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sveta [45]
2 years ago
8

You are auditing Rodgers and Company. You are aware of a potential loss due to noncompliance with environmental regulations. Man

agement has assessed that there is a​ 40% chance that a​ $10M payment could result from the​ non-compliance. The appropriate financial statement treatment is to
A. since there is less than a​ 50% chance of​ occurrence, ignore.
B. since there is greater that a remote chance of​ occurrence, accrue the​ $10 million.
C. accrue a​ $4 million liability.
D. disclose a liability and provide a range of outcomes.
Business
1 answer:
aniked [119]2 years ago
4 0

Answer:

D. disclose a liability and provide a range of outcomes.

Explanation:

As there are 40% chances to the outcome that liability will occur, it is not nominal to be ignored. And therefore, it shall be shown in the balance sheet, as a note, with different possibilities and their expected results.

As the amount attached is huge and that the company shall not ignore such a coming liability, as if it do not happen, it can be reversed, and if it does the company shall be ready to have the liability in case of any default.

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A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year,
kumpel [21]

Answer:

a) The company turn its inventory at 1.5.

b) Per unit inventory cost for a product that costs $1000 is $166.67.

Explanation:

a) number of units sold = ($60000000/year)*(1 unit/$2000)

                                       = 30000 units/year

COGS = 30000 units/year*$1000/unit

           = $30000000/year

inventory = $20000000

flow time = inventory/flow rate

                = $20000000/30000000 per year

                = 0.67 years

inventory turns = 1/flow rate

                          = 1/(0.67)

                           = 1.5

Therefore, The company turn its inventory at 1.5.

b) %inventory cost per computer = 25%*0.6667 years

                                                       = 16.667%

16.667%*$1000 = $166.67 per unit

Therefore, Per unit inventory cost for a product that costs $1000 is $166.67.

8 0
2 years ago
Generating ideas often includes brainstorming or brainwriting. These techniques can be an effective way to produce the best idea
Lady bird [3.3K]

Answer:

1- a. Use flip-charts and classify ideas.

2) a. Crowd-storming.

Explanation:

1- To improve the group's brainstorm, Jeanne should use flipcharts and classify ideas.

Flipcharts is a whiteboard used as a visual resource, which allows the best visualization of graphics, new ideas, etc., in a dynamic and summarized way, since this visual resource attracts attention, records and helps in the fixing of content and central ideals.

2- The situation represents crowdstorming, which is a marketing strategy used when an organization wants to improve the services and products offered through interaction with groups of employees who can even be consumers, as in the case above.

This strategy helps in better brand positioning, by receiving direct feedbacks from the potential public, which helps in better meeting their wants and needs.

6 0
2 years ago
Which statement best explains student loans that cover the costs of an education?
aleksandrvk [35]
The statement which best explains student loans that cover the costs of an education is : b)They require repayment with interest. In order to get financial aid for your education you have to sign a contract with a loan company. Most of loan companies provide students with loans with interest, but there is a possibility to find an interest free loan if yuo are a student of a federal government. The interest you have to pay is established in your contract. And if you borrow with a no-interest loan, you will just pay back the same amount that you took from the company.
7 0
2 years ago
Read 2 more answers
Purple Corporation has accumulated E & P of $100,000 on January 1, 2019. In 2019, Purple has current E & P of $130,000 (
Lostsunrise [7]

Answer:

The E & P ($20,000)

Explanation:

E & P January 2019     $100,000

For the year E & P       $130,000

Closing E & P December 31,2019   $230,000

Less: Dividends paid                       ($250,000)

Net Deficit in earnings                    ($20,000)

Although dividends are always paid to the extent of retained earnings but in this question, dividends have exceeded earnings which is only and only assumption not a practical world question.

8 0
2 years ago
Read 2 more answers
To what extent do stakeholders influence a plan and subsequent implementation of organization restructuring that accommodates ch
nydimaria [60]

Answer: None of the above

Explanation:

None of the options seem to be correct.

Stakeholder is the people who are interested in the the decision made by an organization. When a change takes place in an organization, the stakeholders are affected by such change. Stakeholders include board, managers, shareholders, workers etc.

The first option is wrong as stakeholders are incidental to the change process. They're always ever present in the change process.

The second option is wrong as well. Some stakeholders are decision makers and can influence the potential outcome of organizational restructuring. e.g board etc.

The third option is also incorrect. This is because stakeholder expertise in managing change should be considered by change leaders in the planning of adaptable organizational structures. Some stakeholders are expertise in change management and their knowledge is needed when there is planning of adaptable organizational structures.

That means we're left with only the Fourth option which is the right answer.

8 0
2 years ago
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