Answer: False
Explanation:
Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.
One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.
The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.
Can u take a screenshot of the whole question for me
Answer:
Would you cut back on making repairs and keeping the building in a safe and
livable condition?
No, I would maintain the building as good as posible.
How might you keep the building in good shape and still turn a profit?
the value of the building will increase over time. Then, is a matter of patience to make a profit out of the sell of it.
Is it possible to manage the building or change it to make it both livable and profitable?
yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.
Answer:
$184,068.70
Explanation:
Given that
Annual payments = $31,000
Discount rate = 12%
Time period = 11 years
The computation of the present value is shown below:
= Annual payments × PVIFA factor for 11 years at 12%
= $31,000 × 5.9377
= $184,068.70
Simply we multiplied the annual payments with the PVIFA factor so that the present value could arrive
Refer to the PVIFA table
