Answer:
Explanation:
1. True
Separation of record keeping for assets from custody over assets in custody over assets reduces theft and fraud . except in a case of collusion.
Fraud and theft of assets can be easily perpetrated and covered up when an individual combines the role.
2. False
Internal control focuses more on the internal operation of an organization rather than the external. Even though it can still be of impact in checking the excesses of external parties like the government agencies , but that is not its primary objective
3.True
Internal control's main objectives can be best accomplished when there is an operational system with managerial policies that protect waste , fraud and theft , being the major factors targeted to control
4.False
Separating the responsibility for a transaction between two or more individuals or departments is a major way of preventing creation of fictitious invoices and payment as it could have easily be detected if different individuals are involved in approval and payment of invoices.
Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
Answer:
Explanation:
The money spent on domestically produced final goods and services: is equal to GDP.
<u>Gross domestic product, or GDP, is the total value of all final goods and services produced in the economy during a given year. </u>
GDP is used as a measure of the size of an economy and can also be used to compare the economic performance in other countries.
Answer:
$357,500
Explanation:
Cash flow from operating activities on the statement of cash flows:
= Net income + Depreciation Expense - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expense - Decrease in accounts payable
= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000
= $357,500
Therefore, the net cash flow from operating activities is $357,500.
Choices/ The way goods and services are produced and provided to consumers, and to used by them.
