Answer:
A, B and C are correct
Explanation:
An express warranty is a warranty that is clearly expressed. In this case, the salesperson said the paint was heat resistant and could be used for painting the inside of a fireplace.
An implied warranty of fitness for a particular purpose means that the product works or it is fit for a particular use or purpose. In this case, the seller told Dustin that the paint could be used to paint the inside of a fireplace.
The warranty of merchantability is always implied, unless it is expressly disclaimed by the seller or the name of the product (e.g. sold with all faults). This means that the product should be good enough to be bought by an ordinary customer.
Answer:
a. Compare the details of cash receipts with journal entries.
b. Prepare a bank transfer schedule.
c. Confirm the terms of borrowing with the lenders agreement.
d. Send request to confirm the entity's account receivable balance.
e. Inspect payroll data of employees and cross check with the transaction recorded.
f. Obtain cut off bank statement to reconcile the transaction.
g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.
h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.
i. Inspect the payroll endorsements for similar handwriting.
Explanation:
Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.
Answer:
O a key ethical issue
Explanation:
In the process of gathering data for analysis, it is very important that certain ethical standards are adhered to. One of these very important ethical requirements is making sure that there is consent from the individuals whose data is to be used. Individuals have a right to their privacy. Using data or information about them for whatever purpose without them approving of it is a breach of privacy and might incur lawsuits if they get to know about that.
To prevent such issues from arising, the intent of the analyst should be clearly disclosed and the approval of the informant obtained.
Answer:
Option (D) is correct.
Explanation:
Given that,
Stock price per share, P0 = $38.24
Market rate of return, rs = 9.65 percent
Annual dividend paid next year, D1 = $0.48
Dividend growth rate = [rs - (D1 ÷ P0)] × 100
= [9.65% - ($0.48 ÷ $38.24)] × 100
= (0.0965 - 0.0126) × 100
= 0.0839 or 8.39%
Answer:
$14,400 preferred; $29,600 common.
Explanation:
Preferred dividend is accrued and paid on the issued preferred stock of the company. The preferred shareholder has priority on common shareholders and they will be paid at any desired rate, first if dividend is paid.
Total Dividend paid = $44,000
Dividend For preferred stock = Preferred Stock value x Rate for preferred dividend
Dividend For preferred stock = 240,000 x 6%
Dividend For preferred stock = $14,400
Common stock Dividend = Total Dividend - Preferred stock dividend
Common stock Dividend = $44,000 - $14,400 = $29,600