Answer:
The correct answer is letter "D": Justifies ignoring the matching principle or the realization principle in certain circumstances.
Explanation:
According to the General Accepted Accounting Principles (GAAP), the materiality principle states that some accounting transactions could be ignored as long as they do not affect the Financial Statements. The issue relies on the accountant deciding which transactions to ignore since there is not a set guide established by the GAAP stating what could or could not be ignored.
Thus, <em>the matching or realization principle could be ignored as long as the transactions involved do not affect the Financial Statements.</em>
Answer:
b. The unlevered beta will remain the same and the levered beta will decline.
Explanation:
Unlevered beta excludes the effect of debt on the investment. It represents only the risk associated with equity of the company. Change in the debt to equity ratio will not effect the unlevered beta. Unlevered beta will remain same.
Unlevered beta includes the effect of debt on the investment. It represents the risk associated with equity and debt of the company. Change in the debt to equity ratio will change the unlevered beta. Unlevered beta will decline with the reduction in debt to equity ratio as risk associated with debt decreases.
Answer:
True
Explanation:
The reason is that all the management owe fiduciary duties towards the shareholders and the corporation as well because the managers are acting as an agent and their principal is shareholders are principal so the agent must act in the best interest of the principal and shareholder's best interest here is long term success of the company with no fraudulent activities in the company. This law protects the shareholders by stating that management owe fiduciary duty to shareholders which is a true statement.
Answer:
It has to be a free resource or good
I believe that the rate of unemployment may increase, because now they do not have to tolerate the normal harshness of unemployment