Question

The absence of GAAP for corporations could lead to what situation? A : Companies engaging in...

The absence of GAAP for corporations could lead to what situation?

  • A :

    Companies engaging in price gauging.

  • B :

    Companies inflating their stock prices.

  • C :

    Companies misreporting accounting figures.

  • D :

    Companies colluding with competitors.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

GAAP or Generally Accepted Accounting Practices are the standardised accounting protocals or norms designed by respective geographies to have the consistency in the reporting structures of the entities. Also, there is a global practice of IFRS (International Financial Reporting Standards) which streamline the entire gamut of accounting process to be on a same consistent platform across the globe.

In general, the GAAP is considered as an accounting discipline and is used to avoid any mis-reporting or avoiding the practise of companies to publish misleading financial statements.

C :Companies misreporting accounting figures.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
C. In the 2020 accounting year, investors made a number observations in terms of certain decisions...
C. In the 2020 accounting year, investors made a number observations in terms of certain decisions some corporations were taking: (i) The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends; ii) On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends; (iii) It was also observed that some the management of some companies had decided to repurchase shares...
Which of the following conditions could lead to an inefficient quantity of pretzels being produced? A)...
Which of the following conditions could lead to an inefficient quantity of pretzels being produced? A) The existence of many producers of pretzels B) The existence of many consumers of pretzels C) The existence of a single producer and seller of pretzels D) All of the above conditions could cause the actual quantity of pretzels to be an inefficient quantity. Using the table, what is the minimum prices that Fred is willing to accept to supply 400 slices of pizza...
Keeping all other things constant, a shift in supply curve to the right will lead to...
Keeping all other things constant, a shift in supply curve to the right will lead to a. Decrease the price and quantity b. Price will go up and quantity will go down c. Price will go down and quantity will go up. d. Increase the price and quantity . 2. In a market if a product is sold below its equilibrium price, what could be interpreted. a. None of the above. b. The Price will go down due to this...
As discussed in the text, in the absence of market imperfections and tax effects, we would...
As discussed in the text, in the absence of market imperfections and tax effects, we would expect the share price to decline by the amount of the dividend payment when the stock goes ex dividend. Once we consider the role of taxes, however, this is not necessarily true. One model has been proposed that incorporates tax effects into determining the ex-dividend price: (PO – PX) / D = (1 – TP) / (1 – TG) Here PO is the price...
As discussed in the text, in the absence of market imperfections and tax effects, we would...
As discussed in the text, in the absence of market imperfections and tax effects, we would expect the share price to decline by the amount of the dividend payment when the stock goes ex dividend. Once we consider the role of taxes, however, this is not necessarily true. One model has been proposed that incorporates tax effects into determining the ex-dividend price:1    (P0 – PX)/D = (1 – TP)/(1 – TG)    where P0 is the price just before...
As discussed in the text, in the absence of market imperfections and tax effects, we would...
As discussed in the text, in the absence of market imperfections and tax effects, we would expect the share price to decline by the amount of the dividend payment when the stock goes ex dividend. Once we consider the role of taxes, however, this is not necessarily true. One model has been proposed that incorporates tax effects into determining the ex-dividend price:1    (P0 – PX)/D = (1 – TP)/(1 – TG)    where P0 is the price just before...
Companies raise capital to finance their capital expenditures and their operations. Investors who purchase common equity...
Companies raise capital to finance their capital expenditures and their operations. Investors who purchase common equity (common stock) of a corporation do so in the hope that the company which they have invested in prospers so that this company can afford to pay out cash dividends to its common shareholders, and these common stock investors also hope that as the company prospers the company increases in its market value so that its common equity will be worth more. Investors who...
Mr. Norman and Mr. Foster are both investors looking to buy financial assets. Mr. Norman prefers...
Mr. Norman and Mr. Foster are both investors looking to buy financial assets. Mr. Norman prefers assets with the lowest prices while Mr. Foster prefers assets on the financial market with higher prices. Each of them currently has GHC 1,000 to invest and needs your assistance to know which asset to buy to suit their preference. The following information provides details of investment options. ​ a. Asset A is a bond with a coupon rate of 10% and pays semi-annual...
1. Which of the following statements is NOT true about a fragmented? industry? A. Companies use...
1. Which of the following statements is NOT true about a fragmented? industry? A. Companies use the experience curve to reduce costs faster than the competition. B. As new competitors enter the? industry, prices drop as a result of competition. C. Companies integrate to reduce costs even further sometimes by acquiring their suppliers and distributors. D. Companies use economies of scale to reduce costs faster than the competition. E. Competitors have no reason to differentiate their products from one? another's...
2) If time has value, why are financial institutions often willing to extend you a 30-year...
2) If time has value, why are financial institutions often willing to extend you a 30-year mortgage at a lower annual interest rate than they would charge for a one-year loan? a) With a mortgage, the house you purchase acts as collateral for the loan. This reduces the risk associated with the loan and so reduces the compensation the bank requires. b) Because time has value, banks charge a lower interest rate on mortgages because they receive repayments for 30...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT