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Stels [109]
3 years ago
8

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the comp

any was a major donor to Houston area charities. Enron had unethical business practices, but was also ________.a. falsifying the company's finances through charitable donations.
b. practicing marketing ethics.
c. creating a local ethical business climate.
d. demonstrating corporate social responsibility.
e. manipulating the public sentiment for its own benefit.
Business
1 answer:
faltersainse [42]3 years ago
4 0

Answer:

Correct option is (d)

Explanation:

Corporate social responsibility is an initiative taken by companies to act for the benefit of the society. Since companies utilize resources from the society, it their responsibility to give back to the society in the form of charity to non governmental organizations, welfare of underprivileged and protecting the environment.

Here, though Enron was undertaking unethical means for personal benefits, it was also carrying out corporate social responsibility by donating to Houston area charities.

You might be interested in
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepa
Vesna [10]

Question Completion:

Prepare income statement, statement of owners' equity, and a balance sheet.

Answer:

Elliptical Consulting

1. ELlIPTICAL CONSULTING

Income Statement for the year ended June 30, 2076:

Fees Earned                             $71,580

Salary Expense             28,670

Supplies Expense           3,340

Depreciation Exp.           1,990

Miscellaneous Exp.        3,010   37,010

Net Income                             $34,570

Statement of Owners' Equity for the year ended June 30, 20Y6:

Jayson Neese, Capital $38,320

Net Income                     34,570

Jayson Neese, Drawing (4,880)

Jayson Neese, Equity  $68,010

Balance Sheet as of June 30, 20Y6:

Assets:

Cash                                  $15,780

Accounts Receivable         37,570

Supplies                                  640  $53,990

Office Equipment               30,810

Accumulated Depreciation 6,160  $24,650

Total assets                                     $78,640

Liabilities + Equity:

Accounts Payable                           $10,140

Salaries Payable                                   490

Total liabilities                                $10,630

Jayson Neese, Capital                  $68,010

Total liabilities and equity            $78,640

Explanation:

a) Data and Calculations:

Elliptical Consulting End-of-Period Spreadsheet For the Year Ended June 30, 20Y6

                                         Unadjusted                                           Adjusted  

                                        Trial Balance         Adjustments         Trial Balance

Account Title                   Dr.           Cr.          Dr.           Cr.         Dr.           Cr.

Cash                                15,780                                                 15,780

Accounts Receivable     37,570                                                37,570

Supplies                           3,980                            (a) 3,340          640

Office Equipment          30,810                                                 30,810

Accumulated Depreciation          4,170                (b) 1,990                     6,160

Accounts Payable                       10,140                                                  10,140

Salaries Payable                                                     (c)  490                       490

Jayson Neese, Capital             38,320                                                38,320

Jayson Neese, Drawing 4,880                                                 4,880

Fees Earned                             71,580                                                  71,580

Salary Expense             28,180                 (c)    490               28,670

Supplies Expense                                     (a) 3,340                 3,340

Depreciation Exp.                                     (b) 1,990                  1,990

Miscellaneous Exp.       3,010                                                   3,010

Totals                         124,210 124,210         5,820  5,820 126,690 126,690

                                           Adjusted  

                                        Trial Balance

Account Title                   Dr.           Cr.

Cash                                15,780

Accounts Receivable     37,570

Supplies                              640

Office Equipment          30,810

Accumulated Depreciation          6,160

Accounts Payable                       10,140

Salaries Payable                             490

Jayson Neese, Capital             38,320

Jayson Neese, Drawing 4,880

Fees Earned                             71,580

Salary Expense             28,670

Supplies Expense           3,340

Depreciation Exp.           1,990

Miscellaneous Exp.        3,010

Totals                         126,690 126,690

6 0
3 years ago
Any attempt to verify outcomes and compare them standards can be considered a(an) _______activity, althoughmany smaller firms do
otez555 [7]
B. auditing is your word
3 0
3 years ago
At December 31, 2019, Swifty Corporation reported the following as plant assets.
Kay [80]

Answer:

April 01 2020

Land                                                            Debit          $ 2,200,000

Cash                                                           Credit                             $2,200,000

To record purchase of land

May 01 2020

Cash                                                            Debit         $ 504,000

Allowance for depreciation equipment    Debit         $ 363,720

Equipment                                                   Credit                              $ 840,000

Gain on sale of equipment                         Credit                              $   27,720

To record sale of equipment and to recognise gain on sale

June 01 2020

Cash                                                              Debit      $ 1,450,000

Land                                                              Credit                            $ 399,000

Gain in sale of land                                      Credit                            $1,051,000

To record sale of land and gain on the sale

July 01 2020

Equipment                                                     Debit    $ 2,480,000

Cash                                                              Credit                         $ 2,480,000

To record purchase of equipment

December 31 2020

Allowance for depreciation                          Debit    $ 491,000

Equipment                                                      Credit                        $ 491,000

To record retirement of equipment

The adjusting entry for depreciation is as follows:

December 31 2020

Depreciation expense - Equipment             Debit  $ 4,985,000

Depreciation expense - Buildings                Debit  $   578,200

Allowance for depreciation - Equipment     Credit                     $ 4,985,000

Allowance for depreciation - Buildings        Credit                     $    578,200

Explanation:

Computation for Depreciation expense for the year

Equipment Jan 01 2020                        $ 48,670,000  for 4 months @ 10 %

Sales - May 01 2020                              <u>$(     840,000)</u>

Adjusted balance May 01 2020            $ 47,830,000 for 2 months @ 10 %

Purchases July 01 2020                        <u>$   2,480,000</u>

Adjusted balance July 01 2020            $  50,310,000 for 6 months @ 10 %

Depreciation expense for 4 months = $ 48,670,000*10 % *4/12 = $1,622,333

Depreciation expense for 2 months = $ 47,830,000*10 % *2/12 = $   797,167

Depreciation expense for 6 months = $ 51,310,000*10 % *6/12 =<u>$ 2,565,500</u>          

Total depreciation equipment                                                      $ 4,985,000

Depreciation on buildings     $ 28,910,000 * 2 %                       $     578,200

Depreciation has to be recorded for full year on assets retired on December 31 2020

Computation of gain and loss on sale of equipment

Cost of equipment  purchased on January 1 2016                       $ 840,000

Depreciation rate                                          10 %

Equipment sold on May 01 2020

Depreciation charged for 4 years and 3 months @ 10 %

$ 840,000 * 4.33 *10 %                                                                   <u>$  363,720</u>

Net book value of equipment disposed on May 01 2020            $ 476,280

Sale value of equipment                                                                  <u>$ 504,000</u>

Gain on sale of equipment                                                             $ (27,720 )                                  

The gain on sale of land is the difference between the cost and sales proceeds since land is not depreciated

Sale proceeds - Cost = $ 1,450,000 - $ 399,000 =                      $ 1,051,000

The assets that was retired on Dec 31 2020 was purchased on December 31 2010 and was considered for depreciation for 10 years and was fully depreciated and had ni book value on the date of retirement

6 0
3 years ago
Virtually every business has variable expenses, which move up and down in tight proportion with changes in sales volume or sales
TiliK225 [7]

Answer and Explanation:

Dynamic expenses are pointed to as operating expenses that are the production cost and important to run a business.

common example of the variable cost that depends on sales volume.

  • The cost of goods sold, that is the equivalent of goods sold to consumers.
  • Commissions charged from their selling to salespersons.
  • Fees charged by a company when a customer requires a credit or debit card.

so, we say that when a business increase or decrease their sale volume, their variable cost also gets affected.

3 0
3 years ago
Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
Delicious77 [7]

Answer:

11.3%

Explanation:

Given that,

Growth rate of industrial production, IP = 4%

Inflation rate, IR = 3.0%

Beta = 1.1 on IP

Beta = 0.5 on IR

Rate of return = 7%

Before the changes in industrial production and inflation rate:

Rate of return = α + (Beta on IP) + (Beta on IR)

7% = α + (1.1 × 4%) + (0.5 × 3%)

7% = α + 4.4% + 1.5%

7% - 4.4% - 1.5% = α

1.1% = α

With the changes:

Rate of return:

= α + (Beta on IP) + (Beta on IR)

= 1.1% + (1.1 × 7%) + (0.5 × 5%)

= 1.1% + 7.7% + 2.5%

= 11.3%

Therefore, the revised estimate of the expected rate of return on the stock is 11.3%.

6 0
3 years ago
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