Explain one advantage and one disadvantage of using a<br> bonus system to motivate employees.

As per the ________, the entity will remain in operation for the foreseeable future.

bulgar [2K]

As per the going concern assumption, the entity will remain in operation for the foreseeable future. A key accounting theory known as the "going concern assumption" states that a company must be financially stable enough to continue operating through the years.

This suggests that a corporation has a lower likelihood of going out of business. In order to stay in business and avoid bankruptcy, it still uses its current assets to pay commitments. Additionally, the company can continue to make profits because it doesn't intend to or won't be required to liquidate them and is anticipated to remain in operation for at least a year.

A company's break-up value is less than its value as a continuing concern. One of the fundamental tenets of generally accepted accounting standards is this (GAAP). When potential lenders or investors look at a company's financial accounts, the going concern assumption might give them insight into the business. They may be less ready to invest in the company or lend money to it if they believe that it will fail financially or in another way during the next 12 months.

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8 0

2 years ago

¿Qué nuevos productos puede incluir un restaurante en su oferta? ¿Por qué?

PtichkaEL [24]

Answer:it is d

Explanation:

5 0

4 years ago

The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d

Snowcat [4.5K]

Answer:

18.80%

Explanation:

Data given

Risk free rate = 4%

Beta = 1.85

Market return = 12%

The computation of rate of return is shown below:-

Using CAPM

Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)

= 4% + 1.85 × (12% - 4%)

= 4% + 1.85 × 8%

= 4% + 14.8%

= 18.80%

Therefore for computing the rate of return we simply applied the above formula.

6 0

3 years ago

During lunch, the director of the Streets and Parkways Department of City made the following comment: “For the past 10 years, I

Usimov [2.4K]

The behavior is unethical as the overstatement in the figures is wrong.

<h3>What is an ethical behavior?</h3>

Honesty, fairness, and equity in interpersonal, professional, and academic relationships, as well as research and scholarly activities, are characteristics of ethical behavior. Individuals and groups of people's dignity, diversity, and rights are all respected in ethical behavior.

Obedience to company rules, effective communication, taking responsibility, accountability, professionalism, trust, and mutual respect for coworkers.

In this case, for the past 10 years, the director deliberately overstated the labor and equipment needs by 20 percent when preparing the budget request. This is unethical.

In order to cut down the padding, there should be a final review on the budget before it's submitted for approval.

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6 0

1 year ago

Which of the following would be considered a capital expenditure?

Alborosie

Answer:

B. Paying city inspection fees for new equipment

Explanation:

Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.

City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.

Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.

8 0

3 years ago

Explain one advantage and one disadvantage of using a bonus system to motivate employees.