Chapter 6, Problem 3IFRE

Why it is important for internal controls to be maintained: a. Safeguard assets (from fraud or errors) b. Preserve the accuracy and integrity of the accounting data c. Promote operational efficiency d. All the answers are correct

Data transcription is best described as: a. An important way to limit fraud and embezzlement b. Labour-intensive and time-consuming c. Always necessary in AISs d.An efficient process   Why it is important for internal controls to be maintained: a. Safeguard assets (from fraud or errors) b. Preserve the accuracy and integrity of the accounting data c. Promote operational efficiency d. All the answers are correct   All of the following are reasons why IT is important to accountants except: a. IT questions often appear on professional certification examinations b.The costs of IT are skyrocketing c.Accountants often help clients make IT decisions d.Auditors must evaluate computerized systems

A company's 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $527.14. The company's federal-plus-state tax rate is 25%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to one decimal place. %