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2 years ago

A constraint on qualitative characteristics of accounting information is:

Business

2 answers:

Novay_Z [31]2 years ago

7 0

Answer:

cost effectiveness

Explanation:

In simple words, cost effectiveness refers to the attribute of some data or report in which the benefits of operations comes more than the cost leading to overall profit situation of the firm. As per the accounting standards, accounting information should be neutral, relevant and complete but cost effectiveness traits sometimes leads to some unethical practices like misleading information or misrepresentation.

Thus, cost effectiveness can be seen as a constraint on the accounting information as it works as an incentive to mislead the stakeholders or otherwise it could lead to damage to the firm in many ways.

Angelina_Jolie [31]2 years ago

5 0

Answer:

A constraint on qualitative characteristics of accounting information is COST EFFECTIVENESS

Explanation:

Cost-effectiveness places a constraint in qualitative characteristics of accounting information by analysing the way to examine both the costs and outcomes of one or more interventions. It compares an intervention to another intervention (or the status quo) by estimating how much it costs to gain a unit of a health outcome, like a life year gained or a death prevented

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Which of the following is a disadvantage of a questionnaire?

Deffense [45]

The sentence that shows the disadvantage of a questionnaire is option D. The sample of individuals who respond may not be representative of the population.

<h3>What is a questionnaire?</h3>

A questionnaire is a set of printed or written questions with a choice of answers, devised for the purposes of a survey or statistical study.

Therefore, the correct answer is option D. The sample of individuals who respond may not be representative of the population.

learn more about questionnaire: brainly.com/question/25257437

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1 year ago

If a contract involves a significant financing component:____________.

Pavel [41]

Answer:

The time value of money is used to determine the fair value of the transaction ( B )

Explanation:

If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.

therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money

7 0

2 years ago

Read 2 more answers

You purchased 500 shares in a mutual fund for $32 NAV. You elected the dividend reinvestment plan and had all dividend and capit

zloy xaker [14]

Answer:

Return on investment = 50%

Explanation:

Return on Investment is the proportion of investment cost that an investor earns as as return in dollar

For a mutual fund= total return in dollar/investment cost

= (48-32)× 500/(500× 32) × 100

=50%

<em>Note that the gains in dollar is the difference between the selling price at the end and the selling price at the beginnin</em>g.

8 0

2 years ago

You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, w

boyakko [2]

Answer:

1. 4 years

2. No

Explanation:

Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.

The cost of the project is $500,000

Cash flows are $125,000 per year for 10 years.

In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.

In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.

In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.

In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.

The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.

But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.

3 0

2 years ago

Assuming that the MR Corporation has an inventory of 200 defective motors costing $450,000 to produce and $150,000 to repair, if

ella [17]

<u>Answer: </u>True

<u>Explanation:</u>

Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.

Net proceeds from sale of units = 425000 - 150000

=$275,000

It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.

6 0

2 years ago