What are the root cause of conservatism bias?

Q: What are the benefits and Flaws of Payback Screening?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Explain the role of voters as one of the causes of inefficiencies underlying the public choice

A: Public choice reflects people's action in  collective decision making. The main features associated…

Q: What are the threats to independence?

A: Given below are the seven threats to auditor’s independence:   Self-review threat: It occurs when…

Q: What is the risk of Incorrect Rejection?

A: Risk of incorrect acceptance of internal control reliability and risk of incorrect acceptance of…

Q: What is the goal of conservatism?

A: Definition:

Q: What is the social discount rate?   plagiarism is not allowed.

A: This is used to put a present value on costs and benefits that will occur at a later date. In the…

Q: Explain Deficiency Judgment?

A: To borrow funds, borrower might be required to mortgage its property to the lender. In case that…

Q: What are some disadvantages of the APT?

A: APT is the abbreviation used for the arbitrage pricing theory. A theory or a model for asset pricing…

Q: Which of the following factors will most likely have a negative impact or

A: Functions of Budget: Planning: It facilitates planning for future activities. Controlling: Budgets…

Q: definition of political risk and how mitigate it?

A: Political risk are risk arising due to political parties of countries with change in government…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: What is inshoring?

A: It is the opposite of offshoring. Inshoring is a process wherein the business is moved back from…

Q: What is the criticism for using SMB and HML as risk factors?

A: The Fama and French Three-Factor Model (or Fama French Model for short) is an asset pricing model…

Q: What are the Flaws of Payback Screening?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: difference morality and ethics?

A: Ethics are principles that regulate the behavior of employees while conducting any activity. It is…

Q: What should a MNC do to prevent bribery?

A: Bribery is the act of giving or receiving something of value in exchange for some kind of influence…

Q: Which of the following is FALSE regarding advantages and disadvantages of the SML or CAPM?

A: The following statements are true: The model relies on the past to predict the future, which is not…

Q: What is Overt Discrimination?

A: Overt discrimination is an explicit display of unequal treatment given to a certain individual or…

Q: Explain the problems associated with questionable executive compensation schemes.

A: Fraud: Fraud refers to a malicious act done by people to fulfill their own personal benefits. In…

Q: Should standards be used to identify whom to blame for problems?

A: Standards are set to identify whether the actual activity is performed efficiently. The variances…

Q: How does/can a financial intermediary reduce the risk facing them due to Adverse Selection?

A: The question is based on one of the key issue in financial market, banking industry,  about the…

Q: What is a Control Deficiency?

A:

Q: What are the risks from subversive threats?

A: Taking illegal access over a firm internal system network by doing activity of surpassing the…

Q: Can moral hazard in the market for insurance exist without adverse selection? Explain

A: Adverse selection refers to a situation in which sellers have information about a product's quality…

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: What is the meaning of “statistically significant” in relation to the null hypothesis?

A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: Why is EBITDA controversial?

A: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a metric used to assess…

Q: What does a deficiency judgment mean?

A: Deficiency judgement refers as if borrower takes money from a lender and he is  fails to return back…

Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: what are the limitations of the Comparative advantage theory?

A: Solution- Comparative Advantage Theory-          The term comparative advantage is most frequently…

Q: What is the implication of the cost of the “wrong decision” in the selection process

A: Selection process refers to the process in which we choose an alternative from all the available…

Q: Stakeholders are less likely to include which of the following groups

A: Meaning of Stake holders In any entity stake holders can be segregated in to internal and external…

Q: What is a restrictive endorsement? Explain with examples?

A: Restrictive endorsements:Restrictive endorsement restricts the use of a financial instrument. The…

Q: What is anchoring bias?

A: Anchoring bias: Anchoring bias happens if persons depends on moreover on pre-existing data or the…

Q: In your own words, explain why moral consideration and past consideration usually do not constitute…

A: Consideration in legal terms means something in return. It can be understood with the maxim - quid…

Q: What is conflict of interest?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…

Q: Professional skepticism is

A: Answer with explanation related to Professional Skepticism is given below,

Q: What are practical weaknesses of NPO?

A: Organizations are described as business units which are established by the individuals, or group of…

Q: Define Conservatism.

A: Conservatism: Conservatism is an accounting assumption, it is as an approach used by the accountants…