Answer:
The correct answer is a. Rational decision-making perspective.
Explanation:
The rational model pursues the constitution of a process of choice among alternatives to maximize the benefits of the organization. It includes a broad definition of the problem, an exhaustive collection and analysis of the data, as well as a careful evaluation of the alternatives. Andreu, in the year (2001), affirms that the criteria for evaluating alternatives are well known and assumes that the generation and exchange of information between individuals is objective and precise. Therefore, the rational decision-making model is based on 3 explicit assumptions:
- All available information related to the alternatives has been obtained.
- These alternatives can be classified according to explicit criteria.
- The selected alternative provides the maximum possible profit for the organization (or for decision makers).
Answer: False
Explanation:
The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.
It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.
Answer:
A. 2 years
B. 86.96
C. 16.46%
Explanation:
Payback period calculates the amount of time taken to recoup the initial investment made on a project.
The net present value substracts the present value of tax adjusted cash flows from the amount invested in the project.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
NPV = $86.96
Internal rate of return is the discount rate that equates the tax adjusted cash flows from a project to the original amount invested.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
IRR = 16.46%
The Sarbanes-Oxley Act of 2002 requires the CEO (Chief
Executive Officer) and the CFO (Chief Financial Officer) to personally certify
the accuracy of the financial statement that the company has filed with the
Securities and Exchange Commission as
members of senior management.
