Answer:
Net Income understated by $20,000
Explanation:
In the first year, closing inventory was overstated by $80,000. The implications of the above would be,
Net Income for the first year would be overstated by $80,000
In the Second year,
Opening Stock would be overstated by $80,000
Due to this, cost of production stands overstated by $80,000.
Now, given in the question that closing stock for second year is overstated by $60,000 i.e profits are overstated by $60,000.
This means, the net effect on profits would be, $80,000 less $60,000 i.e $20,000 understated profits for the second year.
Answer:
a-1) Pv = 52549
a-2) Pv = 56822
b-1) Fv = 77570
b-2 Fv = 83878
Explanation:
b-1) Future value:
S= Sum of amount of annuity=?
n=number of fixed periods=5 years
R=Fixed regular payments=13200
i=Compound interest rate= .081 (suppose annualy)
we know that ordinary annuity:
S= R [(1+i)∧n-1)]/i
= 13200[(1+.081)∧5-1]/.081
=13200(1.476-1)/.081
= 13200 * 5.8765
S = 77570
a.1)Present value of ordinary annuity:
Formula: Present value = C* [(1-(1+i)∧-n)]/i
=13200 * [(1-(1+.081)∧-5]/.081
=13200 * (1-.6774)/.081
=13200 * (.3225/.081)
=52549
a.2)Present value of ordinary Due:
Formula : Present value = C * [(1-(1+i)∧-n)]/i * (1+i)
= 13200 * [(1- (1+.081)∧-5)/.081 * (1+.081)
= 13200 * 3.9822 * 1.081
= 56822
b-2) Future value=?
we know that: S= R [(1+i)∧n+1)-1]/i ] -R
= 13200[ [ (1+.081)∧ 5+1 ]-1/.081] - 13200
= 13200 (.5957/.081) -13200
= (13200 * 7.3544)-13200
= 97078 - 13200
= 83878
Answer:
d. buyers will make purchases from other sellers
Explanation:
In the perfect competition structure producers have no power to change prices, as goods are homogeneous. Thus, since products are the same, if the producer raises the price, consumers will consume with other sellers.
Answer:
The correct answer is letter "C": usually have chief officers, human resource managers, and board member committees involved with the ethics and compliance program.
Explanation:
The integrity-based approach is the practice in which top executives of a company including members of the <em>Board of Directors</em> (BoD) hold the responsibility of the firm's ethical culture and spread it to their employees. This is done to promote good practices among workers and to spot where might be possible ethical issues appearing in the company.
Answer:
C. Assets are understated
Explanation:
In terms of IAS 2, Inventory cost include, the <em>purchase cost</em> , <em>conversion cost</em> and all <em>other costs directly related</em> to bringing the inventory in the correct location and condition intended for sale by the company.
The Company has not included <em>shipping costs</em> of $100 to inventory cost, hence inventory is understated and consequently this overstates the <em>cost of goods sold</em> and understate the Inventory , gross profit and net income by $100
Selling Expenses have been accounted for in error, therefore<em> Operating Expenses</em> are Overstated and <em>Net Income</em> understated by $100
