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3 years ago

Difference between compulsory and non-compulsory insurance

1 answer:

7 0

Compulsory insurance is a type of insurance that is required by law before you can engage in specific activities. This kind of insurance is meant to protect you from harm in some way, an example would be the legal requirement to have auto insurance to drive a car or having health insurance in the United States.

Non compulsory insurance is pretty much everything that you are not required to have, insurance such as travel insurance, life insurance, phone insurance, etc. Although it is a good idea to get these, they are not required.

Non compulsory basically means voluntary while compulsory means required.

You might be interested in

Which statement about portfolio diversification is correct?

mario62 [17]

Answer:

C. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate.

Explanation:

Portfolio diversification gives more security to a portfolio, which expected to results in a decreasing rate of total risk.

The portfolio which is diversified carries the co-variance measure of risk. It has the property of reducing the risk as it diversifies the portfolio to a great extent.

It reduces the overall risk by diversifying the assets i.e. stock , bonds, commodities etc.

Hence, the most appropriate answer is option C.

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3 years ago

Which of the following statements will an auditor most likely add to the negative from of confirmations of accounts receivable t

MrRissso [65]

Answer:

The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".

Explanation:

Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.

In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.

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3 years ago

Four types of visual aids

lord [1]

Answer:

FOUR types of visual aids are, but not limited to, physical samples, models, handouts, pictures, videos.

3 0

2 years ago

Sarbanes-Oxley does not require:

Novosadov [1.4K]

Answer:

B) companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.

Explanation:

Sarbanes- Oxley is popularly called SOX and which is also know as the ''Public Accounting Reform and Investor Protection Act'' in the United States' Senate and ''Corporate and Auditing Accountability, Responsibility and Transparency Act'' is a USA federal law the sets out new regulations for all U.S public company boards, management and public accounting firms. Some part of the Act makes provisions that apply to privately owned companies.

The Sarbanes-Oxley is named after the bill sponsors that is Senator Sarbanes and a U.S Representative known as Micheal G. Oxley and this bill makes sure that the top management of a company must each individually determine and certify the accuracy of all financial information provided or stated. This bill was enacted in 2002 to curb a number of major corporate accounting scandals, especially those affecting big accounting firms like ; Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom that cost investors to loose a lot of money when the their shares collapsed.

As a guiding principal companies and organizations are supposed to adhere to the options mentioned above except for option B which states: companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.

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3 years ago

Litton Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the b

Minchanka [31]

Answer:

Overapplied overhead= $7,575

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,250,000 / 40,000

Predetermined manufacturing overhead rate= $31.25 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 31.25*4,780

Allocated MOH= $149,375

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 141,800 - 149,375

Overapplied overhead= $7,575

6 0

3 years ago