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1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.

Oksana_A [137]

Answer:

1. False

2. False

3. False

4. True

5. True

Explanation:

1.

Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.

2.

Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.

3.

The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting. Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.

4.

The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.

5.

The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.

8 0

3 years ago

Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this

Alchen [17]

Answer:

1) Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.

year net cash flow

0 -$140,000

1 ($20 x 4,000) - $70,000 - $127,500 + $7,500 = -$110,000

2 ($20 x 7,000) - $70,000 - $127,500 + $7,500 = -$50,000

3 ($20 x 10,000) - $50,000 - $127,500 + $7,500 = $30,000

4 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

5 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

6 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

7 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

8 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

9 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

10 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

11 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

12 ($20 x 12,000) - $40,000 - $127,500 + $7,500 + $40,000 +

$10,000 = $130,000

2) Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment.

using a financial calculator, the NPV = -$56,801.13

3) Would you recommend that Englewood Company accept the smoke detector as a new product?

Since the NPV is negative, the project should be rejected.

8 0

3 years ago

For each of the goods, classify them according to whether they are rivalrous, nonrivalrous, excludable or nonexcludable. Rivalro

sergij07 [2.7K]

Answer:

A)A sports team t-shirt:(Rivalrous and Excludable)

B)The air we breath (Nonrivalrous and nonexcludable)

C)Atlantic Bluefin Tuna in the Mediterranean Sea:(Rivalrous and nonexcludable)

D)A toll road in normal traffic:(Nonrivalrous and excludable)

Explanation:

Excludable goods can be regarded as goods whereby there is possibility of preventing consumers that has not paid for that good from accessing it.

Rivalrous goods are types of goods that can only be occupied by a person

there is competition created for their consumption.

Non-excludable goods can be regarded as public goods they are one

which are commonly available within a society for all people. These goods cannot be excluded from certain person.

Non-rivalrous goods can be regarded as public goods whereby the supply of that goods is not affected by consumption of people.

6 0

3 years ago

Do you have to make payments on federal student loans while you’re in school?

fiasKO [112]

Not till ur out I think

7 0

3 years ago

Assume that you are the project manager for the construction of a 15-mile road. Further, assume that the work is uniformly distr

AfilCa [17]

Answer:

$200,000

Explanation:

This involves revenue recognition based on percentage of work completed (cost to completion technique). Revenue to be recognized per time is assessed based on the level of cost incurred compared with the total cost to be incurred.

Given that the total approved budget for the project is $600,000, If at the end of the first three weeks of work, $160,000 has been spent, and five miles of road have been completed for a a 15-mile road, the earned value of the project at the end of the first three weeks

= 5/15 * $600,000

= $200,000

3 0

3 years ago