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3 years ago

Which one of the following statements is correct concerning the concept of materiality?

Business

1 answer:

Alchen [17]3 years ago

5 0

Answer:

D) Materiality is a matter of professional judgement

Explanation:

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Lester's just signed a contract that will provide the firm with annual cash inflows of $28,000, $35,000, and $42,000 over the ne

Free_Kalibri [48]

Answer:

$64,474.20

Explanation:

As for the information provided,

discount rate = 7.25%

First payment will be made at the end of year 1

Discounting factor = $\frac{1}{(1+0.0725)^1} = 0.9324$

Thus, current value of payment = $28,000 \times 0.9324$ = $26,107.20

Discounting factor for receipts =

Year 1 = $\frac{1}{(1+0.0725)^1} = 0.9324$ = $28,000 $\times$ 0.9324 = 26,107.20

Year 2 = $\frac{1}{(1+0.0725)^2} = 0.8694 = 35,000 \times 0.8694 = 30,429$

Year 3 = $\frac{1}{(1+ 0.0725)^3} = 0.8106 = 42,000 \times 0.8106 = 34,045.20$

Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20

5 0

3 years ago

Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and

jonny [76]

Answer:

The correct answer is letter "B": nonphysical constraints.

Explanation:

According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.

4 0

3 years ago

A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the fut

OleMash [197]

Answer:

The present value of the future cash inflows from this investment is $19,740

Explanation:

Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.

Profitability Index = Present value of future cash flow/ Initial Investment

↔ 0.329 = Present value of future cash inflow/ $60,000

↔ Present value of future cash inflow = 0.329 * $60,000 =$19,740

8 0

3 years ago

The U. S. national debt:______________.

Dafna11 [192]

Answer:

d. equals the dollar amount of outstanding U.S. Treasury bonds

Explanation:

The National debt is entirely represented by the total dollar amount of outstanding U.S. Treasury bonds, both those bonds that are held by the public (private citizens), or by other governments.

Currently, the U.S. National Debt is over 24 million, and the amount of debt that can be issued in the form of U.S. Treasury bonds is limited by the national debt ceiling.

3 0

3 years ago

Uncertainties such as natural disasters are: Select one: a. Estimated liabilities because the amounts are uncertain. b. Not cont

Dovator [93]

Answer:

d. Disclosed because of their usefulness to financial statements.

Explanation:

A liability is a present obligation (Legal or Constructive) of an Entity that arises as a result of a past event and the settlement of which will result from an out flow of cash from the entity.

One class of Liability that relate to the case is a Provision.A provision is a liability whose amount can be determined with certainty.

A liability whose amount can not be determined with certainty is known as a Contingent liability.A contingent liability is not presented in the financial statements but is only disclosed in the Financial Statements.

6 0

3 years ago