Explanation:
Disruptive technology, new business ventures, and increased availability of data are quickly changing traditional financial reporting and assurance processes. As a result, prospective auditors not only need to understand fundamental auditing concepts, but also need to anticipate the influence that disruptive technology will have on the profession. The following case study provides a lens through which prospective auditors can view the coming changes to the profession by asking them to consider how the online lending company, Kabbage, is currently disrupting the lending industry for non-traditional and small businesses. Students contemplate several fundamental auditing concepts such as audit evidence, financial statement assertions, and analytical procedures while also acquiring insight into the effects that new and disruptive technology will have on the profession. The intention is to encourage students to embrace coming changes and become lifetime learners.
Answer:
c. The maturity risk premium is assumed to be zero.
Explanation:
In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero
Therefore the option c is correct
And, the rest of the options seems wrong
Answer:
$47,385.34
Explanation:
In this question, we use the future value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $8,000
Rate of interest = 5%
NPER = 18 years
PMT = $1,000
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after solving this, the answer would be $47,385.34
Given that <span>Sal
and Jen went to the store together, and each bought the same car
stereo. Sal used a card to make the purchase, and the full amount was
immediately withdrawn from his bank account. Jen used a card to make the
purchase, and she received a bill within 15 days of the purchase. She
paid $21.30 for the next 18 months until the bill was paid in full. The
full payment included $58.60 in interest.
The statement that describes
Sal’s purchase is "</span><span>Sal used a debit card and paid a total of $324.80 for the stereo".</span>
Answer:
Product Units Cost per Unit Market per Unit
Helmets 25 <u>$53</u> $57
Bats 18 $81 <u>$75</u>
Shoes 39 $98 <u>$94</u>
Uniforms 43 <u>$39</u> $39
when the lower of cost or market rule is used to determine the ending inventory, you must choose the which is lower, the purchase cost or the market value (reposition cost). In this case, the purchase cost is lower for helmets and uniforms, but the market cost is lower for bats and shoes.
ending inventory:
Product Units LCM Total
Helmets 25 <u>$53</u> $1,325
Bats 18 <u>$75</u> $1,350
Shoes 39 <u>$94</u> $3,666
Uniforms 43 <u>$39</u> <u>$1,677</u>
Total $8,018
