Answer:
B
Explanation:
Reserves J: Excess reserves J: Loans J: Deposits ;Money supply
Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the UK food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance. This scandal results from ____________ and __________.
Answer:
Poor governance and Control
Explanation: The overstatement of profit made by TESCO, a renowned grocery chain in the U. K could largely be traced to the poor internal structure governing the setup which demonstrated high level of ineptitude in the control and anchoring the of the firm's activities. In a bid to increase profit and market standing, TESCO embarked on an aggressive financial strategy whereby income was doctored and suppliers tricked into making payment in other to up the company's earning figure. This act explains how disjointed the upholding structure within the company was at the time.
Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the current volume of 50,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Answer:
Fixed costs= $300,000
Explanation:
Giving the following information:
Selling price per unit= $20
Variable expenses= $14
Break-even point in units= 50,000
To calculate the fixed costs, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
50,000= fixed costs / (20 - 14)
50,000*6= fixed costs
Fixed costs= $300,000