Answer: value creation
Explanation: In simple words, value creation refers to the process in which an organisation assess its results of any activity or an operation dun, to assess whether the expected results are achieved for improvement or not.
Value creation is done by the organisation to gain better results in their overall operation for a long time. This process can be done by any organisation for any subject like improving technical skills, administrative skills or for knowledge improvement etc.
Hence from the above we can conclude that the correct option is D.
The element assessed by the financial services firm in measuring the success of the educational program in local schools is 'impacts', which relate to the longer-term effects of the program on the learning outcomes of the participating students. Hence, correct option B.
The financial services firm, in assessing the return on its social investment in an educational program, measured the improvement in learning among students who had participated in the program versus those who did not. This assessment falls under the element of impacts. The term 'impacts' refers to the longer-term effects of the program's outputs on its recipients, in this case, the students. Here, the focus was on evaluating the effectiveness of the program in improving student learning outcomes, which is central to understanding the overall success and value creation of the social investment.
Unlike inputs, which are the resources needed to execute the program, or outputs, which are the immediate tangible results of program activities, impacts assess changes that occur as a result of the program or intervention.
Ken, a C.P.A., charges an annual fee to all of his clients for his services. Ken's services sometimes include investment advice but no extra fee is charged for that advice. After he begins spending 30% of his time giving investment advice, he decides to advertise the availability of the investment advisory services. According to the Investment Advisors Act of 1940, Ken is subject to regulation as an investment advisor:[A] When he gives advice about specific securities to clients.[B] When he starts spending more than 25% of his time providing investment advice.[C] When he begins advertising the availability of the investment advisory services.[D] When he starts charging investment advisory clients different fees than those charged the accountant's clients.
Answer:
C) When he begins advertising the availability of the investment advisory services.
Explanation:
The Investment Advisor Act of 1940 states that an individual is subject to regulation as an investment advisor if the individual gives investment advice and advertises himself/herself as offering such investment advisor services.
In this case, the moment Ken begins advertising his advisor service, he is subject to regulation under the Investment Advisor Act of 1940.
Xavier Co. wants to purchase a machine for $36,100 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,100 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?
Answer:
$1,473
Explanation:
The net present value is the present value of after tax cash flows substracted from the initial investment.
The net present value can be calculated using a financial calculator:
Cash flow for year zero = $-36,100
Cash flow for year one to three = $11,100
Cash flow for year four = $11,100 + $1,100 = $12,200
I = 8%
NPV = $1473
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least
a.92 cars per day.
b.100 cars per day.
c.104 cars per day.
d.110 cars per day.
Answer:
b) 100 cars per day.
Explanation:
With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.
So the total labor costs per day is $60 wage per worker X 4 workers = $240
The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.
So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.
If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).
So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.
However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.
Maureen's supervisor was so impressed by her work that he named her the employee of the month. This praise from her supervisor is an example of a(n) _________ reward.
A. extrinsic
B. intrinsic
C. secondary
D. extraneous
Answer: Extrinsic Reward
Explanation:
Extrinsic Reward, is the reward an employee gets from his employer, as a result of their excellence in the area of their job.
Extrinsic Reward can be in the form of promotion, bonuses or public recognition of excellence by employer.
Maureen earned an extrinsic reward, as the employee of the month for her outstanding performance at her job role.
Which of the following statements are true regarding the use of index funds as investment vehiciles for asset classes?
Answer:
IV) Index funds are broadly diversified
Explanation:
The use of index funds increase diversification since they hold all the securities in the index. By holding all the stocks of the index, the risk lowers (it approaches systematic risk) and the expected returns should be very similar to the expected market returns.
The minimum possible value of the "Frequency of Championships" Herfindahl-Hirschman Index is:__________.
Answer:
1/N
Explanation:
Herfindahl-Hirschman Index is used to measure the market concentration and market competitiveness of firm(s).
A major advantage of this index is that it is easy to calculate while using small amount of data required for calculation.
It been used by government agencies such as the U.S. Department of Justice for cases involving mergers and acquisition.
Since we are concerned with the minimum possible value we divide [tex]\frac{1}{N}[/tex].
Final answer:
The minimum possible value of the Herfindahl-Hirschman Index is zero, indicating perfect competition.
Explanation:
The Herfindahl-Hirschman Index (HHI) is a measure of the size of firms in relation to the industry and the amount of competition among them. It is calculated by summing the squares of the percentage market shares of all participants in the market. The minimum possible value of the HHI is zero, which represents perfect competition, while the maximum value is 10,000, indicating a monopoly. Therefore, the minimum value of the 'Frequency of Championships' Herfindahl-Hirschman Index would be zero.
Which of the following is a potential advantage to working in a commercial fitness facility?A. Can work from homeB. In-house employee trainingC. No employer supervisionD. Works only when required
Answer: Option B
Explanation: In simple words, commercial fitness facility refers to the gymnasiums an other such facility centers where individuals can go and work out for a better health and fitness. In house training refers to the knowledge that an employee gains while working for an organisation.
Employees working in such facility centers have the advantage to learn new techniques and exercises while working and getting paid. These facilities core operations relates to training their clients and making them more healthy thus they have to train their employees properly so they can handle the clients.
While doing so employee would get an in house training for the work that he or she is going to perform in the future,
"___________ are not taxable because they are considered a return of excess premium."
Answer:
DIVIDENDS DISTRIBUTED BY A MUTUAL INSURANCE COMPANY are not taxable because they are considered a return of excess premium.
Explanation:
Dividends distributed by corporations are generally taxed as ordinary income, but dividends distributed by mutual insurance companies are considered a return of premium and therefore are not taxed.
Mutual insurance companies are companies which are owned by its policyholders.
Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. The initial cash outflow is $150,000, and the firm's required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? (Round off the answer to two decimal places.)
Answer:
the payback period = 4.86 years
Explanation:
Seattle's cash flows are as following:
Year Cash flow Accumulated cash flows
0 -$150,000 -$150,000
1 $30,000 -$120,000
2 $30,000 -$90,000
3 $30,000 -$60,000
4 $30,000 -$30,000
5 $35,000 $5,000
6 $35,000 $40,000
etc.
The payback period is between year 4 and 5:
4 years + ($30,000 / $35,000) = 4.86 years oryear 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 daysThe Converting Department of Tender Soft Tissue Company uses the weighted average method and had 2,100 units in work in process that were 70% complete at the beginning of the period. During the period, 26,500 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 20% complete at the end of the period.
A. Determine the number of whole units to be accounted for and to be assigned costs for the period.
B. Determine the number of equivalent units of production for the period.
Answer:
A) 25,600 units
B) 25,270 equivalent units
Explanation:
the total number of units to be accounted for = units completed + units under process ending balance - units under process beginning balance = 26,500 units + 1,200 - 2,100 = 25,600 units
equivalent units = (2,100 x 30%) + (26,500 - 2,100) + (1,200 x 20%) = 630 + 24,400 + 240 = 25,270 equivalent units
Final answer:
The number of whole units to be accounted for is 27,400 and the number of equivalent units of production is 26,740 for the period, using the weighted average method in a production environment.
Explanation:
The task involves calculating the number of whole units to be accounted for and the number of equivalent units of production using the weighted average method in a production process.
To determine the whole units, we add the units at the start of the period to the units completed during the period and subtract the units that were still in process at the end of the period:
Units at the beginning: 2,100Units completed and transferred: 26,500Units in process at end of period: 1,200Whole units to be accounted for = Units at beginning + Units completed - Units in process at end
Whole units to be accounted for = 2,100 + 26,500 - 1,200 = 27,400 units
Equivalent Units Calculation
Equivalent units of production are computed by adding the full units completed to the equivalent units for the ending work in process:
Full units completed: 26,500Equivalent units for ending work in process: 1,200 units * 20% = 240 unitsEquivalent units of production = Full units completed + Equivalent units for ending WIP
Equivalent units of production = 26,500 + 240 = 26,740 units
Sam is a retiree with considerable resources, so he doesn't really spend much time on purchase decisions. His belief is that the most expensive brand is probably also the best in terms of quality. Sam uses price as a _____ indicator of quality.
Answer: completing the last sentence in question:
Sam uses price as a surrogate indicator of quality.
Explanation: From the question, Sam when making purchases, has a believe that the costlier goods posses more quality than other cheaper goods. Therefore he is indirectly taking price as a key indicator of quality or a replacement for quality.
Ally Manufacturing has an average accounts payable balance of $420,000. Its average annual cost of goods sold is $10,220,000. It receives terms of 2/15 net 30 from its suppliers. Is Ally managing its accounts payables well? A. Yes, since it, on average, chooses not to take the discount, but pays when payment is due. B. Yes, since it, on average, takes the discount, and pays at the end of the discount period. C. Yes, since it, on average, stretches payment beyond the due payment date. D. No, since it, on average, does not take advantage of the discount period and pays well before payment is due.
Answer:
B
Explanation:
Since it, on average, takes the discount, and pays at the end of the discount period.
The rationing function of prices means that
A) buyers and sellers synchronize their decisions through the price system
B) all goods and services are produced by large firms
C) government is responsible for setting the prices of basic foods.
D) businesses determine what goods consumers should purchase.
Answer:
A) buyers and sellers synchronize their decisions through the price system
Explanation:
Buyers are affected by the price mechanism and generally demand less at higher prices while sellers offer more when the price is higher. This provides a rationing mechanism that is not controlled by a central authority.
Partypolist, a store that sells party supplies, sends discount coupons to its regular customers before Christmas and Halloween every year. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?
Answer:
Relationship Era
Explanation:
Based on the information provided within the question it can be said that the era that is most likely being referred to in this scenario is the Relationship Era. This is an business era that describes the slow changes made towards the move to long-lasting relationships between the business and it's customers. Which is what Partypolist wants to accomplish by awarding the regular customers every year with discount coupons in order to establish long-lasting relationships.
On December 31, a company has the following bank accounts and corresponding cash balances:California BankOperating – Summit Ridge ($400,000)Operating – Bakersville 300,000Operating – Smithville 50,000Savings 500,000Sedona BankChecking ($375,000)How should the company report the above bank account balances in the balance sheet at December 31?A. Cash of $75,000.B. Cash of $450,000 and a liability of $375,000.C. Cash of $850,000 and a liability of $775,000.D. Cash of $800,000 and a liability of $725,000.
Final answer:
The company should report a total cash balance of $1,250,000 on its balance sheet, and after deducting the Sedona Bank Checking account overdraft of $375,000, the net cash reported would be $875,000. None of the options provided (A, B, C, or D) are correct based on the calculation of the account balances provided.
Explanation:
On a company's balance sheet at December 31, the company should report the total cash balances from all of its bank accounts in one combined amount, not including any overdrafts or liabilities. The balances in the company's California Bank accounts (Operating - Summit Ridge, Operating - Bakersville, Operating - Smithville, Savings) and its Sedona Bank Checking account should be totaled without regard to whether they are in checking or savings form. The correct way to report the cash balances is to add all the positive cash balances together:
California Bank Operating - Summit Ridge: $400,000
California Bank Operating - Bakersville: $300,000
California Bank Operating - Smithville: $50,000
California Bank Savings: $500,000
Sedona Bank Checking: ($375,000) [This is a liability and not added to the cash]
Adding these together: $400,000 + $300,000 + $50,000 + $500,000 = $1,250,000 in positive cash balances. Therefore the correct presentation on the balance sheet is:
Cash: $1,250,000
Less: Overdraft: $375,000
This results in net cash of $875,000. None of the provided responses (A, B, C, or D) are correct, as, based on the information given, the actual reporting should be cash of $875,000 (without any additional liability since the overdraft has been already deducted from the total cash).
According to Maslow, when Clorox wipes highlight the germ-harboring aspect of conventional sponges, it is addressing
a.the self-actualizing level of needs
b.the need for love and belonging
c.physiological need for health
d.the esteem need that accompanies keeping a clean house
Answer:
According to Maslow, when Clorox wipes highlight the germ-harboring aspect of conventional sponges, it is addressing
C. Physiological Need for Health
Explanation:
According to Maslow's Need of hierarchy, humans move from
Physiological Needs: Basic biological needs, like air, water, food, shelter, clothing, primary health needs etc
Safety Needs: Need of personal security, property, resources etc
Need of Belonging: Having friends, family, people to talk to with etc
Esteem Needs: Need for self respect, freedom, status, recognition etc.
Self-actualization Need: Reaching the heights where one can go and attaining the most highest form of something which one desires.
After reading all the above needs, it is very much clear in understanding that Clorox wipes highlighting the germ-harboring aspect of conventional sponges, is addressing the Physiological Need for Health.
The marketing of Clorox wipes targeting germs relates to Maslow's physiological need for health, as it addresses basic survival concerns such as maintaining a healthy environment.
According to Maslow's Hierarchy of Needs, when Clorox wipes underscore the germ-harboring aspect of conventional sponges, it addresses the physiological need for health. Maslow's Hierarchy begins with the most basic level of needs, which are physiological needs. These needs refer to the essentials for survival, such as food, water, and overall health. If these foundational needs are not met, they become the primary focus of motivation. In marketing, highlighting the health benefits of a product, such as the germ-killing capabilities of Clorox wipes, directly appeals to this fundamental need for health and well-being.
Which of the following is true of price elasticity of demand?
A. The price elasticity of demand is only defined by the competitive conditions in a country.
B. Demand is said to be inelastic when a large change in price produces a large change in demand.
C. Demand is said to be elastic when a large change in price produces a small change in demand.
D. Price elasticity tends to be greater in countries with low income levels.
Answer: Option c
Explanation: Elasticity is an economic term that describes a transition in consumer and vendor actions in response to a price change for a commodity. How the market for the commodity responds to a price change dictates the elasticity or in-elasticity of the demand for that product.
An inelastic commodity is the one that even after a price change, buyers continue to buy. A good or service's elasticity may change depending on the number of close alternatives accessible, its overall cost, and the length of time that has passed since the increase in price occurred.
Thus even if there is a slight change in demand due to change in price then the commodity is said to be elastic.
Option B is correct: demand is inelastic when a large change in price does not lead to a large change in demand. The price elasticity of demand reflects how sensitive the quantity demanded is to price changes.
Explanation:Of the provided choices regarding price elasticity of demand, option B is the correct statement. Demand is said to be inelastic when a large change in price does not produce a correspondingly large change in the quantity demanded. Conversely, demand is said to be elastic when a small change in price produces a large change in quantity demanded. The price elasticity of demand measures the responsiveness of quantity demanded to changes in price, with elastic demand having an elasticity greater than 1, inelastic demand having an elasticity less than 1, and unitary elastic demand having an elasticity exactly equal to 1. It is not simply defined by competitive conditions in a country nor does it generally correlate with income levels of the country in a straightforward manner.
For what client would the administration of an epidural block be most appropriate. What procedure is this client most likely to be having?
A client who is employed in the second stage
Explanation:
A second phase consumer who is working. The nerve block is a means of applying anaesthesia at a certain stage along the nerves to and from the region under which pain or muscle weakness is desired. There can be different types of nerve blocks.
Epidural anaesthesia throughout the space in which the nerves arise from the spinal cord is also an injection of this drug. During work and delivery, its use is common. The function of the brain requires anaesthesia in general.
The correct humerus will not be decreased by local aesthetics and the orthopaedic operation would not be done by means of a epidural. The injection for penetration is typically anaesthetised.
In an establishment that serves alcohol for on premise consumption and gets less than 50% of its gross receipts from alcohol sales, a cashier can be 16.
a) true
b) false
Answer:
True
Explanation:
An on premise establishment is one in which goods and services are used accordingly within the grounds of the establishment.
In an establishment where alcohol is sold and its not 50% of gross receipts it is safe for a 16year ol to be a cashier in such establishment since alcohol like any other goods or service is taken or used accordingly in the establishment.
Cheers.
Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people.
This is an example of the:
a. utilitarian approach.
b. individualism approach.
c. moral-justice approach.
d. justice approach.
e. soft-line managerial approach.
Answer: Utilitarian Approach.
Explanation:
Utilitarian Approach is a method of decision making where a decision is made whose outcome positively affects a greater number of individuals.
Caleb is trying to determine a Utilitarian approach that would have a positive outcome for a greater number of people.
The story discussing an experiment where a bell was rung, a dog was served food, and (Pavlov's) dogs salivated illustrates:Learning through classical conditioning. (T/F)
Answer:
True
Explanation:
Classical conditioning is mode or form of learning in which a conditioned stimulus becomes related to an unrelated and unconditioned stimulus to produce a type of behavioral response called conditioned response.
A buzzer sound and feeding are not in any way related but the training of dogs by Pavlov to make sure that every time the buzzer goes of, they knnow its time to feed shows the association of a conditioned stimulus (feeding) with an unconnected and unconditioned stimulus (buzzer sound).
Cheers
Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of Select one: a. the duty of loyalty. b. none of the choices. c. the business judgment rule. d. the duty of care.
Answer:
a. the duty of loyalty
Explanation:
Based on the information provided within the question it can be said that in this scenario Carlo is most likely liable for a breach of the duty of loyalty. This is the principle in which directors and officers of a corporation must act in the best interest of the corporation even if it is not in their best personal interest. Which Carlo' breached by not accepting the offer, which would have been great for the company.
An updating amendment to form ADV must be filed by an investment adviser with the SEC within __ days of the firm's fiscal year-end.
Answer:
90 days
Explanation:
Form ADV is the “uniform form” which is used by "investment advisers". It is registered with SEC and also with state security authorities. It is the “primary disclosure document” that must be brought to advisory clients. One must update amendment to Form ADV every year, and must be filled by an investment adviser with SEC within "90 days" after the end of the fiscal year.
Once amendment submitted, one must update the responses to all items. It might also be filed promptly anytime during the year in case some changes need to be reflected.
If you were talking to Todd, an average person, and asked him what the term culture meant, he would reply that it is ________.
A. the formal rules of an organization
B. the nature of products/services offered by the company
C. a set of operational procedures for the company
D. the shared values and practices of the firm
Answer:
An average person may say that it is A. the formal rules of an organization.
This is because an average person only sees the outer surface and does not analyze the deeper layers of an organization.
However, the correct answer is the D. the shared values and practices of the firm.
Explanation:
Culture is mainly a mindset. Although there various cultural variables such as language, artifacts, body language, gender roles, etc.. eventually it comes down to the shared values and practices of individuals in the firm.
Which of the following is true?
Monetarists argue that the crowding-out effect is rather large.
Monetarists advocate increasing the money supply by a constant rate year after year.
Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions.
Keynesians argue that the crowding-out effect is rather insignificant.
All of these.
Answer: The correct answer is "All of these".
Explanation: All of these statements are TRUE.
Monetarism is an economic doctrine that studies the effects of variations in the money supply on the relevant economic variables (such as employment, prices or production).
Keynesianism is based on state interventionism, defending economic policy as the best tool to get out of an economic crisis. Its economic policy is to increase public spending to stimulate aggregate demand and thus increase production, investment and employment.
The receiving report is used to________.
a. advise general ledger of the accounting entry to be made
b. advise the vendor that the goods arrived safely
Answer:
The receiving report is used to advise the vendor that the goods arrived safely (option b)
Explanation:
The receiving report is a document and accounting support detailing receipts in a storage area. You must show the code, description, quantity and value of the goods received, as well as the date of receipt and the signature of the person who received. In other words, it is a document prepared with the purpose of specifying the quantity and class of materials received.
It is useful to create a paper record of material receipts from suppliers and to record problems that may have been detected during the inspection processes or to report that the merchandise arrived safely in case of not registering problems.
This report is issued by the receiving warehouse in Duplicate, once the products received have been verified and inspected.
The receiving report is used to advise the vendor that the goods arrived safely (option b)
Selecting a sample of paid notes and tracing interest to the general ledger account is a test of the PCAOB assertion for
A. accounting.
B. valuation or allocation.
C. completeness.
D. existence or occurrence.
Answer:
C.completeness
Explanation:
Occurrence means transactions and events that have been recorded or disclosed have occurred and relate to the entity.Existence means whether or not accounts balances and related disclosures related Assets, liabilities and equity interests exist in the financial statements.
Completeness means there are no unrecorded transactions, events and disclosures and all transactions that have occurred has been included in the general ledger/financial statements
Valuation or allocation means that assets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded and related disclosures have been appropriately measured and described.
In this question, interest on sample of paid notes have been traced to the general ledger account, to check that whether the interest on the selected sample has been included in the general ledger and financial statements.Thus the answer shall be C.completeness
An investment advisor has access to a confidential report prepared by a respected securities analyst. Under NASAA's Statement of Policy on Unethical Business Practices, if he bases his recommendations to a client based on the information in this report:
A. He, as well as his client, could be guilty of violating the prohibition against insider trading
B. He must tell his clients that he has investment advice based on the analyst's report
C. He is acting unethically by using the report prepared by the analyst
D. He must compensate the securities analyst for the information if he receives any form of compensation for his investment advice based on the report
Answer:
The correct answer is C.
Explanation:
As per NASAA'S statement of policy on unethical business practices an investment advisor is acting unethically by using the report prepared by analyst.
Background:
NASAA stands for North American Securities Administrators Association. NASAA is an association of state securities administrators whose responsibility is to protect the consumers who purchase securities or investment advice. Its mission is protecting consumers who purchase securities or investment advice, and its jurisdiction extends to a wide variety of issuers and intermediaries who offer and sell securities to the public.
Answer:
C. He is acting unethically by using the report prepared by the analyst
Explanation:
NASAA stands for NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION
According to the Statement on Policy and Unethical Business Practices, a broker-dealer or agent who engages in any practice that is deemed as unethical or dishonest may suffer suspension, denial, revocation of registration or any such action authorized by stature.
In answering the question, since the report is already tagged confidential (private, restricted or intended to keep secret), it will be unethical to use and as such using that information as the basis of recommendation to clients would be termed as unethical. The report should only be used for the intended private purpose.
How do changes in planned expenditures affect the aggregate demand curve?
Answer:
When there is change in income level which determines the level of planned expenditures, there is a movement along the Aggregate expenditure curve but a shift towards the left or right on the Aggregate Demand curve.
Explanation:
Planned expenditures depicts the relationship between total spending, which is determined by income level in the economy; and the level of real GDP produced, with price level kept constant. Hence, an increase in income causes a movement along the Aggregate Expenditure curve.
Aggregate Demand depicts the relationship between price level and the level of real GDP produced, with income level kept constant. Hence, an increase in price level triggers a movement along the Aggregate Demand curve.
Therefore when income level changes which by extension means a change in planned expenditures, there is a movement along the aggregate expenditure curve but an left (inward) or right (outward) move on the Aggregate Demand curve; as long as price levels remain constant
Management has a legal and professional responsibility to be sure that the financial statements are prepared in accordance with reporting requirements of applicable accounting frameworks.
a.True
b.False
Answer:
a. True
Explanation:
An accounting framework represents a set of criteria that is used to measure, interpret, and disclose the information that appears in an organization's financial statements.
The law of several nations mandates the Management of a company to prepare and present their financial statements in accordance with the laws of the nation. Since the law mandates this, it makes it a legal requirement.