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NEW QUESTION 26
Which of the following is not a factor, with respect to pending litigation that must be considered in determining whether a provision should be recognized?
- A. The number of parties involved in the litigation.
- B. The time period in which the underlying cause of action occurred.
- C. The probability of an unfavorable outcome.
- D. The ability to make a reliable estimate of the amount of loss.
The number of parties involved in the litigation is irrelevant. For example, the same accounting treatment is applied whether a claim is brought by an individual or in a class action suit.
NEW QUESTION 27
Which of the following is true regarding an organization's relationship with external stakeholders?
- A. There are several internationally recognized standards for dealing with financial donors.
- B. Disclosure laws tend to be consistent from one jurisdiction to another.
- C. Legal representation should be consulted before releasing internal audit information to other assurance
- D. Specific guidance must be followed when interacting with nongovernmental organizations.
NEW QUESTION 28
Which of the following must be adjusted to index a progressive tax system to inflation?
- A. Tax deductions, exemptions, and tax filings.
- B. Tax brackets, tax deductions, and tax payments.
- C. Tax brackets, exemptions, and nominal tax receipts.
- D. Tax deductions, exemptions, and tax brackets.
NEW QUESTION 29
When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?
- A. Power distance.
- B. Masculinity versus femininity.
- C. Uncertainty avoidance.
- D. Self control.
NEW QUESTION 30
During which phase of the contracting process ere contracts drafted for a proposed business activity?
- A. Initiation phase.
- B. Management phase
- C. Bidding phase
- D. Development phase
NEW QUESTION 31
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