Answer:
Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
The appropriate response is a moral hazard, it happens when one individual goes for broke in light of the fact that another person bears the cost of those dangers. An ethical peril may happen where the activities of one gathering may change to the impairment of another after a budgetary exchange has occurred.
Answer:
A. The client installed a new security system to protect the building
Explanation:
The client is experiencing slow down in sales is an example of qualitative materiality factor as it can lead to misstatement. Sales turnover and payment, Percentage (%) of expenses to income and Percentage (%) of inventory to assets are all example of quantitative materiality factor. Whereas installation of new security system is not material which could lead to misstatement.
Answer:
Derived demand
Explanation:
Derived demand occurs when a good is requested not for benefits they directly provide, but for their contribution to another product.
For example capital, land, labour, and raw materials are demanded for their role in producing a final product.
So they can be seen as goods that have derived demand.
When they demand for the final product increases the good that has derived demand also increases, and vice versa.
