Answer: D. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate
Explanation: For this scenario, the only true option is that, the auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.
Attributed sampling states that items being sampled will either or won't possess certain attributes or quantities.
Answer:
Net fixed assets is $30546.
Explanation:
Given the net working capital = $2204
The current assets of the company = $6475
The equity of the company = $22215
Long term debt of the company = $10535
Net Working Capital = Current Assets – Current Liabilities
2204 = 6475 – current liabilities
Current liabilities = 6475 – 2204 = 4271
Total assets = Current Liabilities + Long term Debt + Total Equity
= 4271 + 10535 + 22215
= $37021
Total Liabilities and Stockholders Equity = Total Assets
Total assets = $37021
Total Assets = Current Assets + Net Fixed Assets
37021 = 6475 + net fixed assets
Net fixed assets = 37021 – 6475 = $30546
Answer:
The answer is below
Explanation:
1. Yes, making uninformed decisions is irrational. This is because it will cost the individuals making uninformed decisions to lose money in the process. Such individuals may also lose another important aspect concerning their decision, such as technological advantage, political assistance, social benefits, economic privilege, etc.
2. To determine how much information is the right amount is to ensure you continue to acquire information as long as the benefit of the additional information exceeds the additional costs. Otherwise, it is no longer the right amount anymore.
Answer:
Price at issuance is $1,000 for both bonds.
Price of the 5 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77
PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47
Market price = $935.24
this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%
Price of the 10 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97
PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78
Market price = $876.75
this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%
