The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton. After revaluing noncurrent assets to zero, there was still some “negative goodwill.” Proper accounting treatment by Easton is to report the amount as A. part of current income in the year of combination. B. a deferred credit and amortize it. C. an extraordinary gain. D. paid-in capital.
This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement. 2.) First of all I would want to investigate vendor and customer accounts to reconcile payable and receivable amounts. Also, I would obtain bank statements and other lines of credit since the long term debt to equity ratio shows the company being highly leveraged.
Each decision made says some things about the person that has made it. Decisions reveal, test, and shape the ideas we have of our self and our morals. Their consequences have far-reaching implications and the book indicates when they are made in haste, with only individual interpretation or emotion, they can be devastating to the owner. The author of Defining Moments, Joseph Badaracco, Jr., relies heavily on what history has taught us through great intellectual interpretations of the most prominent philosophers: Aristotle, Immanuel Kant, John Stuart Mill, Friedrich Nietzsche, Sophocles, Niccolo Machiavelli, William James, and Marcus Aurelius. Badaracco draws examples from other writers on ethics and philosophy to reinforce how, which, and when to apply the teachings of such forward thinkers to everyday situations, with which we are faced.
Explain the significance of the St Petersburg Paradox, the Common Ratio effect, and simultaneous gambling and insurance, and their implications for Expected Utility theory The analysis of choice under risk departs from the standard theory of consumer choice, because we have to introduce uncertainty to the model. Uncertainty arises because the consequence of at least one option is not known to the decision maker (Gravelle and Rees 2004), but the probabilities of all possible outcomes are known. Examples of uncertain outcomes are represented by gambling and insurance. An individual who buys insurance is accepting a certain loss of a small sum, the insurance premium, in preference to a combination of a small chance of a much larger loss and a large chance of no loss. He is choosing certainty over uncertainty, and is risk averse.
We denote the probability of solvency Pr(S) by p > 1/2 and the probability of default Pr(F) by 1– p. In addition, the bank can conduct a special audit leading to a forecast f or s. The forecast reflects the true state with precision Pr(s|S) = Pr(f|F) = q. (a) What is the overall probability that the auditor will forecast a failure? (b) What is the probability that a bank is solvent, but the auditor forecasts a failure? (A better wording is "What is the probability that the auditor forecasts failure when the bank is solvent?") (c) What is the probability that after an auditor's forecasts of a failure, the bank turns out to be solvent?
This account can be the target of fraud in the organization because it can be intentionally misstated and violate the accuracy assertions. Employees can easily misstate the amounts that a fundraising event actually cost the organization and pocket the discrepancies. The auditor should do analytical procedures and substantive tests in order to detect these misstatements. Additionally this account should be analyzed and compared to the bills the organization has on file. The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account.
In effect, efficient markets depend on market participants who believe the market is inefficient and trade securities in an attempt to outperform the market. The main premise of efficient market hypothesis is that prices of securities always reflect all available information about them. The consequence of the market efficiency is that prices of the assets are rational and that they are unpredictable. If the assets are mispriced, rational traders will arbitrage away any deviation from its fundamental value. According to Eugene F.Fama, Random Walks in stock.
In the 3G and TCI case, the hedge funds were exposed to the risk of volatility of the CSX returns because what 3G and TCI receive from investment bank is totally determined by the return of the CSX's common share. So they are exposed to the CSX's equity risk. Another potential risk to be considered is regulatory risk because 3G and TCI had a large undisclosed position through total return swaps (12.6%). Regulatory position on disclosure of synthetic positions There
Running head: Prejudice, Stereotypes, and Discrimination 1 At some point in our lives we all have had the pleasure of experiencing prejudice, stereotyping, and discrimination. As stated in our text book, "Stereotypes are beliefs about the characteristics of a particular group or members of those groups. Prejudice describes our emotional experience. And discrimination is a negative behavior towards an individual or a group based on your beliefs and feelings about that group (Feenstra 2013)." Feenstra (2013) also states in our textbook: "That ingroups are groups that you might be a part of, and out groups are groups that you may not identify with."
Investors buy stock at the C. quoted ask price. 3. Which of the following statements is most correct? A. The stock valuation model, P0 = D1/ (i - g), can be used for firms which have negative growth rates.