Answer:
Warren Buffett's ethical approach to business dealings is broadly discussed below.
Explanation:
INTEGRITY is the key word in Warren's business philosophy. He believes that a business owner or business person should make only choices that he/she would be proud of, in terms of his/her company's reputation.
FAIR TREATMENT is another approach of Buffett to the conducting of business activities. He believes that employees and suppliers; not just customers, should be treated right, as this will have a good impact on the company's reputation in the long run.
He believes it is better for a company to lose money than to lose reputation.
If you get 210 utility points from consuming 3 Krystal burgers per week:
A) and receive 250 utility points from consuming 4 Krystal burgers per week, the marginal benefit of the 4th burger was 40 utility points
B) and received 250-utility points from consuming 4 Krystal burgers per week, then the marginal benefit of consuming all 4 burgers must be 460 utility points.
C) and receive 250 utility points from consuming 4 Krystal burgers per week, the marginal benefit of the 4th burger must be higher than the 3rd burger
D) and receive 250 utility points from consuming 4 Krystal burgers per week, you should obviously keep eating more this week since it appears that the total benefit of eating them rises.
Answer:
A
Explanation:
Marginal utility is change in total utility when consumption is increased by 1 unit.
Total utility when 3 burgers were consumed was 210. When consumption was increased to 4 units, total utility rose to 250.
Marginal utility = 250 - 210 = 40 utility points
The price of printers at the big box tech stores increases as a new type of print tech is rolled out to consumers. which of the follwoing scenario for a complementary printer good would likely take place?
A- the demand for printer ink decreases as less people are buying printers
B- the demand for printer paper rises as pepole stock up
Answer:
A- the demand for printer ink decreases as less people are buying printers
Explanation:
Generally speaking, when the price of a complementary good increases, the quantity demanded for both goods should decrease. If the price decreases, the opposite should happen. Even though the demand for some high tech products behave in strange ways (e.g. first iPhones), usually new products with higher prices will result in a decrease of the demand for that specific product and all complementary products.
The next dividend payment by GMR Enterprises will be $1.82 per share with future increases of 2.8 percent annually. The stock currently sells for $38.70 per share. What is the dividend yield
Answer:
4.70%
Explanation:
According to the given situation, the computation of dividend yield is shown below:-
Dividend Yield = Expected dividend ÷ Current price
where,
expected dividend is $1.82
And, the current price is $38.70
Now place the values to the above formula
So, the dividend yield is
= $1.82 ÷ $38.70
= 0.0470
or
= 4.70%
Therefore for computing the dividend yield we simply applied the above formula.
Due to massive customer heterogeneity, Professor Fader would say there’s more opportunity to "move the needle" via ___________ than ___________.
Answer:
acquisition ; development
Explanation:
Heterogeneity refers to the state where the character if different of each and every product.
These days the consumer or the customers have heterogeneity and with basic product development each time you cannot full fill the need of every customer.
For that you need to provide complete other product sometime. Therefore, as per Professor Fader one should seek more opportunity through acquisition, that does not mean that you should stop development. Development is also needed, and shall not be stopped. That is always the icing on the cake.
First, regardless of the strategy, _____ storage and _____ storage must be secured.
Answer:
The correct answer is offsite and onsite.
Explanation:
When implementing Business Continuity the preservation of company data comes first.
Business Continuity Plan/Strategies are those measures that a company puts in place to ensure that regardless of the threat, and or disruption to the existing model that allows them to provide goods or services, (e.g. tsunamis or earthquakes, riots and civil unrests, compulsory government curfew) they can continue to function, reach their customers and remain operational.
The first rule of Business Continuity Plan is to protect all information assets. Off-site data or information refer to those information and or data that are remotely stored. That is, they are secured far away from the physical location of the business such as a data or server farm, cloud storage etc.
Onsite data storage refers to storing data on the premises or site of the business. Some fo the tools used are Hard Disk Drivers, Solid State Drives, DVDs etc.
Cheers!
Describe a time when your team or company was undergoing some change. How did that impact you, and how did you adapt?
Answer:
Our company had to undergo many changes during the lock down. We started working from home rather than going to office, not all the employees had computers or internet connection, so the HR department had to send computer to employees and they arranged the internet connection by themselves. It was bit uneasy to work from home in the beginning but we all adapted gradually and everything became normal.
Also, we had acquire new projects as the we were not getting work from some of the old projects.
The following information is available for Birch Company at December 31: Money market fund balance $ 2,910 Certificate of deposit maturing June 30 of next year $ 16,200 Postdated checks from customers $ 1,775 Cash in bank account $ 23,631 NSF checks from customers returned by bank $ 770 Cash in petty cash fund $ 320 Inventory of postage stamps $ 30 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $ 11,200 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
Answer:
$38,061
Explanation:
Calculation for the Cash and Cash Equivalents on December 31
Money market fund balance $ 2,910
Cash in bank account $ 23,631
Cash in petty cash fund $ 320
Treasury bill purchased $11,200
Total=$38,061
Therefore Birch Company should report Cash and Cash Equivalents on December 31 of: $38,061
All Japanese beer makers continuing on a predictable straight path producing pilsner-like traditional beer is indicative of what kind of strategy
Answer: emergent strategies
Explanation:
All Japanese beer makers continuing on a predictable straight path producing pilsner-like traditional beer is indicative of the emergent strategies.
It should be noted that emergent strategies are the set of behavior and actions, that are consistent with time, which was not part of the initial planning of the strategy that an organization wants to use.
Identify four factors that affect whether an industry does or does not present a company with a good business opportunity?
Answer:
Rivalry between competitors Bargaining power of suppliers Bargaining power of customers Threat of new competitorsExplanation:
The factors chosen to identify whether or not a sector presents a good business opportunity for a company, were the strengths of Porter, who analyzes the micro and macro environment to determine whether a company can be competitive in the market.
The rivalry between competitors is an essential factor to measure the degree of opportunity for a business to be successful, as this factor will determine different variables among competitors of similar products in the market, such as the strength of the brand, the demand for your product, etc. in order to measure how this factor will directly impact your business.
The bargaining power of suppliers implies the bargaining power of the supplier with the company, being able to provide favorable or unfavorable conditions to a business, such as price, delivery time, quality, etc.
The bargaining power of buyers means measuring and monitoring how your product will have a positive or negative weight on the customer and which affects the volume of purchases, the possibility of the customer negotiating with the company, etc.
And the threat of new competitors concerns new competitors that can enter the market and directly impact their business, for this the barriers to entry such as legislation, high entry capital, etc. should be analyzed.
Business activities on the cash flow statement can be classified into 3 groups:_____.
A) Operating Activities, Investing Activities and Financing Activities.
B) Operating Activities, Investing Activities and Leasing Activities.
C) Operating Activities, Marketing Activities and Financing Activities.
D) Operating Activities, Dividends, and Financing Activities.
Sankey Co. has earnings per share of $3.95. The benchmark PE is 18.8 times. What stock price would you consider appropriate
Answer:
Stock price = $74.26
Explanation:
The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio .
The ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.
Price of stock =Earnings per share( EPS) × benchmark P/E ratio
The appropriate comparative price earnings ratio in the question has been given as 18.8 times.
DATA-
EPS- 3.95
PE- 18.8
Stock price = 3.95 × 18.8= $74.26
Stock price = $74.26
Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016:
Materials purchased $828,000
Materials inventory, June 1 279,000
Materials inventory, June 30 252,000
Determine the cost of direct materials used in production by Rextacular during the month ended June 30, 2016.
Answer:
Material used = $855,000
Explanation:
The computation of the cost of direct material used is shown below;
Material purchased = $828,000
Add:
Opening Inventory = $279,000
Less:
Closing Inventory = ($252,000)
Material used = $855,000
we simply applied the above formula so that the cost of direct material used could come
Hence, the cost of direct material used in production is $855,000
Care Clinic is preparing a worksheet for their staff. Their average starting salary is $60,000. Benefits are 25% this year. They expect them to go up to 27% next year. They are expecting to give a raise of 5% next year. Care Clinic has 20 employees. Prepare a formatted Excel Spreadsheet for Care Clinic. How much is the Total Staff Expense
Answer:
$1,600,200
Explanation:
The total staff expense can be calculated by using the following formula:
Total Staff Expense = (Salary For coming year with increment (STEP1) + Benefits In-Kind) * Total Employees
Here
Salary for Coming Year with Increment is $63,000 (Step1)
Total employees are 20 in Number
Benefits In-Kind per employee is 27% of salary which is $17,010 ($63,000 * 27%)
By putting values, we have:
Total Staff Expense = ($63,000 + $17,010) * 20 Employees
Total Staff Expense = $1,600,200
STEP 1: Find Salary for Coming Year with Increment
Salary for Coming Year with Increment = Average Salary Now * (1 + Increment)
Here
Average Salary is $60,000
Increment is 5%
Salary for Coming Year with Increment = $60,000 *(1 + 5%) = $63,000
EXCEL Formatted Spreadsheet For Care Clinic
Increment Avg. BIK T. Employees Total
5% Salary at 27%
Total Salary 60000 105% 63000 - 20 1,260,000
Benefits In-Kind 60000 105% 63000 27% 20 340200
1,600,200
Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?a. Take steps to reduce the DSO.b. Increase average inventory without increasing sales.c. Sell common stock to retire long-term bonds.d. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales.e. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.
Answer: a. Take steps to reduce the DSO
Explanation:
Cash conversion cycle simply measures the length by which there will be deprivation of cash for a firm when the firm increases its investment in its inventory so that customer sales can be expanded
The actions that Reece Windows should take if it wants to reduce its cash conversion cycle is to take steps to reduce the DSO. This will help in reducing cash conversion cycle.
If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a
Answer: network structure
Explanation:
Network structure is a form of organizational structure that is considered to be less hierarchical and also more flexible than most other organizational structures. In a network structure, it is the managers who usually both the internal and external relationships.
Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a network structure.
The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the change in retained earnings during a particular year.
Which of the following best describes shareholders' equity?
a. Equity is the difference between the paid-in capital and retained earnings.
b. Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years.
NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper. In its annual report this year, NOW Inc. reported a net income of $160 million. Last year, the company reported a retained earnings balance of $595 million, whereas this year it increased to $700 million. How much was paid out in dividends this year?
a. $265 million
b. $4 million
c. $55 million
d. $280 million
Answer:
1.
Option B is the correct answer.
2.
Dividends Paid = $55 million. Thus, option C is the correct answer.
Explanation:
1.
The statement about shareholders' equity given in option A that it is the difference between the paid-in capital and retained earnings is incorrect as the retained earnings are a part of the equity of shareholders and are included in the calculation of shareholders' equity. Thus, option B is the correct answer.
2.
The Net Income earned by a company is usually treated in two ways. It is either paid out as dividends to the shareholders or is retained in the business and transferred to the retained earnings account or both. Thus, we can calculate the amount of dividends paid by the following equation.
Closing balance of retained earnings = Opening balance of retained earnings + Net Income for the period - Dividends Paid
700 = 595 + 160 - Dividends Paid
700 + Dividends Paid = 755
Dividends Paid = 755 - 700
Dividends Paid = $55 million
According to the Coase Theorem, in the absence of bargaining costs, A. property rights are key to determining the final outcome of a dispute. B. regardless of the initial assignment of property rights, the parties will successfully bargain to the efficient outcome. C. whichever party has the larger initial assignment of property rights will control the outcome of a dispute. D. whichever party has more money will determine the outcome of a dispute.
Answer:
B. regardless of the initial assignment of property rights, the parties will successfully bargain to the efficient outcome.
Explanation:
This theorem is easier to explain using an example: you have a neighbor that likes playing drums during your nap time. Since playing drums is not illegal, there is very little that you can do to force your neighbor to stop making noise. You value your nap time at $50, and you neighbor values his drumming time at $35 since he could also purchase a Playstation game and play during that time. According to the Coarse Theorem, the optimal solution would be to give your neighbor $35 so he can play Playstation games, since you would gain $50 - $35 = $15.
Which of the following types of communication is most likely to be used by employees to provide feedback to higher-ups, inform them of progress toward goals, and relay current problems?
A) lateral communication
B) upward communication
C) downward communication
D) horizontal communication
E) grapevine communication
Answer:
B) upward communication
Explanation:
Upward communication takes place when employees inform or communicate something to their supervisors or managers. This type of communication can be carried out by entry level employees informing their supervisors or low level managers about something, but also takes place when middle managers inform upper management.
The Securities Act of 1933 does not apply to the issuance of securities under $5 million. Question 4 options: True False
Answer:
False
Explanation:
The Securities Act of 1933 requires the registration of all the securities issued and sold ob public markets. This act had some exemptions:
private offerings (if the securities were offered to a certain group of persons and/or institutions)offerings of a limited size: a very small issuance would be excluded, but remember that $5 million of 1933 are equivalent to more than $98 million today (average annual inflation of 3.48%)securities issued by government entitiessecurities issued on intrastate offerings (only traded within a given state)Mobile Homes reported the following in its financial statements for the year ended December 31, : 2018 2017 Income Statement Net Sales Revenue $ 25,118 $ 21,893 Cost of Goods Sold 18,074 15,501 Depreciation Expense 271 234Other Operating Expenses 4 4,632 4,277 Income Tax Expense 530 482 Net Income $ 1,611 1,399 Balance Sheet Cash S 21 19 Accounts Receivable 798 615 Merchandise Inventory 3,483 2,832 Property, Plant, and 4,351 3,437Equipment, net Accounts Payable 1,547 1,364 Accrued Liabilities 938 851 Long-term Liabilities 477 461 Common Stock, no par 670 443 Retained Earnings 5,021 3,784 Requirements 1. Compute the collections from customers. 2. Compute payments for merchandise inventory. 3. Compute payments of other operating expenses.4. Compute the acquisition of property plant and equipment.5. Compute the amount of borrowing with A-one paying no long term liabilities.6. Compute the payment of cash dividends.
Answer:
Mobile Homes
Computation of:
1. Collections from customers
Beginning Accounts Receivable $615
Net Sales 25,118
Less ending accounts receivable 798
Collections from customers $24,935
2. Payments for merchandise inventory
Beginning Accounts Payable 1,364
Purchases 18,725
Ending Accounts payable 1,547
Payments $18,542
3. Payments of other operating expenses:
Accrued liabilities:
beginning 851
Operating expenses 4,632
Less ending 938
Cash payments 4,545
4. Acquisition of property plant and equipment:
Beginning cost = $4,622
Ending cost = $3,671
Acquisition = $951
5. Amount of borrowing with:
a) Long-term liabilities:
Ending $477
Beginning $461
Borrowing $16
b) A-one paying no long term liabilities:
Accrued Liabilities:
Ending $938
Beginning $851
Borrowing $87
6. Payment of cash dividends:
Retained Earnings $3,784
Net Income 1,611
Total available $5,395
Retained earnings (5,021)
Dividends paid $374
Explanation:
a) Data and Calculations:
Mobile Homes Financial Statements for the years ended December 31:
2018 2017
Income Statement
Net Sales Revenue $ 25,118 $ 21,893
Cost of Goods Sold 18,074 15,501
Depreciation Expense 271 234
Other Operating Expenses 4,632 4,277
Income Tax Expense 530 482
Net Income $ 1,611 1,399
2018 2017
Balance Sheet
Cash 21 19
Accounts Receivable 798 615
Merchandise Inventory 3,483 2,832
Property, Plant, and
Equipment, net 4,351 3,437
Accounts Payable 1,547 1,364
Accrued Liabilities 938 851
Long-term Liabilities 477 461
Common Stock, no par 670 443
Retained Earnings 5,021 3,784
Property, plant, and equipment:
PPE net 4,351 3,437
Depreciation 271 234
Cost 4,622 3,671
Purchases:
Ending inventory 3,483
Cost of goods sold 18,074
Beginning inventory (2,832)
Purchases 18,725
As the price level declines along the aggregate demand curve, the interest rate is most likely to:___________.
a. Decline
b. Increase
c. Remain unchanged
Answer:
a. Decline
Explanation:
Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.
Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.
Therefore, the correct answer, in this case, is Option A: DECLINE
Note LM means Liquidity and Money
While IS means Investment and Savings.
To determine who would be the best person work on a market analytics project to facilitate a company-wide re-branding initiative, Lauren secretly timed and recorded how long it took three of her staff to complete a mini-analytics project before deciding to whom she would assign the project. What tool was Lauren using?
Answer:
She was using the time and motion study.
Explanation:
The tool Lauren used is the time-and-motion study. This technique was made for business efficiency. It is a set of tools that is useful for increasing efficiency by making work simpler as well as setting standards and combining it with some sort of worker motivation in terms of wages.
It is a combination of time study done by Frederick Taylor and motion study done by Lilian and Frank Gilbreth.
An investor's portfolio has a beta coefficient of 0.85. If the overall market declined by 10% over the course of a year, the portfolio's value has likely
Answer: decreased by 8.5%
Explanation:
The beta coefficient of a stock is simply used to measure the volatility of a stock which is relative to the market.
From the question, we are informed that investor's portfolio has a beta coefficient of 0.85 and that the overall market declined by 10% over the course of a year.
Based on the information above, the value of the portfolio would have decreased by:
= 0.85/10
= 0.085
= 8.5%
Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when what happens
Answer: customer is required to buy one product only if the customer also buys a second product
Explanation:
Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when a customer is required to buy one product only if the customer also buys a second product.
Tying sales is simply defined as a scenario whereby the purchase of a good or service is compulsory when one buys a different good or service. This meane the individual helps us buying two products.
Suppose you invest today and receive in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is 30.60%. (Round to two decimal places.) b. Suppose another investment opportunity also requires upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ nothing. (Round to the nearest cent.)
Answer:
the numbers are missing, so I looked for a similar question:
investment today = $3,000receive $10,250 in 5 yearsa) I will use the future value formula to determine the internal rate of return:
future value = present value x (1 + r)ⁿ
future value = 10,250present value = 3,000n = 510,250 = 3,000 x (1 + r)⁵
(1 + r)⁵ = 10,250 / 3,000 = 3.4166667
⁵√(1 + r)⁵ = ⁵√3.4166667
1 + r = 1.27855826
r = 0.27855826 = 27.86%
b) assuming a $3,000, 27.86%, 5 year annuity, the annual payment will be:
annual payment = principal / FV annuity factor, 27.86%, 5 periods
principal = $10,250PV annuity factor, 27.86%, 5 periods = 8.67633annual payment = $10,250 / 8.67633 = $1,181.38
According to classical macroeconomic theory, changes in the money supply affect: _________.(i) nominal variables, but not real variables.(ii) nominal variables and real variables. (iii) real variables, but not nominal variables.(iv) neither nominal nor real variables.
Answer: .(i) nominal variables, but not real variables
Explanation:
According to classical macroeconomic theory, changes in the money supply affect the nominal variables but the real variable are not affected.
According to the classical macroeconomic theory, it us believed that an increase in money supply will result into a rise in the availability of money in the market, thereby increasing consumers spending which will also lead to a rise in aggregate demand which in turn, causes inflation.
Thereby the nominal variables will be changed.
Increasingly, companies are partnering with highly recognized universities that offer ________.
Complete Question:
Increasingly, companies are partnering with highly recognized universities that offer ________.
Options:
- corporate university courses
- massive open online courses
- simulations
- classroom based instructions
Answer:
- corporate university courses
Explanation:
Companies and universities need to collaborate to conduct researches and explore and access world-class innovations and research findings. They can also work together to grow and develop internal capability of both organizations through the creation of suitable corporate courses and the exchange of personnel and funding. The town always needs to meet to the gown and vice versa. This meeting should not be casual, but well-planned and coordinated with the objective of sustainability. Because, both parties lose out if they do not work hand in hand.
The following information relates to a patent owned by Gentry Company:Cost $3,400,000Carrying amount $1,700,000Expected future cash flows $1,500,000Fair Value $1,200,000Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016. (b) Using the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2017 assuming the asset has a remaining useful life of 3 years at the beginning of 2017. (c) Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2017, assuming the fair value of the asset has increased to $1,900,000. (d) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016, assuming Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal. CAL STATE SAN BERNARDINO - DEPT OF ACCT & FINANCE - PROF M. HENRY Page 5 Expected future net cash flow 1,500,000 Fair value 1,200,000 Cost $3,400,000 Carrying amount 1,700,000
Answer:
Gentry Company
a) Journal Entry to record the impairment of the patent at December 31, 2016:
Debit Impairment Loss on Patent $500,000
Credit Patent $500,000
To record the impairment loss.
b) Journal entry to record amortization expense for 2017 assuming the asset has a remaining useful life of 3 years at the beginning of 2017:
Debit Patent Amortization Expense $400,000
Credit Accumulated Amortization $400,000
To record the amortization expense for the year.
c) (c) Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2017, assuming the fair value of the asset has increased to $1,900,000:
Debit Patent $200,000
Credit Impairment Gain $200,000
To record impairment gain.
(d) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016, assuming Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal:
Debit Impairment Loss $200,000
Credit Patent $200,000
To record the impairment loss on disposal.
Debit Cost of Disposal of Patent $10,000
Credit Cash Account $10,000
To record the cost of disposal of the patent.
Explanation:
a) Data and Calculations:
1) Patent:
Cost $3,400,000
Carrying amount $1,700,000
Expected future cash flows $1,500,000
Fair Value $1,200,000
2) Assumptions:
a) Impairment at December 31, 2016:
Carrying amount $1,700,000
Fair Value $1,200,000
Impairment = $500,000
b) Amortization for 2017:
Carrying amount $1,200,000
Remaining useful life = 3 years
Amortization expense for 2017 = $400,000 ($1,200,000/3)
c) Impairment Testing for 2017:
Carrying amount = $1,700,000
Fair value = $1,900,000
Impairment Gain = $200,000
d) Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal:
December 31, 2016:
Carrying amount $1,700,000
Expected future cash flows $1,500,000
Disposal cost = $10,000
Impairment loss = $200,000
b) The accountants at Gentry Company can calculate the patent's impairment loss as the difference between the patent's carrying value and its fair market value. The journal entry to record an impairment loss is a debit to the Patent Impairment Loss account and a credit to the related Patent account. An impairment gain can arise when the patent's fair value is higher than the carrying value.
What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets
Answer:
See explanation
Explanation:
The impact of the near failure of Bear Stearns resulted in financial crisis which shook global economy. This financial crisis almost brougt recession to Nations. Lehman Brothers on the other hand, crashed the stock market which caused problems on the S$P index.
The Treasury Department pumped more money into the economy in attempt to help Bear and Stearns but the two banks still failed leading to loss of money.
The failure of Lehman Brothers is termed the largest Bankruptcy in the history of U.S. The bankruptcy affected financial markets greatly.
Money Markets can be defined as the market that provides short term funds to the players. it is not regulated like the capital markets but it is also a component of the economy.
The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted accounting principles and auditors. b. auditors and company under review. c. auditors and financial statement users. d. company under review and financial statement users.
Answer:
c. auditors and financial statement users.
Explanation:
This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.