers are updated?
A. The extension ledger and the underlying ledger
B. It depends on the ledgers grouped in the ledger group
C. The leading ledger and the extension ledger
D. Only the extension ledger
Answer: D
Explanation:
The ledger group that contains the extension ledger is generated automatically when you create the
ledger group, and there is no way to assign an extension ledger to any other ledger group. Thus, when
posting to the ledger group of the extension ledger, you can only be updating the extension ledger.