To… help protect investors from fraudulent financial reporting by corporations
Answer:
a. want to avoid potential disputes.
Explanation:
The auditors are liable to report all the acts of the company, whether are in confirmation of law or not. This is because it is their duty to put a review on the balance sheet, and provide the users of such balance sheet the trust on the information presented.
Even if the agreement do not provide for complete details making it a valid contract this is sure that they need to act properly so that any moral dispute do not occur and that, all the work is done according to the responsibilities.
Answer: work hard; $65; less; $85
Explanation:
The following can be deduced from the question:
The Expected profit from working hard will be:
= (90% × $200) + (10% × $50)
= (0.9 × $200) + (0.1 × $50)
= $180 + $5
= $185
Then, the profit will be the difference between revenue and coat which will be:
= $185 - $100
= $85
Then, the expected profit from shirking will be:
= (90% × $50) + (10% × $200)
= (0.90 × $50) + (0.10 × $200)
= $45 + $20
= $65
Then, the profit will be:
= $65 - $0
= $65
Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.
Answer:
The correct answer to the following question is option B) $2500 .
Explanation:
Given information -
Proceeds to be received on life insurance - $150,000
Carin receives 10 installments of $17,500 each , which takes total amount to - $175,000
Premiums paid by Carins husband - $60,000
Carin collected - $17,500 from insurance company
The interest element that would be included in her gross income -
$175,000 - $150,000
= $25,000
She is receiving payments in form of annuity, and the amount that should be included in her gross income in the first year should -
$25,000 / $175,000 x $17,500
= $2500
