- Would an investment generate attractive returns?
- What is the degree of risk inherent in the investment?
- Should existing investment holdings be liquidated?
- Will cash flows be sufficient to service interest and principal payments to support the
firm's borrowing needs?
- Does the company provide a good opportunity for employment, future advancement, and
employee benefits?
- How well does this company compete in its operating environment?
- <span>Is this firm a good prospect as a customer?</span>
Answer:
The Journal entries are as follows:
(i) Sales revenue A/c Dr. $900
To Cash $900
(To record the correction in sales revenue)
(ii) Merchandise Inventory A/c Dr. $200
To Cost of Goods sold $200
(To record the merchandise returned)
Note:
(1) At the time of sale, the cash would have been debited with the amount of $900 and the sales revenue would have been credited with the amount of $900. Now, the cash of $900 should be credited as it was debited earlier.
(2) The inventory account also credited at the time sale, so it should be debited and the cost of goods sold debited at the time of original sale, so it need to be credited.
The system of checks and balances is an important part of the Constitution. With checks and balances, each of the three branches of government can limit the powers of the others. This way, no one branch becomes too powerful.
Answer:
the three of them could be held personally liable:
- I. John
- II. John's manager
- III. The CEO, who in this specific case we assume could have prevented the crime.
Explanation:
John committed forgery and possibly fraud by forging clients' signatures on documents held by the company. His boss ordered him to do so, so he is also responsible for John's actions. John can even try to put all the blame on his boss alleging that he was forced to forge the signatures. The CEO of the firm is also responsible because the forged documents had to serve someone's illegal purposes, and the CEO probably was the one that needed them or knew about what was going on and didn't do anything to stop it.
