Answer:
This is NOT an example of a judgement in accounting for inventory is:
the amount paid to a supplier for raw materials.
Explanation:
Professional judgment is always required to determine the value to be ascribed to ending inventory. This judgment results from the application of years of accumulated knowledge and experience which the professional accountant has acquired through relevant accounting or auditing training. The result is the making of informed inventory valuation decisions while observing professional ethical standards.
The answer is the third one down. The amendment doesn't want people overly fined or overly punished meaning nothing to harsh so the third one down is the answer.
Hope this helps.
Answer:
3 years
Explanation:
Since the income tax is ignored, so the operating cash flows would be
= EBIT + Depreciation - Income tax expense
= $105,000 + $45,000 - $0
= $150,000
The operating cash flows are same for ten years
And, the initial investment is $450,000
So, the payback period would be
= Initial investment ÷ Net cash flows
= $450,000 ÷ $150,000
= 3 years
Answer:
Yes, the prices of large capitalization stocks tend to be more efficient.
Explanation:
Large capitalization stocks are much more liquid than small capitalization stocks since they belong to well established companies that are generally industry leaders. A lot of investors trade their stocks every single day, which results in thousands of them being sold every trading day. That also lowers the opportunity for arbitrage, since a large of investors must be wrong and a single (or a few) arbitrator must be right.
Large capitalization stocks generally have more stable prices and tend to pay consistent dividends. Their sustainable growth rate is lower than most small capitalization stocks but it is much more steady. This also results in lower potential returns when investing in large capitalization stocks since they pose a very low risk. On the other hand, small capitalization stocks pose a larger risk and one of them is that they are not valued correctly (which allows arbitrators to step in).
