The replacement cost of a home covered under the HO-3 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10% and a $500 deductible applies

When little Josef would throw himself on the floor, screaming and kicking, his mother ignored him. Consequently, Josef has stopped throwing tantrums. This is an example of ______.

Fill in the blank(s) with the appropriate word(s).

An audit is

A. Performed by the firms private bookkeepers B. Not necessary if the firm used accepted bookkeeping procedures C. Required by many leaders who are trying to validate a firms accounting statements D. A waste of the firms resources E. A guarantee that a firm hasn't "cooked" the books