Answer:
$1,000
Explanation:
Fixed assets must be recorded at historic cost or purchase value. Their valuation is not affected by changes in market values, e.g. land might appreciate over time, but its historic cost will be used for accounting purposes.
In this case, Lisi doesn't have a bill to show the price of the rack, and since she paid in cash, she has no way of proving what she actually paid for it. In this case, in order to record the purchase of the rack you must use the fair market value of similar racks.
Imagine if someone could just say that they purchased things at X price but didn't get a bill, soon people would be recording buying pencils at $500 each because they are gorgeous and perfectly crafted.
Answer:
(D). Visibly punish unethical acts
Explanation:
Ethics refer to how people conduct themselves morally. Each organization has an Ethical Code they expect their employees to abide by.
When employees act outside an organization's Code of Ethics, then punishing them visibly is a way to serve as a deterrent to other employees.
Employees should also be openly rewarded when they act in accordance to the Code of Ethics to encourage others to do the same.
In this case, Pam's company is using visible punishment to maintain its ethical culture and send a message to the other employees.
Answer:
Compensate for the risk
Explanation:
In the context of the scenario given , risk is defined as a form of exposure to a potential dangerous situation.
It is necessary for any person organization facing a risky situation to look for ways of minimizing or avoiding the risk in order to reduce related losses. Risks can be avoided through transfer , rejection , delayed action and compensating the risk,
The method of risk aversion described in the scenario is to compensate the risk.
Compensating the risk is a risk control method of using an alternative means to achieve a particular purpose in order to avoid the related risks to using the initial method.
Answer:
The goal of the managers of a publicly owned company should be to maximize the firm's <u>INTRINSIC VALUE</u>.
The board of directors' and upper management's main goal is to maximize the corporation's value in order to maximize stockholders' wealth.
An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $37.32 per share, but Mandalays Inc.'s stock is trading at $45.59 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:
If the analyst considers that the stock's intrinsic price is $37.32 and the market price is $45.59, this means that currently the stock is overvalued.
