Firms may utilise the approach where net income is the starting point and modifications are made to turn net income into cash flows from operations in order to calculate cash flows from operating activities.
The first line of the cash flow statement is a carryover from the income statement called net income. Net income plus adjustments for non-cash expenses and working capital movements are added to determine net cash flow from operational operations.
The amount of money a firm earns from ongoing, regular business operations, such as the production and sale of items or the provision of services to clients, is known as cash flow from operating activities (CFO). On a company's cash flow statement, it is shown as the first part.
Long-term capital investments and investment income and expense are not included in cash flow from operating activities. Operational cash flow (OCF), also known as net cash from operating activities (NCOA), is the term for the CFO, who primarily concentrates on the core business.
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if the shotz beer company management negotiated a new shipping contract with a trucking firm between its tampa brewery and its distributor in kentucky that reduces the shipping cost per barrel from $0.80 per barrel to $0.65 per barrel, how will this cost change affect the optimal solution?
Distributor in kentucky that reduces the shipping cost per barrel from $0.80 per barrel to $0.65 per barrel, here we change the shipment value A to 5 as $0.8 to $0.65.
A company whose sole purpose is to create inventories of goods from numerous manufacturers to be sold to multiple retailers. Distributors will benefit from shorter lead times and typically sell in lower volumes than manufacturers. There will typically be a price for the service when things are sold through a distributor rather than straight from the manufacturer. A distributor purchases non-competing goods or product lines, and the goods may also be sold directly to consumers.
Distributors frequently have a written contract with a manufacturer, which prohibits them from marketing competitive goods. Even while distributors are frequently referred to as dealers, there is a significant distinction between the two.
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lena is scheduling 35 part-time employees to complete a project. of those employees, 1/5 work mornings only, 10 work only afternoons, and the rest alternate between mornings and afternoons. if lena plans on using all of her morning only staff, 1/2 of her afternoon only staff, and 1/3 of her remaining staff, how many people will lena schedule?
If Lena plans on using all of her morning-only staff, 1/2 of her afternoon-only staff, and 1/3 of her remaining staff, Lena will have to schedule only 18 employees.
What is the calculation justifying the above Arithmetic?
Given;
Total number of employees - 35
Morning Shift Employees (1/5) of 35 = 7 Employees
Afternoon Shift Employees = 10
Remaining Staff = 35 - (7 + 10) = 18
If Lena plans on using all of her morning-only staff, and 1/2 of her afternoon-only staff, and 1/3 of her remaining staff then:
Number of Staff to be scheduled =
7 + (1/2 * 10) + (1/3 * 18)
= 7 + 5 + 6
= 18
Hence, Lena will schedule 18 staff or employees.
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Barter is a system of exchange. Which Statement does NOT reflect the
barter system?
Answer:
exchanging goods for money
In 2015 target eliminated its pink and blue aisles, and it now sells lines such as a collection of back-to-school clothing, accessories, backpacks, and bedding that appeals to both boys and girls. This is an example of which type of marketing?.
Given that the company has gone ahead to create a situation where they have eliminated the products that would appeal to only one gender, this is regarded as gender neutral marketing.
What is marketing?This is the term that has to do with the ways that the producers of a product would create awareness on the goods that they produce in the market so that they are able to get the consumers that they would need to buy the products.
It is the way that the consumers are able to get to know of the product from the manufacturer.
This is gender neutral marketing given the fact that the company has gone ahead to create a system that their products would not have to stand for a particular gender in the society.
Therefore eliminating it means that all persons have the ability of taking any of the products that they want without the differentiation that comes that a particular product is for a boy 0r a girl.
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complete question
In 2015 Target eliminated its "pink" and "blue" aisles, and it now sells lines such as a collection of back-to-school clothing, accessories, backpacks, and bedding that appeals to both boys and girls. This is an example of which type of marketing?
Answer
Income
Hyperlocal
Lifestyle
Gender-neutral
Age and life-cycle
based on the management in action case, carnival cruise lines needs to make changes due to covid-19. if they need to make changes that are new to carnival, but not new to the cruise line industry as a whole, what form of change would they be implementing?
The most likely form of change that Carnival Cruise Lines would need to implement due to Covid-19 would be changes to their health and safety protocols.
What is Covid-19?
The infectious condition known as coronavirus illness is caused by the SARS-CoV-2 virus (COVID-19). The majority of virus-infected individuals will experience a mild to mitigate respiratory illness and will recover without the need for special care. However, some people will develop serious illnesses and need to see a doctor. Serious illness is more likely to strike older people and individuals who have underlying medical conditions like cancer, diabetes, cardiovascular disease, or chronic respiratory diseases. COVID-19 can cause anyone to become seriously ill or pass away at any age. Being knowledgeable about the illness and the virus's transmission is the best way to stop or slow down transmission.
This could include anything from increased cleaning and sanitization efforts to changes in the way that food is prepared and served onboard.
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assume that the japanese yen is trading at a spot price of 92.04 cents per 100 yen. further assume that the premium of an american call (put) option with a strike price of 93 is 2.10 (2.20) cents. calculate the intrinsic value and the time value of the call and put options
The premium of an american call (put) option with a strike price of 93 is 2.10 (2.20) cents the time value of the call = 2.10 cents and the time value for put = 1.24 cents
call option There will not be any gain if the Call option is exercised and bought at 93 cents. Because spot price is lower.Hence Intrinsic Value=0
put option With this option , one can buy at spot for 92.04 and SELL for 93Intrinsic Value =(93-92.04)=0.96 centsTime Value =2.20-0.96=1.24 cents
Options contracts are derivatives that grant investors the option, but not the duty, to purchase or sell an underlying security at a predetermined price at a future date. The option's strike price is this amount (or exercise price). The striking price for a put option is the price at which the security may be sold; for a call option, it is the price at which the option holder may purchase the asset.
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Most companies compute the materials price variance when raw materials are _______.
Most companies compute the materials price variance when raw materials are purchased.
A material price variance occurs when the actual price paid for materials used in manufacturing differs from the standard price for the materials (MPV). The material price variance will be advantageous if the actual cost of the materials is less than the benchmark cost.
However, if the price paid for the materials is greater than the benchmark price, the Material Price Variance will be negative.
An increase in price, variations in transportation costs, changes in the amount of the order, changes in the quality of the materials being purchased, and other factors are only a few of the causes of a material price variation.
Hence the price variance is computed for purchased materials.
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special pricing, display fixtures, and value-added bonuses are all a part of increasing sales in retail stores. what sort of marketing technique is this?
Trade Promotion is a marketing technique with special pricing, display fixtures, and value-added bonuses that are all a part of increasing sales in retail stores.
Marketing describes the actions a business does to encourage the purchase or sale of a good or service. Affiliates will sometimes provide marketing for a business. Trade promotion describes marketing initiatives carried out in-store by these two partners.
Trade promotion is a marketing strategy that uses special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation freebies, and other incentives to boost product demand at retail businesses. Trade promotions are a tool that businesses can use to raise customer awareness of their brands and products.
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fare industries pays salaries and wages every two weeks. salaries and wages amount to $180 a day and the company has a seven-day work week. on july 31, the company pays wages for the two weeks ending july 24 and recorded the related journal entry. the adjusting journal entry, dated july 31, to record unpaid wages and salaries owed since july 25 through the end of the month will include a debit to:
Answer:
Explanation:
Salaries and Wages Expense and a credit to Salaries and Wages Payable for $1,260.
If the market for soccer balls is saturated and the market for soccer nets is open, which combination makes the most sense for Sabrina’s Soccer?
If the market for soccer balls is saturated and the market for soccer nets is open, a combination which makes the most sense for Sabrina’s Soccer is: F.
What is a production possibilities curve?A production possibilities curve (PPC) is also referred to as the production possibilities diagram or the production possibilities frontier (PPF) and it can be defined as a type of chart that is typically used for illustrating the maximum and best combinations of two products that can be produced by a producer (manufacturer) in an economy, if they both depend on these two (2) factors;
Technology is fixed.Resources are fixed.Based on the production possibilities curve (see attachment), we can reasonably infer and logically deduce that the maximum and best combinations that would offer the most sense for Sabrina’s Soccer is option F with 0 for soccer balls and 5 for soccer nets.
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a firm pursuing will have a strong reason to decentralize decision making. group of answer choices a localization strategy a global standardization strategy a transnational strategy an international strategy
A firm pursuing a localization strategy will have a strong reason to decentralize decision making.
Option A is correct.
Localization strategy:A localization strategy is a unique request strategy in which a company address purchasing habits, client actions and overall artistic differences in each country it works within.
What's the conception of localization?Localization is the adaption of a product or service to meet the requirements of a language, culture or asked population" look- and- feel." A successfully localized service or product is that appears to have been elaborated under the original culture.
Decision making :Decision making is the process of making choices by relating a decision, gathering information, and assessing indispensable judgments . Using a step- by- step decision- making process can help you make further deliberate, thoughtful opinions by organizing applicable information and defining druthers
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the view that human resource practices differ based upon an organization’s competitive business strategy: a. is the universalistic approach b. is consistent with the contingency approach c. is the differentiation approach d. is the only way human resource practices can be considered
The view that human resource practices differ based on an organization’s competitive business strategy b. is consistent with the contingency approach.
The contingency approach is such a kind of approach in business that focuses on the viewpoint that the management of a business is based upon the situation that arises. It is based on the business strategy that needs to be implemented at a particular time.
The contingency approach is also referred to as the Situational Approach. The human resource practices of a company will be dependent on the focused business strategy at a particular management time. Hence, human resource practices differ based on an organization’s competitive business strategy and are consistent with the contingency approach.
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Now it's your turn. What do these examples inspire you to think about in terms of your own purpose?
How can you use your digital footprint to make a positive impact on the world? To begin answering
these very big questions, choose two of the brainstorming questions (one from each group) and write a
short response for each. When you're done, be prepared to share your ideas with a partner.
Brainstorming Questions
Response 1 Questions (Choose one)
1. What problems, either in your school or community, or in the world, are you concerned about?
Which ones do you most want to be solved?
2. What person, group, or event inspires you the most? Why? How could they or it be a model for your
own life?
3. What activities or experiences in your life have been the most enjoyable? Why do you think that is?
Response #1
I chose question #
Your online identity, uniqueness, and digital footprint are what define you as a person. Depending on what you do online, it develops your online reputation or impression.
Who, what, or what event most inspires you? Why? How could it or they serve as a role model for your life?Judith K. Rowling - No one can deny this British native's success, regardless of whether you're a Harry Potter fan or not. The estimated $15 billion valuation of the Harry Potter empire (yes, you read that correctly).
Many people are unaware of Rowling's difficult past, which occurred immediately before the publication of her books.
She wed, endured abuse, gave birth to a daughter, and then filed for divorce from her husband. She had to enroll herself on welfare in order to survive after losing her mother to MS.
Furthermore, every major British publishing business turned down the first Harry Potter novel. One ultimately said yes, and the business was off and running.
J.K. Rowling is an inspirational author because she uplifts kids, establishes strong female role models, and lends her creativity and generosity to charities and rising teenagers.
"Dwelling on dreams while ignoring the present is not healthy." J. K. Rowling
Even if everything is bad, there is still hope for improvement. There are obstacles at every turn, so keep going.
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a large manufacturing company has recently encountered problems with employees under-producing, and thus not meeting quarterly targets. they have hired you as a consultant to increase employee motivation and productivity. drawing on the expectancy model of motivation, describe three pieces of information you must know about the incentive system at this company in order to understand what is undermining employee motivation. then, describe one way you could effectively improve each of these three key links in the model to boost motivation (i.e., provide three total improvements), and in turn performance.
Three pieces of information you must know about the incentive system at this company in order to understand what is undermining employee motivation which are Expectancy, Instrumentality, and Valence.
Expectancy: In accordance with expectancy, a person's performance will improve if he raises his effort.
Instrumentality: A successful performance will lead to a result that is valued and wanted by the audience.
Valence: The importance a person attributes to a result is referred to as value.
Expectancy is the sentiment or expectation that something positive, intriguing, or exciting is going to occur. The fans exuded a great sense of expectation. More Expectancy synonyms In the United States, women's life expectancy at birth decreased by 0.8 years, from 79.9 years in 2020 to 79.1 in 2021, while men's life expectancy decreased by a full year, from 74.2 years in 2020 to 73.2 in 2021. The ability of an atom or group of atoms to combine with another atom or group of atoms is represented by a whole number is called valence. How many electrons an atom can get, lose, or share determines the valence.
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when government policies lead to outcomes that are worse than those that would occur in unregulated markets: liveweight loss occurs. government efficiency occurs. marginal costs occur. government failure occurs.
Government failure means when due to the policies of the government or any other sort of intervention by it, an inefficiency is caused in the market which otherwise wouldn't have happened. It only happens because of the government.
This concept talks about the fact that even if the market does not operate in the best way, government intervention will make the situation worse. Marginal price is the delivered price to supply an extra good. For example, say that to make one hundred vehicle tires, it charges $one hundred. To make one extra tire might price $80. This is then the marginal price: how lots it charges to create one extra unit of an awesome or service.
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sp corp purchases $40,000 of inventory during the period and sells $36,000 of it for $60,000. beginning of the period inventory was $6,000. what is the company’s inventory balance to be reported on its balance sheet at year end?
The inventory balance at year's end that must be disclosed on the balance sheet is $10,000.
Explanation:
Ending inventory is calculated as Opening Inventory + Purchases - Sales.
Calculating and reporting the inventory balance for the year
To access the inventory, $6000 would be required.
Increase in inventory buys ($40,000)
Sales fall off at the $36,000 cost of inventory
Closing inventory will therefore be noted as follows at the year's end:
The closing inventory is made up of $6,000 + $40,000 less $36,000, or $10,000.
$10,000 Final Inventories
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Samantha had never traveled to new york city before, but she had been on a recent business trip to houston. when she learned that the hotel room she wanted in new york city cost $300 per night, she was shocked because she thought the hotel rooms would be priced similarly to those in houston. this is an example of the bias.
Samantha was shocked because she thought hotel rooms would priced similar to those in Houston This is an example of anchoring and adjustment bias.
Anchoring and adjustment is a cognitive heuristic where a person starts off with an original idea and adjusts their beliefs grounded on this starting point. Anchoring and adjustment have been shown to produce incorrect results when the original anchor deviates from the true value.
What's the meaning of anchoring bias?Anchoring bias is a cognitive bias that causes us to calculate too heavily on the first piece of information we're given about a content. When we're setting plans or making estimates about commodity, we interpret newer information from the reference point of our anchor, rather of seeing it objectively.
What's anchoring and adjustment bias illustration?For illustration, a habituated auto salesperson( or any salesperson) can offer a veritably high price to start accommodations that are arguably well above the fair value. Because the high price is an anchor, the final price will tend to be advanced than if the auto salesperson had offered a fair or low price to start.
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Auto manufacturers are currently offering flex-fuel vehicles that are designed to run on ethanol gasoline mixtures. An economist recently analyzed the cost versus value consideration of these vehicles and found that the market is currently buying approximately the socially efficient amount of flex fuel vehicles. Under lobbying pressure from the car manufacturers and environmental groups, the federal government is considering a $3,000 subsidy paid per flex fuel vehicle sold. If this subsidy goes through, what would be the most likely impact on market efficiency?.
Due to the federal government's per-flex fuel vehicle sales subsidy. If this subsidy goes through, Efficiency decreases would be the most likely impact on market efficiency.
Subsidies and government incentives are both forms of financial assistance or support given to an economic sector (company or individual) typically with the goal of advancing economic and social policies. The phrase "subsidy" can refer to any form of support, including implicit subsidies from NGOs or other sources that are not often associated with the government. There are several types of subsidy, including direct (cash gifts, interest-free loans), indirect, and mixed forms (tax breaks, insurance, low-interest loans). In addition, they might be broad or specific, legal or unlawful, and ethical or immoral.
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true or false: alternatively, the lacostes could have estimated their life insurance needs using the multiple-of-earnings method, a more complicated but more accurate method than the needs analysis.
True, alternatively, the Lacostes could have estimated their life insurance needs using the multiple-of-earnings method, a more complicated but more accurate method than the needs analysis.
Many people use the "multiple of earnings" method to determine an adequate sum of life insurance. Conventionally, a woman getting paid $60,000 annually might calculate that she requires ten times her salary, or $600,000. Whereas this method is simple, it does have limitations if the multiples are too small. The goal of having life insurance with the earnings multiple approach is earnings replacement. This strategy aims to replace a breadwinner's annual salary stream for a specified number of years, until the children are grown and the partner is economically solvent and retired.
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How does technology trends affect a pharmacy business?
Answer: Artificial Intelligence or Machine Learning.
Explanation:
Artificial Intelligence or Machine Learning offers multiple benefits such as data processing, enabling pharmacists to make quicker data-backed decisions, and improving customer service. With the Internet of Things, drug inventory management will be more accurate and faster; through device-to-device communication.
how has the service industry in the u.s. been changing since the 1970s? what were the primary causes of the change and how have they affected manufacturing world-wide? utilize cheaper labor in offshore markets, to help stabilize global trade
The service in the industry in the US has been changing is caused by people pursuing higher education combined with automation taking over the industry. The factor that causes an industry decline is changing consumer preferences and technological innovation that caused high budget deficits.
The 1970s is described as a decade of crisis, with the nadir of a longstanding economic crisis eventually leading to a political crisis in which the country appeared to be ungovernable. Industry decline can be described as a condition that two recessions during the early 1970s saw manufacturing lose 1.5 million and 2 million jobs, respectively, with a recovery period in between. From July 1975 through June 1979 during the period of expansion, manufacturing added 3 million jobs, and employment in the industry stood at 19.6 million.
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assume that a parent company owns 100 percent of its subsidiary. each of the following independent scenarios describes an intercompany bond transaction between the parent and the subsidiary. for each independent case, determine the amount of gain or loss on constructive retirement of the bond reported in the consolidated income statement for the year ended december 31, 2019. assume straight-line amortization. a. on june 30, 2019, p issues directly to s bonds that have a par value of $240,000. s paid $249,600 for the bonds. the term of the bonds is 10 years and they have an 8 percent stated interest rate. interest is paid annually on december 31. b. on january 1, 2015, p issues to an unaffiliated company bonds that have a par value of $240,000. the unaffiliated company paid par value for the bonds. on december 31, 2019, s paid $168,000 for 70 percent of the outstanding bonds. the bond term is 10 years and they have an 8 percent stated interest rate. interest is paid annually on december 31. c. on january 1, 2015, p issues to an unaffiliated company bonds that have a par value of $240,000. the unaffiliated company paid 103 percent of par value for the bonds. five years later, s paid $228,000 for all of the outstanding bonds. the bond term is 10 years and they have an 8 percent stated interest rate. interest is paid annually on december 31. d. on january 1, 2015, s issues to an unaffiliated company bonds that have a par value of $240,000. the unaffiliated company paid 96 percent of par value for the bonds. five years later, p paid $173,040 for 70 percent of the outstanding bonds. the bond term is 10 years and they have an 8 percent stated interest rate. interest is paid annually on december 31. note: if there is no gain or loss, enter zero for the amount and select n/a for gain or loss answer.
CONSOLIDATED GAIN OR LOSS ON CONSTRUCTIVE RETIREMENT OF BONDS: a. No gain or loss, b. No gain or loss, c. Gain, d. Loss
a. There will be no gain or loss because bond is redeemed on maturity date. b. No gain or loss. Since the bond is issued at par value that is $ 100,000. c. Gain of $ 8000 d. Loss of $ 2000.
Constructive retirement implies that bonds are retired for consolidated statement purposes since the parent and subsidiary's bond investment and payable items are reciprocals that must be eliminated in consolidation. A constructive retirement of parent bonds happens when an affiliate purchases the parent's outstanding bonds. To calculate the gain on constructive retirement of bonds, deduct the total amount paid to retire the bonds from their net carrying value. A positive result indicates a profit, whereas a negative result indicates a loss.
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creswell corporation's fixed monthly expenses are $23,000 and its contribution margin ratio is 63%. assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $78,000?
The Contribution margin per unit is $49,140 and net operating income 26,140
What is contribution margin?
A gross or per-unit basis can be used to express the contribution margin. It represents the additional revenue made for each product or unit sold after the variable part of the business's costs have been subtracted. The selling price per unit less the variable cost per unit equals the contribution margin. The metric, also known as cents contribution per unit, shows how a specific product affects the company's overall profit. It offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.
Contribution margin = 78,000 x 63%
= 49,140
Net operating income = contribution margin - fixed cost
= 49,140 - 23,000
= 26,140
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this approach often created by non-profits recruits a network of representatives who pitch their wares to customers by going door to door with the primary aim of improving society.
This approach often created by non-profits recruits a network of representatives and is known as micro franchising.
Micro franchising is an enterprise version that applies the rudiments and generalities of conventional franchising to small businesses in the developing internationally. It refers back to the systemization and replication of micro-organizations. Micro franchising is a business version that applies the rudiments and generalities of traditional franchising to small companies in the growing world. It refers back to the systemization and replication of micro-establishments.
A ballot ( or franchising) is a gadget of distributing services or products regarding a franchisor, who establishes the brand's trademark or exchange name and a commercial enterprise system, and a franchisee, who will pay a kingliness and often an original figure for the proper to do business underneath the franchisor's call and system.
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the custodian of a company asset should none of the choices are correct. not maintain the records of the asset. all of the choices are correct. have access to the records of the asset.
The custodian of a company asset should not maintain the records of the asset.
The custodian of a company asset has the responsibility to take care of the asset. He has the duty to keep a check that the asset is handled properly, no damage is being made to the asset and all procedures in the asset are occurring correctly.
However, maintaining the accounting record for the asset is not the responsibility of the custodian. A custodian is usually not given any access to any accounting records for the asset. To maintain the accounting record, with the company owner is himself involved or he has an accounting team for it.
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what is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent, if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity?
Calculation of value of bond:
1. Maturity Value
2.6.48574 $1,014.16
3.8.47148 $1,017.86
4.10.51900 $1,021.41 5
5.14.87875 $1,028.12
Below shows the formula used in above calculations:
1. Maturity Value
2. 6.48574 =PV (7.5%/2,6.48574, -1000*8%/2, -1000)
3. 8.47148 =PV (7.5%/2,8.47148, -1000*8%/2, -1000)
4. 10.519 =PV (7.5%/10.519, -1000*8%/2, -1000)
5. 14.87875 =PV (7.5%/14.87875, -1000*8%/2, -1000)
The coupon price is calculated through including up the full quantity of annual bills made through a bond, then dividing that through the face fee (or “par fee”) of the bond.
If an investor purchases a $1,000 ABC Company coupon bond and the coupon price is 5%, the company offers the investor with a 5% hobby each year. This approach the investor gets $50, the face fee of the bond derived from multiplying $1,000 through 0.05, each year.
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The ppmt function calculates which part of the payment for an ammortization schedule?.
The ppmt function calculates the principal part of the payment for an amortization schedule.
The Excel PPMT function uses a constant interest rate and a set payment schedule to determine the principle component of a loan payment for a specified time. You can find out how much each payment will be using the PMT function, and you can use the PPMT function to find out how much of the principle is being paid off each pay period. (You may use an IPMT function to get the opposite of this — how much interest is paid in any given pay period.)
Under Excel Financial Functions, the PPMT Function[1] is listed. Based on regular, consistent payments and a fixed interest rate over a specified time period, the function will determine the principal payment due on a loan or investment.
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Fred and wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4. 00 each instead of $44. 00 each. Wilma wishes to enforce the contract at $4. 00 per lesson. Which remedy would be most effective?.
As one party accidentally types the price for lessons to be $4.00 each instead of $44.00 each which makes other other party wishes to enforce the contract at $4.00 per lesson, the remedy that would be most effective for this case is rescission.
What is the meaning of rescission?In contract law, the term "rescission" means an equitable remedy which allows the griefing contractual party to cancel the contract. In certain case, a parties may rescind if they are the victims of a vitiating factor such as misrepresentation, mistake, duress, undue influence etc.
So, the remedy called a "rescission" serves as the unwinding of a transaction, that is, it done to bring the parties back to the position in which they were before they entered into a contract (known as status quo ante).
When rescission takes place in a contract, such contract is rendered null and void and so is no longer recognized as legally binding. So, the ruling courts can free non-liable parties from their agreed obligations and will effectively seek to restore them to the position they were in before the contract was signed.
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assume that an auditor makes an agreement with a client that the audit fee will be contingent upon the number of days required to complete the engagement. is this a violation of the aicpa code of professional conduct? what is the essence of the rule of professional conduct dealing with contingent fees, and what are the reasons for the rule? question content area bottom part 1 a. no, any contingent fee is allowed through the code of professional conduct provided it is clearly written in the engagement letter. the contingent fees rule states that contingent fees are allowed for audit fee arrangements because this allows the audit firm and the client to have a greater working relationship. b. yes, an audit fee contingent upon the number of days required to complete an engagement is in violation of the contingent fees rule. it states that contingent fees are only allowed for nonattestion services that are performed for non-audit clients. this adheres to the independence between the audit firm and the client. c. yes, no contingent fees are allowed regardless if the fee is based upon the amount of time it takes to complete the audit, or if the fee is contingent upon an opinion. the contingent fees rule prohibits all form of contingent fees when dealing with the relationship between audit firms and clients to ensure the auditors remain independent upon the outcome of the financial statements. d. no, a fee based upon the amount of time it takes to complete an engagement is not a violation. the contingent fees rule prohibits an agreement whereby no fee will be charged for clients receiving assertion opinions unless a specific finding or result is attained, or where the fee is otherwise contingent upon the findings or results of such services. the purpose of the rule is to prevent sacrificing the quality of audits because of the pressure felt by the auditor in producing the required audit outcome.
The correct answer will be (d), audit fee will be contingent upon no. of days required to complete engagement and is not violation of AICPA code of professional conduct.
So, when an auditor enters into an agreement with client in that case A fee based upon the amount of time it takes to complete is not a violation of the contingent fees rule, which states that professional services for clients receiving assertion opinions shall not be offered or rendered under an agreement whereby no fee will be charged unless a specific finding or result is attained, or where the fee is otherwise contingent upon the findings or results of such services.
The purpose of the rule is to prevent sacrificing the quality of audits because of the pressure felt by the auditor in producing the required audit outcome. An example would be the fee being dependent upon the issuance of an unmodified opinion or the obtaining of a loan by a client.
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Wallace has decided that he wants to move on from his entrepreneurial business and take his financial profits from his hard work. This is an example of ________.
Wallace has decided that he wants to move on from his entrepreneurial business and take his financial profits from his hard work. This is an example of harvesting.
What is entrepreneurial business?Entrepreneurship is the process of producing or removing economic value. With this definition, entrepreneurship is considered as change, typically involving risk above and above what is typical when beginning a business, and maybe involving values other than just economic ones.
The process of creating, setting up, and managing a new business in order to make money while taking on financial risk is essentially what is meant by the term "entrepreneurship."
"Entrepreneurship is the development of novel, creative ideas that can advance both the economic and social conditions of society. It fosters the entrepreneurial spirit necessary for success by assisting people in developing ideas that can address societal issues. It entails being free from the worry of failing to pursue your passions.
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