Answer:
Confirmation of accounts receivables is not required when the account information is immaterial.
An account is said to have immaterial information when the account doesn't reflect any important or relevant information that can affect the opinions or decisions of shareholders, potential investors or creditors of the company.
The auditors have the responsibility of deciding what information is relevant and important and what is immaterial
Answer:
- <u><em>Option b. significant positive externalities.</em></u>
Explanation:
<em>Externality </em>is a concept used in economics.
<em>Externalities</em> are consequences of an economic activity that fall on a third party that does not directly participate in it; this is a person who is either the consumer or the producer of the good or service.
The impact of the <em>externality</em> on the third party may be beneficial or adverse. A beneficial externality is a positive externality; an adverse externality is a negative externality.
In the health care system the consumers are the patients and the producers are the physicians, nurses, hospitals, are related ones.
But many others have interest in the health care system: government, insurers, and persons who are not directly patients.
Two examples of important sources of externalities that I found in the internet are the vaccination and the research.
Regarding vaccination, the person who is vaccinated is not the only one who receives the benefit: the neighbors, the fellow workers, the community and the entire society are benefited by you and everyone who is vaccinated. This is a<em> positive externality</em>.
Regarding medical research, the benefit of a laboratory finding a new drug to cure a disease affects positively others.
Answer: price behavior that differs from the behavior predicted by the efficient market hypothesis
Explanation: In simple words, market anomaly refers to the difference in the price of the securities that occurs due to the variable factors that were not considered appropriately in the efficient market hypothesis.
The environment of market is very dynamic and there are certain variables that could not be predicted completely. Hence the prices of securities differes from hypothesis in actual.
Answer:Total income tax Liability = $72000
Explanation:
The question did not provide us with requirements. however after assessing the information provided in the question we can assume that the question requires us to calculate the income tax liability for the year 2019.
Differed tax arises as a result of temporary differences in the tax laws and accounting policies from example accounting strictly uses accrual system while most Receiver of tax revenue organisations in different countries they use a combination of Cash system and Accrual system.
Excess of Tax Depreciation = $40000
When tax depreciation is higher than Book Value Depreciation the Tax Base (cost - accumulated tax depreciation) will be lower that the Book value (cost - accumulated depreciation). Tax Base will be Lower by $40000 which indicates a Differed tax Liability.
Differed Tax Liability = $40 000 x 20% = $8000
Income received In advance
Income received in advance creates a Tax liability for the Wenger Corporation because Receiver of Tax revenue uses Cash system with regards to transactions of this nature.
Differed Tax Liability = $20000 x 20% = $4000
Income Tax = 300 000 x 20% = $60 000
Total income tax Liability = 60 000 + 8000 + 4000 = $72000
Answer:100
Explanation:
The following information can be gotten from the question:
Cost for 10 sofas = $2500
Cost for 12 sofas = $2760.
Average Cost = Total Cost/Quantity
2500 / 10 = $250 and
$2760 / 12 = $230
The average cost for 12 sofas will be $230
Marginal cost is the change in total cost divided by the change in quantity. This will be:
= ( 2760 - 2500 )/( 12 - 10 )
= 260/2
= 130
The difference between the average cost per sofa for 12 sofas and the marginal cost of the 12th sofa will be:
=230 - 130
= 100