Which of the following point is related to institutional factors that affect the accounting quality? Select one: a. Legal environment b. Managers' accounting discretion c. CEO's performance d. Internal auditing

Which of the following point is related to institutional factors that affect the accounting quality? Select one: a. Legal environment b. Managers' accounting discretion c. CEO's performance d. Internal auditing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

See similar textbooks

Related questions

Q: A small business is installing a solar energy system. They estimate it will save $100,000 in year 1,…

A: The present value of cash flows is calculated by valuing all the future cash flows in present terms…

Q: 2) You find bond A priced to yield 6%, and a similar-risk bond B priced to yield 6.5%. If you expect…

A: Current Yield = interest/Current Market price Let us answer this question with the help of two…

Q: Discuss and explain the tension between “Asset Transformation” and “Asset Conversion”

A: There exists a subtle yet systematic tension between asset transformation and asset conversion. Both…

Q: when should they pay, assuming that they wish to stay on good terms with the supplier

A: 1/10 net 30 means discount = 1% total amount due = 30 days bill due = 10 days

Q: Daily Prices on these 4 stocks: MSFT INTC 3/01/11 26.72 19.66 19.88 8.47 4/01/11 26.83 19.94 19.91…

A: Variance covariance matrix : It is a square matrix where the diagonal elements represent the values…

Q: 1. 1) A coupon bond with coupon rate 6% and coupon paid semiannually has a par value of $1,000,…

A: Solution: Price of bond is the present value of cash inflows receivable from bond. So, price of bond…

Q: As a junior investment manager, your boss instructs you to help a client to invest $100,000 for the…

A: We will first calculate the expected return of the portfolio by taking the weight proportionately…

Q: 14 NuPress Valet has a proposed investment with an initial cost of $62 million and cash flows of…

A: The Weighted Average Cost of Capital or composite or over-all cost of capital of a firm is the…

Q: You wish to save P2,500,000 for your retirement by saving a certain sum every month for the next 40…

A: Future Value of Annuity Due refers to the concept which dictates the compounded value of a sum of…

Q: You are considering an investment opportunity that requires an initial investment of $148 million in…

A: IRR is an important capital budgeting tool. IRR is that rate at which NPV (net present value) is…

Q: What are the 7 key factors that are common to all investors

A: Every investor has his own set of unique investment objectives. What he wants in life, i.e. his…

Q: If the company's shares are trading at $13.50 following the dividend payment, how many additional…

A: Dividend refers to that portion of the net income of the company which the company paid to its…

Q: Please solve fast max 15-20 minutes and no reject thank u Gilian has 850,000 shares of common…

A: In calculating the weighted average cost of capital we need to know weight of each component of cost…

Q: Ishan and Hazel plan to retire at age 60 with a retirement income of $48,000 a year from their…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: Solution:- Nominal interest rate means the periodic interest rate adjusted by number of periods,…

Q: II. Case Application. Answer the following situations by applying what you have le the previous…

A: Insurance is important and necessary part of life due to too much risk involved in the life of…

Q: xplain why it is important to understand that capital budgeting is subject to the validity of the…

A: Capital budgeting and its tools like NPV, IRR etc. are highly important when we decide to determine…

Q: -$29 -$27 -$29 -$27 Tours choose, and why? is that should he chosen -$29 -$27 -$ hosen and the final…

A: NPV= Present value of cashinflows - Present value of cashoutflows.

Q: Question content area top Part 1 (Comprehensive problem) You would like to have $ 60,000 in…

A: Compound Interest: It is the interest earned on interest and depend on the principal amount and…

Q: An engineer decided to put up a trust fund for her daughter with the condition that his daughter…

A: Discounting is a technique which is used to compute the present value (PV) of future cashflows by…

Q: Over the last 10 years, a firm has had the earnings per share shown in the following table: Year…

A: A. Calculate the annual dividend for 2017 as follows: Annual dividend = Earnings per share *…

Q: Evaluate the three differing strenghts of market efficiency (weak form, semi-strong form and strong…

A: Efficient market hypothesis states that Market Value of the stock is Equal to Intrinsic Value of…

Q: What amount should he pay if he decides to settle it on June 20th, 2017 instead? The interest rate…

A: Present value (PV) of money refers to the current price of any future sum of money or streams of…

Q: A two-share portfolio held by an institutional investor has the following information: Years (t)…

A: To Find: Standard Deviation

Q: An investment is now worth 46,200. You bought this investment 15 years ago for $5,000. What return…

A: investment worth now $46,200 Investment value 15 years ago $5,000 A = P(1+R)^TWhere A…

Q: 1.A Assume that a Peruvian company, DMB LLC, just reported its earnings this year. The reported…

A: Given: Revenue = $10 million Cost = $9 million Discount rate = 8%

Q: what will be the new net income?

A: Financial leverage means the degree by which a company uses fixed income securities or outside…

Q: An archilect who has recently opened an office is concerned about not being able to pay employees'…

A: Different types of policies there in the question : Disability Income: It refers to an…

Q: Reconsider the previous illustration of a P1,000 par value bond issued by MERALCO with maturity date…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: Dylon Shops estimates the average sales of production is RM30500 per month.The price of shirt is…

A: A limiting factor is an obstacle in the production process due to limited resources available to the…

Q: How much will Selma have when she retires? $enter your response here (Round to the nearest…

A: Future value is the value of an investment at a specific future date. It can be calculated using the…

Q: Find the equivalent interest rates to the given nominal interest rates.

A: Effective Annual Rate: It refers to the rate of interest earned on an investment or charged on a…

Q: All of the following, excer one, are examples of investment. Which is the exception? O A graphic…

A: Investment is defined as the dedication of assets for attaining the rise in the value over the…

Q: I did not understand how you got the figure of $600,000 at the following part

A: Net Present Value: It represents the investment's or project's profitability in absolute terms. It…

Q: An application for an individual Disability Income policy may require all of he following…

A: Disability income policy is an insurance policy which protects the insured against loss of monthly…

Q: is considering purchasing equipment that will reduce costs by P40,000. The equipment costs P300,000…

A: In the future worth method we find out the future value of cost and benefits and see whether they…

Q: 9. Calculate the annual payment for a 20-year mortgage on a P3.5 million building at a 7.5% interest…

A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: The common stock of Placo Enterprises had a market price of $ 9.11 on the day you purchased it…

A: The rate of retrun is calculated with the help of following formula Return on Investment = Dividend…

Q: Present value of a growing perpetuity) What is the present value of a perpetual stream of cash…

A: Solution:- When an equal amount is paid each period and grows at a uniform rate, it is called…

Q: is working on following two mutually exclusive proposals for in d optimizing the traffic lighting.…

A: Benefit cost ratio is used for financial analysis of long term projects and it must be more than 1…

Q: A daily perpetuity of $3.33 is to be valued when the effective annual rate of interest is 8.25%.…

A: Effective annual rate =8.25% or 0.0825 Daily rate =( 0.0825/365 ) Daily perpetuity = $ 3.33

Q: D4) Grossnickle Corporation issued 20-year, noncallable, 8.5% annual coupon bonds at their par value…

A: The following information has been provided in the question: Life of bond = 20 years Coupon rate=…

Q: A company's 5-year bonds are yielding 8% per year. Treasury bonds with the same maturity are…

A: Data given: Yield= 8% per year Risk free rate= 2.15% Average inflation premium=1.65% Maturity risk…

Q: ocusing solely on profits can be dangerous. Explain why shareholder wealth maximization, rather than…

A: Profit maximization is not the same as wealth maximization. A company can pursue both profit…

Q: 10 An unlevered firm has a cost of capital of 12.46 percent and a tax rate of 35 percent. The firm…

A: Unlevered cost refers to the cost of a company which is completed based on equity financing and debt…

Q: This exercise parallels the machine-purchase decision for the Mendoza Company that is discussed in…

A: In evaluating a project, Incremental components are those, to be resulted due to the new business…

Q: Accumulate ₱42,000 at 13% compounded quarterly for 5 years and 3 months.

A: Compound interest is that form of interest under which interest is charged on principal and interest…

Q: You are a manager at Permeable Fiber, which is considering adding a new product line. Your boss said…

A: Relevant cash flows while evaluating a capital project are the cash flows, to be resulted due to the…

Q: On October 1, 2010, the spot price of the Euro was $1.46, and the price of the December 2010 futures…

A: Spot rate and future rates are interrelated to each other other and both go in hand in hand and…

Q: The period of time al the beginning of a disability during which no benefils are payable is known as…

A: In long-term care and disability insurance is the insurance used to protect an individual's…

Question

13.

Which of the following point is related to institutional factors that affect the accounting quality?

Select one:

Legal environment

Managers' accounting discretion

CEO's performance

Internal auditing

Clear my choice

Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Explanation

VIEW

Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Indicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.
Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?
Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.
Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.
An important goal of a responsibility accounting framework is to help ensure which of the following? A. decision-making is made by the top executives. B. investments made by each segment are minimized. C. identification of operating segments that should be closed. D. segment and company financial goals are congruent.
Refer to Exhibit 3.9. What are the important features of management’s report on internal control over financial reporting?
A system that establishes financial accountability for operating segments within an organization is called _______. A. a financial statement B. an internal control system C. responsibility accounting D. centralization