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3 years ago

What is the relationship among agency theory, economic consequences, and signaling?

Business

1 answer:

PIT_PIT [208]3 years ago

6 0

Answer:

In agency theory, the company is a nexus or locus among competing groups. At the cost of shareholders money, management try to maximize their its compensations. In economic consequences, the some gorups can benefit at the expense of others. This is due to the accounting standard. Economic consequences tend to complement agency theory. In signaling, it is primarily towards one group. It is neither be in agreement with agency theory or economic consequences.

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Hilda Taba created the spiral curriculum in social studies, which means that concepts are introduced in younger grades at a lowe

seraphim [82]

Answer:

Part of the model: thinking can be taught, thinking is an active transaction between the individual and the data, the process of thought evolves by a sequence that is lawful.

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3 years ago

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increa

Dafna1 [17]

Answer:

a) Incremental income after taxes:

•Additional sales--------------$156,000

•Accounts uncollectible

(5% of $156,000)-------------$7,800

• Annal revenue increment

(Ad sales-acts colectible)--$148,200

• Collection costs

(5% of $156,000)-----------------$7,800

• Production & selling costs

(73% of $156,000)-------------$113,880

• Annual income before tax

(Annual incremental rev -

Collection costs-prod.&sell

Costs)------------------------------$26,520

• Taxes at 20% -----------------$5,304

• Incremental income after

tax-----------------------------------$21,216

b) Incremental income on sales =

Incremental income/Incremental sales.

= (21216/156000)*100

= 13.60%

c) Receivable turnover =

Sales/Receivable

Receivables =

sales/receivable turnover

= 156000/3 = $52000

Based on the new average, incremental return will be:

(21216/52000) * 100

= 40.80%

4 0

3 years ago

Since 1969, economic growth in ______ has been greater than in ______ because ______.

sashaice [31]

Since 1969, the economic growth in Hongkong has been greater than in the United States. Although both have been showing improvement and development when it comes to economic growth, Hongkong gave their best by devoting a bigger fraction of its resources to accumulating capital. Hongkong's production possibilities then have expanded more quickly. By 2009, the performance of Hongkong's economy has been promising for statistics states that the production possibilities of per person in the said country had reached 94 percent than in the United States. Another proof that Hongkong has been doing good is, it is considered as one of the world's leading financial centers. It boasts of its low taxation, almost free port trade and well established international financial market through its service-oriented economy. ‬

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3 years ago

At year-end (December 31), Chan Company estimates its bad debts as 1.00% of its annual credit sales of $794,000. Chan records it

yarga [219]

Answer:

1. bad debt expense debit 7940

allowance for bad debt credit 7940

2. allowance for bad debt debit 397

account receivable credit 397

3. account receivable debit 397

allowance for bad credit 397

4. cash debit 397

account receivable credit 397

Explanation:

the allowance will be the 1% of 794,000

then recognize the allowance for that ammount along with the bad debt expense

total write-off an account we decrease both, the allowance and account receivable

total reinstate the Parks account we do the previous entry backwards

lastly we post like any other collection from Account Receivable

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4 years ago

For a specific investment in equity securities, use of the equity method tends to produce ____ financial statement results than

insens350 [35]

The equity approach has a tendency to yield different financial statement outcomes for a particular investment in equity securities than the fair value technique would.

A financial investment in a firm known as an equity investment entails buying its stock on the stock market. On a stock exchange, these shares are commonly exchanged.

With the equity method of accounting, the investment is first recorded at cost and later modified to reflect changes in the investor's portion of the investee's net assets following the purchase. Investments in equity Investments with fixed returns, such as money market instruments, and debt securities such as bonds and notes (some fixed income investments, such as certificates of deposit, may not be securities at all)

Fair market value (FMV) is the cost of an asset when a buyer and a seller have reasonable knowledge of it and are ready to negotiate a price without being under any obligation. A corporation can report the earnings it makes from its investment in another business using the equity method of accounting.

To learn more about equity securities:

brainly.com/question/28069878

#SPJ4

5 0

2 years ago