Answer:
C. Value for price paid
Explanation:
The quality of goods are measured with the usefullness of the goods to the consumer and how much he is willing is pay for the product is etermined by the utility of goods to the consumer. Higher amount is paid for the goods, which has higher utility to the consumer and it also define quality to the consumer. Price and utility of product remain the main determinant for the quality.
Value of price paid is determined by utility or usefulness of the product for each dollar paid to buy it.
Answer:
Internal rate of return method
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash.
Answer:
Correct option is (a)
Explanation:
The statement that liability frauds are easier to detect than any other type of financial statement fraud is false. Asset overstatements or frauds are easier to detect than liability understatement. This is because, overstated assets are reported in the balance sheet while understated liabilities are not reported at all. So, they go undetected. Overstated assets can be analyzed by the investigators by analyzing the assets if they actually exist and if the amounts reported are genuine or not.
Answer: index funds
Explanation:
The implication of efficient capital markets and a lack of superior analysts have led to the introduction of index fund.
Capital market is a market whereby the buyers and sellers have to engage in the trading of financial securities such as stocks, bonds, etc.
An index fund is simply a form of mutual fund that has a portfolio that was constructed in order to track and also match components of the index of the financial market. An index fund provide low operating expenses, broad market exposure, and low portfolio turnover.
