When most employees perceive the company as having outstanding
products, the situation is referred to as
a. perceptual defense. c. selective perception. b. perceptual congruence. d. stereotyping.
b
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Which of the following is not a basic assumption of the gross profit method?
a. The beginning inventory plus the purchases equal total goods to be accounted for. b. Goods not sold must be on hand. c. If the sales, reduced to the cost basis, are deducted from the sum of the opening inventory plus purchases, the result is the amount of inventory on hand. d. The total amount of purchases and the total amount of sales remain relatively unchanged from the comparable previous period.
An auditor expresses an adverse opinion if
A. A severe scope limitation has been imposed by management. B. A misstatement is material and pervasive. C. A qualified opinion cannot be expressed because the auditor lacks independence. D. The company's ability to continue as a going concern is subject to substantial doubt.