<span>The sales in 2018 will be $800,000. Let the sales in 2018 be x and 13% increase shows 1.13x and the calculation will be done by dividing 904000 with 1.13 and the answer will be 800000. This is simple calculation as the question is showing that the sales in 2018 were less so that answer is also checked.</span>
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<span><span>Depreciation is a </span>sunk cost. </span></span>It is the value lost on an asset
after consumption. In accounting, depreciation cost qualifies as a sunk cost
because it is already lost and cannot be recovered. For that reason, it is
correct to ignore depreciation cost when determining the future course of a
business.
Answer:
b) If auditors can demonstrate due diligence.
Explanation:
Under the liability provisions of section 11 of the Securities Act of 1933, auditors may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the registration statement. Under section 11, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence.
Section 11 of the Securities Act of 1933, 15 U.S.C. § 77k (1988), provides investors with the ability to hold issuers and others liable for any damage incurred and caused by false statements of fact or even material omissions of fact within registration statements as at when effective.
The Securities Act of 1933 was used to regulate the stock market as the first federal legislation. With this act, power was given to the federal government and taken away from the state governments.
Hence, the Securities Act of 1933 is used to protect investors from frauds by creating a set of standard rules.
In conclusion, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence in their services and responsibilities.
Answer: D. not liable if the instrument is dishonored.
Explanation:
The words "without recourse" on an indorsement means the indorser is not liable if the instrument is dishonored.
For example of a check is given to an individual without recourse, it simply means that in a case whereby the check is rejected, and not paid, the endorser will not be held responsible.
