The expected value for the number of cars with defects can
be obtained by multiplying the probability of success (i.e. the percentage of
products with defects - 40%) by the number of cases (i.e. the number of cars
purchased – 5).
40 / 100 X 5 = 2
Therefore, the expected value for the number of cars with
defects will be the percentage of products with defects is 2
I believe its B) the fourth and fifth
Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.
Answer:
Results in a transfer of retained earnings to common stock and additional paid-in capital.
Explanation:
A stock dividend can be defined as the dividend which is distributed to shareholders on the basis of their percentage of ownership. Stock dividend is paid in form of shares and not in form of cash.
A stock dividend can also be described as a dividend payment paid by a company to its existing stakeholders from the profit or earnings that has been derived from the company during a financial year period.
The main advantage of stock dividend is that taxes will not be paid on the stock dividends until the shares have been sold.
Internal growth rate is calculated by dividing retained earnings by total assets.
Retained earnings is calculated by subtracting dividends from net income
So: Retained earnings would be 12,493 - (12,493 X .4)
Then to find internal growth rate take your retained earning from above and divide by total assets (the total on the balance sheet : 106,900).
