Buff Tech, Inc. sells computer components and plans to borrow some money to expand. The company has a 12/31 year-end. After reading about earnings management (refer back to Chapter 4), Bucky, the owner has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases and take delivery of the goods by December 31. He told the customers he would allow them until the end of February to pay for the purchases, just as if they had made the purchases in January.

Note: For revenue recognition purposes, the performance obligation was satisfied by 12/31.

Question:

What are the ethical implications of this plan? What ratios will be improved by accelerating these sales? What about future implications????ns?

Question 4 (a) "Where contracts are affected by illegal performance, they would be entirely void from the start." Explain whether you agree with this statement with reference to the legal rules on illegality as a vitiating factor for contracts performed contrary to statutory law. You should provide examples to illustrate your answer. (12 marks) ( b ) "Restraint of trade clauses should never be included in employment contracts, as they are illegal and would render the contract entirely void." Explain whether you agree with this statement with reference to the legal rules on illegality as a vitiating factor for contracts in restraint of trade. (13 marks)9. A difference between Pearson correlation and Spearman correlation is that Pearson correlation a. has assumptions the data should meet b. requires larger sample size C. operates on ranks of the data d. produces unreliable results e. is amenable to multiple comparisons f. is more mathematically rigorous g. makes many passes through the data h. none of the above 10. Suppose a correlation is calculated when only a limited range of the possible values on the y variable, is present in the x, y data set. Therefore the correlation result cannot be extended to apply to the entire range of x, y values that might exist among the subjects (the statistical population)- a, optimal experimental design This situation is called b. restriction of range c. sample size too large d. x,y subgroup merger e. clusters of outliers f. rarefaction g. random sampling effect h. none of the above 11. In correlation it's wise to consider statistical power for which of the following reasons? a. to examine relations among sample size, effect size, sidedness, alpha, power b, to understand why results that are not significant may still be important C. to determine the number of subjects to use in an experiment d, to make sense of biological findings in the scientific literature e. all of the above 12. In a two-sided correlation test, p = 0.06 In a one-sided correlation test on the same x, y data, p a. 0.001 b. 0,05 C. 0.03 d. 0.002 e. 0.10 f. none of the above 13. When there's no statistically significant correlation, the computed correlation coefficient is around a. zero b. - 0.9 C. + 0.8 d. + 1.0 e. - 1.0QUESTION 1 Last week, Ali found Zidane's bag which contained some very important documents. Ali returned the bag to Zidane yesterday. Zidane was so grateful that he promised to pay Ali RM5000. Zidane changes his mind today and decides not to pay Ali. a) Can Zidane claim that there was no consideration for the promise as Ali had already found the bag before the promise was made? Give a reason to your answer. (5 Marks) b) List the all FIVE (5) factors that could vitiate a contract