Select the correct answer.

julsineya [31]

Answer:

1. False

The higher the figure, the higher the risk. Kindly note that loans are usually insured against default. The higher the amount insured, the higher the premium payable as insurance on such amounts.

2. False

It does not make for good internal control to have one person regardless of their position to have the final say on loans of great magnitude such as $5 Million. This can quickly degenerate into a situation where the officer involved is tempted to abuse that power. It makes for good corporate governance and risk management to ensure that the board is responsible for loans of such magnitude.

3. True

If a bank lost $100 in a thousand places, from loan default, that translates to a loss of $100,000. This relatively is large however it is small and will have less impact that a loss of a million dollars in 3 places. That's $ 3,000,000.

As already indicated, it makes for good loan disbursement governance, to ensure that there is at least two persons involved in the risk acceptance criteria (RAC) evaluation and loan disbursement process.

4. False

Separation of duties is the foundation of good internal control. It allows for greater objectivity. It is also key to carefully select signatories to loan disbursements. They have to be people of impeccable character and the company must exercise proper risk management to ensure that every protocol such as opportunity that may create the impulse or inclination to breach policy is removed completely.

Cheers!

5 0

3 years ago

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In

Leya [2.2K]

Answer:

Results are below.

Explanation:

To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4.4 - 4.15)*90,500

Direct material price variance= $22,625 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (8*11,250 - 90,500)*4.4

Direct material quantity variance= $2,200 unfavorable

Total direct material variance= 22,625 - 2,200= $20,425 favorable

To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4

Direct labor time (efficiency) variance= $10,050 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (13.4 - 14.1)*14,250

Direct labor rate variance= $9,975 unfavorable

Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable

5 0

3 years ago

How many method(s) of distributing goods and services can satisfy all wants.?

Kipish [7]

The answer to the question above is NONE, there is no method(s) of distributing goods and services that satisfies all wants of the people. Wants are in constants change and infinite due to change of demands. Satisfaction of human wants are limited to the amount of natural and human resources availability.

5 0

4 years ago

Read 2 more answers

Which of the following is a correct statement? Multiple Choice A supply shock will cause a variation of demand-pull inflation th

tester [92]

Answer:

B) Demand-pull inflation will continue so long as there is excess spending in the economy

Explanation:

3 0

3 years ago

Read 2 more answers

If the company Apple began prototyping a driver-less car, which of Porters Five Forces is present to the automotive industry?

galben [10]

Answer:

Threat of new entrants to a market

Explanation:

These forces are:

1. Competition in the industry

2. Potential of new entrants into the industry : This is a disruptive product .

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

6 0

4 years ago