Answer: E- create annual taxable income to individual bondholders
Explanation: Zero coupon bonds are bonds that are sold or bought by investors lower than the face value of the bond. they are long term bonds that do not generate interest throughout the life of the bonds.
These bond are usually issued by the US Treasury, Corporations, Local and state Government.
Bond owners can only make money on bond as the price in the market fluctuates against the face value. No payment is made on these bonds until maturity which is a long time say 10 to 15 years.
On these bond investors may have to pay income taxes on the interest that accrue on the bond yearly.
Answer: The internal auditor discovered it when performing a routine audit of expense reimbursements
Explanation:
Marcus Lane, was a geologist who travelled all over North America and South America and this results in several expense reimbursements. Lane engaged in fraudulent activity by double booking his air travel.
He used cheaper ticket for the actual flight and more expensive ticket was returned for credit. But, he submitted the expensive ticket for reimbursement.
The fraud was discovered by the internal auditor while doing a routine audit of expense reimbursements. He was terminated and he agreed to pay the money back.
Answer:
<u>Direct labor hours.</u>
Explanation:
An activity base is considered every activity used in overhead allocation.
In service industries, it is more likely that the base of activity is direct working hours, to use this indirect cost allocation base, there must be an estimated amount of the total direct working hours that are used during the period. , using the estimate of a previous period as a projection for retraction or business growth. Once the estimate has been determined, the predetermined indirect rate used for indirect cost allocation can be found by dividing the estimated total indirect cost by the estimated total direct working hours.
is a person who benefits from something without expending effort or paying for it.
Answer:
B) Integrity
Explanation:
There are various ethical standards which are described below:
A) Credibility: This ethical standard deals with the communication of the correct information of the statement of financial position to all stakeholders of the business organization.
B) Integrity: This ethical standard stated that the chartered accountant should be honest and not biased for his personal gain. If he/she is biased, then he/she violates his/her profession.
C) Competence: The person is capable to do the particular task or not will check by his competence
D) Confidentiality: The financial information should not be disclosed out to third parties. The person should maintain confidentiality.
So as per the given scenario, the most appropriate option is B. Integrity
