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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

Kisachek [45]3 years ago

6 0

Answer:

The answer is: C) If someone deliberately understates costs and thereby causes reported profits to increase, this can cause the stock price to rise above its intrinsic value. The stock will probably fall in the future. Both those who participated in the fraud and the firm itself can be prosecuted.

Explanation:

The value of a corporation is usually determined by its future cash flows and if any part of those cash flows is altered, then the stock value will not be correct. Anyone who tampers deliberately any component of the cash flows to alter the corporation's value is committing fraud and he/she can be prosecuted along with the corporation.

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Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions

Deffense [45]

Answer:

Ans. Car loans must be $4,000,000 and Home loans $16,000,000 in order to use all the conditions in the problem. Return= $2,000,000

Explanation:

Hi, well, you need to make sure to get as many car loans as the conditions of the problem allows you, since it returns 14%.

I used MS Excel solver to find this result, please download the excel spreadsheet attached to this answer.

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3 years ago

An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, t

Anvisha [2.4K]

Answer:

Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.

Explanation:

The given problem seems to be incomplete. Find the attachment of the complete question below.

Given:

Direct material,

= $8.70

Direct labor,

= 24.70

Overhead,

= 43.50

Now,

If the offer is accepted, the cost per unit will be:

= $44.45 + (43.50\times 70 \ percentage)$

= $44.45 + 30.45$

= $74.90$ ($)

Thus the above is the correct answer.

6 0

2 years ago

Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg

nordsb [41]

Answer:

The correct answer is $12,400.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the pension expense by using following formula:

Pension expense = Interest cost + Service cost - Expected return on plan assets.

Where, Interest cost = $6,400

service cost = $17,000

Expected return on plan assets = $11,000

So, by putting the value, we get

Pension expense = $6,400 + $17,000 - $11,000 = $12,400

Hence, Journal entry for the following are as follows:

Pension Expense A/c Dr. $12,400

To Cash $12,400

8 0

3 years ago

in team-based environments, the principal may have difficulty determining individual contributions by members. this can create a

just olya [345]

In team-based environments, the principal may have difficulty determining individual contributions by members. This can create a situation in which an opportunistic employee does little work but takes credit and this is known as adverse selection.

<h3>What is Adverse selection?</h3>

In general, the term "adverse selection" refers to a situation in which sellers have knowledge about a certain feature of product quality but purchasers do not, or vice versa. In other words, it is an instance of the use of asymmetric information.
When one side to a transaction has more in-depth knowledge of the relevant facts than the other, this is known as asymmetric information, also known as information failure.
Usually, the vendor is the one who has more knowledge. When both parties are knowledgeable, it is said that there is symmetric information.

To learn more about business site, refer:

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7 0

1 year ago

Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock out

lubasha [3.4K]

The annual dividend on the preferred stock is $1000 in total.

<h3><u>What is an Annual dividend?</u></h3>

An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.

Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.

The company has 2000 shares of 5% that is: (2000*5)/100 = 100

with a par value of $10, which becomes:

100*$10 = $1000.

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2 years ago