The agency's position is that Bob had already signed a contract, and that the contract included a placement fee due to the fact that Bob was able to find this job through the agency. On the other hand, the position that Bob would most likely argue is that he is a minor. As a minor, Bob is allowed to disaffirm his contract. Therefore, Bob is likely to win in this dispute.
Bob can disaffirm the contract with the employment agency as he was the minor, and according to the law, each contract made with or by a minor is void-ab-initio.
What is the position of minor's contract?According to the Indian contract act, it is clearly defined that the every contract made with a minor or by a minor is void from the very beginning.
If any contract made by or with a minor, it cannot be enforceable by law if the another party file a suit against a minor.
In the above case, since Bob is the minor, hence the contract made by Bob with the with Pioneer Temporary Staffing Agency, LLC, an employment agency to find a job is void.
There is no matter whether the bob used the service of the agency, or not, it cannot be enforceable by law, by the agency against the minor.
This means that if Bob not wants to return the fees amount if $200 to the agency, then the agency cannot enforce against the bob.
Hence, the case is in favor of the bob if he disaffirm to pay the fees.
Learn more about the minor, refer to:
https://brainly.com/question/10678875
You’re trying to save to buy a new $215,000 Ferrari. You have $36,000 today that can be invested at your bank. The bank pays 4.3 percent annual interest on its accounts. How long will it be before you have enough to buy the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years
Answer:
42.45 years
Explanation:
Discounting is the means by which the today's value of an amount in the future is computed. Compounding is the process by which the future value of a present amount is determined. In other words, the present value of $1 tomorrow is determined by discounting while the future value of $1 tomorrow is determined by compounding.
Where
Fv = Pv(1 + r)^n
Fv is the future value
Pv is the present value
r is rate
n is time
215000 = 36000(1 + 0.043)^n
215/36 = 1.043^n
Taking the log of both sides
log (215/36) = log 1.043^n
n = log (215/36) / log 1.043
n = 42.45 years
It will take 42.45 years to have enough to buy the car
An accumulated depreciation account is offset against total assets on the balance sheet. increases on the debit side. is a contra-liability account. has a normal credit balance.
Answer:
normal credit balance
Explanation:
The accumulated depreciation is the sum of all the depreciation that has been allotted to an asset over the period of use. Depreciation is the systematic allocation of expense to an asset.
To account for it,
Debit depreciation
Credit Accumulated depreciation.
As such, accumulated depreciation which is netted off the cost of an asset to get the asset's net book value is a normal credit balance.
On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 90-day note with a face amount of $45,600. Assume a 360-day year. Required: a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $ b. Determine the proceeds of the note, assuming the note is discounted at 8%.
Answer:
a. $45,600
b. $45,296
Explanation:
The computation is shown below:
a. The proceed of the note is always equal to the face amount i.e $45,600
b. After considering the discounted rate, the proceed of the note is
= ($45,600) - ($45,600 × 8% × 30 days ÷ 360 days)
= $45,600 - $304
= $45,296
After considering the discount rate and the issuing days, the proceed of the note could come
Final answer:
For case a, the interest is calculated and added to the principal, giving proceeds of $46,512. For case b, when the note is discounted at 8%, the discount amount is subtracted from the principal, resulting in proceeds of $44,688.
Explanation:
When Maynard Co. borrows $45,600 at an 8% interest rate for 90 days on a 360-day year basis, the interest can be calculated using the formula Interest = Principal imes Rate imes Time. To calculate the proceeds for case a, with the note carrying the interest rate of 8%, the steps are as follows:
Calculate the interest: $45,600 imes 8% imes (90/360) = $912.Add the interest to the principal to determine the maturity value: $45,600 + $912 = $46,512.The proceeds of the note are equal to the maturity value: $46,512.For case b, assuming the note is discounted at 8%, we follow a slightly different process:
Calculate the discount: $45,600 imes 8% imes (90/360) = $912.Subtract the discount from the principal to determine the proceeds of the note: $45,600 - $912 = $44,688.Gary is taking out a $5,000 loan for 1 year at an APR of 12%. His bank has offered him a loan using the add-on method. Using first the financial calculator method and the add-on method calculate Gary's monthly loan payment. Select one: A. $475.00; $448.94 B. $444.24; $466.67
Using the financial calculator method, Gary's monthly loan payment is $444.24. Using the add-on method, Gary's monthly loan payment is $466.67.
Explanation:In order to calculate Gary's monthly loan payment using the financial calculator method, we need to use the formula:
Monthly payment = P * r * (1+r)^n / [(1+r)^n - 1]
Where:
P is the principal amount ($5,000)r is the monthly interest rate (APR / 12)n is the number of payments (1 year * 12 months)So, for Gary's loan:
P = $5,000
r = 12% / 12 = 1%
n = 1 year * 12 months = 12
Plugging these values into the formula gives us:
Monthly payment = $5,000 * 0.01 * (1+0.01)^12 / [(1+0.01)^12 - 1]
Simplifying this expression gives us:
Monthly payment = $5,000 * 0.01 * (1.01^12) / [(1.01^12) - 1]
Calculating this expression gives us:
Monthly payment = $444.24
Therefore, using the financial calculator method, Gary's monthly loan payment is $444.24.
Using the add-on method, we need to calculate the total amount paid over the year and then divide it by 12 to get the monthly payment. The total amount paid over the year would be the principal amount plus the interest, which is:
Total amount paid = principal amount + (principal amount * APR)
For Gary's loan:
Total amount paid = $5,000 + ($5,000 * 0.12)
Simplifying this expression gives us:
Total amount paid = $5,000 + $600 = $5,600
Dividing this total amount by 12 gives us the monthly payment:
Monthly payment = $5,600 / 12 = $466.67
Therefore, using the add-on method, Gary's monthly loan payment is $466.67.
Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includes a_____________.a.credit to Refund Liability for $200.
b.credit to Returned Inventory for $100.
c.credit to Estimated Inventory Returns for $100.
d. debit to Estimated Inventory Returns for $100.
The journal entry to record the expected sales return and cost of goods sold includes a_____________
a.credit to Refund Liability for $200.
Explanation:
Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includes a_____________a.credit to Refund Liability for $200.The refund liability shows the amount of consideration that means the company does not expect to be entitled because it will be refunded to customers.The liability should be represented for the amount of revenue expected to be refunded.Also the returns and refunds are disadvantageous for business for a product.
ABC assumes all costs in a ________ can be grouped together because they all impact the activity.
(A) cost pool.
(B) department.
(C) time period.
(D) organization.
(E) product line.
Answer:
The correct answer is letter "A": cost pool.
Explanation:
Activity-Based Costing or ABC is a managerial accounting method used to assign some indirect costs to the products which incur the bulk of those costs. By doing so, it is assumed that all those costs in the cost pool can be bundled because they are relevant for production. In the manufacturing sector, ABC is mainly used to help measure the true cost of production per unit.
A German firm is attempting to determine the euro/pound exchange rate and has the following exchange rate information: USD/pound = $1.5509/£ and the USD/euro rate = $1.2194/€. Therefore, the euro/pound rate must be:
Answer:
Exchange rate is €1.272 per £
Explanation:
Exchange rate is defined as the amount of one currency that can be changed for another currency. This is a very important consideration in international trade where strength of a countrie's currency determines how much of the other currency will be bought.
We are given that $1.5509= £1
So $1 will be (1*1)/1.5509= £0.6448
Also $1.2194= €1
So $1 is (1*1)/1.2194= €0.82
Therefore
€0.82= £0.6448
x= £1
Cross-multiply
x= 0.82/0.6448
x= €1.272 per £
Final answer:
The euro/pound exchange rate can be determined by converting the given exchange rates from USD to euro and pound. The euro/pound rate is €0.7879/£.
Explanation:
The euro/pound exchange rate can be calculated using the given exchange rate information.
To find the euro/pound rate, we need to convert both the USD/euro and USD/pound rates to euro/pound. Given USD/pound = $1.5509/£ and USD/euro = $1.2194/€, the euro/pound rate is calculated as $1.2194/€ ÷ $1.5509/£ = €0.7879/£.
At the end of the season, a merchandiser notices that 80% of the items he manages have left over inventory. Another merchandiser notices that only 20% of her items have left over inventory. Who makes better decisions
The second manager makes better decision amongst the two managers
Explanation:
Inventory refers to that part of the final goods or the products that have remained unsold for the current period. Generally, Inventory is associated with liability in the long term since they are associated with storage surcharges and obsolescence threats.
Amongst the two managers, the second manager is more capable of making a better decision since his decisions led to just 20% of the net produced goods to turn inventory which remains advantageous for the company. Whereas for the first manager, 80% of the items remain as inventory. Hence more risk and greater storage surcharges for the firm
Brief Exercise 13-05 Pronghorn Inc.’s $11 par value common stock is actively traded at a market price of $14 per share. Pronghorn issues 5,900 shares to purchase land advertised for sale at $77,000. Journalize the issuance of the stock in acquiring the land
Explanation:
The journal entry for issuance of the stock for acquiring the land is shown below:
Land A/c Dr $82,600 (5,900 shares × $14 per share)
To Common stock A/c $64900 (5,900 shares × $11 per share)
To Additional paid-in capital in excess of par - Common stock A/c $17,700 (5,900 shares × $3 per share)
(Being the issuance of the stock for acquiring the land is recorded)
An auto manufacturer starts an advertising campaign that stresses the benefits of purchasing a new car every five years so that consumers who are driving an older car will start to want to purchase an automobile. This is an example of a company appealing to what phase of the consumer decision-making process?
Answer:
In the present case, the advertising of the automobile company seeks to affect the first phase of the decision-making process of consumers, that is, it seeks to create in consumers the need to consume: in the case, it seeks to create the need to buy a new car.
In this way, the company aims to create a situation that motivates the consumption of the product it is selling, through certain marketing strategies, to maximize its sales, and therefore its profits.
An apparel company is trying to decide which global strategy to implement as it expands. A low cost structure with a differentiated product specific to each of its geographic markets is important to the company. The top leadership also expects to use many of the company's resources across a global network. Based on these preferences, which strategy should the company practice?
Answer:
b. Transnational strategy
Explanation:
According to a different source, these are the options that come with this question:
a. International strategy
b. Transnational strategy
c. Localization strategy
d. Globalization standardization strategy
A transnational strategy would be one that is placed somewhere between a domestic and a global strategy. In these cases, companies still strive for efficiency and uniformity, but they are also responsive to local tastes, and are willing to change accordingly. In this example, this firm wants to have a global strategy that is suitable to different geographic markets with specific products. Therefore, the transnational strategy is the best one for it to adopt.
International investors pulled their funds out of Asia and moved them into mostly the United States. Using the large open economy model that we learned in class, analyze the impact of this policy on U.S. interest rates, real exchange rate, and trade balance.
Answer:
Policy impact will be positive
Explanation:
When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:
1. Create more opportunity for development
2. Reduces the interest rate of lending in the society
3. Exchange rate value will decrease just because more of these funds will be used for business transactions
4. The prices of goods will be adjusted to balance the different caused by inflation
Ivanhoe Co. had sales revenue of $549,500 in 2017. Other items recorded during the year were: Cost of goods sold $325,600 Salaries and wages expense 120,500 Income tax expense 29,130 Increase in value of company reputation 17,330 Other operating expenses 11,970 Unrealized gain on value of patents 23,730 Prepare a single-step income statement for Ivanhoe for 2017. Ivanhoe has 106,900 shares of stock outstanding. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answer:
Sales Revenue 549,500
Less Cost of goods sold (325,600)
Gross Profit 221,900
Less Expenses
Salaries and wages expense (120,500)
Other operating expenses (11,970)
Income tax expense (29,130) (161600)
Net Income 60300
Explanation:
A single-step income statement
Does not give distinction to Operating Incomes and expenses and Non-operating Income and expenses. All expenses are deducted in the same category.
Unrealized gain on value of patents
Patents are Intangible Assets. The gain in Patents Is Adjasted in Income statement subject to previous revaluations if Fair Value Model was elected by Ivnhoe Co for its subsequent measurement of Intangible assets
Increase in value of company reputation
Company Reputation is a special Intangible Asset called Goodwill. The gain in Goodwill. Goodwill is Internally generated. Not Recognised in Ivanhoe Co unless if it is purchased.
Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Seashore Home has collected $1,460 from cash-paying customers. Seashore Home’s remaining customers owe the business $1,810. Seashore Home recorded $1,460 of service revenue for the year.
If Seashore Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?
Answer:
The service revenue for the year under accrual basis is $3270.
Explanation:
The Seashore Home currently uses the cash basis system to record sales which require Seashore to record only the sales that have been paid for. The other method to record transactions is using the accrual basis. The accrual basis requires an entity to record revenues and expenses in the period in which they occured and are relevant to. Thus under accrual basis, sales made in a year, whether cash or credit, will be recorded as sales for that year.
Following accrual basis, the Service revenue for Seashore will be:
Service revenue = 1460 + 1810 = $3270
How does the utility possibilities frontier relate to the contract curve? A. The points along the contract curve that are attainableattainable appear on the utility possibilities frontier showing the levels of satisfactionsatisfaction for consumers. B. The points along the contract curve that are feasible appear on the utility possibilities frontier showing the combinations of two goods that can be produced with fixed quantities of inputs. C. Every point along the contract curve appears on the utility possibilities frontier showing the extent to which it is efficient. D. Every point along the contract curve appears on the utility possibilities frontier showing the levels of utilityutility for consumers. E. Every point along the contract curve appears on the utility possibilities frontier showing the well-being of society as a whole.
Answer: D. Every point along the contract curve appears on the utility possibilities frontier showing the levels of utility for consumers.
Explanation:In Business analysis, the production possibility frontiers illustrates and shows the varying level of production that can be produced of two products if both depend on the same amount resource for their production.
Production possibility frontiers is vital as it helps an economy to know how efficient it is at producing products of which it has the best potential to produce and trades with other nations for the other needs of the nation.
Every point along the contract curve appears on the utility possibilities frontier showing the levels of utility for consumers.
Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units) $ 210,000 Variable expenses 136,500 Contribution margin 73,500 Fixed expenses 67,200 Net operating income $ 6,300 The number of units that must be sold to achieve a target profit of $31,500 is closest to______________.
Answer:
9,400 units
Explanation:
The breakeven point is the number of units that must be sold for the company to make neither a loss nor a profit. A target profit is the net of the sales less the sum of the fixed and variable expenses. The contribution margin is the difference between the sales and variable cost.
Sales per unit = $210,000/7000 = $30
Variable cost per unit = $136,500/7000 = $19.50
Let the number of units to be sold to achieve the profit target be x
30x - 19.5x - 67200 = 31500
10.5x = 98700
x = 98700/10.5
x = 9,400 units
Exercise 13-04 a-e Bramble Corporation issued 3,100 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,650.) (a) The stock had a par value of $10 per share and was issued for a total of $49,500. (b) The stock had a stated value of $10 per share and was issued for a total of $49,500. (c) The stock had no par or stated value and was issued for a total of $49,500. (d) The stock had a par value of $10 per share and was issued to attorneys for services during incorporation valued at $49,500. (e) The stock had a par value of $10 per share and was issued for land worth $49,500.
Answer:
Cash 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares--
legal fees expense 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares for services--
land 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares for land --
Cash 49,500 debit
Common Stock 49,500 credit
--to record issuance of no-par stock--
Explanation:
We will compare the amount collected from the shares issued against the face value to get the amount of additional paid-in:
3,100 shares x $10 = 31,000
we collect $ 49,500
additional paid-in 18,500
When there is a no-par value we post the entire amount against common stock.
How should emotional appeal in fund-raising messages be used? A. Using a mild appeal to convince people and avoid offending them B. Using sensory details to help people connect to a cause C. Using wordiness which is crucial in making a document appealing D. Creating emotional appeal by a generic group instead of specifics E. Using a long-winded style because it evokes interest in a reader
Answer:
The correct answer is letter "B": Using sensory details to help people connect to a cause.
Explanation:
Sensory details are used in writing to attract readers' attention. Those details involve the use of the senses: sight, sound, touch, smell, and taste. Sensory details help information, whether written or spoken, to push the audience to interact with what us being prompted.
In case the objective of using sensory details for a fund-raising message, the writer, for instance, could talk about the need of collecting monetary resources to clean the river that crosses the bridge that connects the suburbs with the city because of its unpleasant bad smelling. The next time the reader goes through the bridge, the individual will likely pay attention to the smelling of the bridge to confirm what the author said, which will possibly lead him or her to contribute with the cleaning cause.
While there are intense debates among macroeconomists regarding the effectiveness of expansionary fiscal policy during a severe recession, both the Keynesian and non-Keynesian economists agree that fiscal policy is subject to some limitations as a stabilization tool.
Which of the following issues do most macroeconomists widely agree upon?
a. An increase in government spending will not stimulate aggregate output during a recession.
b. Government should increase its spending during a severe recession because the crowding-out will be minimal and will not negatively affect long-term growth.
c. Discretionary fiscal policy is less effective than is implied by the early Keynesian view.
Answer:C
Explanation:
Discretionary fiscal policy is less effective than is implied by the early Keynesian view
Most macroeconomists widely agree that discretionary fiscal policy is less effective than implied by the early Keynesian view. The correct answer is option c. Discretionary fiscal policy is less effective than is implied by the early Keynesian view.
Most macroeconomists widely agree on this issue because empirical evidence has shown that discretionary fiscal policy, while capable of influencing aggregate demand in theory, faces challenges in practice. Factors such as lags in implementation, uncertainty about the effectiveness of specific policies, and political constraints often limit the ability of policymakers to timely and accurately implement fiscal measures.
Additionally, changes in government spending and taxation can have unintended consequences, such as inflationary pressures or inefficient resource allocation, which may offset the intended stabilization effects.
Therefore, despite the theoretical potential of fiscal policy to stabilize the economy, its practical limitations lead most macroeconomists to agree that discretionary fiscal policy is less effective than initially suggested by the early Keynesian view.
Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign ___ investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply.
A.Imposing restrictions on foreign ownership of domestic capital.
B.Pursuing inward-oriented policies.
C.Increasing taxes on income from savings.
D.Protecting property rights and enforce contracts.
Answer:1) Foreign direct
Question 2.
B. Pursuing inward-oriented policies
C. increasing taxes on income from savings
D.Protecting property rights and enforce contracts.
Explanation:Foreign direct investment is a type of investment which is carried out by another country in another country. The foreign country either it invest directly or through corporations or other companies from its country into another country.
The goal of increasing productivity and growth in developing countries IS CONSISTENT WITH THE PURSUING INWARD-ORIENTED POLICIES, increasing TAXES ON INCOME FROM SAVINGS and PROTECTING PROPERTY RIGHTS AND ENFORCE CONTRACTS.
Yamahonda's establishment of a production plant in Alabama is an example of foreign direct investment. For developing countries aiming to boost productivity and growth, certain policies like protecting property rights and enforcing contracts are vital. Conversely, imposing restrictions on foreign capital, adopting inward-oriented policies, and raising taxes on savings could hinder economic development.
Explanation:When Yamahonda, a Japanese-owned motorcycle manufacturer, decides to build a production plant in Alabama, this is an example of foreign direct investment in the United States. This kind of investment is crucial for economic growth and development, not just in developed countries like the US but also in developing nations seeking to increase their productivity and growth.
Regarding policies consistent with the goal of increasing productivity and growth in developing countries, not all strategies are equally effective. For example, protecting property rights and enforcing contracts (option D) is fundamental to encouraging investment and ensuring a stable economic environment. This measure helps in creating a conducive environment for both local and foreign investments, which is essential for economic growth.
On the contrary, imposing restrictions on foreign ownership of domestic capital (option A), pursuing inward-oriented policies (option B), and increasing taxes on income from savings (option C) could potentially stifle economic growth. These policies can deter foreign investment, limit access to global markets, and discourage savings and investment, respectively.
What would be the monthly operating advantage (disadvantage) of purchasing the goods internally, assuming the external supplier increased its price to $50 per pound and the Production Division is able to utilize the facilities for other operations, resulting in a monthly cash-operating savings of $30 per pound
Answer:
The monthly operating advantage of purchasing internally is $20
Explanation:
Judging from an opportunity perspective,the company pays $50 when he purchases externally and as a result saves $30,in essence the company incurs $20($50-$30) more when it purchases externally.
No doubt that if the situation reverses itself, the company gains $20 if produces and sells internally as against purchasing from external party.
From the foregoing,it is obvious that the monthly operating advantage of purchasing goods internally is a cash saving of $20 per item
Hence, buying internally is more desirable and preferred option
hich of the following sentences contain flabby expressions? Check all that apply. I worked on the MarkMaster campaign for the period of 35 hours last week. Help yourself to the cookies in the break room. Until our copier is replaced, please use the one on the third floor. In very few cases will he return text messages. In addition to the above, the client is of the opinion that, as a general rule, Comic Sans font is childish.
Answer:
An example of flabby expression among the sentences given in the question is the first second last and the last one or "I worked on the MarkMaster campaign for the period of 35 hours last week.""In very few cases will he return text messages" and "In addition to the above, the client is of the opinion that, as a general rule, Comic Sans font is childish."Explanation:
In general English language,a flabby expression can be characterized as the sentence or statement which contains rambling,redundant and unnecessary extra words which affects the clarity of the sentence or expression.These words make the sentence or expression unnecessarily complicated and long.In this instance,the first sentence uses an extra phrase "for the period" which could have been omitted and rewritten as only "I worked on the MarkMaster campaign for 35 hours last week."In the second last sentence given in the question,the phrase "In very few cases" can be replaced by the word "Rarely" thereby shortening the sentence.In the last sentence,the initial phrase "In addition to the above" can be replaced by "Aside from" or "Besides" and the phrase "as a general rule" can also be shortened as "generally".These are the examples of redundant or extra words that convey the original meaning of the sentences but only expands their length and complexity.
The sentences containing flabby expressions are:\
"I worked on the MarkMaster campaign for the period of 35 hours last week.""In very few cases will he return text messages.""In addition to the above, the client is of the opinion that, as a general rule, Comic Sans font is childish."These sentences contain unnecessary or redundant words or phrases that could be expressed more concisely.
Flabby expressions are phrases or sentences that are wordy, redundant, or unnecessarily verbose. They often use more words than necessary to convey an idea. In writing or communication, it's generally preferred to be concise and clear. Identifying and removing flabby expressions can improve clarity and efficiency of communication.
Does the production function:q=100L−20/kexhibit increasing, decreasing, or constant returns to scale?
Answer:
the production function q exhibits decreasing returns to scale
Explanation:
to see if the function exhibits decreasing , increasing or constant returns of scale , let increase the input of the function
q=100L−20/k
then for N times units of Labor L and Capital K
qn =100(N*L)−20/(N*k) = N*[100*L - 20/(N²*K)]
since 20/(N²*K) < 20/K for N>1
qn =100(N*L)−20/(N*k) = N*[100*L - 20/(N²*K)] < N*[100*L - 20/(K)] = N*q (constant returns of scale )
thus qn < constant returns of scale
therefore q exhibits decreasing returns to scale
1. Do you believe that auditors should be held liable for failing to discover fraud in situations such as ZZZZ Best, where top management goes to great lengths to fool the auditors? Explain. 2. Discuss the red flags that existed in the ZZZZ Best case and evaluate Ernst & Whinney’s efforts with respect to fraud risk assessment. Mintz, Steven. Ethical Obligations and Decision-Making in Accounting: Text and Cases (p. 322). McGraw-Hill Higher Education. Kindle Edition.
Answer:
1.No,the Auditors should not be held liable for failing to discover the fraud.
2.The red flags in ZZZZ Best case are Account receivables,Current liabilities and Notes payables.
Explanation:
1. The auditors responsibility is to state if the financial statement prepared shows a true and fair view,and to vet compliance to statutory guidelines.They may detect fraud in the course of their audit,they can recommend but are not responsible to put control measures in place to prevent such. The management are responsible for the preparation of the financial statement and safeguarding of asset, consequently, liable for the content therein.
2. The sales were made on cash basis before the period in question,a major change in policy as such should have been well measured
On January 1, 2021, Gless Textiles issued $28 million of 7%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 20% of the issue as an investment. Required: 1. Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. 2. Prepare the journal entries for the June 30, 2025, interest payment by both Gless and Century assuming both use the straight-line method. 3. On July 1, 2026, when Gless’s common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method).
The detailed answer provides the specific journal entries that Gless and Century would make for the issuance of bonds, semi-annual interest payment, and conversion of bonds into common stock.
Explanation:Journal Entries for Issuance, Interest Payment, and ConversionThe following are the responses to your requirements:
For the issuance of the bonds by Gless, the journal entry would be:https://brainly.com/question/31782926
#SPJ3
here are the journal entries for the given transactions:
1. **Issuance of Convertible Bonds by Gless and Purchase of Bond Investment by Century:**
Gless Textiles:
```
Dr Cash $28,280,000 ($28 million * 101%)
Cr Bonds Payable $28,000,000
Cr Premium on Bonds Payable $280,000 (difference between cash received and face value)
```
Century Services (20% of $28 million):
```
Dr Investment in Bonds $5,656,000 (20% * $28 million * 101%)
Cr Cash $5,656,000
```
2. **Interest Payment on June 30, 2025:**
Gless Textiles:
```
Dr Interest Expense $980,000 ($28 million * 7% * 6/12)
Cr Cash $980,000
```
Century Services (20% of interest received):
```
Dr Cash $196,000 (20% * $980,000)
Cr Interest Revenue $196,000
```
3. **Conversion of Bonds on July 1, 2026:**
First, calculate the book value of the bonds to determine the entry:
Book Value per Bond = (Face Value + Premium) / Number of Bonds = ($1,000 + $280) / 1 = $1,280 per bond
Century Services:
```
Dr Bonds Payable $1,120,000 (20% * 40 * $1,280)
Cr Common Stock $800,000 (20% * 40 * $33)
Cr Paid-In Capital in Excess of Par $320,000 (difference between book value and amount credited to common stock)
```
Gless Textiles (eliminating the bonds):
```
Dr Bonds Payable $28,000,000
Cr Common Stock $20,000,000 (40 * $500,000)
Cr Paid-In Capital in Excess of Par $8,000,000 (difference between book value and amount credited to common stock)
```
These journal entries reflect the issuance of the bonds, interest payment, and conversion of bonds for Gless Textiles and Century Services as per the given information.
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find: This year, Oasis paid its stockholders an annual dividend of $3.66 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 12% a year for the next 4 years and then to level out at 8 % a year. So far, you've learned that the stock has a beta of 1.64, the risk-free rate of return is 6%, and the expected return on the market is 11%. Using the CAPM to find the required rate of return, put a value on this stock.
Answer: 14.2
Explanation:
CAPM 0.142 or 0.06 x (0.11-0.05)
Answer:
The stock has an expected return of 14.2%.
Explanation:
Capital Asset Pricing Model (CAPM) is what describes the relationship between the expected return and risk of investing in a security. It shows that the expected return on a security is equal to the risk-free return plus a risk premium, which is based on the beta of that security (Corporate Finance Institute, 2015). It is calculated as follows:
Expected Return = Risk free rate + [Beta * (Market rate – risk free rate)]
Re = Rf + [Beta * (Rm - Rf)]
For Oasis, the required rate of return is
Re = 0.06 + [1.64* (0.11 – 0.06)]
= 0.142
= 14.2%
The expected rate of 14.2% is higher than the market rate of 11% and higher than the risk free rate of 6%. The recommendation to buy is supported since it brings the higher return compared to a risk-free investment and the higher than the market rate.
The stock is undervalued, therefore buy.
Coleman Company owns a machine that produces a component for the products the company makes and sells. The company uses 1,800 units of this component in production each year. The costs of making one unit of this component are Direct material $ 7 Variable manufacturing overhead 6 Direct labor 4 Fixed manufacturing overhead 5 The fixed overhead costs are unavoidable, and the unit cost is based on the present annual usage of 1,800 units of the component. An outside supplier has offered to sell Coleman this component for $18 per unit and can supply all the units it needs.
Should Coleman make or buy the component?
Answer:
Difference=$1,800
This shows if Coleman buys, the net income will decrease by $1,800. So Coleman should make components.
Explanation:
Given Data:
Direct material=$7
Variable manufacturing overhead=$6
Direct labor=$4
Fixed manufacturing overhead=$5
Required:
Should Coleman make or buy the component?
Solution:
Total Variable cost=Direct material+Variable manufacturing overhead+Direct labor
Total Variable cost=$7+$6+$4
Total Variable cost=$17
Cost From making=Units*Total Variable cost
Cost From making=1800*$17
Cost From making=$30,600
Supplier Price=$18
Cost From Buying=1800*$18
Cost From Buying=$32,400
Difference=Cost From Buying-Cost From making
Difference=$32,400-$30,600
Difference=$1,800
This shows if Coleman buys, the net income will decrease by $1,800. So Coleman should make components.
A & D Window Cleaning performed $450 of services but has not yet billed customers for the month. If A & D fails to record the adjusting entry, what is the impact on the financial statements? A. balance sheet: assets understated; equity overstated income statement: expense understated B. balance sheet: liabilities overstated; equity understated income statement: revenues understated C. balance sheet: assets overstated, equity understated income statement: expenses understated D. balance sheet: assets understated, equity understated income statement: revenues understated
Answer:
D. balance sheet: assets understated, equity understated income statement: revenues understated
Explanation:
The adjusting entry is as follows:
Account receivable A/c Dr XXXXX
To Service revenue A/c XXXXX
(Being the service performed is recorded)
Since this above journal entry is not recorded that reflect the assets understated on the income statement due to which the equity, as well as the revenues, are also understated in the balance sheet and the income statement respectively
Exchange rate forecasting is: Group of answer choices important because exchange rates influence all aspects of business. important because markets depend on solid information. unimportant because exchange rate forecasting does not have a theoretical model. No answer text provided.
Answer: Exchange rate forecasting is important because exchange rate influence all aspects of business.
Explanation:
Exchange rate forecast is a method that is used to predict exchange rates by collecting all the relevant factors that may affect a currency. Exchange rate forecasting is vital because exchange rates influence all aspects of business.
The exchange rate plays a vital role for firms that import raw materials and export goods. A depreciation i.e a devaluation of the currency will make exports cheaper and therefore exporting firms will benefit. Every firm is interconnected in one way or the other, therefore exchange rate is vital.
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) ____ culture.
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.
Explanation:
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.Developing a caring culture Be optimistic and upfront to your goals.Focus on strengths, not weaknessesIt’s the result of deliberate executive that promotes a civilized cultural environment.Developing a caring culture starts with a few initial steps that aims at building the priorities of members to establish a dream team.