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Murljashka [212]
3 years ago
15

Jack Weston, the CEO of Evans, Inc., along with Evans’ CEO, Jason Stiller, used non-GAAP numbers to develop the earnings stateme

nts for Evans for 2016. The result was that the earnings for Evans were 16% higher in the financial reports than they actually were. Executive compensation at Evans is tied to earnings, and Jack and Jason’s bonuses for 2016 were 26% higher than in 2015 because of the jump in earnings that were later discovered to be fabricated using non-GAAP methods. Which of the following is correct?​ a. ​Under Dodd-Frank, the auditors are liable for the falsified earnings, not the CEO or CFO. b. ​As long as the shareholders approved the pay packages for Jack and Jason, there is no action that they can take on the compensation. c. ​both a and c d. ​Under Dodd-Frank, Jack and Jason will be required to pay back the extra compensation they received as a result of the falsified earnings.
Business
1 answer:
Zanzabum3 years ago
3 0

Answer:

d. ​Under Dodd-Frank, Jack and Jason will be required to pay back the extra compensation they received as a result of the falsified earnings.

Explanation:

Generally Accepted Accounting Principles (GAAP) earnings refers to standards that are commonly accepted and used financial reporting by publicly traded companies.

On the other hand, non-GAAP earnings refers ton an alternative accounting method employed by companies to measure the earnings especially by excluding one-time transactions like  an organizational restructuring.

A non-GAAP method adjusts similar GAAP measure which are reported on the audited financial statements such as earnings before interest, taxes, depreciation and amortization (EBITDA) but it not backed by law.

Because non-GAAP measure is not backed by law, it can produce a misleading report when items that have impact on GAAP earnings are excluded.

As a result of non-GAAP method, many companies were affected during the Great Recession in the US leading to the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act (shortened to Dodd-Frank). the major aim of Dodd-Frank was to change federal financial regulatory agencies and almost all parts of the financial services industry of the US. One of the provisions of the Dodd-Frank is to require to pay back any compensation got through falsification of document.

Given the above, Jack and Jason will be required to pay back the extra compensation they received as a result of the falsified earnings under Dodd-Frank.

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Good Guy Foods wants to establish a trust fund that will provide $125,000 in scholarships each year for needy students. The trus
andrew-mc [135]

Answer:

Good Guy Foods

The amount that the firm needs to contribute to the fund, assuming that only the interest income is to be distributed is:

d. $1,724,138

Explanation:

a) Data and Calculations:

Distributable Trust Fund = $125,000

Rate of interest or return = 7.25%

The distributable trust fund is a product of total trust fund multiplied by the rate of return.

The total trust fund = $125,000/7.25%

= $125,000/0.0725

= $1,724,138

Check:

7.25% of $1,724,138 = $125,000

b) Good Guy Foods needs to contribute $1,724,138 in funds that will earn 7.25% annually and equal the scholarship amount of $125,000 annually.

5 0
3 years ago
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of oper
Olin [163]

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

Variable costs per unit:                        

Manufacturing:

Direct materials                                               $ 6

Direct labor                                                      $ 9

Variable manufacturing overhead                 $ 3

Variable selling and administrative                $ 4  

Fixed costs per year:

Fixed manufacturing overhead                      $ 300.000

Fixed selling and administrative                     $ 190.000

During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit.

The four steps of writing an income declaration are: to identify sources of sales, in addition to profits from investments, for an instance pick out business enterprise prices and losses incurred over the same period. Consolidate sales, charges, profits, and losses by means of category, payee, or some other factor.

Learn more about Income statements here:-brainly.com/question/1798830

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7 0
2 years ago
Commanders at most operational-level headquarters have observed that ccirs are developed to support three major activities. one
Paha777 [63]

The other two major activities are:

1: Understanding complex environment

2: Commander decision-making

The CCIRS (Commander’s Critical Information Requirements) is the information relative to the areas or critical threats that prevent from expiring with the success of the mission.

8 0
3 years ago
Mike started a calendar year business on September 1st of this year by paying 12 months rent on his shop at $1,000 per month. Wh
solong [7]

Answer:

C. $12,000 under the cash method and $4,000 under the accrual method

Explanation:

Under the cash basis of accounting, whenever an amount is received or paid, it is recognized in the books of accounts

Whereas, on the accrual basis of accounting, the cash received / payment or not it is recognized in the books of accounts. It is recorded when it is earned not when it is received or paid.  

So, by this above information

The cash method would recognize $12,000 ($1,000 × 12 months)

Whereas

The accrual method would recognize $4,000 ($1,000 × 4 months)

We assume the books are closed on December, 31

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3 years ago
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I am Lyosha [343]

Answer:

d) All of the above

Explanation:

Here are the options to this question :

a) Geographic

b) Demographic

c) Psychographic

d) All of the above

e) None of the above

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When Ashton Woods determines that homeowners are seeking locations convenient to good, local schools, he is segmenting by geography.

Demographic segmentation is the segmentation of people based on demographics such as age, income, gender, ethnicity.

When Ashton Woods profiles households based on the income they earn, he is doing demographic segmentation

Psychographic  segmentation is the segmentation of a group of people into groups based on certain psychological characteristics

When Ashton Woods determines that homeowners would want like a beautiful upscale home, without the cost of maintaining a large yard. He is segmenting based on  Psychography

4 0
3 years ago
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