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lions [1.4K]
4 years ago
13

Assume that Rosanne Madden, CPA, is using 5% of net income before taxes, current assets, or current liabilities as her major gui

delines for evaluating materiality. What qualitative factors should she also consider in deciding whether misstatements may be material?
Business
1 answer:
melisa1 [442]4 years ago
3 0

Answer:

Explanation:

The accompanying subjective components are to be considered for assessing materiality:  

Errors that are minor may be material if there are plausible result emerging from the authoritative commitment.  

Errors that are unimportant may be material in the event that they influence a pattern in the income.  

Sum including the extortion are generally viewed as significant than accidental mistake proportional to the dollar sum.

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If MM's proposition II without taxes is true, what is the return to investors who invest $20 in a stock, borrow another $20 to b
PilotLPTM [1.2K]

Answer:

b. 9.0%.

Explanation:

The computation of the return on the investment is shown below:

Net earning is

= Earning per share × number of shares  - interest paid

= (1.50 × 2) - ($20 × 6%)

= $1.80

Now  the return on the investment is

= Net earning ÷ own investment

= $1.80 ÷ $20 × 100

= 9%

Hence, the return on the investment is 9%

7 0
3 years ago
Can someone help me please? I attached the question and table. THANKS!!
AlexFokin [52]

Answer:

RAM devices are typical read/write memories

Explanation:

read/write memory A type of memory that, in normal operation, allows the user to access (read from) or alter (write to) individual storage locations within the device.

3 0
3 years ago
The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than j
Maksim231197 [3]

Answer:

c) balanced scorecard

Explanation:

The options for the question we are;

A) market value

B) economic value

C) balanced scorecard

D) financial control

c) balanced scorecard

A balanced scorecard can be regarded as a strategic management performance that is engaged in the improvements as well as identification of internal business functions as well as external outcomes that result from there. It is a tool that helps in returning feedback to an organization. It should be noted that balanced scorecard approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.

6 0
3 years ago
A company issues 8% bonds with a par value of $190,000 at par on January 1. The market rate on the date of issuance was 7%. The
cluponka [151]

Answer:

$7,600

Explanation:

The computation of cash paid on July 1 to the bondholders is shown below:-

cash paid on July 1 to the bondholders = Par Value × Semi annual coupon rate

= $190,000 × 6 months ÷ 12 months × 8%

= $190,000 × 0.5 × 0.08

= $7,600

We considered the 6 months as semi-annually is mentioned in the question

Therefore for computing the cash paid on July 1 to the bondholders we simply applied the above formula.

7 0
3 years ago
On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, wi
Maslowich

Answer: 920

Explanation:

Since the transaction took place in November, we should note that revenue should be recognized for 2 months by Taylor.

The amount that Taylor should recognize as revenue in 2018 will be:

= 5520/12 × 2

= 460 × 2

= 920

3 0
3 years ago
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