Answer:
Correct answer is letter D, $11,000 cost, five-year life and $1,000 salvage value
Explanation:
To compute depreciation expense of an asset using straight-line method of depreciation, the information we needed is 3,
1. cost of an asset
2. life of an asset (in year)
3. residual value (if available)
<em>* residual value of an asset is to be determined by the company, some asset don't have scrap value assigned.</em>
<em />
<em>FORMULA </em>
<em>The difference between the cost of an asset and the expected residual value over the number of years it is expected to be useful.</em>
<em>(cost of an asset - residual value ) / life of an asset</em>
Answer 4:
Following are the six business management perspective:
- Ethical Stance
- Strategic aspects of the decision
- Risk Management
- CSR Aspect
- Process Management Aspects
- Leaders Perspective
Answer 5:
IMA stands for Institute for Management Accountants.
The IMA Statement of Ethical Professional Practice has listed following four standards for the professionals who are member of IMA to comply with:
- Competence: The member must be competent in his role in accordance to his experience, skills, knowledge, complying laws & regulation and always acting ethically.
- Confidentiality: Must not breach the confidentiality implied duty on him except in situations when disclosure of information is mandatory by law.
- Integrity: Must be straight forward and there must be no self interest in his dealings with the company and must considerably reduced.
- Credibility: Communicate the results with unbiased decision making.
Answer 6:
Because freedom does not means that our self interest is everything. We owe duty of care to people who rely on our acts. An accountant, auditor or internal auditor must act ethically or universally that benefits everyone without breaking the laws and ethical duties imposed by the professional bodies. If we go back to Enron case, we see that the External auditor was not acting in the public interest and as a result Enron which was the world's first $100 billion dollars company collapsed. The collapse of Enron bankrupt many pension companies which further affected the lives of the ordinary person in the USA. Furthermore, due to collapse of Enron, a lot of people withdraw the amount invested in Stock exchange. Dozens of companies and millions of people suffered from this unethical behaviour of professionals.
Answer 7:
Corporate Social Responsibility means that the company is just like an human being and its operations must not harm the environment, so this the least duty which the stakeholders expect from them. Being a good social beings, the companies must try to stable the environment situation in its surrounding and wherever its stakeholders live. For Example, The refinery companies have stopped poluting the oceans with their oil spills, now they have opted to newest technology that will eliminate the harmful effects of their oil spills and bring stability in the environment.
Another example includes the lower usage of natural resources. In UK it is the companies responsibility to reduce its natural resources usage which will lower the pollution. This additional care has a cost and may lead to lower competitiveness of the products so there must be a law globally that enforces to act socially responsible.
Answer: $70
Explanation:
First, we need to calculate the purchase price per share and this will be:
= Purchase amount / Number of shares bought
= $7000 / 140
= $50 per share
Therefore, the balance in the Paid-in Capital, Treasury Stock account on August 2 will be:
= [70 × ($52 - $50)] + [70 × ($49 - $50)]
= (70 × $2) + ($70 × $-1)
= $140 - $70
= $70
Answer: Please refer to Explanation
Explanation:
This is how the stockholders' equity section of the balance sheet at December 31 should look like,
STOCKHOLDERS'S EQUITY
Contributed Capital
Common Stock (29000 shares x $ 1 par) $29,000
Preferred Stock (19500 shares x $ 10 par) $195,000
Paid in Capital in excess of Common Stock at par ($841000 - $29000) $812,000
Paid in Capital in excess of Preferred Stock at par (19500 shares x ($39 - $10)) $565,500
Total Contributed Capital (sum of all of the above) $1,601,500
Retained Earnings ( $59,000 - $10,000) $49,000
Total Stockholder's Equity (Retained Earnings to contributed cap) $1,650,500
If you need any clarification do comment.
Answer:
Option D. The accountant was a member of a professional organization.
Explanation:
The reason is that for a successful claim under the negligence act, the claimant have to prove following three things:
- Duty of care existed between the relation
- She has suffered economic harm &
- The harm was proximately caused by the accountant's breach of the duty of care.
So the accountant's membership is not a valid requirement under the negligence act for a successful claim.
