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:
Dr Cash 800,100
Cr Preferred stock 622,300
Cr Additional paid in capital, preferred stock 177,800
Explanation:
Preferred stocks and common stocks are part of stockholders' equity. Whenever they are sold above par value, the difference must be recorded as additional paid in capital. You must also specify which stocks were sold at a higher value.
Answer:
$52,267
Explanation:
Calculation to determine the break-even level of earnings before interest and taxes between these two options
EBIT/40,000 = [EBIT- ($280,000 ×0.07)]/25,000
EBIT/40,000 = [EBIT - ($19,600)]/25,000
Cross multiply
25,000EBIT=40,000(EBIT-19,600)
25,000EBIT=40,000EBIT-784,000,000
EBIT = $52,267
Therefore the break-even level of earnings before interest and taxes between these two options is $52,267
<span>Absolute Dominion is the current law involving ground water in Maine, Indiana, and Texas which in effect states that the owner of the property has complete control over the groundwater underneath their property and may pump that water up without regard to causing shortages with neighbors. Basically, you can pump as much as you want without worry about legal repercussions. Contrast this to the "reasonable use" rule that's used in most of the rest of the United States. The reasonable use rule prohibits landowners from "wasting groundwater" or transporting the groundwater off their property for use elsewhere. Now, how does this affect Nestle? In Maine there was a company called "Poland Springs" which pumped out groundwater for drinking in the local community. This company was purchased in 1980 by Perrier which is based in France. And finally, in 1992, Nestle purchased Perrier. Under Absolute Dominion, Nestle has no limit on how much groundwater they can pump and export to other locations without regard to long term sustainability.</span>
The choices can be found elsewhere and as follows:
A. Avoids the security vulnerabilities that are inherent in social media.
B. Uses the newest technology available.
C. Enhances comprehension of the message content.
<span>D. Requires the user to take a specific action to access the message.
I believe the correct answer is option C. </span>In an emergency the most effective communication tool is one that reaches the target audience is timely and reliable and enhances comprehension of the message content.
