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3 years ago

Discussion: AICPA Professional Code of Conduct

1 answer:

3 0

The aicpa code of professionalism conduct is a collection of codified statements issued by the American institution of certified public accountants that outlines a CPAs ethical and professional responsibilities

the six principles are responsibility, serve the public interest, Integrity, objectivity and Independence, due care, and scope and nature of services.

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The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hir

max2010maxim [7]

Answer: 10 months

Explanation:

It would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

Here is how;

Doing it themselves would cost -

$250 - For a lawnmower

$135 - For an edger

$69 - For a hedge trimmer

$25 - For a rake

Summing these up gives $479

It would cost the Hendersons $479 to purchase equipments to carry out their monthly yard maintenance themselves.

On the other hand, if they were to hire a professional service, it would cost

• $75 for the first month and

• $45 for subsequent months

So, $45 * 9months = $405

$405 + $75 (for the initial month) = $480

Comparing the $480 for a professional to the $479 it would cost to purchase equipment and do it themselves, it would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

5 0

3 years ago

Read 2 more answers

Gerritt wants to buy a car that costs $31,000. The interest rate on his loan is 5.67 percent compounded monthly and the loan is

gregori [183]

Answer:

$594.57

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment below:

Given that,

Present value = $31,000

Future value or Face value = 0

Rate = 5.67% ÷ 12 months = 0.4725

NPER = 5 years × 12 = 60 years

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;type)

The present value come in negative

So, after applying the formula, the monthly payment is $594.57

5 0

2 years ago

Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow

lakkis [162]

Answer:

$FCF_0=1.05$

So option (b) is correct option

Explanation:

We have given value of operation PV = $25.00

WACC, that is $Ke$ = 11.50% = 0.1150

It is grow at a constant rat of 7 % so g = 0.07

We have to find the value of $FCF_0$

We know that value of operation is given by

$PV=\frac{FCF_0(1+g)}{Ke-g}$

So $25=\frac{FCF_0(1+0.07)}{0.1150-0.07}$

$FCF_0=1.05$

So option (b) is correct option

4 0

3 years ago

Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no

kogti [31]

Answer:

The manufacturer should announce a guaranteed mileage of 44528 miles

Explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean $\mu$ and standard deviation $\sigma$ , the zscore of a measure X is given by:

$Z = \frac{X - \mu}{\sigma}$

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

$\mu = 47900, \sigma = 2050$

What guaranteed mileage should the manufacturer announce

Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.

$Z = \frac{X - \mu}{\sigma}$

$-1.645 = \frac{X - 47900}{2050}$

$X - 47900 = -1.645*2050$

$X = 44528$

The manufacturer should announce a guaranteed mileage of 44528 miles

6 0

3 years ago

Read 2 more answers

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your e

Aleks [24]

Answer:

10% of exam score

Explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised) while making a choice.

Example : If a person has option to have an apple or an orange, & choses to have apple. The opportunity cost of having an apple is the sacrifised orange.

Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.

4 0

2 years ago

Discussion: AICPA Professional Code of Conduct​

Discussion: AICPA Professional Code of Conduct