Answer:
Comet's E&P will decrease by $50,000 due to the exchange.
Explanation:
50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).
Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.
Answer 4:
Following are the six business management perspective:
- Ethical Stance
- Strategic aspects of the decision
- Risk Management
- CSR Aspect
- Process Management Aspects
- Leaders Perspective
Answer 5:
IMA stands for Institute for Management Accountants.
The IMA Statement of Ethical Professional Practice has listed following four standards for the professionals who are member of IMA to comply with:
- Competence: The member must be competent in his role in accordance to his experience, skills, knowledge, complying laws & regulation and always acting ethically.
- Confidentiality: Must not breach the confidentiality implied duty on him except in situations when disclosure of information is mandatory by law.
- Integrity: Must be straight forward and there must be no self interest in his dealings with the company and must considerably reduced.
- Credibility: Communicate the results with unbiased decision making.
Answer 6:
Because freedom does not means that our self interest is everything. We owe duty of care to people who rely on our acts. An accountant, auditor or internal auditor must act ethically or universally that benefits everyone without breaking the laws and ethical duties imposed by the professional bodies. If we go back to Enron case, we see that the External auditor was not acting in the public interest and as a result Enron which was the world's first $100 billion dollars company collapsed. The collapse of Enron bankrupt many pension companies which further affected the lives of the ordinary person in the USA. Furthermore, due to collapse of Enron, a lot of people withdraw the amount invested in Stock exchange. Dozens of companies and millions of people suffered from this unethical behaviour of professionals.
Answer 7:
Corporate Social Responsibility means that the company is just like an human being and its operations must not harm the environment, so this the least duty which the stakeholders expect from them. Being a good social beings, the companies must try to stable the environment situation in its surrounding and wherever its stakeholders live. For Example, The refinery companies have stopped poluting the oceans with their oil spills, now they have opted to newest technology that will eliminate the harmful effects of their oil spills and bring stability in the environment.
Another example includes the lower usage of natural resources. In UK it is the companies responsibility to reduce its natural resources usage which will lower the pollution. This additional care has a cost and may lead to lower competitiveness of the products so there must be a law globally that enforces to act socially responsible.
Answer:
The list is follows:
a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption
b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle
c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle
d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption
The term that refers to the functions used to move products through the channel to the customer is distribution
Law of diminishing return has a positive relationship with marginal cost
Explanation:
The law of diminishing returns implies that marginal cost will rise as output increases. Eventually, rising marginal cost will lead to a rise in average total cost.
