EB7. LO 1.4Indicate whether each of the following statements is true or false.
Section 302 of Sarbanes-Oxley requires the CEO and CFO to review all financial reports and sign the reports.
One of the three questions put forth by the Institute of Business Ethics is "Do I mind others knowing what I have done?"
Ethical issues may be faced on a small scale, such as making a business decision to produce excess inventory for the sole purpose of trying to influence managers’ bonuses.
A manager who spends excess budgeted funds remaining at the end of a fiscal year on unnecessary expenditures thinking that it is better to "use it than lose it" is acting ethically.
The Foreign Corrupt Practices Act was implemented in 2001 to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures.
Answers
Answer:
Statement 1, 2 and 3 are correct whereas statement 4 and 5 are false statements.
Explanation:
Statement 1 is correct because Section 302 of Sarbanes-Oxley states that the principal executive and the CFO must review the report and sign it as well to certify that these reports are accurate.
Statement 2 is correct because it is one of the 3 questions put forth by the Institute of Business Ethics.
Statement 3 is correct because ethical issues can be faced on smaller scale. It can be faced while purchasing from small stores where they we can easily manipulate the facts.
Statement 4 is false because a manager who is manipulating facts is not acting ethically.
Statement 5 is also incorrect because Foreign Corrupt Practices Act was enacted to restrain people and entities to bribe government officials of other countries for assistance in obtaining or restraining business.
Final answer:
Section 302 of Sarbanes-Oxley requires CEO and CFO to review and sign financial reports. Institute of Business Ethics question is about others knowing what one has done. Ethical issues can be faced on a small scale like influencing bonuses. Manager spending excess funds is not ethical. Foreign Corrupt Practices Act protects investors.
Explanation:
Section 302 of Sarbanes-Oxley requires the CEO and CFO to review all financial reports and sign the reports. (True)
- One of the three questions put forth by the Institute of Business Ethics is "Do I mind others knowing what I have done?" (True)
- Ethical issues may be faced on a small scale, such as making a business decision to produce excess inventory for the sole purpose of trying to influence managers’ bonuses. (True)
- A manager who spends excess budgeted funds remaining at the end of a fiscal year on unnecessary expenditures thinking that it is better to "use it than lose it" is NOT acting ethically. (False)
- The Foreign Corrupt Practices Act was implemented in 2001 to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures. (True)
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Related Questions
Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage? A) A country with an absolute advantage will always have a comparative advantage in producing products. B) A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage. C) A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products. D) A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.
Amie was recently hired at Kreigmeister Industries as a repairperson. She was informed that if she chose not to join the union representing her fellow repair workers, she would still have to pay a fee to the union. Apparently, Kreigmeister operates under a(n):A. illegal arrangement, since nonmembers can never legally be required to pay fees to unions.B. closed shop agreement.C. union shop agreement.D. agency shop agreement.
When a consultant prepared marketing dashboards showing sales data for different household types over a four-year period for Tony's pizza, this was which step of the marketing research approach?
People want information communicated quickly and clearly. To make your writing more concise and understandable, avoid flabby expressions, long lead-ins, and unnecessary fillers.a. For the following sentence, choose the best revision.1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.B) We have identified a problem with our expense sheet, but we will solve it.C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.
Answers
Corporate limited liability refers to a legal concept that separates the assets and liabilities of a corporation from those of its owners (shareholders). In essence, it means that the personal assets of shareholders are protected from the debts and liabilities of the corporation.
If the corporation incurs losses or is faced with legal claims, the shareholders are generally not personally responsible for covering these losses beyond the extent of their investment in the company. Their liability is limited to the amount they have invested in the form of shares.
This protection encourages individuals to invest in corporations without fear of losing their personal assets in case the company faces financial difficulties or legal issues.
However, it's important to note that limited liability does not shield shareholders from all liabilities; there are exceptions, such as instances of fraud or illegal activities.
Nevertheless, for most business activities, limited liability is a fundamental principle that encourages entrepreneurship and investment in corporate entities while mitigating personal financial risk for shareholders.
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Answer: the extent of the assets of the corporation. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.
Explanation:
3. Supplies like sugar, butter, and baking trays
4. The money they pay their neighbor's six year old son to deliver cupcakes to their customers
5. The salary Alex earned in his previous job designing light fixtures
Answers
Answer:
1. The garage space used for baking that can no longer be rented to a college student - implicit costs
Implicit costs are the opportunity costs, or in other words, what they give up to run the cupcake bakery. In this case, they are giving up on the rent they would get.
2. Advertising space taken out on a social media network - explicit costs
Explicit costs are monetary cost. To advertise on social media, they probably have to pay. In case they can advertise for free, then, this is not a cost.
3. Supplies like sugar, butter, and baking trays - explicit costs
Supplies have to be paid for with money, for these reason, they represent an explicit cost.
4. The money they pay their neighbor's six year old son to deliver cupcakes to their customers - explicit costs
Wages are also explicit costs because they have to be paid for with money. In this case, the kid is like their employee, and the money he earns is his wage.
5. The salary Alex earned in his previous job designing light fixtures - implicit costs
Alex quit his job to run the cupcake bakery instead. The salary he used to earn is something that he has given up, or an opportunity cost. Therefore, this salary represents an implicit cost.
Sales revenue $404,100
Cost of goods sold 234,000
Gross profit 170,100
Expenses (including $16,700 interest and $26,400 income taxes) 83,500
Net income $ 86,600
Additional information:
1. Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.
2. The market price of Skysong stock was $14 in 2022.
3. Cash dividends of $22,900 were paid, $4,900 of which were to preferred stockholders.
Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
(a) Earnings per share $enter earnings per share in dollars
(b) Price-earnings ratio enter price-earnings ratio in times times
(c) Payout ratio enter payout ratio in percentages % (d) Times interest earned enter times interest earned times
Answers
Answer:
Earnings per share
= Net income - Preferred dividend
No of common stocks outstanding at the end
= $86,600 - $4,900
37, 100 shares
= $2.20 per share
b. Price-earnings ratio
= Market price per share
Earnings per share
= $14
$2.20
= 6.36
c. Pay-out ratio
= Ordinary dividend paid x 100
Earnings after preferred dividend
= $18,000 x 100
$81,700
= 22.03%
c. Times interest earned
= Earnings before interest and tax
Interest expense
= Net income + Interest expense+ Tax
Interest expense
= $86,600 + $16,700 + $26,400
$16,700
= 7.77 times
Explanation:
Earnings per share equals net income minus preferred dividend divided by number of common stocks outstanding at the end of the year.
Price-earnings ratio is market price price per share divided by earnings per share.
Pay-out ratio is ordinary dividend paid divided by earnings after preferred dividend.
Times interest earned is earnings before interest and tax divided by interest expense. Earnings before interest and tax equals net income plus interest expense plus income tax.
Answers
Answer:Bad debts expense = $3,450
Explanation:Bad debt expense is the expense of account receivable that a business understands will not be paid due to the inability of a customer to pay its outstanding debt. Bad debt can be calculated using the direct write off method and the allowance method.
Here Abbot company uses the allowance method by taking into consideration a reserve which is an estimated percentage of the sales known as an adjusted risk for its customers who may not pay.
Credit sales revenue 115, 000
Estimated Bad debt 3%
Bad debts expense 3% x 115,000 = $3,450
b. $3,600,000.
c. $9,300,000.
d. $15,300,000.
Answers
Answer:
b. $3,600,000.
Explanation:
The weighted average accumulated expenditure is given by the sum of each expenditure weighted by the distance between payment and the conclusion of the construction:
Weighted average accumulated expenditures were $3,600,000.
Activities not on the critical path cannot become critical after crashing.
Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Crashing a project often reduces the time it takes for lengthy or complex, but noncritical activities.
Answers
Answer:
The correct answer is letter "A": Crashing is not possible unless there are multiple critical paths.
Explanation:
Project crashing is a technique used to reduce the duration of a project to the least amount of extra cost by decreasing one or more critical activities. All of this is usually arranged in multiple entry charts where each critical activity receives the name of "critical path". It is imperative to have several critical paths so the crashing can be the most effective possible.