Answer:
Both cars(American and European) must travel 8,060 kilo metres each during their lifetime for the total cost(purchase cost + fuel equivalent) to be equivalent
Explanation:
With regards to the above, the cost equation for both cars will be equated together.
Furthermore, we will convert gallons into litres while also converting miles into kilometers.
Since 1 gallon has 3.785 litres; 1 mile also has 1.609 kilo metre, hence milage of the first car in kilo metre per litre would be ;
Milage American made = [ 28 miles × 1.609 ] / 3.785
= 11.90 kilo meter per litres.
Cost of Gas per litre = $3 per gallon / 3.785
= 0.79 per litre
Gas cost per kilo metre(American made) = 0.79 per litre / 11.90
= 0.066 per km
Gas cost per kilo metre(European made) = 0.79 per litre / 19.0
= 0.042 per km
We can sum up the equation of first car which is American made( Purchase price + Fuel cost)
We can make a be the number of kilo metres where total cost for both cars would be equal.
Total cost = 317.2 + 0.066a
Also, the total cost equation - purchase price + fuel cost of European car is represented as;
Total cost = 510.64 + 0.042a
317.2 + 0.066a = 510.64 + 0.042a
Collect like terms
0.066a - 0.042a = 510.64 - 317.2
0.024a = 193.44
a = 8,060 kilo metres
Therefore, both cars(American and European) must travel each 8,060 kilo metres in their life time for the total costs( purchase cost + fuel cost) to be equivalent.
As the price level rises, firms respond in the short run to the change in the real wage rate by ______.
Answer:
A. increasing production
Explanation:
In case when the level of price increased, that the firm respond in the short run with respect to the change in the real wage rate would increase the production level as the level of price increased also it shows the direct relationship between the price level and the production level
Therefore in the given situation, the correct option is A. increasing production and hence, the same is to be considered
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.
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%
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.
Answer:
b. Stocks that outperform the index in March always underperform it in April.
d. Stocks that outperform the index in March always outperform it in April.
Explanation:
The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.
Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.
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.
What are other ethical concerns that Stilton may be facing?
Complete Question:
James Stilton is the chief executive officer (CEO) of RightLiving, Inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. RightLiving pays the terminally ill patients a percentage of the future death benefit (usually 65%) and then sells the policies to investors for 85% of the value of the future benefit. The patients receive the cash to use for medical and other expenses, and the investors are "guaranteed" a positive return on their investment. The difference between the purchase and sale prices is RightLiving's profit.
Stilton is aware that some sick patients may obtain insurance policies through fraud (by not revealing their illness on the insurance application). An insurance company that discovers such fraud will cancel the policy and refuse to pay. Stilton believes that most of the policies he has purchased are legitimate, but he knows that some are probably not.
Requirement:
What are other ethical concerns that Stilton may be facing?
Answer with Explanation:
The ethical concerns of Stilton are as under:
Should he tell the investors about the fraud about the policies before making sales?What policies must be implemented so that the legitimate people can easily sell the policies and if not implemented it would not be fair for the RightLiving, Inc.Stilton will also be facing ethical concerns because the business wishes that the customer dies early so that they can benefit from increased deaths of policy holders.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
Several line items and account titles are listed below. For each, indicate in which of the following financial statement(s) we would likely find the item or account: income statement (IS), balance sheet (BS), statement of stockholders' equity (SE), or statement of cash flows (SCF). a. Cash assetb. Expensesc. Non-cash assetsd. Contributed capitale. Cash outflow for capital expendituresf. Retained earningsg. Cash inflow for stock issuedh. Cash outflow for dividendsi. Net income
Answer:
a. Cash asset - Balance Sheet (BS) and Statement of Cash Flows (SCF)
Cash is recorded as an asset in the balance statement and derived from the statement of cash flows.
b. Expenses - Income statement (IS)
Expenses are deducted from revenue in the income statement to come up with Net Income.
c. Non-cash assets - Balance Sheet (BS)
Non-cash assets are recorded in the balance sheet as all assets are.
d. Contributed capital - Balance Sheet (BS) and Statement of stockholders' equity (SE)
Contributed capital from shareholders will appear in the equity section of the balance sheet and in the statement of equity.
e. Cash outflow for capital expenditures - Statement of Cash Flows (SCF)
This is a Cashflow statement entry under Investing activities.
f. Retained earnings - Balance Sheet (BS) and Statement of stockholders' equity (SE)
Retained earnings will go into the balance sheet and the statement of equity.
g. Cash inflow for stock issued - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Cash inflow from stock issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.
h. Cash outflow for dividends - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Cash outflow from dividends issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.
i. Net income - Income statement (IS), Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Net income is derived from the Income statement and used in the statement of cashflow as well as the equity statement.
Pronghorn Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2016 and 2017 is 10 years and in 2018 and 2019 is 12 years. The net gain or loss that occurred during each year is as follows: 2016, $288,400 loss; 2017, $92,700 loss; 2018, $11,330 loss; and 2019, $25,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances).
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Answer:
Year Minimum Amortization of Loss
2016 $0
2017 $3,840
2018 $ 6,855
2019 $1,811.25
Explanation:
Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.
Corridor and Minimum Loss Amortization
Year 2016
Projected Benefit Obligation (a) $2,000,000
Plan Assets $1,900,000
10%Corridor 200,000
(10%×$2,000,000)
AccumulatedOCI (G/L) (a) $0
Minimum Amortization of loss $0
Year 2017
Projected Benefit Obligation (a) $2,400,00
PlanAssets $2,500,000
10%Corridor 250,000
(10%×$2,500,000)
AccumulatedOCI (G/L) (a) $288,400
Minimum Amortization of loss $3,840 (b)
Year 2018
Projected Benefit Obligation (a) $2,950,000
PlanAssets $2,600,000
10%Corridor 295,000
(10%×$2,950,000)
AccumulatedOCI (G/L) (a) $377,260(c)
Minimum Amortization of loss $6,855 (d)
Year 2019
Projected Benefit Obligation (a) $3,600,000
PlanAssets $3,000,000
10%Corridor 360,000
(10%×$3,600,000)
AccumulatedOCI (G/L) (a) $381,735(e)
Minimum Amortization of loss $1,811.25 (f)
Workings
A. As of the beginning of the year
B. ($288,400-$250,000)÷10 years
=$38,400÷10 years
=$3,840
C. ($288,400-$3,840+$92,700)
=$377,260
D.($377,260-$295,000)÷12 years
=$82,260÷12 years
=$6,855
E. $377,260-$6,855+$11,330
=$381,735
F. ($381,735-$360,000)÷12 years
=$21,735 ÷12 years
=$1,811.25
Hence,
Year Minimum Amortization of Loss
2016 $0
2017 $3,840
2018 $ 6,855
2019 $1,811.25
12.The metric that measures how well an enterprise is using customers to create short-term and long-term value is
Answer:
return on customer
Explanation:
Return on customer refers to basically measuring customer loyalty and how much revenue returning customers generate to your business. Return on customer focuses on your company's CRM activities and how they affect future customer behavior. Are your CRM activities resulting in more frequent sales? A company spends money on their CRM activities, and this is a way to quantify if they are doing it correctly and if they are yielding positive results.
Some people call this return on customer investment, since the ultimate goal is to determine if your investment in customer services is resulting in higher sales and higher profits.
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
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.
Time management and world view college success
Explanation:
As most students discover, college is not the same as high school. For many students, college is the first time they are “on their own” in an environment filled with opportunity. And while this can be exciting, you may find that social opportunities conflict with academic expectations. For example, a free day before an exam, if not wisely spent, can spell trouble for doing well on the exam. It is easy to fall behind when there are so many choices and freedoms.
One of the main goals of a college education is learning how to learn. In this chapter we zoom in on learning how to skillfully manage your time. To be successful in college, it’s imperative to be able to effectively manage your time.
In the following Alleyoop Advice video, Alleyoop (Angel Aquino) discusses what many students discover about college: there is a lot of free time—and just as many challenges to balance free time with study time
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
which statement is true The trial balance is completed to ensure that debits and credits are equal in the General Ledger
Answer: a. The trial balance is completed to ensure that debits and credits are equal in the General Ledger.
Explanation:
The Trial balance is used to ensure that all totals on the accounts on the debit side are equal to all totals on the accounts on the credit side.
The account totals are each listed on the debit and credit sides of the trial balance and then added up. If the amounts do not tally, it suggests that there is an error in the entries that needs to be fixed.
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.
Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there. This an example of which type of advertising
Answer: reminder institutional advertising
Explanation:
From the question, we are informed that Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there.
This is an example of reminder institutional advertising. In reminder institutional advertising, an organization rather than promoting its product, seeks to buy goodwill.
Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households hold no currency. Calculate the money multiplier and money supply for this banking system.
Answer:
The money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
Explanation:
The computation of the money multiplier and the money supply is shown below:
As we know that
Money multiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 0.10
= 10
So, the money supply is
= Total Reserves × Money Multiplier
= $100 billion × 10
= $1,000 billion
hence, the money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
If the Federal Reserve raises interest rates, what would you expect to happen to the price of outstanding bonds?
Answer: decrease
Explanation:
It should be noted that there is an inverse relationship between bonds and interest rate. This implies that when there is a rise in interest rates, the prices of bond will fall and when there is a fall in interest rates, the prices of bond will rise.
Since bonds typically pay fixed interest rate, this will becomes more attractive when there's a fall in interest rates and more investors will demand for bond which will invariably lead to rise in price.
essalyn Poulsen is an accountant for her firm, a medium-sized company with 125 employees. The firm has traditionally maintained the administration of its payroll. Her co-worker, the only other accountant in the firm, retires. Because of budget concerns, the firm chooses not to refill the position. What options does Jessalyn have regarding administration of the payroll?
Available Options Are:
A. Jessalyn could obtain a software program to fill the need
B. The company can outsource the task to any of a number of qualified, certified payroll preparation firms.
C. The company could opt to process payroll manually
Answer:
Option A and B are correct here.
Explanation:
Obtaining a software program to fill the need can help as using the software will lower the burden on the employees for managing the accounts department as the software prepares financial statements its self and all you have to do is enter transactions. So option A is correct.
The task can be outsourced to a firm that will manage the accounts of the company and will charge small fee.
By doing so the budget issue of the company would be resolved otherwise processing payroll department manually would cost more than these above two options.
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!
Which of the following is an ineffective practice during a negotiation process? Bargaining by focusing on positions rather than interests Starting the negotiation with a relationship-based tone rather than on an adversarial note Concentrating on problems rather than people when bargaining Exploring all possibilities for solutions rather than quickly focusing on one fixed solution
Answer: Bargaining by focusing on positions rather than interests
Explanation;
Positional bargaining is described as one of the most ineffective bargaining types there are. This is because it leads to myopia in the parties involved as all they will be interested in is to ensure that their position is secure.
Interest based negotiations however move past positions and instead of maintaining a position, think about why they have such a position and how they can still satisfy those interests with through other methods thereby enabling them to reach more effective compromises or deals.
If autonomous imports increase, then the aggregate expenditure curve shifts ________ and equilibrium real GDP ________.
Answer:
If autonomous imports increase, then the aggregate expenditure curve shifts downward and equilibrium real GDP decreases
Explanation:
When the autonomous imports takes place there will be more demand for the foreign good over the domestic goods. This is a fall in the demand for the domestic goods and this will result in lower production in the economy and also result a fall in the employment. So the ultimate result is the reduction of the aggregate demand in the economy.
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
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.
What was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies
Answer: state ownership
Explanation:
State ownership was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies.
In state owned enterprises, there are inefficiencies among the employees as they don't really strive to achieve their goals unlike those that works in private establishments who are more serious with their work.
A bank offers a savings account with an annual interest rate of 0.8%, with interest compounded monthly. If you invest $4,000 in the account, how much will be in the account after 10 years? g
Answer:
FV= $8,913.91
Explanation:
Giving the following information:
Annual interest rate= 0.8% interest compounded monthly
Initial investment= $4,000
Number of periods= 10*12= 120
First, we need to calculate the monthly interest rate:
i= 0.08/12= 0.0067
Now, using the following formula, we can calculate the future value.
FV= PV*(1+i)^n
FV= 4,000*(1.0067^120)
FV= $8,913.91
A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presentation of financial statements, should normally be signed by the
Answer:
The answer is Chief Executive Officer and and the Chief Financial Officer
Explanation:
As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.
To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.
Explain the most probable reason why the market price of these bonds has declined, even though Clear-Air‘s credit rating has improved.
Answer:
The information about old and current bond prices is missing, but the answer is probably the same with or without it. The reason why bonds' prices increase or decrease even if their credit rating remains the same is that market rates change. For example, if the market interest rates decrease, the price of bonds will increase. But on the other hand, if the market rates increase, the price of bonds will decrease. Market rates give are determined by averaging the returns of similar investments, and if an investor believes that he could earn more money somewhere else, he will sell the bonds and invest in that other security.