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The substitutability of a particular good/service can play havoc on a company's sales. This is formally defined as elasticity of a good/service. The elasticity/substitutability changes for 4 reasons. The 4 reasons are stated below, briefly describe/explain them.
a) The larger the time interval
b) Broader definition
c) Depends on the size relative to a person's budget
d) The more the good/service is a necessity
Explain how a company chooses a taxable year. What do you think the taxable year for the following businesses would be:
The existence of a material weakness led to an adverse opinion in the internal control audit report of a publicly traded company. Which of the following statements is correct if management believes that it has remediated the weakness?
Now compute the present value of the income stream from the gold mine at a discount rate of 5%, and at a discount rate of 3%
The legal effect of the presence of a superceding event is that:
Some generally accepted accounting principles (GAAP) apply only to health care, and there are many health care organizations that use other comprehensive bases of accounting when GAAP does not apply
How is the amount of the casualty loss determined in each case (both full and partial losses)? What type of deduction is available? What limits or hurdles or percentages of adjusted gross income must be considered?
It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists. Does this legal rule assure good financial management for each government? Why or why not?
If a company's tax rate increases but the YTM of its noncallable bonds remains the same, the after-tax cost of its debt will fall. Why do you think this is a correct statement?
The Pickle construction division was working on one project for the 2012 fiscal year. They use the percentage of completion revenue recognition method.
If Alice decides to buy the investment, she would receive the first $250 payment one year from today. How much should Alice be willing to pay for this investment?
Analyze the punishment or consequence that was given to the CPA and determine whether you are in agreement the punishment fit the violation.
Prepare the journal entry to record the first semiannual interest payment and amortization of any discount or premium assuming it uses the straight-line method.
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