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SSSSS [86.1K]
4 years ago
10

Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith's independence would be i

mpaired under which of the following circumstances?
Business
1 answer:
borishaifa [10]4 years ago
3 0

Answer:

A. Smith is a Director of Hometown Bank

Explanation:

First, the multiple Options

a. Smith is a director of Hometown Bank.

b. Smith has a collateralized automobile loan with Hometown Bank.

c. Smith had an account with Hometown Bank 2 years ago.

d. Smith and a Hometown Bank board member belong to the same church.

Basically, there are 5 characteristics of an auditor whose responsibility is access the financial statement of an organisation and give a true and fair report on the state of the business. One of these characteristics is Independence and Objectivity.

When there are potential risks to the ability of the auditor to give a true and fair view of the audited books, the we say the auditor's independence is impaired.

An auditor's independence is impaired as a result of business relationship with clients. This includes any form of business association with client as manager, employee, director among others.

Based on these definitions, Smith as a director of Hometown Bank and a partner of Johnson Accounting firm risks the impairment of his independence because of the business relationship of being a Director with the client.

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Beta Corp., a gaming software company, had recently launched a new game. The target audience identified by the company was the a
SashulF [63]

Answer:

Emergent strategy

Explanation:

Emergent strategy -

It is the process to determine the unexpected outcome due to the execution of the corporate strategy and then integrating the unpredictable outcomes into the future corporate plans , is knows as the Emergent strategy .

As , with the help of social media platform , it is used to magnify the marketing plan .

Hence , the same same case is given in the question , therefore the correct term for the given information is Emergent strategy .

5 0
3 years ago
What are the cons of using new residential sales/new home sales as a economic indicator?
rodikova [14]

Answer:

New home sales and existing home sales are released each month at about the same time. Many comparisons are made between the two series, but before doing any comparisons, one must be aware of some definition differences that affect the timing of the statistics.

The Census Bureau collects new home sales based upon the following definition: "A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit." The house can be in any stage of construction: not yet started, under construction, or already completed. Typically about 25% of the houses are sold at the time of completion. The remaining 75% are evenly split between those not yet started and those under construction.

Existing home sales data are provided by the National Association of Realtors®. According to them, "the majority of transactions are reported when the sales contract is closed." Most transactions usually involve a mortgage which takes 30-60 days to close. Therefore an existing home sale (closing) most likely involves a sales contract that was signed a month or two prior.

Given the difference in definition, new home sales usually lead existing home sales regarding changes in the residential sales market by a month or two. For example, an existing home sale in January, was probably signed 30 to 45 days earlier which would have been in November or December. This is based on the usual time it takes to obtain and close a mortgage.

Effective with January 2005, the National Association of Realtors created a new monthly series to overcome the lagging effect of the existing home sales definition. This new series is called Pending Home Sales and is based on sales of existing homes where the contract has been signed but the transaction has not been closed, making it roughly equivalent to the new home sales definition. Monthly estimates are expressed as an index where the year 2001 has been set to equal 100.0.

Explanation:

8 0
3 years ago
On January 1, 2017, Marigold Corp. had Accounts Receivable of $59,400 and Allowance for Doubtful Accounts of $3,600. Marigold Co
Mnenie [13.5K]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Th
den301095 [7]

Answer: False

Explanation:

The real interest rate is the nominal interest rate adjusted for inflation.

If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.

For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:

= 8 - 4 = 4%

If inflation is instead 2%, real rate would be:

= 8 - 2 = 6%

Real rate would be higher than anticipated.

8 0
3 years ago
Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually made and sold 13,000
Aleks04 [339]

Answer:

$65,000 Favorable  

Explanation:

  • Volume variance compute the difference due to volume of sales budgeted and actual sales qty.

  • Budgeted Selling pricec =780000 /12000 = 65

  • Sales volume variance = Budgeted Selling price (Actual sales qty-Budgeted Sales qty)  

65.00 (13000-12000) = 65000 Fav

 

Answer is $ 65000 Favorable      

5 0
3 years ago
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