Answer:
Reverse the related expense.
Explanation:
In this scenario Muller has already realised the compensation expense for achievement of the particular target. In accrual accounting only the expenses that we have already incurred or are certainly going to incur will be recognised and recorded.
Muller has concluded that the executive will not meet the target and therefore will not the eligible for the compensation. Muller should reverse the related expense as it is unlikely it will incur it.
Answer:
The answer is TRUE.
Explanation:
The signing of the project portfolio statement signals the transition from the high-level project initiating stage into the more detailed project planning stage. It is a TRUE STATEMENT
The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
Answer:
(B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
Explanation:
Net present value (NPV) simply differentiates between the present value of cash inflows and the present value of cash outflows.
And the rule is that a company should only invest or be engaged in any business that has a positive net present value and exclude themselves from businesses that have been negative net present value as this can increase the company's income.
