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3 years ago

1. Did any Enron employees act Unethical in any manner? If so, give specific examples.

1 answer:

8 0

Enron faced an ethical accounting scandal in 2001 after using “mark-to-market” accounting to fake their profits and misused special purpose entities, or SPEs. Enron worked to make their losses seem less than they actually were, and “cooked the books” to make their income look much higher than it was.

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The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours

zaharov [31]

Answer:

4400 Unfavorable

Explanation:

Calculation to determine the labor rate variance for the month

First step is to calculate the Standard hours using this formula

Standard hours = Standard labor-hours per unit of output*Actual output

Let plug in the formula

Standard hours= 4.5*1,300 units

Standard hours= 5850

Now let calculate the Direct labor efficiency variance using this formula

Direct labor efficiency variance = (Standard hours - Actual hours)*Standard rate

Let plug in the formula

Direct labor efficiency variance= (5,850-6,100)*17.60

Direct labor efficiency variance= 4400 Unfavorable

Therefore the labor rate variance for the month is 4400 Unfavorable

8 0

3 years ago

Question 1

Svetach [21]

1. An example of bartering is Sarah trades her apple for Ava's bag of chips.

2. Gold has historically functioned as money because it is a medium of exchange.

3. In the hypothetical economy, rice is said to be a commodity money.

4. When Pudding cups serve as a unit of account, it means that the price of other lunch items is expressed in quantities of pudding cups.

5. The difference between the U.S. dollar, and a U.S. gold certificate is a U.S. dollar does not have value in addition to its value as money.

Trade by barter is when people exchange goods with goods. Money is not used in a trade by barter. Trade by barter was used before the invention of money. For example, a trade by barter occurs when Sarah trades her apple for Ava's bag of chips.

Commodity money is money for which its value comes from the commodity from which it is made.

Fiat money is currency whose value is not backed up by any asset. Representative money is money whose value is backed up an asset.

Money can be described as something that is accepted as a means of payments for products.

Functions of money

1. Medium of exchange: money serves as a medium of exchange when it is accepted as payment for goods and services. For example, 2 ounces of gold is accepted as means of payment for a dress.

2. Unit of account: money can be used to determine the value goods and services, For example, 2 cups of puddings is equivalent to plate of fruits.

3. Store of value: money can retain its value over the long term, this it can be used as a store of value.

To learn more about money, please check: brainly.com/question/14816216?referrer=searchResults

5 0

3 years ago

Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de

PolarNik [594]

Answer and Explanation:

The computation is shown below:

a. The current value of the company is

As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company

Unlevered value of the firm = Vu

Vu = EBIT × (1 - tax rate ) ÷ unlevered Cost of Equity

= EBIT × (1 - tax rate ) ÷ R0

= $25,000 × (1 - 0.22 ) ÷ 12%

= $162,500

b-1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value

VL = Vu + Borrowing × tax rate

where,

Debt = borrowing = 50% × unlevered value of company

Debt = borrowing = 50% x Vu

So,

VL = Vu + Borrowing x tax rate

VL = $162,500 + ($162,500 × 50%) × 22%

= $162,500 + $17,875

= $180,375

b-2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value

Levered value of the firm VL

VL = Vu + Borrowing × tax rate

Debt = borrowing = 100% × unlevered value of company

Debt = borrowing = 100% × Vu

So,

VL = Vu + Borrowing x tax rate

= $162,500 + ($162,500 × 100%) × 22%

= $162,500 + 35,750

= $198,250

C.1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value

VL = Vu + Borrowing × tax rate

= Vu + (VL × 50%) × tax rate

VL = Vu + (VL × 50%) × 22%

VL = Vu + 0.11 VL

VL - 0.11 VL = 162,500

0.89 VL = 162,500

VL= 182,584.27

C.2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value

Levered value of the firm VL

VL = Vu + Borrowing x tax rate

VL = Vu + (VL × 100%) × tax rate

= Vu + (VL × 100%) × 22%

= Vu + 0.22 VL

VL - 0.22 VL = 162,500

0.78 VL = 162,500

VL= $208,333.33

6 0

3 years ago

According to the IASB Framework for the Preparation and Presentation of Financial Statements, the qualitative characteristic of

Alexus [3.1K]

Answer:

NEUTRALITY, COMPLETENESS AND FREE FROM ERRORS.

Explanation: IASB( International accounting standards board) is board regulating the preparation of accounting Reports or statements. It released its first framework called CONCEPTUAL FRAMEWORK in the year 1989.

The qualities of a faithful conceptual framework by IASB is to guarantee NEUTRALITY, COMPLETENESS AND ENSURE THAT THE STATEMENT IS FREE FROM ERRORS.

This framework will help to prevent disputes and manage standards in preparation of account statements.

4 0

3 years ago

You reflect on your meeting with the midwestern division manager, and you think part of the problem has to do with goals. what c

Anna35 [415]

The one that you could do to adress this is to Establish a system that provides each sales team member with specific, challenging sales goals and performance feedback from their store manager.
By doing this, not only we put a focus for each team members on the expectation toward them, we also could use the data collected by each determines to determine if there is someone that needed to be let go.

7 0

3 years ago