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Shalnov [3]
2 years ago
15

Which statement is false? a. Characteristics that would make a misstatement material include: The relative size of the misstatem

ent. b. A misstatement is an error, only intentional, that exists in a transaction or financial statement account balance. c. Characteristics that would make a misstatement material include: The misstatement would have been viewed by a reasonable investor to have significantly altered the total mix of information available. d. Characteristics that would make a misstatement material include: The misstatement makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.
Business
2 answers:
Masja [62]2 years ago
5 0

Answer:

The false statement here is option D) Characteristics that would make a misstatement material include: The misstatement makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.

Explanation:

In the context of a financial audit, a material misstatement is untrue information in a financial statement that could affect the financial decisions of one who relies on the statement.

For instance, when management uses accelerated depreciation method for an asset which generates benefits evenly over its useful life.

Sergeeva-Olga [200]2 years ago
4 0

Answer:

The correct option is  "<em>d." Characteristics that would make a misstatement material include: The misstatement makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.</em>

Explanation:

<em>A misstatement </em>is a false or incorrect statement. So a material misstatement is a significant statement that is false or incorrect. In the context of a financial audit, a material misstatement is untrue information in a financial statement that could affect the financial decisions of one who relies on the statement.

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The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15
Helga [31]

Answer:

D. Debit to Dividends Payable.

Explanation:

The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:

  • On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.

  • On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was <em>discounted</em>, because it is now in the hands of shareholders.
8 0
3 years ago
Which one of the following is not an assumption for the law of one price? a. There is free competition b. There is no transporta
icang [17]

Answer:

d. The skill level of workers is identical in both countries.

Explanation:

The Law of One Price is an economic theory which explains that the price of identical or similar goods in different markets must be the same after taking the currency exchange into consideration. In law of one price, there is perfect competition and It ensures that buyers have the same purchasing power across global markets.

8 0
3 years ago
Samples Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $21
Anvisha [2.4K]

Answer:

$18.60

Explanation:

Target cost:

= Sales revenue - Profit

= (No. of units sold × Selling price per unit) - (Investment require × desired return on investment)

= (20,000 × $21) - ($400,000 × 0.12)

= $420,000 - $48,000

= $372,000

Target cost per unit:

= Target cost ÷ Number of units

= $372,000 ÷ 20,000

= $18.60

Therefore, the target cost per unit is closest to $18.60.

5 0
3 years ago
What is the typical number of payments that can be made toward paying off a revolving credit loan?
lara [203]

THE ANSWER IS UNLIMITED


6 0
3 years ago
Read 2 more answers
Suppose that a simple society has an economy with only one resource, labor. Labor can be used to produce only two commodities ax
max2010maxim [7]

Answer:

a, The PPF intersect the Y-axis at 1000 units of luxury goods

   The PPF intersect the X-axis at 500 units of necessity good

    It means that when the society produces zero units of necessity, it can          produce 1000 units of luxury goods and if they use all resources to produce necessity, they can produce 500 units only

b. The economy can produce at a point inside the curve IF (1) There is underutilized of the available resources. (2) There is inefficiency in the use of resources  

c. I will want to produce more necessity than luxury. The decision on which point the society will want to be depend on the type of economic system being practiced by my society, if it is free market, the price system will determine it and for a socialist system, the government decides.

d. If I am a dictator, I will make decrees as to the economic direction I want for the society and where the product distribution is left to the free market, the price system decides.

Explanation:

The production possibility frontier is a graph that shows the trade-off between two commodities which a country can be assumed to produce. An economy can operate on the PPF in which case it is using its resources to the fullest. It can operate inside the curve which means under-utilization of resources or inefficiency in resources utilization. A country cannot operate outside the curve except there is technological progress or economic growth.

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4 0
3 years ago
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