Answer:
The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.
Explanation:
The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.
The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.
In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.
Answer:
Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253
Explanation:
Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due
= $50,000 * 6.20979
= $310,490
Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629
Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253
Answer:
The correct answer is "option B".
Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Explanation:
The demand for labor among cotton-producing Texas will firms in Texas will <u>increase.</u> This will happen because of the increase in world price leads to increment in wages.
The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will <u>decrease</u>. This is because cotton is an input. The increase in price of cotton increases the cost which reduces the profits which leads to less hiring of workers.
The temporary unemployment resulting from such sectoral shifts in the economy is best described as <u>frictional</u> unemployment.
Government measures to reduce frictional unemployment is:
<em>Improving a widely used job-search website so that it matches workers to job vacancies more effectively</em>
The option C is not correct, because, another measure that the government uses is to withdraw benefits to short-term unemployed. There would be a greater incentive for workers to find work quickly.
Answer and Explanation:
A good number of problems usually arise with outsourcing from outside the country.
1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.
2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.
3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.
4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China
Answer:
b. 4 percent
Explanation:
According to the rule of 72, hte number of years required for an investment to be doubled can be obtained by dividing 72 by the interest rate (in percentage). If it takes 18 years for the investment to bouble in value, the interest rate is:
The interest rate on the deposit is 4%.
