Answer:b. net income is overstated
Explanation:
The cost of inventory which is a constituent of cost of goods sold will have an impact on the income, an higher cost of inventory means low net income and lower cost of inventory means an higher net income. Therefore if the inventory is understated it leads to profit overstatement.
Net income will not be understated because a cost item has been understated but it will only be overstated, cost of merchandise sold is understated but this is the action and not the effect, merchandise on the balance sheet will be understated and not overstated.
If a worker’s nominal wage rate increases from $10 to $12 per hour and at the same time the general price level increases by 10 percent, the worker’s real wage
Answer: $1.53776
Explanation:
Using the interest rate parity formula :
Forward currency exchange rate (F) = 1.50
SPOT rate (S) =?
Interest rate on domestic currency (Id) = 1%
Interest rate on foreign currency (If) = 1.5%
SPOT RATE(S) is given by;
S = F × (1 + If) ÷ (1 + Id)
S = 1.50 ×(1 + 0.015) ÷ (1 + 0.01)
S = (1.50 × 1.015) ÷1.01
S = 1.5225 × 1.01
S = $1.537725
The guidelines is called <span>Generally accepted accounting principle.
</span><span>Generally accepted accounting principle is a method to conduct financial reporting that is deemed as acceptable for Security Exchange Comission.
</span>The purpose of the GAAP is to ensure that all companies follow a generalized rule in making their finnacial report.
Answer:
<em>Confidentiality duty to Kim has been violated by Greg</em>.
Explanation:
Remember Greg is acting as agent or real estate agent to Kim.
According to law he owed a duty of confidentiality to Kim which involves not disclosing any information of benefit which he may have gotten from his client (Kim) to third parties (buyers) without permission from Kim.
Therefore, Greg was not suppose to mention that Kim would have accepted less for her home.
