Answer:
1- B. Expense will be $140,000 and liability will be $250,000
2- d. $250,000
3- d. $250,000
Explanation:
The expense will be $140,000 which is calculated by year 1 and year 2 percent filled. The calculation is as follows:
Year 2 liability : $1,000,000 * 25% = $250,000
Year 1 liability : $1,000,000 * 11% = $110,000
Year 2 expense = $140,000.
A budgeting procedure that includes the enter and negotiation of numerous layers of control describes the control philosophy of Participative budgeting.
The required details for Participative budgeting in given paragraph
Participative budgeting is a procedure below which humans impacted with the aid of using a price range are actively concerned within side the price range advent procedure. This method offers lower-stage managers a more feel of possession within side the ensuing price range. A basically participative price range does now no longer take high-stage strategic issues into account, so control desires to offer personnel with hints concerning the general path of the business enterprise and the way their man or woman departments suit into it. When participative budgeting is used for the duration of an business enterprise, the initial budgets paintings their manner up via the company hierarchy, being reviewed and probably changed with the aid of using mid-stage managers alongside the manner.
Advantages of Participative Budgeting
This bottom-up method to budgeting has a tendency to create budgets which might be greater workable than are top-down budgets which might be imposed on a business enterprise with the aid of using senior control, with tons much less worker participation.
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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.
Answer:
B) False
Explanation:
CAPM formula for a stock's expected rate of return is as follows;
CAPM r = risk free rate + beta (rM - risk free rate)
r = expected return
rM = market return
As is seen in the above formula, the return is determined by the beta of the stock, risk free rate and the market return. If the beta of the stock increases assuming the market return and the risk-free rate remain constant, the stock's return will also increase and vice versa.
Answer:
Inflationary
Explanation:
Inflationary condition is one on which the price of goods and services keeps on increasing. The purchasing power ofoney is reduced, you will need more money to buy a product.
In the college since 2000 turion has risen by 160%, meaning payment for college education is now more expensive.
Also family income used to pay tuition gas increased from 5% to 14%.
