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  • Exam Code: CAE
  • Exam Name: iSQI Certified Agile Essentials (worldwide)

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NEW QUESTION: 1
Tack, Inc. reported a retained earnings balance of $150,000 at December 31,1990. In June 1991, Tack discovered that merchandise costing $40,000 had not been included in inventory in its 1990 financial statements. Tack has a 30% tax rate. What amount should Tack report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 1991?
A. $150,000
B. $190,000
C. $178,000
D. $122,000
Answer: C

NEW QUESTION: 2
Under a loan agreement, which of the following could be an event of default?
I. Nonpayment of interest when due
II. A material adverse change in the condition of the borrower
III. A debt-to-equity ratio above the limit specified
IV.
Shortening the cure period by half
A. II and III only
B. I, II, and III only
C. I and IV only
D. I and II only
Answer: B

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