Answer: C - Valuation & Allocation
Explanation: Auditors review of a company's shipping documents & invoices is to ascertain the correctness of the figures in the financial statement.
Auditors will have to value the transaction using the invoices and other documents available for the transaction and to to verify that the costs are allocated correctly.
Answer:
d. growth rate of real GDP per person.
Explanation:
The level of well being of a country can be found by considering the price-index, i.e The real GDP per person and not nominal GDP per person.
<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.
<u>Explanation:</u>
Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.
Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.
Answer: Oligopolistic industries may promote technological progress.
Oligopolies may engage in limit pricing to keep out potential entrants.
Oligopolies can be kept in line by foreign competition. (A, B and D).
Explanation:
Oligopoly is a market structure with few large producers with strategic behavior. In an oligopoly, every firm's share of the total market is determined by advertising and product development.
The arguments in favor of oligopoly include the promotion of technological progress, engaging in limit pricing in order to keep out potential entrants and also oligopoly can be kept in line by foreign competition.
Answer:
1. Providing tax breaks and patents for firms that pursue research & development in health and sciences ; Protecting property rights and enforcing contracts
2. A reduction in human capital per worker ; A reduction in capital per worker
Explanation:
1. Goal of increasing productivity & growth in developing countries :
- Providing tax breaks and patents for firms that pursue research & development in health and sciences : this would incentivise them researchers to conduct research, incentivise research organisation to motivate their personnel research activities
- Protecting property rights and enforcing contracts : As this would create monetary incentive for researchers & research organisations, to get new inventions.
Increasing taxes would just reduce disposable income, Inward oriented strategy would impact BOP. Both are unrelated to productivity.
2. Possible outcomes of rapid population growth are :
- A reduction in human capital per worker : Same human capital divided by more no. of people in population. So, reduces per capita availability.
- A reduction in capital per worker : Same physical capital divided by more no. of people in population. So, reduces per capita availability.
Increase in technology level is unrelated & inapt.