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Luba_88 [7]
2 years ago
8

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned

to:
Business
1 answer:
NikAS [45]2 years ago
8 0

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to : Purchase

<h3>What is Purchase Discount?</h3>

Purchase discount is deducted to the total purchases when computing for the net purchases. This account has a normal balance of credit and decreases the total amount of cost of goods sold.

<h3>What is Analytical procedures ?</h3>

Analytical procedures refer to study of significant ratios and past trends and investigating unusual fluctuations.

Under analytical review procedures, an auditor compares financial information of the current period with those of the previous periods, applying techniques of ratio analysis and investigating the causes of unusual fluctuations and deviations.

Therefore, we can conclude that the correct option is C.

Your question is incomplete, but most probably your full question was:

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:

a. accounts payable

b. notes payable

c. purchases

d. sales discounts

Learn more about Analytical procedures on:

brainly.com/question/16370850

#SPJ4

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The process of discovering and evaluating changes in the business environment, such as a new technology, sociocultural trends, o
Serhud [2]

Answer:

The correct answer is "opportunity recognition "

Explanation:

The opportunity recognition refers to when a person, usually an Entrepreneur or manager, find occasions that could be profitable to their business or to is an opportunity to approach new business ventures or ideas. The entrepreneur analyzes technological, economic and social trends.

4 0
3 years ago
Connie the consumer frequently buys both coffee and tea at the OU Library store. Theprice of coffee is $3.00 while the price of
Harman [31]

Answer / Explanation:

Before answering this question, let us understand some terms used in the narrative:

Marginal Utility: Utility in itself can be refereed to as the satisfaction derived from the consumption of a particular good or service. However, when we now becomes a marginal utility, it mean we are now paying attention to the level of change in the extra level of satisfaction derived from the particular good and service.

Optimal Consumption: This can be referred to as one of the guiding principle of consumption in an economy, it stipulates that when a consumer maximizes utility or attain maximum satisfaction, the marginal utility per amount spent must be the equal all goods and services in the same class of goods..

In summary it is a state of mind or feeling that people get a certain level of joy utility from consuming goods and service while Marginal utility is the benefit of consuming an extra unit of that product.

Now referring back to the question and answering it,

If Connie is making optimal consumer choices, the ratio of marginal utility to the price should be the same for both goods. Hence, the price of coffee is 3/2 as much and these ratios are equal and the marginal utility of coffee must be = 3/2 as high as that of tea at the quantities she is purchasing them at.

3 0
3 years ago
Statement True False Stock A’s beta is 1.0; this means that the stock moves in the same direction and magnitude as the market. A
Helen [10]

Answer:

Statement 1 : True

Statement 2 : True

Statement 3: False

Explanation:

Beta of a stock represents a coefficient that depicts degree of responsiveness of stock returns with respect to the market return.

Beta is always calculated with respect to the market and is a measure of systematic risk.

A stock with beta 1 denotes, that sensitivity or volatility in the movement of stock prices are exactly equal to the movement of market prices. So if the market falls, the stock's price will fall by an equal magnitude.

A stock whose sensitivity or volatility is more i.e more fluctuation in expected returns w.r.t that of the market, will have a beta higher than 1. This means if market rises, it will cause a greater rise in the stock price and vice versa.

Higher beta stocks convey higher degree of risk owing to higher sensitivity and fluctuations. Thus those stock are expected to have higher required returns to commensurate for extra risk.

6 0
3 years ago
Owen is an employee of Paving Inc., which is performing a contract for the federal government. Owen learns that Paving is overch
Aleonysh [2.5K]

Answer:

The answer to this question is Option C. an exception based on public policy.

Explanation:

An employment at will is a doctrine that  means that an employee can leave a job whenever they want for any reason, and employers can terminate an employee for any reason without notice or cause. The intent of the at will employment doctrine is to prevent wrongful termination and employment lawsuits between employees and employers.

In the scenario cited above, Owen is protected by an exception based on public policy. This exception comes into play in situations  anti-discrimination employment laws. You can’t fire someone because of their gender, race, ethnicity, sexual orientation, age, disability status, or other legal characteristics

3 0
4 years ago
You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you inten
Annette [7]

Answer:

22 months

Explanation:

The 20% down payment which is target savings =$165,000*20%=$33,000

The are two paychecks which is $1,400 each

monthly savings is one paycheck=$1,400

rate of compounding is 7.83% yearly=7.83%/12=0.006525  monthly

The number of months the savings will reach $33,000 can be computed using the nper formula in excel as shown below:

=nper(rate,pmt,-pv,fv)

rate is the monthly rate i,e 0.006525

pmt is the monthly savings of $1,400

pv is the present worth of the savings which is unknown

fv is the future value of target savings which is $33,000

=nper(0.006525,-1400,0,33000)=22 months approximately

4 0
3 years ago
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