Answer:
c. 60%.
Explanation:
Calculation for what the ending work-in-process inventory's stage of completion is:
First step is to calculate the Ending WIP
Ending WIP = 5,000 - 3,500
Ending WIP = 1,500 units
Now let calculate the ending work-in-process inventory's stage of completion using this formula
Ending work-in-process inventory's stage of completio
4,400 = 3,500 + (x% * 1,500)
4,400 = 3,500 + 15x
15x = 4,400 - 3,500
15x = 900
x = 900/15
x = 60%
Therefore the ending work-in-process inventory's stage of completion is:60%
Answer: C) disruptors
Explanation:
Disruptors as the term implies, tend to disrupt the normal way of doing things by creating new and more efficient methods of production that will usurp the dominance of those are the top such that they eventually take over the industry.
In coming up with new ways of doing things, these disruptors are innovators and they are usually entrepreneurs who are not weighed down by the belief that the industry should work in a certain way and so they are more open to coming up with these new ideas that are so disruptive.
Answer:
Police Officers and Firefighters
Answer:
a. $1.08
Explanation:
Total assets include net fixed assets, working capital and current liabilities. Harrisburg Store's total assets are:
The total asset turnover is the amount of money worth of sales generated from every $1 in total assets and is given by:
$1.08 worth of sales are generated from every $1 in total assets.
Answer:
a. Analytical review of loan agreement.
Inquiry from management about the loans and its covenants.
Observing the management behavior towards covenants.
Inspecting the effects of each covenant on business activities.
b. According to IAS 24, related party transactions the loan from president should be disclosed.
Explanation:
Loans are a source of funding to a business. Many organizations prefers high debt funding as it is a cheap source of finance. On the other hand high debt companies are considered as risky. When an auditor analyses the loan covenants he must ensure that he reads the complete agreement and analyses the effects that each covenant has on the company's performance. Loan covenants are always considered as flagged as this is an important area which requires detailed audit. In the given scenario the loans are taken against company's inventory and receivable accounts which is a threat to company's working capital. There are covenants imposed not to distribute any dividend to shareholders. These will create a liquidity position for a company if the loan is not paid on time and company will not have sufficient amount of working capital to fund its routine expenses and business operations.
b. IAS 24 provides detailed guidance on discloses for transaction involving related party. The president of a company has provided loan to the company this should be disclosed in the notes. The transaction should be in the arms length and disclosures should be made for every transaction.
