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Sloan [31]
1 year ago
7

Becker & smith, cpas, and its client, troper lighting, are discussing a possible advisory engagement in which the firm would

review troper's accounts receivable system and recommend changes that would streamline the company's collection process. troper will pay becker & smith a fee based on improved performance in accounts receivable collections. would this contingent fee arrangement raise any ethical concerns under the profession's rules?
Business
1 answer:
Archy [21]1 year ago
5 0

Yes, If Becker & smith also performed a review engagement for troper

Explanation:

If the company already makes a customer review obligation it would add to a conflict of interests to participate into a contingent fee deal.

AICPA explicitly prohibits its participants to join into contingent fee contracts if they still provide audit or assessment of financial statements to such customers.

As a defendant, they pay no attorney fees, until then and until they sue, and then the prosecutor collects a share of your payments for recuperation. The fundamental concept of this contingency fee arrangement is that the defendant has little to no upfront costs. There is no court charge for the prosecutor should you lose your lawsuit.

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Suppose there is one ticket left for tonight’s performance of Hamilton on Broadway. The ticket costs $700. Sean is a community c
castortr0y [4]

Answer: B. Anca

Explanation:

From the information provided in the question, we should note that Anca purchasing the tickets will lead to a more economically efficient outcome.

From the information given, we can see that Anca is willing to pay $1250 while Sean wants to pay $705. Therefrom Anca purchasing the tickets leads to a better efficiency.

We can also infer that if Anca pays $1,250, a consumer surplus of $550 is gotten while Sean would get a consumer surplus of only $5.

Therefore, the correct option is B.

3 0
1 year ago
Baked at Home Cookies expects sales of $672,500 next year. The profit margin is 4.6 percent and the firm has a dividend payout r
malfutka [58]

Answer:

$26,294.75

Explanation:

Next years estimated total sales = $672,500

profit margin 4.6% of total estimated sales = 4.6% x $672,500 = $30,935

dividend payout ratio 15% of net income = $30,935 x 15% = $4,640.25

increase in retained earnings = net income - distributed dividends = $30,935 - $4,640.25 = $26,294.75

7 0
2 years ago
Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in Februar
Shtirlitz [24]

Answer:

The correct solution is "38,500".

Explanation:

The given values are:

Sales in February,

= $50,000

Sales in March,

= $60,000

Sales in April,

= $70,000

Now,

The total selling and administrative expenses for the month of February will be:

=  Variable \ costs + Fixed \ cos ts

On substituting the values, we get

=  50,000\times (40 \ percent+5 \ percent) + (8,00 0+5,000+1,200+800+1,000)

=  20000+2500+8000+5000+1200+800+1000

=  38,500

4 0
1 year ago
In two paragraphs, compare secured and unsecured types of credit. Secured sources of credit include title loans and personal loa
grigory [225]

Secure credit is credit that is given with a connection to a piece of collateral, such as a car or a home. This means that, if you were to default on your payments, the lender would be legally entitled to taking possession of the collateral. An example of this is a car loan, which is a loan that is used to purchase a car. On the other hand, an unsecured loan is one that is not protected by any collateral. This means that the lender cannot immediately take your property of you default on the loan. An example of this is a credit card.

In the case of a secured car loan, interests tend to be lower because of the security that the collateral (the car) provides. Moreover, these loans tend to provide interest rates that are fixed, which means that it is easier to plan for this expense and avoid falling behind on payments. The risk for the lender is less with a secured loan, as he is able to take the property and resell it if the borrower is unable to repay the loan. On the other hand, credit card are riskier for the lender (the bank) as they are unsecured, and this means that they are unable to immediately take any property from the borrower who did not repay. Because of this high risk, interest rates also tend to be high.

3 0
2 years ago
A properly marked source document contains some Secret information. A new document does not contain the same information. Howeve
navik [9.2K]

Answer:

Revealed by.

Explanation:

Revealed is to make (previously unknown or secret information) known to others.

3 0
1 year ago
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