Problem 30-2 Multiple choice (IFRS)
Universal Company is preparing to adopt IFRS for the first time on December 31, 2020. In preparing its opening statement of financial position on January 1, 2019, the entity identified the following differences between IFRS and its previous GAAP:
a. Under the previous GAAP, the entity had recorded proposed dividends of P500,000 as a current liability.
b. Under the previous GAAP, the entity had deferred advertising costs of P4,000,000.
c. The entity did not recognize a provision for warranty of P1,500,000 because the concept of constructive obligation was not recognized under the previous GAAP.
d. The entity incurred architect fees of P800,000 in the construction of a building which was put into service on January 1, 2018.
Such costs were expensed immediately. The building had a useful life of 40 years.
Required:
1. Prepare the journal entries needed in the preparation of the opening statement of financial position.
2. Compute the net adjustment to equity as a result of the journal entries.
Answers
The journal entry to be recorded will be debit Advertising Costs 4,000,000 and credit Deferred Advertising Costs 4,000,000
1. Journal Entries needed in the preparation of the opening statement of financial position of Universal Company under IFRS are:
a. The entity should reclassify the proposed dividends of P500,000 to equity since under IFRS proposed dividends are not recognized as a liability. Therefore the journal entry to be recorded will be: Debit Retained Earnings 500,000 Credit Proposed Dividends 500,000
b. The entity had deferred advertising costs of P4,000,000 under previous GAAP which should be recognized as an asset under IFRS. Therefore the journal entry to be recorded will be: Debit Advertising Costs 4,000,000 Credit Deferred Advertising Costs 4,000,000
c. Under previous GAAP, the entity did not recognize a provision for warranty of P1,500,000 because the concept of constructive obligation was not recognized. However, under IFRS a provision for warranty expense is recognized. Therefore, the journal entry to be recorded will be: Debit Warranty Expense 1,500,000 Credit Provision for Warranty 1,500,000d. The entity incurred architect fees of P800,000 in the construction of a building which was put into service on January 1, 2018. Such costs were expensed immediately. However, under IFRS, costs related to the construction of the building are capitalized. Therefore the journal entry to be recorded will be: Debit Building 800,000 Credit Architect Fees 800,000
2. The net adjustment to equity as a result of the journal entries is the sum of the debit and credit balances recorded in equity. Debit Proposed Dividends: 500,000 Credit Deferred Advertising Costs: 4,000,000 Debit Warranty Expense: 1,500,000 Debit Building: 800,000 The total net adjustment to equity is -3,200,000 since there are more credits to equity than debits. Therefore, the entity's equity is reduced by P3,200,000 under IFRS.
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Related Questions
The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:
A) perform extensive detailed testing of cutoff.
B) evaluate the client's control procedures around cutoff.
C) confirm a sample of transactions near period end with customers.
D) confirm transaction with customers.
Answers
The most important aspect of evaluating the client's method of obtaining a reliable cutoff is option B) evaluate the client's control procedures around cutoff.
Cutoff testing refers to the process of testing transactions that occur near the end of an accounting period to ensure that they are recorded in the correct period. While detailed testing of cutoff (option A) and confirming transactions with customers (option D) can be important aspects of evaluating cutoff, the most important aspect is to evaluate the client's control procedures around cutoff.
This involves assessing the client's processes and controls for identifying, recording, and verifying transactions at period-end. Examples of control procedures around cutoff could include cutoff schedules, cutoff checklists, automated controls, or manual reconciliations. By evaluating these procedures, auditors can gain an understanding of the client's overall level of control over cutoff and identify any weaknesses or deficiencies in the process.
Confirming a sample of transactions near period end with customers (option C) can also be a useful testing procedure to verify the accuracy and completeness of recorded transactions, but it is not the most important aspect of evaluating the client's method of obtaining a reliable cutoff.
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enter mia profit/loss for the 2 month
Answers
Explain the term economic activity
Answers
Answer:
Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an economic activity. Economic activities exist at all levels within a society.
Explanation:
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When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of.
Answers
Managers are performing the planning role when they see a market trend that points to a new opportunity and then develop a plan to seize this opportunity.
Planning is the process of arranging, outlining, and compiling plans and methods to fulfill a company's marketing goals. A solid marketing strategy should outline the company's value proposition, specifics about its target market or consumers, a comparison of its competitors' positions in the market, promotion strategies, distribution channels, and a budget set aside for the plan. All relevant teams inside the company should review the marketing plan.
More people have begun their journeys as small company entrepreneurs throughout the past several decades. Unfortunately, many people don't stop to think about their marketing plan and approach. Marketing the company is a crucial choice that always begins with a strategy, just like other aspects of a project. Learning about market planning and its components is essential if you want to stand out in the market with a distinctive and consistent advertising approach.
Market Planning Stages
Sales forecasts and analyses of previous promotional efforts are part of the market planning process's initial phase. The process of product analysis helps a business to determine which elements of the strategy should receive more attention or need to be altered.
Organizing marketing goals and tactics is the second stage. Here, it is essential to develop the connections between the suggested actions in order to effectively carry out the plan.
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Individuals who have been using the Wii do not want to switch to the Move because they relate it to a superior gaming experience and also because it has been in the market for a long time. The Wii is an example of a product that has _____.
Answers
The answer to the given question is as follows:Explanation:Individuals who have been using the Wii do not want to switch to the Move because they relate it to a superior gaming experience and also because it has been in the market for a long time.
The Wii is an example of a product that has high brand equity. High brand equity refers to a product that has strong brand recognition and is generally viewed favorably by consumers.
The product enjoys high consumer loyalty and demand. This means that the Wii has a strong brand identity, which leads to customer preference and loyalty over a longer period of time.
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The amount of surface area on an uncored block that has holes extending through it is equal to less than ________.
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What is good example of active listening?
Answers
Answer:
looking directly at the person or thing and paying attention .
Explanation:
my best answer .
Answer:
- Building trust and establishing rapport.
- Demonstrating concern.
- Paraphrasing to show understanding.
- Using nonverbal cues which show understanding such as nodding, eye contact, and leaning forward.
- Brief verbal affirmations like “I see,” “I know,” “Sure,” “Thank you,” or “I understand”
Explanation:
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Write a 6 paragraph essay on the importance of economic growth
Answers
Answer:
*insert long essay*
Explanation:
What is the main difference between a market and a command economy?
Answers
Answer:
Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. Most nations operate largely as a command or market economy but all include aspects of the other.
During a hostile takeover attempt the board of directors of the target corporation blocked the attempt, however, shareholders who would have received a premium price for their stock are angry and sue. The courts will use: X the rule of reason to determine if the takeover made more financial sense to a greater number of people. the business judgement rule to determine if the directors acted reasonably. the rational basis test to determine if the block was the best course of action. intermediate scrutiny to determine if it was the best course of action.
Answers
The courts will determine if the board of directors acted reasonably by using the business judgement rule.
During a hostile takeover attempt the board of directors of the target corporation blocked the attempt, however, shareholders who would have received a premium price for their stock are angry and sue.
The courts will use the business judgement rule to determine if the directors acted reasonably.
However, the term 150 is not related to the given statement or the question, which is related to legal matters. Therefore, we cannot answer the question based on the given terms.
Nonetheless, the answer to the question is "the business judgement rule to determine if the directors acted reasonably."In the context of corporate law, the business judgment rule is a legal principle that allows a board of directors to make business decisions without being subjected to judicial inquiry.
It assumes that a board of directors, when making business judgments, acts in good faith and in the best interests of the company as a whole.
The courts will determine if the board of directors acted reasonably by using the business judgement rule.
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Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30,
2012:
Supper Company Ltd.
Stockholders’ Equity
June 30,2012
Paid-in Capital
Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000
Common stock, par value $? per share, 5,000,000 shares authorized,
1,000,000 shares issued and outstanding
2,000,000
Paid-in capital in excess of par—common 6,000,000
Total paid-in capital 9,400,000
Retained earnings 12,300,000
Total Stockholders’ equity $21,700,000
Requirements:
1. What is the par value per share of Supper’s preferred stock? (Show Workings)
2. What is the par value per share of Supper’s common stock? (Show Workings)
3. What is the selling per share for the $6,000,000 reported as paid-in capital in excess of par –
common? (Show Workings)
4. Prepare two (2) summary journal entries to record issuance of all the Supper Company Ltd stock for
cash. Explanations are not required.
Answers
Answer:
1. Par Value of Preferred stock;
= Preferred stock value / Shares issued
= 1,400,000/280,000
= $5
2. Par Value of Common Stock
= Common stock value / Shares issued
= 2,000,002/1,000,000
= $2
3. Selling price per share including Paid-In Cap
Paid-in cap is the price of a share that exceeds its par value. Selling price therefore is;
= (Par Value + Paid In cap)/ Number of shares
= (2,000,000 + 6,000,000) / 1,000,000
= $8 per share
4.
DR Cash $1,400,000
CR Preferred Stock $1,400,000
DR Cash $8,000,000
CR Common Stock $2,000,000
Paid-In Capital in excess of par - Common Stock $6,000,000
Is there any way for a monopoly to operate more efficiently than a competitive market? why or how?.
Answers
The equilibrium point in a competitive market exists at the point of optimal market efficiency.
What is competitive market?A competitive market exists a term in economics that guides to a marketplace where there exist a large number of buyers and sellers and no single buyer or seller can influence the market. Competitive markets have no obstacles to entry, lots of buyers and sellers, and homogeneous products.
In economics, especially general equilibrium theory, A perfect market also understood as an atomistic market, is determined by several idealizing requirements, collectively anointed perfect competition or atomistic competition.
No, the monopoly can never be additional efficient than the perfectly competitive market because the competitive market exists at the point of optimal market efficiency and the monopoly will deliver at the point where the MR and the MC stand equal. here the market has the excess capability and a dead weight loss.
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equivalent units of materials cost the filling department of ivy cosmetics company had 4,300 ounces in beginning work in process inventory (70% complete). during the period, 71,900 ounces were completed. the ending work in process inventory was 3,600 ounces (10% complete). what are the total equivalent units for direct materials if materials are added at the beginning of the process? fill in the blank 1 units
Answers
Therefore, the total equivalent units of materials cost is 74,800 (3,010 + 71,900 - 360).
What is cost?Cost is the value of money that has been used to purchase goods, services, or assets. It is often used to measure the amount of money invested or used up in the production of goods or services. Cost is the total amount of money that needs to be paid to obtain the goods, services, or assets. The cost of a good or service is based on the amount of money spent to produce it, including the cost of labor, materials, and overhead. The cost of a good or service also includes the cost of delivering it to the customer. Cost is also used to measure the efficiency of a business or organization. It is used to compare the cost of production and the cost of selling goods or services. Cost can also be used to measure the financial performance of a business or organization, as well as to allocate resources in the most efficient manner.
The total equivalent units of materials cost for the Filling Department of Ivy Cosmetics Company is 74,800 units. This is calculated by adding the beginning work in process inventory (4,300 ounces x 70% = 3,010) to the ounces completed during the period (71,900) and subtracting the ending work in process inventory (3,600 ounces x 10% = 360). Therefore, the total equivalent units of materials cost is 74,800 (3,010 + 71,900 - 360).
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What are the three major types of equity accounts?
The three major types of equity accounts are investments, _________
and retained earnings.
Answers
The three major types of equity accounts are:
Common Stock: Common stock is a type of equity that represents ownership in a company. When a company issues common stock, it is essentially selling ownership shares in the company to investors. Common stockholders have voting rights and may receive dividends, which are a portion of the company's profits distributed to shareholders.
Retained Earnings: Retained earnings are the portion of a company's profits that are not distributed to shareholders as dividends but are instead retained by the company for reinvestment in the business. Retained earnings are reported as a component of shareholders' equity on the balance sheet.
Preferred Stock: Preferred stock is a type of equity that gives shareholders preferential treatment over common stockholders. Preferred stockholders typically receive a fixed dividend, which is paid out before common stock dividends, and they may have other rights such as priority in the event of liquidation. Preferred stock is often seen as a hybrid security because it has features of both equity and debt.
Note that the classification and naming of equity accounts may vary depending on the accounting standards used and the nature of the business.
A
person who
owns stock in a
corporation.
Answers
A gene is considered to be dominant it mark ______
A. it is expressed only in homozygous state B. It is expressed only in heterozygous condition C. it is expressed both in homozygous and heterozygous condition D. it never expresses its effect in any condition
Answers
A gene is considered dominant if it is expressed both in homozygous and heterozygous condition. The correct answer is option C.
The term "dominant" in genetics indicates a type of gene that will always be expressed if present. When a dominant gene is present, it will always show up and mask any recessive genes that are also present. The recessive gene only shows up if the dominant gene is not present.
The expression of dominant genes in both homozygous and heterozygous conditions suggests that if an individual has either a homozygous or heterozygous condition, the dominant gene will be present in the offspring. As a result, both homozygous and heterozygous conditions are necessary for dominant genes to be present. An example of a dominant gene is brown eye color. Brown eyes are dominant over blue eyes.
Therefore, if an individual has one brown-eyed parent and one blue-eyed parent, they will have brown eyes because the brown eye color gene is dominant and always expressed. In a case where both parents have brown eyes, their child may have either brown or blue eyes, depending on whether or not they are carriers of the recessive blue eye color gene.
The answer, therefore, is option C.
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Featured in tuesday’s episode, a british travel company looking for the ‘saddest day of the year’ coined what two word phrase?
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The third Monday in January, or "Blue Monday" (January 17 in 2022), is known as the most melancholy day of the year.
Why is it referred to as Blue Monday?Blue Monday is the term given to a day in January (usually the third Monday of the month) that a UK travel agency, Sky Travel, claims to be the most miserable day of the year. The idea was first released in a firm press release from 2005 that claimed to have determined the date using a "equation."The third Monday in January, or "Blue Monday" (January 17 in 2022), is known as the most melancholy day of the year.It's meant to explain the worsening weather in January, the protracted wait until paycheck made more difficult by holiday debt, broken New Year's resolutions, and the waning excitement of Christmas.To learn more about melancholy day refer to:
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note: may you please solve and explain with usingformulas14. Find the present value as at 1 January 2005 of a series of 10 annual payments starting at £500 on 1 January 2006 and increasing by £100 each year. Assume an effective rate of interest of 8% pa.
Answers
The present value of a series of 10 annual payments starting at £500 on 1 January 2006 and increasing by £100 each year, assuming an effective rate of interest of 8% pa, is £3,246.59.
The present value of an annuity is calculated using the following formula:
Present Value = Sum of (Payment * (1 - (1 + Interest Rate)^-Number of Payments)) / Interest Rate
In this case, the payments are £500 in the first year, £600 in the second year, and so on, up to £1,500 in the tenth year. The interest rate is 8% pa. The number of payments is 10.
Plugging these values into the formula, we get the following present value:
Present Value = (500 * (1 - (1 + 0.08)^-10)) / 0.08 + (600 * (1 - (1 + 0.08)^-9)) / 0.08 + ... + (1500 * (1 - (1 + 0.08)^-1)) / 0.08 = £3,246.59
Therefore, the present value of the series of 10 annual payments is £3,246.59.
This means that if we had £3,950 on January 1, 2005, and invested it at an 8% interest rate, we would have been able to make the same series of payments as specified in the question. The present value represents the equivalent lump sum amount in 2005 that would be required to generate the same cash flows as the series of increasing payments.
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What a property sells for is its
a) market value.
b) sales price.
c) replacement value.
d) loan value.
Answers
A property sells for is its Market Value. Hence, option a) is correct.
Market value represents the estimated worth of a property based on various factors such as its location, condition, size, and current market conditions.
It is the amount that a willing buyer and a willing seller agree upon in a transaction. Market value is influenced by factors such as supply and demand, comparable sales in the area, and the overall state of the real estate market.
If there is high demand for properties in a particular area and limited supply, the market value is likely to be higher. Conversely, if there is an oversupply of properties or low demand, the market value may be lower.
It is important to note that market value may fluctuate over time as market conditions change.
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All of the following are private businesses that collect and publish financial information on similar businesses and industries EXCEPT
a. Standard and Poor's.
O b. the National Federation of Independent Business.
c. Dun and Bradstreet.
d. Value Line.
Answers
The National Federation of Independent Business (NFIB) is not a private business that collects and publishes financial information on similar businesses and industries. Option B
Instead, NFIB is a nonprofit organization that provides advocacy, education, and networking opportunities for small businesses in the United States.
Standard and Poor's (S&P) is a leading provider of financial market intelligence, including credit ratings, indices, and analytics. S&P provides independent research, ratings, and benchmarking tools that help investors make informed decisions about investments.
Dun and Bradstreet (D&B) is another leading provider of business intelligence, providing data analytics, credit reporting, and other risk management solutions. D&B collects and analyzes data on millions of businesses worldwide to provide insights into market trends, financial performance, and other business metrics.
Value Line is an independent investment research firm that provides in-depth analysis and commentary on individual stocks, mutual funds, and other investments. Value Line's research tools and reports are widely used by investors and financial advisors to help them make informed investment decisions.
Overall, all of these private businesses are essential sources of financial information and analysis for investors, business owners, and other stakeholders. While NFIB does not provide financial data, its advocacy and education programs are critical for small businesses, which are an important driver of economic growth and job creation. Option B
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Debt financing: (select all that apply)
is a loan
must be repaid
gives an investor equity in your company
has no risk to the borrower
Answers
Except for the C option, all pertain to the context of debt financing. Lenders who provide debt financing are only eligible for capital plus interest payback.
Which is most preferably between Debt Financing and Debt Equity by Companies?
The main reason businesses choose debt financing over equity financing is that debt financing preserves company ownership, whereas equity financing, such as selling shares and common stocks, gives investors a continuing equity stake in the company in exchange for shareholder voting rights and dilutes the ownership of the company's owners.
Debt financing is the process by which a business raises funds by offering investors debt instruments. Equity finance, which involves issuing stock to raise money, is the reverse of debt financing. When a company sells fixed income securities like bonds, bills, or notes, debt financing takes place.
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In a situation in which genes assort independently, what is the ratio of the gametes produced by an AaBB individual?
In a situation in which genes assort independently, what is the ratio of the gametes produced by an AaBB individual?
a 1 AB : 1 aB
b 1 A : 1 B
c 3 A : 1 B
d 3 AA : 1 BB
e 3 AB : 1 ab
Answers
In a situation where genes assort independently, the ratio of the gametes produced by an AaBB individual would be:
c) 3 A : 1 B
This ratio represents the proportion of different combinations of alleles that can be found in the gametes produced by the individual. In this case, the AaBB individual has two heterozygous gene pairs (Aa and BB), and each gene pair segregates independently during gamete formation.
For the Aa gene pair, there are two possible alleles (A and a), and for the BB gene pair, there are two possible alleles (B and B). When these gene pairs assort independently, the gametes will contain a random combination of alleles from each gene pair.
Therefore, out of the total gametes produced, 3/4 (or 75%) will have the A allele (either AA or Aa) and 1/4 (or 25%) will have the B allele (BB). This can be expressed as a ratio of 3 A : 1 B.
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Select the correct answer.
Dorothy works as an accountant for a successful advertising firm. While recording financial transactions, Dorothy keeps rechecking the figures in
order to avoid misstating assets and liabilities. Which element of internal accounting controls relates to Dorothy's method?
Answers
Answer:
B. risk assessment
Explanation:
Is eating a tomato bias?
Answers
Answer:
hindi ko po maintindihan ang tinatanong nyo
Explanation:
sa susunod po kumpletuhin nyo para masagut ko ang tanong mo
Your father obtained a car loan payable in lump sum in 5 years at a total amount of P800,000 with an annual rate of 15%. What is the present value?
Answers
Answer:
the present value is $397,741.39
Explanation:
The computation of the present value is shown below
As we know that
Present value = Future value ÷ (1 + rate of interest)^years
= 800,000 ÷ (1 + 0.15)^5
= 800,000 ÷ 1.15^5
= $397,741.39
Hence, the present value is $397,741.39
Zion co. Sells $100 of merchandise and collects $10 sales tax. The sales tax is recorded to which account?.
Answers
If Zion sells merchandise and collects sales tax, The account that the sales tax is going to be recorded is what is known as the sales tax payable.
What is the sales tax payable?The account is a liability account that acts as a storage of sales tax that a firm has gotten from their customers on behalf of the tax authority of a country.
The business is the one that holds the money and they have to remit to the government on the required dates.
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Which of the following is NOT one of the four components of the business process
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Answer:
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The financial crisis of 2008 revealed a huge failure with major banks in the united states. the banks did not know their risk positions in credit-default derivatives. it took months to process contracts and reconcile with counter-parties. this type of activity falls under which type of management?
Answers
Processing contracts and settling accounts with counterparties took months. Operations management is the form of management that applies to this activity.
Operations management: What is it?Planning, organizing, and overseeing are all aspects of operations management that are done in the context of production, manufacturing, or service supply.
The acquisition of goods or services from outside sources, managing relationships with those involved in processes, and enhancing a company's sustainability with regard to resource use are a few examples of the types of responsibilities or specialized positions this encompasses.
Supply chain management and logistics are two key concepts that can help define operations management more precisely. Both of these disciplines provide strong foundations for operations management.
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1. Assume that Alice wants to send Bob a message with the confidence that Bob will know the message was not altered while in transit. What goal of cryptography is Alice trying to achieve? And how can it be achieved?
Answers
Alice is trying to achieve the goal of ensuring message integrity through cryptography. Message integrity ensures that the message remains intact and has not been altered during transit.
To achieve message integrity, Alice can use a cryptographic technique called message authentication codes (MACs) or digital signatures.
Message Authentication Codes (MACs): Alice can generate a MAC for the message using a symmetric key shared with Bob. The MAC is a small piece of data generated using a cryptographic hash function and the shared key. Alice appends the MAC to the message before sending it to Bob. Upon receiving the message, Bob recalculates the MAC using the same key and verifies that it matches the MAC sent by Alice. If the MACs match, Bob can be confident that the message has not been tampered with.
Digital Signatures: Alternatively, Alice can use digital signatures, which provide message integrity along with authentication. Alice generates a digital signature for the message using her private key (part of a public-private key pair). The signature is unique to the message and provides a cryptographic proof of its integrity. Alice sends both the message and the digital signature to Bob. Upon receiving the message, Bob uses Alice's public key to verify the signature's authenticity and integrity. If the signature is valid, Bob can be confident that the message is unaltered and originated from Alice.
Both MACs and digital signatures provide cryptographic mechanisms to achieve message integrity and assure Bob that the message has not been modified during transit. The choice between MACs and digital signatures depends on the specific requirements and security context of the communication scenario.
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Please post detailed answers to the following questions. Please use complete sentences.
You may have noticed that honesty and ethics are important in finance and business careers. Why is this so important?
Answers
Answer:
see below
Explanation:
Ethics are a set of regulations and that guide people's behaviors. They are a set of generally accepted behavior in society. Ethics in business refers to the deliberate efforts to do the right thing.
Honesty and ethics are important in finance and business careers due to the following reasons
Asset Protection and AssuranceFinance and business professionals deal with sensitive information. They have access to financial records, accounting records, and personal shareholders and employees' records. Honesty and integrity are essential to ensure that the reports they present are accurate and reliable.
The majority of fraudulent activities originate from finance and business departments. Having employees of high integrity in those units will help protect business assets and assure the reliability of financial data.
2. Public Image and Brand Value Increases
Honest and ethical workers add to the goods reputation of a company. Business partners and customers will feel more confident transactions with the company. The company's brand image and value increase in the eyes of the public.
3. Team Work develops:
Honest workers have a relatively easy time working with others. Teamwork increases when employees work responsibly and as expected.