hich of the following is a type of agency cost of the firm? A. Paying senior management and workers bonuses if the firm’s performances in a particular year meet expectations. B. Firms invested in machines to produce robots. C. Paying dividends to the firm’s shareholders D. Firm bought insurance to i

To compete successfully for the better stockholders and better lenders, a business would need: Good employees Increasing sales revenue A higher asset utilization A lower asset utilization

Company A pays its managers a fixed cash salary. Company B adds ‘Short Term Incentives’ which involve extra cash payments linked to profits. Company C pays part of the compensation in company shares. Which Company’s compensation is most likely to mitigate conflicts of interest between managers and shareholders?

A firm's good reputation for quality customer service is categorized as its what? Goodwill may be recorded in which of the following circumstances? (A) When the property, plant and equipment of a business increase in value. (B) When a business earns a very high net income. (C) When one business purchases another business. (D) When a business sells property for more than its book value.

Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and why you chose the percentage. You may use guidelines from the textbook or the case study and should refer to the specific guidelines you used in your answer.      Current Year   Prior Year  Sales/revenue (net)    30,381,954   26,290,518 Expenses      7,263,786     6,519,376 Gross Margin      8,378,660     7,280,887 Pre-tax Income      1,114,873        761,510 Current Assets    18,993,546   16,966,273 Current Liabilities      8,221,991     6,810,164 Total Assets    19,679,541   17,670,625

Give two advantages and two disadvantages of using Net Present Value as an investment appraisal technique. Explain in no more than one sentence why each point you make is an advantage or disadvantage as if explaining to someone that has no understanding of the terminology or accounting jargon.   The Graduate Recruitment Manager of WCITJ Ltd is interested in you as a potential summer intern and future employee. Like all employers, he is only impressed by students that are self motivated, that can communicate well, and those that research and read around their topics.  He has asked you to explain, in one concise short paragraph each, three accounting concepts that you have read about during your initial study of accounting as part of your course.

Gabel Company spent money to train its employees so that they can be productive workers. Such expenditures are often referred to as investments in human capital. Required:A. Do you think that Gabel Company’s trained employees meet the definition of an asset? Explain. In your answer, discuss the characteristics of an asset and whether you think they meet each of those characteristics.B. Most accountants would say that human capital is valuable but that it is difficult, or even impossible, to measure the value of human capital. Given that you cannot determine an amount to place a value on the Gabel Company’s employees, but you think that they are assets, what would SFAC No. 5 tell you to do? Should you report them as an asset in the company’s balance sheet? Explain.C. If a value can be estimated for Gabel Company’s trained employees,      I.) Would that value be more relevant or more reliable to a prospective investor? Explain.     II.) Would the company’s assets reported in its balance…

Give three reasons why accountants need to be ethical in their duties in regards to preparation of financial statements. Explain the importance of these ethics to the companycompliance issues for emerging growth companies. Respond to this question: Is SOX so cumbersome that it limits economic growth of new businesses?