Answer:
1. False
2. False
3. False
4. True
5. True
Explanation:
1.
Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.
2.
Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.
3.
The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting. Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.
4.
The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.
5.
The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.
Answer:
Sry, I can't understand anything at all!
Answer:
D. the demand for Nike running shoes is less elastic than the demand for shoes.
Explanation:
In this the substitutes would be more for the particular brand rather than the normal running shoes. Since the demand of running shoes might be less elastic as compared to the demand of nike running shows because the consumer shifted from the nike to other brand that are popular. Plus, the elasticity of demand for running shoes is considered to be inelastic as there is many subsitutes
So, the option d is correct
Answer:
The incorrect statement is number (3): Workers are viewed like machinery, needed to get the job done, nothing more.
Explanation:
Lean production or Lean Manufacturing is a method of work organization that focuses on the continuous improvement and optimization of the production system by eliminating waste and all activities that do not add any value to the process. Its main purpose is to minimize the losses that arise in any manufacturing process and implement only those resources that are relevant.
<em>Lean production aims to boost employees' efficiency not necessarily automating their duties.</em>
Answer:
$23,300
Explanation:
Bad debt Expense will be calculated using the account receivable method. The expense is calculated using the account receivable aging analysis.
Closing Value of the Allowance for Doubtful Accounts will be as follow
As Allowance for Doubtful Accounts already have Credit balance of $12,200, we need to adjust the remainder to make the closing credit balance of Allowance for Doubtful Accounts $35,500 at the year end.
Adjustment Value = $35,500 + $12,200 = $23,300
This Expense will be recorded as follow
Dr. Bad Debt Expense $23,300
Cr. Allowance for Doubtful Accounts $23,300
