Answer:
False
Explanation:
A multidivisional structure organizes the divisions of an organization in different units and each of them work independently, handle their operations apart from the other ones but the central management provides the direction of the company. According to this, the answer is false because the multidivisional structure doesn't have direct lines of authority from the top executive to the lowest level employees as divisions work separately.
Straight Arrow unloaded two tankers worth of toxic waste at an important port in the country of Urithmea. A hundred workers worked two days in their shorts and sandals to unload the barrels from the tankers for $5 a day. They were not told about the content of the barrels. Some observers felt that it was the obligation of not just the government of Urithmea but also of Straight Arrow to ensure that no harm was done to the workers. These observers are most likely:___________
1- Utilitarianists
2- Cultural relativists
3- Justice theorists
4- Rights theorists
5- Naïve immoralists
Answer:
4- Rights theorists
Explanation:
Rights theorists -
According to this theory , it is the legal and moral right of an individual person , hence , any activity against these rights are unexceptable , is referred to as rights theorists .
The people have some basics rights , which can be claimed at any moment of work , and is need to be fulfilled by the company or government .
Hence , from the given scenario of the question ,
The correct option is 4 - Rights theorists
Suppose again that furniture production is more capital-intensive relative to clothing production, which is more labor-intensive. If the relative price of furniture to clothingrises, this will:___________.A. lower the incomes of both labor and capital owners.B. raise the income of labor owners.C. raise the income of both labor and capital owners.D. raise the income of capital owners.
Answer:
The correct answer is D. raise the income of capital owners
Explanation:
Stockholders' equity includes the accumulated profits of the company and the amount of capital invested by its shareholders in exchange for shares of its common and preferred shares. When there is an increase in the income or capital of a company, the overall result is an increase in the balance of the company's equity. Net worth can increase the sale of capital shares, increasing the company's income and decreasing its operating expenses.
A company can plan the exact amount of the increase in stockholders' equity, as in the case of an issue of common and preferred shares at a set price. This change differs from an increase that can occur to equity, as a result of net income, while the company plans to make a profit from operations, its real net income is only known after the fiscal year has ended.
When a company issues common and preferred shares, the shareholder's equity section of the balance sheet increases in the share price of the shares. The nominal value can be shown as a separate item from the additional paid capital on the shares or the balance can be totaled on the same line. A company can increase the accounting capital by issuing capital shares to pay off its debts and reduce interest costs.
A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thousand smartphones per month. Anticipated sales are five hundred units per month. Which of these would occur during the first few months of sales?
1. Limited demand would increase the price.
2. Limited supply would increase the price.
3. Unlimited demand would decrease the price.
4. Unlimited supply would decrease the price.
Answer:
2. Limited supply would increase the price
Explanation:
In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.
Expected sales being 500 units per month.
During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.
Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.
And since the supply is limited, the seller will have to increase the price as the demand is lot more.
Today, 8 friends went out for lunch. Their total bill was $38.80, including tax and gratuity. They decided to split the bill equally and each paid with a $10 bill. How much money will each person get back? $
Answer:
$5.15
Explanation:
The data given in the question
Total bill amount = $38.80
Each individual paid = $10 for bill
Number of individual = 8
Now if we divide the total bill amount by the number of individual so the amount come is
= Total bill amount ÷ number of individuals
= $38.80 ÷ 8
= $4.85
So each person can get the
= $10 - $4.85
= $5.15
Answer:
4.85
Explanation:
Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of ________.
Answer:
Production orientation
Explanation:
The application of Taylor's scientific management which says that their is one best way to do a single task which brings maximum efficiency and learning of the employee. This can be done by simply breaking a single task into numerous tasks and then assigning that single task to each employee. Now each employee does the same task very efficiently and the result is economies of scale which lets the company sell maximum number of products at a very low price because of increase productivity. This was the achievement of Henry Ford who assigned single task to numerous machines and human resource to do in more efficient way and the result is that we today see Ford company as one of biggest giant of automobile industry which is operating more than 110 countries across the globe.
Answer:
The option for this answer are the following:
A.Production orientation B. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation
The correct answer is
Explanation:
The production orientation is basically focused on the process of manufacturing and producing the product, the companies that give character to this action are very effective at the operational level and their objectives are always focused on optimizing the production process.
In addition, the production orientation focuses on production costs, research of technical products, and its packaging is focused on product protection and moves away from what marketing is.
While product orientation is more concerned with product quality, its managers think that their products are unique and offer different benefits from those of the competition. So they only live focused on making improvements to the product.
Also companies that have product orientation sometimes lose focus on the market, since they only care about applying new technologies to the product, leaving aside market research and ignoring customer tastes. For what puts the product-oriented companies at a disadvantage, especially in changing markets where the consumer needs and has products that continually evolve.
When a person is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place, that person is a __________ agent.
Answer:
General agent
Explanation:
A general agent is a person that the principal authorises to perform transactions in relation to a part business on a certain place.
A general agent can perform all acts in relation to a business that has been assigned by the principal. For example in real estate when an agent performs property management functions for his client he is acting as a general agent.
On the other hand a special agent is one that is employed by a principal to perform a specific task or job and his scope of responsibility is limited to that job function.
A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand?
1. Sports car
2. Chemotherapy for cancer patients
Answer:
Correct option is Sport car
Explanation:
Sports car will have a more elastic demand compared with the chemotherapy treatment for cancer patients.
The price elasticity of demand for a goods is also dependent on how you define the goods.
When there is excess demand, there is
Answer:
disequilibrium
Explanation:
An equilibrium occurs when quantity demanded equals quantity supplied.
When there is excess demand, supply is not equal to demand, hence there is disequilibrium.
Price floors, also called minimum prices are set by the government when prices are falling too low.
Price floors bring about excess supply.
Excess demand will cause price to rise, forcing the government to set a maximum price, called price ceiling.
A lease contains a bargain purchase option. In determining the lessee’s capitalizable cost at the beginning of the lease term, the payment called for by the bargain purchase option would:
Answer:
be added at its present value.
Explanation:
A lease that contains a bargain purchase option is called a capital lease.
A capital lease must amortize the capitalizable cost of the leased asset in a similar way to the normal depreciation policy used with the other assets that the lessee might have. In order to do this, the capitalizable cost must include the present value of the bargain purchase option.
Lionel is one of the project leads in a multinational company. He assigns new projects to his team members and sets the objectives and targets that they need to achieve. However, Lionel does not intervene in their work methods; he is only concerned about the end result. The information given in the scenario indicates that Lionel is a(n) _____.
Answer:
Free rein leader.
Explanation:
A free rein leader is one that the leader is hands off from daily activities. The leader sets objectives to be achieved and leaves the employees to make decision on how to achieve set objectives. The leader is more concerned with motivating his team.
In this scenario Lionel assigns new projects to his team members and sets the objectives and targets that they need to achieve, and does not intervene in their work methods. He is only concerned about the end result.
This is a practice of free-rein leadership style.
Corporation DB operates three different lines of business. Can the corporation elect a different overall method of accounting for each line or must the corporation adopt one overall method
Answer:
Yes, Corporation DB can choose a different overall method of accounting for every business unit that it possesses. As long as the business units operate separately, the corporation can use any permitted (legal) accounting method for them. For example, an American corporation uses GAAP in their domestic operations, but must use IFRS on all their foreign operations. (because GAAP only applies to the US).
_________ is calculated by taking _________ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging, over the course of a year.
Answer:
NNP; GNP hope this helps ;)
IT SHOULD BE RIGHT :0
Gaston Bank had interest revenues of $70 million last year and $30 million in interest expenses. About $300 million of Gaston's $800 million in assets are rate sensitive, while $600 million of its liabilities are rate sensitive. Gaston Bank's gap is $____.
Answer:
The gap amounts to $200 million
Explanation:
Computing the Gap of the Gaston bank using the formula as:
Gap = Rate Sensitive Asset - Rate Sensitive Liabilities
where
Rate Sensitive Asset amounts to $800 million
Rate Sensitive Liabilities amounts to $600 million
Putting the values above in order to compute the Gaston Bank Gap as:
Gap = $800 million - $600 million
Gap = $200 million
Therefore, the Gap of the Gaston bank amounts to $200 million
According to the Solow growth model, high population growth rates:_________ a) are a prerequisite for technological advances and higher living standards. b) force the capital stock to be spread thinly, thereby reducing living standards. c) place great strains on an economy's productive resources, resulting in perpetual poverty. d) are not a factor in determining living standards."
Answer:
b) force the capital stock to be spread thinly, thereby reducing living standards.
Explanation:
Solow growth model: It is a model of economic growth, which was developed by Nobel laureate Robert Solow. It helps in analyzing the change in the output of production due to a change in population growth rate, saving rate and technological growth rate.
In the Solow growth model, an increase in population growth rates will increase the growth rate of the total output of production, however, there are no sharp changes in the growth rate of per capita output and decrease in capital intensity and saving rate, which reduce living standard.
Samson Company reported total manufacturing costs of $320,000, manufacturing overhead totaling $52,000, and direct materials used totaling $64,000. How much is direct labor cost?
Answer:
Direct labor cost is $204,000
Explanation:
Total manufacturing costs $320,000
Manufacturing overhead $52,000
Direct materials used $64,000
How much is direct labor cost ?
Total Manufacturing is all the cost used to manufacture a product by the company. It included all direct and indirect expenses incurred during the period for manufacturing a product.
Use following formula to calculate the Direct labor cost:
Manufacturing cost = Direct Expenses + Manufacturing Overhead
Manufacturing cost = ( Direct Material Expense + Direct labor Expense) + Manufacturing Overhead
$320,000 = ( $64,000 + Direct labor Expense) + $52,000
$320,000 = $64,000 + Direct labor Expense + $52,000
$320,000 = $116,000 + Direct labor Expense
Direct labor Expense = $320,000 - $116,000
Direct labor Expense = $204,000
What is the best example of a supply shock?
Answer:
oil and gas industry think soBabak owns a sports practice facility called Boston Batting Cages in Boston, Massachusetts. During the first year of operation, Boston Batting Cages incurred many costs. In that year, Babak spent $5,000 on labor, $2,000 on maintenance, and $1,000 on electricity. Babak took out a loan to open his business, in which he would have earned $1,500, and his previous job, which he could get back at any time, paid him $50,000.Boston Batting Cages incurred ________ in implicit costs.
a. $51,500
b. $9,500
c. $50,000
d. $8,000
e. $7,000
Answer:
$8000
Explanation:
They have to pay $8,000 as an implicit costs.
The implicit expenditure is the advantage of the right to use the personal resources of a company that is not listed as actual, distinct expenditures.
Computation of Implicit cost for the Boston Batting Cage :
Implicit cost = Labor + maintenance + electricity
= $5,000 + $2,000 + $1,000
= $,8000
Final answer:
The total implicit costs for Babak's Boston Batting Cages are $51,500, which is the sum of his forgone salary of $50,000 and foregone interest of $1,500. So, the answer is (a) $51,500.
Explanation:
To calculate implicit costs for Babak's sports practice facility, we must consider the opportunity costs of his decisions that are not directly reflected in cash outflows. In this case, the implicit costs would include the forgone salary from his previous job, as well as the interest he could have earned if he hadn't taken out a loan to start his business.
The forgone salary is $50,000. In addition, instead of investing his money into his business, Babak could have earned $1,500 in interest. Therefore, the total implicit costs for Babak amount to:
$50,000 (forgone salary)+$1,500 (foregone interest)This adds up to $51,500 in implicit costs. Hence, the answer is (a) $51,500.
A price tag of $4 for a portable power bank is an example of money as A) a medium of exchange. B) a unit of accounting. C) a store of value. D) a time deposit.
Answer:
B) a unit of accounting.
Explanation:
The four main functions of money are:
it serves as a unit of account: it provides a common measure of the value of goods and services being exchanged. it serves as a store of value: money holds its value over time, so it serves as a store of value.it serves as a medium of exchange: you can use money to purchase goods and servicesit serves as a standard of deferred payment: money serves as a way of valuing a debt, so you can acquire goods now and pay for them later.The given example represents the unit of accounting.
The following information should be considered:
The value to goods represent the accounting equation. The store of value should be treated as the deposit. And, the money that used for transaction treated as the medium of exchange.Therefore we can conclude that The given example represents the unit of accounting.
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Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year, indefinitely. The required return on this stock is 15 percent, and the stock currently sells for $60.00 per share. What is the projected dividend for the coming year?
Solution:
Next year, we have to find the dividend for a stock with super normal growth in this region. We believe the stock price, the growth rate of the dividends and the expected yield, but not the dividend. First of all, we need to remember that in year 3 the dividend is the FVIF dividend.
The dividend in Year 3 will be: [tex]D_{3} = D_{0} (1.25)^{3}[/tex]
And the dividend in Year 4 will be the dividend in Year 3 times one plus the growth rate, or : [tex]D_{4} = D_{0} (1.25)^{3}(1.18)[/tex]
The portfolio is continuously growing in year 4, which is why it is split by the demanded return minus the growth rate in year 4 as the dividend in year 5.
The equation for the price of the stock in Year 4 is: [tex]P_{4} = D_{4} \frac{(1+g)}{(r-g)}[/tex]
Now we can substitute the previous dividend in Year 4 into this equation as follows: [tex]P_{4} = D_{0} (1+g1)^{3}(1+g2)(1+g3) / (R-g)[/tex]
[tex]P_{4} = D_{0}[/tex] (1.25)3(1.18)(1.08) / (0.15 − 0.08) = 69.86 [tex]D_{0}[/tex]
A producer of a new energy drink wants to find out if it is cost effective to license the Gold’s Gym logo to display on its packaging. Two test packages for the product were developed: One package with the Gold’s logo; the other does not. A sample of consumers (representing the firm's target market) is invited to select an energy drink from a display containing package without the logo along with packages for several competing brands of energy drink. A second sample of consumers is asked to select an energy drink from a display that contains the same competing brands and the package that has the Gold’s Gym logo. This is an example of research using:
Answer:
Experimentation
Explanation:
When you are carrying out an experimental research you must manipulate one or more variables in order to observed how the other variables are affected. In this case, the researcher used the packages with Gold's Gym logo as the manipulated variable. Then he observed how the consumers reacted to having that package or not.
The question is about comparative market research. Here, two variations of a product (with and without Gold’s Gym logo) are tested to determine consumer preference. This is similar to A/B market testing.
Explanation:The producer's research method is an example of comparative market research. Comparative market research involves comparing two or more variations of a product or service to analyze which one is more preferred by the target audience. In this case, the producer created two sample packages of the energy drink – one with the Gold’s Gym logo and one without it – to determine which packaging consumers preferred. Similar to an A/B market test, this research type aids in identifying choices that can potentially drive more sales. The concept can be further illustrated by the example of a new laundry detergent being tested to see how many consumers prefer it over a leading competitor.
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A purchaser desires to offer $174,900 for a home. The buyer will put a total of 15% down of which 1% will be put down as an earnest money deposit. How much will the new loan be for?
Answer:
$148,665
Explanation:
This could be calculated by finding the amount that the buyer will which includes 14% + 1% = 15%
So this means that the payment made is:
Payment made = $174,900 X 15% = $26,235
The remainder amount will be borrowed from the bank and is equal to the difference of 15% and the total amount.
Amount that would be borrowed = $174,900 - $26,235 = $148,665
White Laundry Company purchased $6,500 of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the supplies indicated only $3,000 on hand. It is the company’s first period of operations. The adjusting entry that should be made by the company on June 30 is:________.
1. debit supplies expense, $3,000; credit supplies, $3,000.
2. debit supplies, $3,000; credit supplies expense, $3,000.
3. debit supplies, $3,500; credit supplies expense, $3,500.
4. debit supplies expense, $3,500; credit supplies, $3,500.
Answer:
4. debit supplies expense, $3,500; credit supplies, $3,500.
Explanation:
Assuming there is no opening inventory of supplies. So the purchases mad is the only inventory which is in stock during the Month of June. Stock has been used during the month and at the end of the month it remains only $3,000.
Using following Formula we will calculate the supplies Expense.
Ending Inventory of supplies = Opening Inventory of supplies + Purchases - supplies Expensed in the period
$3,000 = $0+ $6,500 - Supplies Expensed in the period
$3,000 = $6,500 - Supplies Expensed in the period
$6,500 - $3,000 = Supplies Expensed in the period
Supplies Expensed in the period = $3,500
So, the entry will be
Debit supplies expense $3,500
Credit supplies $3,500
Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In order to analyze the feasibility of the product, Valuetronics adopts an integrated system that allows it to manufacture the product before it physically exists, that is, the system allows Valuetronics to finalize the design of the stereo, analyze it, and do a test-run. In this context, Valuetronics is using a:____________.a. enterprise resource planning (ERP) system b. flexible manufacturing system (FMS) c. computer-aided engineering (CAE) system d. computer-aided manufacturing (CAM) system
Answer:
Option C; COMPUTER-AIDED ENGINEERING SYSTEM (CAE)
Explanation:
Computer-aided engineering system (CAE) is the broad usage of computer software to aid in engineering analysis tasks. It is the use of computer software to simulate performance in order to improve product designs or assist in the resolution of engineering problems for a wide range or industries.
A typical CAE comprises of preprocessing solving and postprocessing steps.
CAE is the next step in not only designing a product, but also supporting the engineering process as it allows to perform tests and simulations of the product's physical properties without needing a physical prototype.
Therefore, Valuetronics is using COMPUTER-AIDED ENGINEERING SYSTEM (CAE).
Russell Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?
The general journal entries that Russell Co. will make to record the receipt of the bill is (a).Utilities Expense Accounts Payable
Explanation:
Since Russell Co, has received the $400 utility bill for the current month's electricity, which is not due until the end of the next month which is when they intend to pay it,
The general Journal entry which Russell Co. will make to record the receipt of the bill, is to:
Debit - Utilities Expense..........$400
Credit - Accounts Payable ...........$400
Then when the expense is paid in the future
Debit -Accounts Payable ..........$400
Credit - Cash............................................$400
Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash, creating mobile money use that, on a population percentage basis, exceeds any nation in the West.
True or False
Answer: True
Explanation:
Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.
This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.
The proliferation of mobile money technology in Kenya and Somaliland, exemplified by the widespread use of the Mpesa app and the rise of mobile purchasing on Jumia, supports the claim that their use of mobile money exceeds that in Western nations, making the statement true.
The statement that technology has proliferated in Kenya and Somaliland, with text messages used to replace cash, creating mobile money use that, on a population percentage basis, exceeds any nation in the West, is True. In Kenya, the use of the Mpesa app for transactions such as paying bills, shopping in stores, and taking taxis has enabled people to leapfrog traditional banking systems. This mobile money system is also used for internet sales on platforms like Jumia and by overseas workers to transfer money back home more affordably. Furthermore, the increased access to mobile technology in Sub-Saharan Africa, as highlighted by a fivefold increase in mobile phone access, has enabled benefits ranging from improved market access for fishers and farmers to secure money transfers among individuals.
Each person who attended a company meeting was either a stockholder in the company, an employee of the company, or both. If 62 percent of those who attended the meeting were stockholders and 47 percent were employees, what percent were stockholders, who were not employees?
Answer:
53%
Explanation:
Using Venn diagram
Let the people who are employees and stockholders be X, so to get the value of employees alone and stockholders alone,
We will have
0.62-X + X + 0.47-X = 1
Collect like terms
O.62+047-X=1
1.09-X=1
1.09-1=X
X=0.9
Therefore X=9%
To get the value of stockholders alone, we subtract the value of X from its value
62% - 9%= 53%.
Answer: First, we add the options
A) 62%
B) 53%
C) 45%
D) 38%
E) 34%
53%. Option B.
Explanation:
We are dealing with percentages, therefore the total will always be 0.
From the question:
Stockholders are 62%
Employees are 47%
Total = 62 + 47 = 109
Therefore,
109 - 100 = 9%
Therefore, stockholders who were not employees, i.e. only stockholders are:
62 - 9 = 53%
Option B.
According to _________, the typical perspective held by managers is that employees dislike work, must be monitored, and can be motivated only with rewards and punishment ("carrots and sticks").
According to Theory X, the typical perspective held by managers is that employees dislike work, must be monitored, and can be motivated only with rewards and punishment.
Explanation:A psychologist named Douglas McGregor was the one who developed the concepts of Theory X and Theory Y .These includes a set of assumptions that are considered by the mangers to judge about the people. The assumptions like, dislike, unwillingness in working and little ambition are included in Theory X.
Theory X also have assumptions that employees are lazy, will be doing any of the things for the purpose of avoiding work and also will be unmotivated.In contrast to it, Theory Y assumes that the employees will be happy in working, and also will like to have additional duties without forcing them to do.
Final answer:
Douglas McGregor's Theory X describes a management perspective where employees are considered lazy and motivated only by rewards and punishment, leading to a rigid work environment. Contrastingly, Theory Y offers a positive view, suggesting that employees are inherently motivated and thrive when given more responsibility.
Explanation:
According to Douglas McGregor, the typical perspective held by managers that employees are inherently lazy and must be motivated by rewards and punishment is encapsulated in Theory X. This conventional management approach is built upon assumptions that employees dislike work, shirk responsibility, and require strict supervision as well as enticement through 'carrots and sticks' to perform adequately. Theory X managers tend to create rigid, control-based environments that heavily depend on external motivation to drive employee performance.
In contrast to Theory X, McGregor also introduced Theory Y, which holds a more optimistic view of employee motivation and behavior. Theory Y suggests that employees are naturally motivated, seek responsibility, and the job of the manager is to cultivate an environment which allows individuals to recognize and fulfill their own potentials.
Acme Company has three identical manufacturing plants, one on the Texas Gulf Coast, one in southern Alabama, and one in Florida. Each plant is valued at $200 million. Acme's risk manager is concerned about the damage which could be caused by a single hurricane. The risk manager believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart. What is the probable maximum loss associated with a single hurricane?
A) $0 million
B) $200 million
C) $400 million
D) $600 million
Answer:
B) $200 million
Explanation:
Since Acme's risk manager is concerned about the damage which could be caused by a single hurricane and he believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart.
Extremely low probability implies NO probability for two or three plants, hence, no likelihood exists
The probable maximum loss associated with a single hurricane is the total cost of 1 plant - $200 million, assuming 100% probability
Sun Corp. had investments in marketable debt securities costing $650,000 that were classified as available-for-sale. On June 30, Year 2, Sun decided to hold the investments to maturity and accordingly reclassified them to the held-to-maturity category on that date. The investments' fair value was $575,000 at December 31, Year 1, $530,000 at June 30, Year 2, and $490,000 at December 31, Year 2. Sun does not elect the fair value option to account for these investments. What amount of loss from investments should Sun report in its Year 2 income statement?
Answer:
Explanation:
As per the
When an asset is reclassified from available for sale to amortized cost fair value on the date of reclassification becomes the new carrying amount of the financial asset. However, the cumulative gain or loss previously recognised in other comprehensive income is removed from equity and adjusted against the fair value of the financial asset at the reclassification date. this will not affect the profit and loss of the entity.). The effective interest rate and the measurement of expected credit losses are not adjusted as a
result of the reclassification
Investment Carrying Amount AFS = 530000
Fair Value = 490000
40000
proposed entries
OCI 40000
investment AFS 40000
investment at amortization cost 490000
investment at available for sale 490000
Verbal orders by telephone or in person are discouraged. In cases where verbal orders are necessary, which of the following is the most effective method by which the risk of miscommunication can be lessened?
a. The person receiving the order should read it back to ensure that the order is correct.
b. The order should be signed after the patient is discharged from the facility.
c. The order should be signed by another provider.
d. The person receiving the order should authenticate the order after it is entered into the record.
Answer:
The person receiving the order should read it back to ensure that the order is correct.
Explanation:
In business communication the best way to communicate orders is in written form since this allows for clear conveyance of the message in the order. Using verbal means to give orders over the phone is prone to misinterpretation and there is less accountability when the subordinate claims he did not understand the order.
To curtail this it is advisable for the recipient of the order to repeat the order. This shows it has been clearly understood.