Answer:
Explanation:
The net assets would increase. This is because the $100,000 earnings from investments are additional cash inflows hence an increase in current assets. For the $3,000,000 if invested, it will be considered an asset. It is a cash donation invested to generate earnings for the non-profit organization. Thus, these two instances add onto the net asset value of Lifeworks.
Answer:
They both receive capital to use for growth.
Explanation:
The government received the capital in the form of tax that being paid by the citizens. After collecting the tax income, the government allocated it to make a couple of investments such as building the country's infrastructure, providing aid for people to pursue education, and investing in scientific research/development.
Business on the other hand could receive their capital from either reallocating their profit or receiving capital injection from the investors. They use the capital for growth by reinvesting it to increase the scope of their business operation or putting it under investment accounts.
Answer:
The correct answer is letter "A": Standards of field work.
Explanation:
The Generally Accepted Auditing Standards or GAAS are the rules auditors follow when analyzing the financial statements of a company. The GAAS has three (3) main categories: <em>general standards, standards of fieldwork, </em>and <em>standards of reporting</em>. The body in charge of reviewing the GASS is the Auditing Standards Board (ASB).
Answer:
A) $63.00
Explanation:
To find the current price of Buckeye Corporation's stock we can use the growth perpetuity formula:
current price of stock = current dividend / (required rate of return - dividend growth rate)
current price of stock = $3.15 / (13% - 8%) = $3.15 / 5% = $63
