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NEW QUESTION: 1
If two entities, entity' - and entity Y. are alike in all respects except that entity X employs more debt financing and less equity financing than entity Y does. which of the following statements is true?
A. Entity X has more net earnings variability than entity Y.
B. Entity X has more operating earnings variability than entity Y.
C. Entity X has less financial leverage than entity Y.
D. Entity X has less operating earnings variability than entity Y.
Answer: A
Explanation:
Given that entity X is more highly leveraged, it has greater fixed financing charges than entity Y. Interest payments are fixed financing charges, but ordinary share dividends are not. As a result, entity X will be more risky and therefore will have a more volatile net income stream than entity Y. if other factors are, constant.
NEW QUESTION: 2
Internal auditors exercise judgment about the type and amount of information to be collected. The primary purpose of this judgment is to:
A. Comply with the Standards.
B. Provide a sound basis for audit observations and recommendations.
C. Eliminate the risk of drawing incorrect conclusions.
D. Minimize the cost of the audit engagement.
Answer: B
NEW QUESTION: 3
프로젝트 관리자가 사용할 품질 관리 수행 도구 또는 기법은 다음과 같습니다.
A. 품질 감사.
B. 공정 분석.
C. 벤치마킹.
D. 검사.
Answer: D
