Answer:
There are issues with Revenue recognition, Accrual basis of accounting and Cash basis of accounting.
Explanation:
The ethical issues are important to handle with care in business. The accountant has used accrual basis accounting technique in order to apply for a loan. The revised financial statements are prepared with accrual concept so that the company is successful in procuring loan. The revenue should be recognized when performance obligation is completed and the required services are rendered. The accrual concept states that the transaction should be recorded when it occurs regardless when the cash is actually received. Daryl has been involved in unethical practice as he has instructed his accountant to prepare revised financial statements to portray that the company's performance is good. It is an intention to deceive bank in order to procure loan.
Answer:
Correct option is (c)
Explanation:
Make-or-buy decision is a form of strategy to analyse if a product must be manufactured internally or sourced from outside suppliers.
Cost and benefits related to the product being produced internally or outsourced is studied and compared before arriving at a decision. If cost of producing and storing goods are less as compared to the cost incurred in outsourcing, then decision to make will be taken and vice-versa.
So, make-or-buy decision involves considering relevance of purchase price of goods sourced externally.
Section numbers with their corresponding page numbers
Answer:
The required rate of return on stock is 14.6% and option b is the correct answer.
Explanation:
The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.
The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.05 + 1.2 * (0.13 - 0.05)
r = 0.146 or 14.6%
Answer:
A
Explanation:
Any pattern particularly with audience involvement
Having a friendly audience, any organizational pattern will be appropriate. Using the audience’s familiarity will be to your advantage and that will help you to get them involved with you the presentation. Being warm, pleasant, and open, and using lots of eye contact. Includeing humor and personal experiences in your presentation will make the experience a memorable one.
