Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
Answer:Yes, the Manager made an error.
Explanation:
Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.
However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.
E.g
Year. $ Price. Demand. Revenue$
1. 5. 100. 500
2. 6. 80. 480
The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.
Answer: $250,096
Explanation:
To find out the amount that should be invested today, one should find the present values of both figures and add them up:
Interest rate should be periodically adjusted so: 8% / 2 = 4% per semi annum
No of periods should be adjusted as well.
Amount to be invested today:
= $250,096
Answer:
The correct answer is: increase in the price of the good will increase the firm's revenue.
Explanation:
When the demand for goods has a price elasticity of 0.5, it implies that the demand is relatively inelastic. This implies that a proportionate change in price will cause less than proportionate change in price.
So when the firm increases the price of a good, this will lead to a smaller decline in the quantity demanded of the commodity. As a result, the total revenue will increase.
<u>Answer:</u> If Norwing does not hire him because he is an African-American, the company has engaged in ethnic discrimination.
<u>Explanation:</u>
Workplace discrimination is illegal which can be based on race, religion, gender, age, disability, nationality origin etc. Ethnicity discrimination means people are from different groups such as racial, religious linguistic basis.
Norwing LLC has to only consider the skills and capability of the person to be in chief executive officer position. As Henry is the best-qualified applicant for the job the company has to consider in recruiting him rather than discriminate based on his ethnicity that is African-American or else the company has to face legal consequences.
