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2 years ago

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Business

1 answer:

Step2247 [10]2 years ago

4 0

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

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A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected

SSSSS [86.1K]

Answer:

16.07%

Explanation:

The computation of the expected return on the market is shown below

As we know that

Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )

15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)

15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%

10.77% = Expected Market Rate of Return - 5.3 %

So, expected market rate of return is

= 10.77 + 5.3%

= 16.07%

We simply applied the above formula

3 0

3 years ago

alpha corporation began using the mark zing for chocolate candy bars in new york and new jersey in 2010. in 2015, without any kn

o-na [289]

The result of the corporation is most likely trademark infringement.

When a trademark or service mark is used without authorization on or in connection with products and/or services in a way that can cause confusion, deception, or mistake about the source of the goods and/or services, this is referred to as trademark infringement.

A trademark owner who believes their mark is being used improperly may, depending on the circumstances, bring a civil action (i.e., a lawsuit) for trademark infringement in either a state or a federal court. However, trademark owners typically opt to bring an infringement claim before a federal court. Even if the plaintiff files in state court, the defendant may be able to have the case "removed" to federal court.

Learn more about trade mark infringement at

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8 0

1 year ago

Management at the Flagstaff Company currently sells its products for $250 per unit and is contemplating a 40% increase in the se

elena-s [515]

Answer:

393 units will need to be sold to breakeven

Explanation:

Break even point is the point where a Company makes neither makes a profit nor a loss.

Step 1 : Calculate new variables

New Sales = $250 x 1.40 = $350

Variable Costs = $250 x 30 % = $75

New Fixed Costs = $120,000 x 90 % = $108,000

Step 2 : Break even (units)

Break even (units) = Fixed Costs ÷ Contribution per unit

= $108,000 ÷ ($350 - $75)

= 393 units

Thus, 393 units will need to be sold to breakeven

8 0

2 years ago

A customer buys shares of a stock that had its initial public offering 5 years ago. Which statement is TRUE regarding prospectus

Luda [366]

Answer:

A prospectus is not required because the initial public offering happened 5 years ago

Explanation:

A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc

On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment

Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required

3 0

3 years ago

Suppose the consumption function is c = $200 + 0.85yd. if disposable income is $400, consumption is

alexira [117]

Given the consumption equation of c= 200 + 0.85yd, and the disposable income of $400, then, then we would get the consumption by substituting the given to the equation:c= 200 + 0.85ydc= 200 + 0.85(400)c= 200 + 340c= 540Therefore, the consumption is $540.

8 0

2 years ago

Read 2 more answers