Answer:
Information and communication
Explanation:
Internal control refers to the management procedures in place used to accomplish the objectives such as promote efficient and effective operations, ensure the reliability and integrity of financial information, safeguard the organisation's assets, etc. A good system of internal control is essential to the availability of information and a clear and obvious strategy for communicating obligations and expectations.
Answer:
$-13,975.91
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-95,000
Cash flow in year 1 = $30,000
Cash flow each year from 2 to 5 = $20,000
I = 12%
NPV = $-13,975.91
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
1. False
2. False
3. False
4. True
5. True
Explanation:
1.
Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.
2.
Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.
3.
The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting. Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.
4.
The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.
5.
The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.
Considering the situation described the many economists believe these policies helped avert another Great Depression but exacerbated the <u>inflation</u> problem in the financial system.
This is because the new policies and tools used to tackle the 2007-2008 financial crisis and recession was based on Keynesian economics.
However, while Keynesian economics concentrates on regulating aggregate demand to solve or prevent economic recessions, it is considered <u>inflationary</u>.
This is because it is believed that these policies encourage lower tax rates and increase the national deficit to ensure there is employment.
However, with more money in circulation, many economists believed it would cause inflation and more income disparity.
Hence, in this case, it is concluded that the correct answer is <u>Inflation</u>.
Learn more here: brainly.com/question/20036871
Answer:
Project A
Explanation:
There are two things to consider here when deciding on the project selection. First, the manager requirement to select the project which at least earns 12%.
Second, maximum return that could be generated from the project. This could be confirmed when determining which project has the highest Net present value (NPV). As NPV, is the difference between the present value of cash outflow (investment) and present value of cash inflow (returns) which is discounted at present time. If positive NPV is calculated then this means project is worthwhile.
Assessing the information given in the question, both projects earn at least 12%, therefore they both meet manager's requirements. While in case of Net present value Project A has the highest NPV and therefore suggest a better return on the project's investment in comparison to project B.
Hence, manager will likely choose Project A.
