Answer:
Audit is an independent examination of records,financial statements or process in order to give report to the party that has commissioned the audit
Explanation:
Audit can be of the three types highlighted in the question.
Audit of financial statements involves an external auditor examining the financial statements of clients i.e the income statement,statement of financial position.the cash flow statement as well statement of changes in equity e.t.c with a view to expressing an opinion on whether the financial statements show a true and fair view of the performance of the organisation audited and sometimes whether they were prepared in line with generally accepted accounting standards such as US GAAP.
Compliance audit is simply to find out whether the person audited has conformed with certain laid down policies and procedures such as the policies to follow in granting credit facilities to bank customers.
Process audit is about examining a process to see if the steps taken by the person carrying the tasks are logical and to find out areas for improvement in order to cut down time and resources used.
Answer:
Year 1
$ 32,000 Total Dividends
$ 32,000 Preferred Stockholers
Common Stockholers
$ 0,40 Dividends / Preferred Stock
0 Dividends / Common Stock
Year 2
$ 75,000 Total Dividends
$ 64,000 Preferred Stockholers
$ 11,000 Common Stockholers
$ 0,80 Dividends / Preferred Stock
$ 0,03 Dividends / Common Stock
Year 3
$ 80,000
$ 48,000 Preferred Stockholers
$ 32,000 Common Stockholers
$ 0,60 Dividends / Preferred Stock
$ 0,08 Dividends / Common Stock
Year 4
$ 110,000
$ 48,000 Preferred Stockholers
$ 62,000 Common Stockholers
$ 0,60 Dividends / Preferred Stock
$ 0,15 Dividends / Common Stock
Explanation:
Cash Dividends: The amount of cash that the company paid to its shareholders as a return of the investing made by the investors.
Common Stock: Ordinary shares that a company issued to the investors hoping to raise funds to the operation of the company.
As return, the investors receive a share of profit that are paid as dividends to each of them, if the company issued preferred share, then the shareholders of common stocks are not guaranteed and are paid after the
payment made to the preferred stock.
Preferred Stock: The stock gives to the investors a fixed amount of return, which is called, dividend, to its stockholder before paying dividends to common sotckholders.
Answer:
Case A Case B Case C
Cash Collected from Customers $66,000 $51,000 $93,000
Cash Payments to Suppliers ($37,000) ($23,500) ($63,000)
Cash Payments for Salaries and Wages ($3,500) ($15,000) ($7,000)
Net Cash Provided by Operating Activities $25,500 $12,500 $23,000
Explanation:
Case A Case B Case C
Sales revenue 65,000 55,000 96,000
Cost of goods sold 35,000 26,000 65,000
Depreciation expense 10,000 2,000 26,000
Salaries and wages expense 5,000 13,000 8,000
Net income (loss) 15,000 14,000 (3,000)
Accounts receivable increase (decrease) (1,000) 4,000 3,000
Inventory increase (decrease) 2,000 0 (3,000)
Accounts payable increase (decrease) 0 2,500 (1,000)
Salaries and wages payable increase
(decrease) 1,500 (2,000) 1,000
Cash Collected from Customers = Sales revenue - Accounts receivable increase (decrease)
Cash Payments to Suppliers = Cost of goods sold + Inventory increase (decrease) + Accounts payable increase (decrease)
Cash Payments for Salaries and Wages = Salaries and wages expense - Salaries and wages payable increase
(decrease)
Answer:
Market value of common stock (6,000,000 x $27) =$162,000,000
Market value of preferred stock (1,000,000 X $15) = $15,000,000
Market value of debt (10,000 x $1,190) = $11,900,000
Market value of the company $188,900,000
Weight of debt in the capital structure
= $11,900,000/$188,900,000 x 100
= 6.299% = 6.30%
Explanation:
In this case, there is need to calculate the market value of the company, which is the aggregate of market value of common stock, market value of preferred stock and market value of debt. The market value of each stock is obtained by multiplying the number of units outstanding by the current market price per stock. The weight of debt is determined by dividing the market value of debt by the market value of the company.
b. Only CPF solutions can be optimal, so the number of optimal solutions cannot exceed the number of CPF solutions.
c. If multiple optimal solutions exist, then an optimal CPF solu-tion may have an adjacent CPF solution that also in optimal.
Answer and Explanation:
a. The given statement is true as the corner point at the objective function should be feasible solution which is no longer as compared with the value for every adjacent CPF solution as compared with its optimal
b. The given statement is false as the solution can be an edge
c. The given statement is true as it shows the direct relation between the two things
In linear programming problems, CPF solutions can be optimal and if multiple optimal solutions exist, an optimal CPF solution may not have an adjacent CPF solution that is also optimal.
a. True: For minimization problems, if the objective function evaluated at a CPF solution is no larger than its value at every adjacent CPF solution, then that solution is optimal. This is because in a minimization problem, the goal is to find the solution that minimizes the objective function.
b. True: Only CPF solutions can be optimal, so the number of optimal solutions cannot exceed the number of CPF solutions. CPF stands for Corner-Point Feasible, which means solutions that lie on the corner points of the feasible region.
c. False: If multiple optimal solutions exist, an optimal CPF solution may not have an adjacent CPF solution that is also optimal. This is because adjacent CPF solutions may have different objective function values.
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Which of the following give the nominal value of a variable? Check all that apply.
__ Rina's wage is 2 comic books per hour in 2011.
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Which of the following give the real value of a variable? Check all that apply.
__Rina's wage is $14.00 per hour in 2011.
__The price of a comic book is 3.5 beignets in 2011.
__Rina's wage is 7 beignets per hour in 2011.
Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Rina's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00.
In 2016, the relative price of a comic book is ( 0.29 beignets, 3.5 beignets, $4.00, $14.00)
Between 2011 and 2016, the nominal value of Rina's wage (decreases, increases, remains the same) and the real value of her wage(decreases,increases,remains the same) .
Monetary neutrality is the proposition that a change in the money supply (does not affect, affect) nominal variables and ( does not affect, affect) real variables.
Answer:
Real variable
__ Rina's wage is 2 comic books per hour in 2011.
Nominal variable
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Relative price of comic books - 3.5 beignets
Nominal value of Rina's wage increases
Real value of Rina's wage stages the same.
Monetary neutrality is the proposition that a change in the money supply ( affect) nominal variables and ( does not affect, ) real variables.
Explanation:
Nominal value is the face value or stated value.
Real value is nominal value adjusted for inflation. Real value of money also refers to the amount of goods and services money can buy.
Relative price is the price of a good in relation to another good.
The relative price of comic books in 2016 to biegnets = $14 / $4 = 3.5
Rina's income increased from $14 in 2011 to $28 in 2016. Her nominal income increased.
But the purchasing power of her income fell. In 2011 , her income could buy :
$14 / $7 = 2 comic books
Or
14 / 2 = 7 beignets
But in 2016, her income would buy:
$28 / $14 = $l2
Or
$28 / $4 = 7
We can see that her purchasing power remains the same.
I hope my answer helps you