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DanielleElmas [232]
2 years ago
7

An effective accounting system should identify and record only the valid transaction of the entity that occurred in the current

period, which relates to the
Business
1 answer:
mihalych1998 [28]2 years ago
8 0

Answer:

Existence or occurrence assertion

Explanation:

In simple words, The existence as well as occurrence allegation determines whether assets and liabilities occur at a specific date and if activities have been documented. If fraudulent sales were reported, there would be a deception. Exaggeration of financial stating parts is a major risk here.

Thus, from the above we can conclude that the correct answer is existence or occurrence assertion

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Bruce is the owner of Orion Inc., a manufacturer of electronic gadgets. He wants to hire the most honest job applicants as marke
Evgesh-ka [11]

In the context of employee selection, it can be inferred that Bruce is likely to employ an integrity test .

<u>Explanation: </u>

The integrity test is a particular kind of psychological test intended to assess whether the individual is trustworthy, truthful and reliable. The lack of integrity is related to fraud, crime, vandalism, disciplinary issues, and absences.

Two main categories of honesty assessments are covert (character-based) tests that assess features relevant to obedience to rules; and transparent measures that analyze a candidate's attitudes to different CWBs explicitly.

Integrity tests can sometimes be reasonable job performance measurements all in all. This isn't shocking, because honesty is strongly linked to perception, which is a strong indicator of overall employment success.

When tandem with cognitive skills tests, credibility assessments may provide considerable value to a selection process as others ' personality characteristics.

6 0
3 years ago
Which of the following is not included in Michael Porter's Five Forces Model? a. Cost Leadership b. Supplier Power c. Threat of
grigory [225]

Answer:

a. Cost Leadership

Explanation:

Porter five forces of the model refers to the rivalry among competitors, bargaining power of suppliers, bargaining power of buyers, the threat of new entrants, the threat of substitution.  

The competition between rivals deals with the competitors ' strengths and weaknesses so that the business does the planning appropriately.

The supplier's bargaining power indicated that the shift in the price of the product caused by the supplier's offer and the consumer is motivated to the product as the product is special which affects the overall profit

The buyer's bargaining power relates with the number of buyers and how many orders a single buyer places.

The threat of new entrants will affect the company's total position if the competitor comes on the market.  

The threat of substitution is an alternate way of producing the goods and services that can also weaken your position and have a direct impact on profitability.

6 0
3 years ago
Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The
allochka39001 [22]

Answer:

Variable Cost  -$448,000  

Explanation:

The contribution margin formula it's : Net Sales - Variable Costs: Contribution Margin

The contribution margin indicates how much money the company has to cover its expenses not included in the cost of the goods or the variable costs, it is the remaining amount that is used to pay the administrative and sales expenses.

In this case:

Sales : 16.000 x $40 (price) = $640,000

Contribution Margin 30% which means 30%*$640,000 = $192,000

The difference it's the Variable Costs = -$448.000  

6 0
2 years ago
You have been hired by the CFO of Lugones Industries to help estimate its cost of common equity. You have obtained the following
LekaFEV [45]

Answer:

Under CAPM:

Re = Rf + Beta(Rm - Rf)

Rf = 5%

Rm - Rf = 6%

Beta = 1.25

Re = 5% + (1.25 x 6%) = 12.5%

Under dividend discount model:

Re = (Div₁ / P₀) + g

Div₁ = $1.20

P₀ = $35

g = 8%

Re = ($1.20 / $35) + 8% = 11.43%

Under bond yield plus risk premium approach:

Re = Pre-tax cost of debt + risk premium over its own debt

Pre-tax cost of debt = 7%

risk premium over its own debt = 4%

Re = 7% + 4% = 11%

The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.

7 0
3 years ago
PLEASE HELP ME IM STUCK ON THIS
iren [92.7K]
C because it’s something you pay every month
8 0
3 years ago
Read 2 more answers
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