Answer:
Monte Carlo Simulation
Explanation:
Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.
In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.
Answer:
d.when an incorrect journal entry has been made, but not yet posted and when a proper entry has been made but posted to the wrong account or for the wrong amount
Explanation:
When correcting errors in a trial balance, the ruling method should be used "when an incorrect journal entry has been made, but not yet posted and when a proper entry has been made but posted to the wrong account or for the wrong amount."
In trial balancing, an error can be fixed or corrected by tracing the trial balance steps. First, make a comparison between the ledger balances and the amount posted to the trial balance then add both debit and credit table if the amount matches, otherwise use the transposition method.
Answer:
d.Expenses for travel as a form of education are not deductible.
Explanation:
Expenses in the nature of travel, are not allowed while the travel might be for the purpose of education.
This is because it is not in the nature of direct expense.
As the expense for the purpose of business which are important for the business to pursue in a more positive manner is preferable and essential for the business.
As extra education and knowledge provide excellence to perform the task for which knowledge is acquired.
Answer: Tony has explicitly breached the Implied Warranty of Fitness for a particular purpose.
Explanation: the Implied warranty of fitness for a particular purpose takes effect when a buyer specifically asks a seller for a product that can be used for a particular purpose.
Because Mark (buyer) requested for the exact type of wood that can resist wood decay caused due to the damp environment of his cabin and Tony (seller) sells Mark lumber while assuring him that it's what he is looking for. Tony's assurance to Mark is known as the Implied warranty of fitness for a particular purpose, and since the wood is affected by dampness and caves then Tony has explicitly breached the warranty.
Answer: Old machine should be replaced.
Explanation:
The variable manufacturing cost will reduce by:
= 624,000 - 524,000
= $100,000
Over a period of 5 years this will be:
= 100,000 * 5
= $500,000
Selling the old machine would bring in $32,000:
= 500,000 + 32,000
= $532,000
The cost of the new machine would reduce this gross benefit by:
= 532,000 - 455,100
= $76,900
<em>Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought. </em>
