The purchase of a wristband gives you and thousands of other fans access to the very large outdoor concert pavilion, where you all fit comfortably. The blues festival is a good that has the characteristics of being: nonrival and excludable.
Which public good is the finest illustration?National security is one of the best instances of a public benefit. If one individual in a particular location is protected against an attack or invasion by a foreign power, other people there are probably similarly protected.
Public goods are significant because they are intended to be accessible to the broader public and have particular characteristics that prohibit some individuals or groups from being unable to use them. They must also be durable enough to sustain use without becoming inoperable for subsequent users.
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Products include goods and services, as well as _____, which are thoughts, opinions, and philosophies. Intellectual concepts such as these can be marketed, just as goods and services can.
Ideas, which are thoughts, views, and philosophies, are products as well as goods and services. These kinds of intellectual ideas are marketable, just like products and services.
What is meant by Intellectual concepts?When referring to topics like literature or philosophy, which are known to elicit in-depth discussion, the adjective "intellectual" is frequently used to express rigorous reasoning and in-depth thinking.
Intellectual self-confidence is the capacity to work outside of a constrained scope of subject-matter expertise, to think flexibly and creatively about how one's current skills and knowledge can be applied to a problem at hand, to switch between projects as necessary, and to learn about new topics and methodologies as required.
A child's ability to reason and think conceptually grows during their cognitive or intellectual development. To make sense of the world they live in, individuals must organize their minds, concepts, and ideas.
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In the management of cash and marketable securities for a firm, why should the primary concern be for the safety and liquidity rather than maximization of profit
The main focus should be on safety and liquidity rather than maximizing profits because the money must be available when it is needed.
The balance sheet's marketable securities are what, exactly?Marketable Securities, which are the liquid assets that are easily convertible into cash and are listed under the current assets heading on the company's balance sheet, include, as just a few examples, Treasury bills, commercial paper, and other types of money market instruments.
Marketable securities – are they a current asset?Marketable securities are highly liquid assets that can be quickly converted to cash without losing value. As current assets, which are those that are projected to be converted into cash in less than a year, they are often not a component of a company's operations.
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when there is a substantial probability that death or serious physical harm could result, and the employer knew or should have known about the hazard, what type of violation is it?
A violation where there is substantial probability that death or serious physical harm could result and that the employer knew, or should have known, of the hazard. OSHA may propose a mandatory penalty of up to $12,471 for each serious violation.
What is violation what type of violation ?The United States' Occupational Safety and Health Administration (OSHA) Act guarantees that workplace safety regulations are upheld. OSHA inspectors conduct periodic inspections at workplaces and businesses to make sure the law is being followed.If an OSHA inspector finds during an inspection that a working danger caused a worker to become ill or injured but did not cause death or significant physical harm, the inspector will record this as an Other-than-Serious Violation.When there is a high likelihood that a workplace accident would result in death or other significant physical harm, and the employer knew about or should have known about the dangers yet took no action, that is considered a serious violation.A serious violation is defined as when there is substantial probability workplace hazards can cause an incident that would most likely result in death or serious physical harm, and that the employer knew, or should have known about the potential risks and did nothing to address it.
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An assignment must always be in writing.True or False
It is a two-step transfer of rights under a contract: (1) An agreement made between just two parties. (2) One of the parties' later transfer of rights under such agreement to a third party.
What is an assignment?A contract's rights are transferred in two steps as follows: A deal that involves just two parties, (1) (2) Later transfer to a third party by one of the parties of rights under that agreement.
When rights are assigned, they are given from the "assignor" to the "assignee," with the former serving as the new owner. Some additional rights and obligations that come with the assignment are decided by the legal structure of the assignment and the contractual clauses of the agreement between the parties.
It is not required that the assignment be made in writing, but the agreement for the assignment must indicate the transfer of rights.
Therefore, the statement is false.
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which of the following is not a form of nonverbal communication? a. the appearance of a business document b. the adjectives used in a sales letter c. showing up late for a job interview d. raising one's voice when angry or frustrated
The adjectives used in a sales letter is not a form of nonverbal communication The adjectives used in a sales letter.
What is nonverbal communication in business?Through actions rather than words, nonverbal communication provides cues to others. Nonverbal responses can be used to convey a variety of emotions, including joy, interest, concern, gratitude, and confidence. This can involve communicating with your hands, your eyes, your body language, your appearance, your facial expressions, and your tone of speech. Verbal and nonverbal exchanges are the two main types of communication. Whether verbally or in writing, verbal communication uses words to express a message. Nonverbal cues include things like your posture, facial gestures, and eye contact.A type of correspondence used in sales is the sales letter. This letter is an attempt to promote a product. A good technique to communicate with customers is through sales letters. It could aim to attract the attention of a particular demographic. It is comparable to a salesperson explaining the goal while composing a letter.To learn more about nonverbal communication in business refer to:
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According to the Department of Agriculture, which of the following land types constitutes the lowest percentage of land use in the United States?Multiple Choicecrop landfederal land and water areasforest landdeveloped land
According to the United States Department of Agriculture, developed land constitutes the lowest percentage of land use in the United States. Thus Option E is the answer.
Developed land, also known as urban or built-up land, includes areas such as residential neighborhoods, commercial districts, and industrial parks. It is the land that has been modified or built upon for human use.
This type of land use typically has the lowest percentage in the United States because it is limited to specific areas where there is a high population density, such as cities and towns. In contrast, crop land, federal land and water areas, and forest land are more prevalent and cover larger areas of the United States.
Crop land is used for growing crops and other agricultural purposes, federal land and water areas include national parks, wildlife refuges, and other protected areas, and forest land is mostly covered by trees and is used for logging, recreation, and conservation.
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to better organize his lawncare business, steven is dividing each job into several parts. mark is the fastest on the riding mower, manny can rake up every tiny piece left on the lawn, and steven is a master edger. if he assigns employees to their best strength, what would this action exemplify?
This action would exemplify the concept of task specialization, which is the practice of assigning a specific job to the employee who is best suited for it.
What is employee?Employee is an individual who is hired by an organization to perform specific tasks and activities related to the organization’s operations. Employees provide labor, skills, and expertise in exchange for compensation and benefits, including wages, health insurance, and retirement plans. Employees are expected to fulfill the organization’s requirements and objectives, and to comply with the organization’s policies, procedures, and protocols. They are also required to adhere to laws, regulations, and safety standards. Employees are an essential part of any organization and are a key factor in the success of the business.
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Darren and Natalie are first-time buyers who have decided to purchase a newly build townhouse. Their agent Jenner tells them that they're required to purchase a third-party home warranty. Which of the following conditions must be true?
The conditions from Darren and Natalie must be true when they are using an FHA-insured loan.
What is FHA-insured loan?Lenders are safeguarded against losses through FHA mortgage insurance. We will pay a claim to the lender for the outstanding principal amount in the event that a property owner fails on their mortgage. Lenders are able to provide more mortgages to homebuyers because they are taking on less risk. Low credit score requirements compared to conventional loans Limits on DTI are higher than those for traditional loans. Regardless of credit score, mortgage insurance rates remain the same. a number of initiatives, including financing alternatives for energy-efficient refurbishment and reverse mortgages. No upper income thresholds.
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#5 A bias of -10 means A. You are over forecasting B. You are under forecasting C. Your forecast is almost perfect D. It tells you nothing about your forecast
A bias of -10 means that you are under forecasting. It states that "B. You are under forecasting" is the correct answer to the question "5 A bias of -10 means".
Similarly, it also states that "B. You are under forecasting" is the correct answer to the same question. A bias is an error term used in forecasting, it measures the difference between the actual value and the forecast value. A positive bias indicates that the forecast is consistently too high, while a negative bias indicates that the forecast is consistently too low. A bias of -10 means that the forecast is consistently 10 units too low compared to the actual value.
It describes the process of creating forecasts and calculating bias, but does not specifically mention the meaning of a bias of -10.
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laura has submitted her application to be a sales associate. she wants to know how long the frec has to contact her about errors in her application. where in the florida statutes should she look for that information?
Caveat emptor says that buyers must exercise due diligence before making a real estate purchase.
What does buying accomplish?The purchase procedure is within the purview of purchasing. In order for manufacturing and sales to proceed smoothly, it secures the supply of commodities, production materials, and equipment. For this, the proper commodities must be purchased at the proper time and in the proper amount.
What is a good example of buying?When anything is gained in return for money of any kind, such as goods or services, it is referred to as a purchase.. The typical forms of payment are cash or credits (to be paid later). A purchase might also be apart of a barter exchange where various non-cash goods are traded, or it could be made in return for
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if the large number of new guests entering the fair happened at the same time that the new cheese pretzel stand open how would the equilibrium price and quantity for cheese pretzels change? Explain.
Given that both Demand and Supply have moved to the right in this scenario, there would be a new equilibrium point.
What is the equilibrium price and quality?The balance between supply and demand determines an equilibrium price. Unless certain aspects of supply or demand alter, prices have a tendency to return to this equilibrium. When either supply or demand shifts or moves, or when both do so, the equilibrium price changes.The equilibrium price is shown on a graph by the point where the supply and demand curves converge. Any price higher or lower than this one results in a surplus or a deficit, accordingly. Quantity provided minus quantity demanded, or Sq=Dq, is its formula. The consumer buys all the producer produces at this price.Equilibrium quantity is the amount of a good that is sold in the market when the amount that sellers are willing to sell and the amount that buyers are willing to buy are exactly equal.To learn more about equilibrium refer to:
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source selection criteria for selecting a contractor might include: production capacity, business size and type, past performance, and references. these are all examples of typical criteria within which category?
A seller must fulfill or surpass a set of criteria known as source selection criteria in order to be chosen for a contract.
What is source selection?The term "source selection" or "sourcing" refers to a variety of procurement procedures used to identify, choose, and assess potential suppliers of goods and services. Advanced analytics, market data, information on the performance of the suppliers, and a well-developed strategy must all be used to support these activities. You can find out information about a local or international supplier through advertisements, trade publications, professional associations, online databases, trade shows, corporate purchase records, chambers of commerce, foreign embassies, distributors, etc. In a market, buyers and sellers interact with one another either directly or indirectly to buy or sell goods. When looking for a good supplier, the supplier market analysis must be taken into account.
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If these are the only three sellers in the market (see table below), then an increase in the market price from $9 to $15 will increase the quantity supplied by:a. 24 units,b. 12 units,c. 36 units,d. 48 units.
Increase in the market price from $9 to $15 will increase the quantity supplied by 24 units
In the graph when the market price will rise from $9 to $15 there will be an increase in the supply by 24 units as now the same commodity which supplied 15 units will supply 9 more units 15 + 9 = 24 units in overall. Quantity supplied is the amount of a good that manufacturers are willing to supply at a specific price at a specific time. Quantity supplied in economics refers to the volume of products or services that manufacturers will make and offer for sale at a specific market price. Since price variations affect how much product producers actually offer on the market, the quantity supplied vary as from amount of supply that is actually available (i.e., the total supply).
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stakeholder support is necessary for a successful project implementation. consider your internal stakeholders, such as the facility, unit, or health care setting where the change proposal is being considered, and your external stakeholders, like an individual or group outside the health care setting. why is their support necessary to the success of your change proposal, and how will you go about securing that support?
A change proposal project's implementation needs stakeholder support to be effective. Take into account both your internal stakeholders, such as the facility, unit, or healthcare environment where the change process is located, and your external stakeholders, such as a person or group outside the healthcare environment.
Who is considered as stakeholders?As stated in the first use of the term in a 1963 internal document at the Stanford Research Institute, a stakeholder in a corporation is a member of "groups without whose support the organisation would cease to exist." Later, in the 1980s, R. Edward Freeman expanded and promoted the notion. Stakeholders might include a broad range of individuals who are influenced by or invested in the project. An owner or shareholder, for instance, can be a stakeholder. Stakeholders can also be clients, suppliers, bondholders, employees, and vendors. An investor may also be a stakeholder.Stakeholders are important parties who influence an organization's operations or performance or those who are impacted by the organization's decisions (Horev & Babad, 2005). Stakeholders in healthcare also include people, businesses, or any other type of organisation with a stake in clinical choices or the data that underpins them (Horev & Babad, 2005). The successful implementation of my evidence-based project depends in large part on the involvement of stakeholders. By contributing their expertise and experience as well as the necessary leadership inside the company to support the proposed change, internal stakeholders play a significant role in aiding its successful implementation.
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page(s) 128-129 5.2. when is a market efficient? which two situations have the highest total surplus? which two have the lowest? highest total surplus kevin wanted to spend $50 on a dishwasher and bought one at $45 from a producer who was hoping to receive $40. press space to open bonnie buys flowers for $2.25 less than she was willing to pay. she bought them from a seller who would have been willing to accept $3 less that what bonnie paid. press space to open jay buys a house for $40,000 less than he was willing to pay. he bought his home from sellers who received $2,000 more than they were willing to sell for. press space to open don wanted to buy a scooter for no more than $5 but was only able to find a producer who would sell for $15.
A market is considered efficient when the price and quantity of goods and services in the market reach a point where there is no way to make any one buyer or seller better off without making someone else worse off.
Which two situations have the highest total surplus and which two have the lowest?1. In the first situation (Kevin wanted to spend $50 on a dishwasher and bought one at $45 from a producer who was hoping to receive $40), the highest total surplus is achieved as both the buyer and seller are happy with the transaction and the difference between what they were willing to pay/receive is $5.
2. In the second situation (Bonnie buys flowers for $2.25 less than she was willing to pay. She bought them from a seller who would have been willing to accept $3 less than what Bonnie paid), the highest total surplus is achieved as both buyer and seller are happy with the transaction and the difference between what they were willing to pay/receive is $0.75
3. In the third situation (Jay buys a house for $40,000 less than he was willing to pay. He bought his home from sellers who received $2,000 more than they were willing to sell for), the lowest total surplus is achieved as the buyer and seller are not happy with the transaction and the difference between what they were willing to pay/receive is $42,000
4. In the forth situation (Don wanted to buy a scooter for no more than $5 but was only able to find a producer who would sell for $15) the lowest total surplus is achieved as the buyer is not happy with the transaction and the difference between what they were willing to pay/receive is $10.
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carter swimming pools has $13 million in net operating profit after taxes (nopat) in the current year. carter has $8 million in total net operating assets in the current year and had $6 million in the previous year. what is its free cash flow? enter your answer in dollars. for example, an answer of $1.2 million should be entered as 1,200,000. round your answer to the nearest dollar.
The answer is 1.4 million dollars which when rounded of would be 14,000,000.
What is a brief explanation of tax?A tax is a compulsory payment or charge that local, state, and federal governments levy on citizens and corporations to fund essential public goods, services, and operations.
What can a child understand about taxes?There are numerous ways for governments to raise money. They may impose fees for items like driver's licenses, as an example. But virtually every government receives funding by simply levying a set amount on its constituents. Taxes are the name for this money.
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when borrower max was approved for an fha loan, he knew that the cost of the loan would be passed to him in one of two ways. which would be paid at the time of closing as an fha fee?
The maximum loan amount permitted varies depending on the geographic area and is determined as a percentage of the current conforming loan limits with a ceiling based on the area's median house price. A value equal to 115% of the median property price in each location is used by the administration to determine loan restrictions each year.
How are FHA loan limits established? Based on county-by-county conforming standards, the HUD sets lending ceilings for FHA loans. Based on county-by-county conforming loan restrictions, HUD sets lending ceilings for FHA loans. Lower-cost and higher-cost locales have different FHA loan restrictions.By county, there are different FHA loan maximums.The maximum purchase money loan amount for an FHA insured loan is 96.5% of the sales price or appraised value, whichever is less.Using 31% of your salary for housing costs and 43% for those costs as well as other long-term debt is permitted by the FHA, according to the organization's official website.To Learn more About maximum loan amount refer To:
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for which reasons would marketers consider a cross-cultural analysis important? (check all that apply.)
The reasons marketers consider a cross-cultural analysis important are:
It tells marketers what customs are considered normal and expected. It tells marketers what a society values. It tells marketers what is represented by symbols.Advertising and marketing is the technique of exploring, creating, and turning in fees to fulfill the wishes of a goal marketplace in phrases of goods and offerings; probably which includes the selection of an audience; selection of fantastic attributes or situation matters to emphasize in advertising and advertising; operation of marketing and advertising and marketing campaigns; attendance at alternate suggests and public activities; layout of products and packaging attractive to customers; defining the phrases of sale, such as rate, reductions, warranty, and cross returned coverage; product placement in media or with people believed to steer the shopping for conduct of others; agreements with stores, wholesale vendors, or resellers; and attempts to create a reputation of, loyalty to, and brilliant feelings approximately a logo.
Advertising and Advertising are generally finished via the seller, generally a shop or producer. sometimes the venture is contracted to a devoted marketing firm or advertising company. extra hardly ever, a trade association or government enterprise (which includes the rural marketing provider) advertises on behalf of a whole industry or locality, often a selected sort of food (e.g. were given Milk?), food from a specific area, or a metropolis or area as a tourism destination.
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what is deglobalization? a. the capacity to recover quickly from difficulties b. resources that allow an organization to adapt successfully to pressures c. weakening economic interdependence among countries d. coordinated activities involved in the production of a good or service
Deglobalisation can be described as motion closer to a less related world, characterised by way of powerful nation states, nearby solutions, and border controls, as a substitute than world institutions, treaties, and free movement.
What are the motives for deglobalisation?Widening Income Inequality Triggers Resentment Toward Globalization. Playing Catch-up Causes Tension Between Advanced Economies and Emerging Markets. Fourth Industrial Revolution Will Reshape the Global Supply Chain. Population Aging Leads to Secular Stagnation.
But deglobalization will in all likelihood make a contribution to inflationary pressures by increasing companies' working costs, thereby preserving US inflation greater than the 1-2% vary recorded over most of the previous decade and hovering close to the Fed's 2% target rate.
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https://brainly.com/question/25499191#SPJ4Common stockholders have the right to ___ a. vote at stockholders' meetings. b. share in any dividends distributed to common stockholders. c. sell their stock. d. all of the other answers are true.
All of the other responses are true (option d), i.e., common stockholders have the right to vote at stockholders' meetings, participate in dividend distributions, and sell their shares.
A common stockholder is what?A person who has acquired at least one common share of a corporation is referred to as a common stockholder. Common shareholders are entitled to declared common dividends as well as a vote on corporate matters. In the event of bankruptcy, common shareholders are compensated last, following preferred shareholders and debtholders. Six rights are granted to common shareholders: voting power, ownership, the ability to transfer ownership, dividends, the ability to view corporate records, and the ability to bring legal claims for wrongdoing.
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(slope mc) a bakery is selling breakfast platters. a platter of 12 bagels costs $10.20. additionally, it costs $4.65 for a gallon of coffee. what is the slope of this situation? 10.20 4.65 0.85 0.12
(slope mc) a bakery is selling breakfast platters. a platter of 12 bagels costs $10.20. additionally, it costs $4.65 for a gallon of coffee. c) 0.85 is the slope of this situation.
Given the price of $10.20 for a tray of 12 bagels
A gallon of coffee costs an extra $4.65.
We translate the circumstance into the equation of the line to obtain the slope. The slope or gradient of a line in mathematics is a quantity that specifies both the direction and the steepness of the line.
y=mx+c
Here, c represents the additional cost of $4.65.
12m=10.80
The cost of 12 bagels is $10.20, and the slope is the cost of each bagel
m=10.20/12
m=0.85
m=$0.85
As a result, the slope of the presented circumstance of the bakery offering the breakfast platter of 12 bagels and a gallon of coffee is option c 0.85.
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Answer: the answer is C
Explanation: i took the test and got it right
milk producers know that the price elasticity of demand for whole milk is 0.1. if they want to increase sales by 5%, they will have to lower price by:
milk producers know that the price elasticity of demand for whole milk is 0.1. if they want to increase sales by 5%, they will have to lower price by 50
Milk, a clear liquid meal, is produced by mammary glands in mammals. It is the principal source of nourishment for young mammals until they are able to digest solid food (including breastfed human newborns). [1] Immune-related and immune-modulating components cause milk immunity. Antibodies found in colostrum, or early lactation milk, strengthen the immune system and reduce the risk of numerous diseases. Milk contains a number of nutrients, such as lactose and protein. Farm animals are used as a crop to produce dairy milk. In 2011, dairy farms produced 730 million tonnes (800 million short tons) of milk using about 260 million dairy cows[3]. [4] India is the world's largest producer of skimmed milk powder and the top exporter of
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a borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. his monthly principal and interest payment is $3,078.59. how many payments will he make over the course of the loan?
His total amount of interest over the period of 30 years would be $608,290.26.
What is principal and interest payment?The amount you initially promised to repay, or the principal, is what you owe. The fee for borrowing principal is known as interest. The principal is the sum of money you borrow when you first obtain a mortgage. Simply deduct the down payment from the final selling price of your home to determine your mortgage principal. Generally speaking, you want to make principal payments as little as possible. It is best to avoid paying interest as much as you can within the parameters of your loan because doing so will cost you more money.
The amount of his loan will be determined based on the principal balance following each monthly payment.
For instance, his first payment at 6.25% interest would be ($500,000*6.25%= $31,250/12 = $2,604.17) on the full amount of $500,000.
To determine the monthly payment amount, we divide the total amount of interest by 12.
As soon as we have the interest amount, we subtract it from the $3,078.59 total monthly payment to arrive at the principal payback amount, which for the first month equals $474.42.
Then, we subtract this principle payments from his original loan total of
$500,000 to arrive at his new balance of $499,525 (which will be subject to interest at a rate of ($499,525*6.25%/12 = 2601.7)).
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on january 15, complete computer service paid $2,000 cash for land. the journal entry to record this transaction would be:
If on january 15, complete computer service paid $2,000 cash for land. the journal entry to record this transaction would be:debit $2,000 for land and credit $2,000 cash.
What is journal entry?Journal entry is used by companies to record or post their day to day business transactions.
Based on the given information if $2,000 was paid as cash for land. Te appropriate journal entry to record this transaction would be:
Debit Land $2,00
Credit Cash $2,000
Therefore the entry is debit $2,000 for land and credit $2,000 cash.
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which answer describes something that:does not have to conform to uspap standardsis often utilized in the foreclosure processis less costly than comparable options
The commonly accepted moral and performance guidelines for the appraisal industry in the US are contained in the Uniform Standards of Professional Appraisal Practice (USPAP).
The United States of America, usually known as the US or America, is a country that occupies a substantial portion of the American continent. 50 States, 9 Minor Outlying Islands, 5 Significant Unincorporated Territories, and 326 Indian Reservations make up the union. In terms of overall area and land, it is the third-largest country on the planet. A number of nations, including Russia, Cuba, and the Bahamas, share its maritime borders. With a population of more than 333 million, it is the most populous country in the Americas and the third most populous country overall. The financial center and capital city of the nation is Washington, D.C.
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when submitting a recommendation to your boss, you should . a. state your suggestions confidently and fairly b. do all of these. c. emphasize how your idea saves money or benefits the business d. back up your suggestions with facts and evidence
When submitting recommendation to your boss, you should emphasize how your idea that saves money or benefits business.
What is a recommendation?The author of a letter of recommendation, also known as a recommendation letter, reference letter, or simply reference, assesses the features, abilities, and fitness of the person being suggested to perform a certain function or role. It's common to need letters of recommendation whether applying for a job, a scholarship, or admission to college. They are often authored by someone who has studied or worked with the subject, such as a teacher, coworker, or a boss. Businesses might also be asked for references when applying for contracts, particularly those involving the engineering, consulting, manufacturing, and construction sectors as well as public procurement and tenders.
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The optimal interest rate for the Federal Reserve to target: Macroeconomics or Microeconomics
The ideal level of government spending is a macro issue since it affects the entire economy. As a macroeconomic premise, the federal reserve should seek an interest rate that is optimal.
When the Federal Reserve wants to encourage economic development, what does it do with the money supply?The Fed can increase the amount of money in circulation by lowering the reserve requirements for banks, allowing them to extend more credit. On the other side, the Fed can decrease the amount of money in circulation by raising the reserve requirements for banks.
What sort of monetary policy involves increasing the amount of money in circulation?An expansionary monetary policy lowers short-term interest rates or increases the money supply more quickly than usual. It is carried out by central banks and achieved through open market trading, reserve requirements, and interest rate setting.
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Which of the following is NOT considered a readily available source of financial information on publicly traded U.S. companies
Answer:
The Federal Reserve Bank, often referred to simply as "the Fed".
you are reviewing a company's financial statements to assist a customer. what kind of information is most likely to be found in the footnotes to those financial statements?
Important financial information, such as the accounting techniques utilized and significant management philosophies that could affect the company's performance, will be included in the footnotes.
What Are Footnotes to Financial Statements?The footnotes to the financial statements refer to supplemental information that helps to clarify how a company arrived at its financial statement data. They also aid in explaining any anomalies or any contradictions in year-to-year accounting techniques. It serves as a supplement, offering clarification to those who need it without having the information included in the statement's main body. Nevertheless, the data provided in the footnotes is frequently significant and may indicate hidden problems with a company's financial stability.
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Lew Pherson and Vera Collier are friends who are employed by different CPA firms. One day during lunch they are discussing the importance of internal control in determining the amount of audit evidence required for an engagement. Pherson expresses the view that internal control must be evaluated carefully in all companies, regardless of their size or whether they are publicly held, in a similar manner. His CPA firm requires a standard internal control questionnaire on every audit as well as a flowchart of every transaction area. In addition, he says the firm requires a careful evaluation of the system and a modification in the evidence accumulated based on the controls and deficiencies in the system. Collier responds by saying she believes that internal control cannot be adequate in many of the small companies she audits; therefore, she simply ignores internal control and acts under the assumption of inadequate controls. She goes on to say, "Why should I spend a lot of time obtaining an understanding of internal control and assessing control risk when I know it has all kinds of weaknesses before I start? I would rather spend the time it takes to fill out all those forms in testing whether the statements are correct."
a.Express in general terms the most important difference between the nature of the potential controls available for large and small companies.
b. Criticize the positions taken by Pherson and Collier, and express your own opinion about the similarities and differences that should exist in understanding internal control and assessing control risk for different-sized companies.
c.Discuss whether Collier's approach is acceptable under existing auditing standards for either public or non-public companies.
a) Several instances where the prospective internal control is used include
b) Pherson is right when he says that internal controls should be evaluated by all organizations, regardless of size.
c) Collier's approach must be rejected.
Internal control is the mechanism used by a company to promptly avoid and identify false statements. An organization must have an internal control system that is efficient and operational throughout the year.
a) The potential internal control is put to use in a number of areas, such as transaction reporting, transaction recording, and several other operational ones. In many different domains of control, internal control takes diverse forms.
b) Pherson is correct in his assertion that all organizations, regardless of size, should evaluate their internal controls. Collier is incorrect in his position. The effectiveness of internal controls is assessed to assist decide how extensive substantive audit processes should be.
c) The review of internal control is the first stage in every organization that provides an estimate of the misstatements contained in the financial statements, hence Collier's method is unacceptable
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