Answer:
$18,000
Explanation:
To find the Sales Revenue we simply add the $12,000 cash received immediately, and the $30,000 received as partial payment, totalling $42,000.
Then, we simply complete the proposed income statement:
Income Statement for the Month Ended in March 31
Sales Revenue $42,000
Rent Expense $9,600
Wage Expense $14,400
Net Income $18,000
Net Income is equal to Revenue - expenses.
Consider the effects of the independent transactions, a through h, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages. a. Wages are earned by employees but not yet paid. b. Inventory is purchased on credit. c. Inventory purchased in transactions b is sold on credit (and for more than its cost). d. Collected cash from transaction c. e. Equipment is acquired for cash. f. Paid cash for inventory purchased in transaction b. g. Paid cash toward a note payable that came due. h. Paid cash for interest on borrowings.
Answer:
Explanation:
A. The Balance of Income Statement I mean Net Profit will decrease because of increase in expenses and the balance of Current Liabilities in Balance Sheet will increase because it will become salaries payable and there will be no effect on statement of cash flows.
B. This will affect gross Profit and Net Profit negatively means bot will decrease and cost of goods sold will increase, in Balance sheet it will increase current assets as inventory is asset and it will also increase current liabilities and it is purchased on Credit. and there will be not affect on statement of cash flows.
C. This will increase sales and hence Net Profit in Income Statement. The balance on Balance sheet will will increase because it is sold so accounts receivable will increase which is current asset and also as inventory is sold so inventory will decrease but it will decrease by less amount because we record inventory on cost and we have sold it for more than its cost so the value of current assets will increase as the amount of accounts receivable will be greater than the decrease of the amount of inventory. there will be no change in statement of cash flows.
D. There will be no affect on Income Statement. There willbe no change in the balance of balance sheet because the accounts receivable will decrease by the same amount as cash will increase. Balance on statement of Cash Flows will increase as the company have received cash so it will increase its cash inflows.
E. There will be no change in the Balance of Income Statement as acquisition is related to balance sheet. This will not change the overall balance of balance sheet but it will decrease the balance of current assets as cash is paid for acquisition and it will increase the balance of fixed assets as equipment is bought. But the balance of total assets will remain same. The balance of statement of cash flows will decrease because cash is paid so there is cash outflow.
F. This will not affect Income Statement. this will decrease the balance of current assets as cash is paid so it is a current asset and also it will decrease the balance of current liabilities as it was purchased on credit so accounts payable will decrease. also this will decrease the balance of statement of cash flows as it is a cash outflow.
G. This will not affect Income Statement. this will decrease the balance of balance sheet. as cash is paid so current assets will decrease and as notes payable are liabilities so it will also decrease because it has been paid off. there will be a decrease in the balance of statement of cash flows because it is a cash outflow.
H. The balance of Income statement will decrease means net profit will decrease as Interest is an expense. The Balance of Balance sheet will decrease because cash is paid and it is current asset. it will decrease the balance of statement of cash flows because it is a cash outflow.
This question discusses the effects of various transactions on a company's financial statements, including the balance sheet, income statement, and statement of cash flows.
Explanation:Effect on Balance Sheet:a. Increase in wages payable (liability)b. Increase in inventory (asset) and increase in accounts payable (liability)c. Decrease in inventory (asset) and increase in accounts receivable (asset)d. Increase in cash (asset) and decrease in accounts receivable (asset)e. Increase in equipment (asset) and decrease in cash (asset)f. Decrease in cash (asset) and decrease in inventory (asset)g. Decrease in cash (asset) and decrease in note payable (liability)h. Decrease in cash (asset) and decrease in interest expense (expense)Effect on Income Statement:c. Increase in revenue (income)h. Increase in interest expense (expense)Effect on Statement of Cash Flows:a. Increase in operating activities (cash outflow)b. No effect on cash flow statementc. Increase in operating activities (cash inflow)d. Increase in operating activities (cash inflow)e. Increase in investing activities (cash outflow)f. Decrease in operating activities (cash outflow)g. Decrease in financing activities (cash outflow)h. Decrease in operating activities (cash outflow)Learn more about Effects of Transactions on Financial Statements here:https://brainly.com/question/31233201
#SPJ3
During the current year, Robert pays the following amounts associated with his own residence:
Property taxes $3,000
Mortgage interest 8,000
Repairs 1,200
Utilities 2,700
Replacement of roof 4,000
In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter. Classify the following expenses for Robert as "Deductible" or "Nondeductible".
(a) Property taxes - Robert Deductible
(b) Property taxes - Anne Nondeductible
(c) Mortgage interest - Deductible
(d) Repairs Nondeductible
(e) Utilities Nondeductible
Answer:Deductibles. Non Deductibles.
Property tax 4500 Repairs 1200
Mortgage Int 8000. Utilities 2700
Explanation:Deductibles are statutory bills and must at all cost be paid while Non Deductibles are self servicing bills and are not compulsory bills.You can choose not to repair your gadget's or automobile but you cannot ignore forfeit paying your taxes and government bills.
On January 3, 2013, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2013, Thomas reported income of $300,000 and paid dividends of $100,000. On January 4, 2014, Roberts sold 15,000 shares for $800,000. What is the appropriate journal entry to record the sale of the 15,000 shares?
Answer:
The appropriate journal entry to record the sale of the 15,000 shares:
Dr Cash 800,000
Cr Investment - Thomas Corp 780,000
Cr Gain on investment disposal 20,000
(to record the investment disposal of 15,000 Thomas Corp's shares)
Explanation:
Before the disposal of the investment on Thomas, Roberts Co. should use the equity method to account for this investment because 30% of Thomas' shares which is 30,000 ( 100,000 x 30%) is possessed by Robert Co. and Robert Co. has significant influence over Thomas.
So, by the end of 2013, Robert's treatment to this investment should be:
Opening balance as of 2013: $1,500,000
Plus: Share of net profit : $90,000 (calculated as 300,000 x 30%)
Minus: Dividend received : $(30,000) (calculated as 100,000 x 30%)
Closing balance as of 2013: $1,560,000
=> Value per share = 1,560,000 / 30,000 = $52.
So, as at January 4 2014, because 15,000 shares is sold, the Investment account is Credited ( decreased) by $780,000 ( 52 x 15,000) and the total sales's receipt of $800,000 will generate the profit of $20,000 ( calculated as $800,000 - $780,000).
You do not need to see proof of insurance coverage for a taxpayer if you feel that this information is not unusual or questionable.
O True O False
Answer:
The statement is False
Explanation:
Under the due diligence, IRS certified volunteer prepare or made in order to exercise the due diligence, which means, as a volunteer, the person is required to do the part when making or performing quality reviewing a tax return so that could ensure the information on the return is complete as well as correct.
So, it is not true that the person does not require to see the proof or evidence of the insurance coverage for the taxpayer if the person feels that the information is not questionable or unusual as it is an important or vital process and the person should always check the information if it is not questionable or unusual.
Historically auditing standards have been organized into three categories, including: A) Standards of field work. B) Purpose of an audit. C) Responsibilities of the auditor. D) Proper planning and supervision
Answer:
The correct answer is letter "A": Standards of field work.
Explanation:
The Generally Accepted Auditing Standards or GAAS are the rules auditors follow when analyzing the financial statements of a company. The GAAS has three (3) main categories: general standards, standards of fieldwork, and standards of reporting. The body in charge of reviewing the GASS is the Auditing Standards Board (ASB).
________ relies on the methodical identification, collection, analysis, and distribution of data to discover and solve marketing problems or enhance decision making.
Answer:
Market Research
Explanation:
Market Research is the term which is explained as the process of determining the viability of the new product or service by research which is directly conducted or performed with the potential customers.
It allows the business to discover the target market and the get feedback from the customers regarding their interest in the service or product.
Therefore, market research is the one which relies on the analysis, identification, distribution of the data in order to discover and slove the marketing problems.
Which leadership style did the CEO of the healthcare system demonstrate in the EHR selection process?
The leadership style that the CEO of the health care system demonstrates in the EHR selection process is the autocratic style.
What is the autocratic style?Autocratic leadership style is defined as the type of leadership style in which the decision can be taken without the input of the particular team.
In an autocratic leadership style, the manager assembles all the judgments without any conference or information from the leftovers of the team.
Some fundamental characteristics of the autocratic leadership style are:
It allows little input from the group of members.It requires the leaders to make all the necessary decisions.It does not require any group feelings or work.It tends to make the highly structured environments.Therefore, the CEO of the healthcare system alone demonstrates the EHR selection process by using the autocratic style of leadership.
Learn more about the autocratic style, refer to:
https://brainly.com/question/6427654
The CEO of the healthcare system demonstrated a participative leadership style in the EHR selection process by involving employees in decision-making processes and valuing their input.
Explanation:The CEO of the healthcare system demonstrated a participative leadership style in the EHR selection process.
In a participative leadership style, leaders involve employees in decision-making processes and value their input. This style fosters collaboration, creativity, and innovation among team members.
During the EHR selection process, the CEO likely sought the opinions and feedback of various stakeholders, such as healthcare professionals, IT staff, and administrators, before making a final decision. By involving multiple functions and considering different perspectives, the CEO demonstrated a participative leadership style.
Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.
a) Regulating cable TV prices
b) Providing some poor with vouchers that can be used to buy food.
c) Prohibiting smoking in public places
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies.
e) Imposing higher personal income tax rates on people with higher incomes
f) Instituting laws against driving while intoxicated.
Answer:
a) Regulating cable TV prices - This is motivated by the concern about efficiency. Since one cable TV company can easily become a monopolist and manage cable TV prices on its own, market power (a type of market failure) is hindered by regulation. These measures aim to decentralize power and distribute it once again.
b) Providing some poor with vouchers that can be used to buy food. - Being a concern for equality, this regulation aims to improve fairness and equality among society levels by giving vouchers to poor people. Equality measures are usually non-efficient by the means of concern, and are a common practice in all governments.
c) Prohibiting smoking in public places - Being a concern about efficiency, this aims to overcome a possible externality. Third parties (non-smokers) are affected by something they cannot influence, which indicates a case of externality failure. Government regulation is essential
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies. - Once a monopoly, Standard Oil is broken down into several smaller, competition-oriented companies. The market failure regarding market power is regulated by this move. When this happens, Standard Oil will not be able to dictate prices.
e) Imposing higher personal income tax rates on people with higher incomes - Being an equality measure by nature, this economic remedy tries to create less discrepancy among income across all social levels. The standard deviation becomes smaller, which is the result of equality measures. Although people with higher incomes will always have a similar income, regulation vastly influences people with less income.
f) Instituting laws against driving while intoxicated. - This is an efficiency measure (against externality), as sober drivers and traffic participants become influenced by drunk drivers who they cannot control. In case of an accident, the third party is imposed a cost that could be fatal. Therefore, it has to be regulated.
The brief explanation about the government activities is motivated by a concern about equality or a concern about efficiency is:
a) Regulating cable TV prices
This has to do with the concern for efficiency
b) Providing some poor with vouchers that can be used to buy food.
This has to do with the concern for equality
c) Prohibiting smoking in public places
This has to do with the concern for efficiency
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies.
This has to do with the concern for efficiency
e) Imposing higher personal income tax rates on people with higher incomes
This has to do with the concern for equality
f) Instituting laws against driving while intoxicated.
This has to do with the concern for efficiencyWhen a free market operates within the regulations of the government, then it means that the government is protecting the consumers from monopoly, overcharging and other morally wrong practises.
Read more about free market here:
https://brainly.com/question/24757596
Organizations set procedures for making decisions to achieve those objectives through strategic planning. a. True b. False
Answer:
The correct answer is letter "A": True.
Explanation:
Strategic planning is the systematic process of development and implementation of plans to reach a company's purposes or objectives in the long run. During this process, the core values, strengths and weaknesses, and the firm's main goals are identified.
Management accountants are MOST likely to feel outside pressure to influence the numbers favorably when the information is used for:
A) budgeting.
B) compensation and promotions.
C) continuous improvement.
D) product costing.
Answer:
The correct answer is letter "B": compensation and promotions.
Explanation:
It is unethical to influence or distort accounting information to benefit an employee over another in front of promotions or at the moment of providing benefits to workers. Sometimes and against the law, manager accountants are pushed to do so for the company to obtain extra income or when the decision of providing a better job position to an employee over another is biased.
Management accountants are most likely to face pressure to favorably influence numbers for compensation and promotions as these directly affect managers' performance evaluations, pay, and career opportunities.
Explanation:Management accountants might experience outside pressure to influence the numbers favorably when the accounting information they provide is directly tied to outcomes that can significantly affect the company's financial status and the well-being of individual managers. Among the options provided, the most likely scenario where such pressure could occur is: Option B) Compensation and Promotions
In the context of compensation and promotions, accounting numbers directly impact the performance evaluation of managers, which could consequently influence their pay and career advancement. The desire to appear successful and to maximize personal gain might motivate some managers to apply pressure on accountants to adjust figures to create a more favorable impression. Meanwhile, the information used for budgeting, continuous improvement, and product costing is more about planning and operational efficiency, which is generally not as directly tied to individual compensation and promotions, hence less likely to elicit pressure on accountants to skew the numbers in a particular direction.
As firms grow and their financial data becomes more transparent to external investors like bondholders and shareholders, the company's revenues, costs, and profits are scrutinized. This increased scrutiny can lead to additional pressure on management accountants, especially when considering that these financial stakeholders rely on accurate reports to make investment decisions. Since explicit and implicit costs play into determining economic profit, accurate accounting is imperative for portraying a true representation of a firm's financial health.
In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________.
Answer: Company objective and the resources
Explanation:
For evaluating the different types of marketing segment of an organization it basically involve the two main factors such as the overall segments's attractiveness and also the main objective of the company and its resources.
By evaluating the marketing segment we can easily evaluating each segment of the company so that the company producing the desirable result according to the consumer requirements.
The company objective is one of the type of goals of the company that helps in achieving the desirable result and the opportunities. Therefore, Company objective and the resources is the correct answer.
Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold):
Total Annual Costs (150,000 units)
Direct Material $200,000
Direct Labor $180,000
Manufacturing overhead $150,000
Selling, general, and administrative $100,000
Total = $630,000
a) Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 150,000 units
b) Compute Breed's dollar sales that will yield a projected 20% profit on sales, assuming variable costs per unit are 60% of the selling price per unit and fixed costs are $225,000
c) Management believes that a selling price of $9 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)?
Answer:
(a) $8.20
(b) $1,125,000
(c) 125,000
Explanation:
(a) Unit selling price:
= (Total cost incurred + Desired profit) ÷ Number of units sold
= ($630,000 + $600,000) ÷ 150,000
= $8.20
(b) Profit = Dollar sales - Variable cost - Fixed cost
($ sales × 20% profit) = $ sales - ($ sales × 60%) - $225,000
($ sales × 20% profit) = ($ sales × 40%) - $225,000
$225,000 = ($ sales × 40%) - ($ sales × 20% profit)
$225,000 = ($ sales × 20%)
Dollar sales = $225,000 ÷ 20%
= $1,125,000
(c) No. of units required to be sold:
= Dollar sales ÷ Selling price per unit
= $1,125,000 ÷ $9
= 125,000
The measurement of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals is known as organizational ________. a. management b. efficiency c. performance d. effectiveness
Answer:
Effectiveness
Explanation:
Organizational effectiveness shows the extent to which resources have been efficiently managed to produce intended results.
Efficiency has to do with maximal uses of resources available (i.e input versus output) while effectiveness show whether desirable outcomes have been achieved i.e whether organizational objectives are being achieved.
The measurement of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals is known as organizational efficiency (option b).
Explanation:The measurement of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals is known as organizational efficiency.
Efficiency is a key concept in business management. It refers to the ability of a manager to optimize the use of resources, such as time, money, and manpower, to achieve desired outcomes.
For example, a manager who carefully plans and coordinates tasks, eliminates waste, and maximizes productivity is considered efficient. This can lead to cost savings, increased customer satisfaction, and overall success for the organization.
Learn more about Organizational Efficiency here:https://brainly.com/question/36596501
#SPJ3
Which of the following is the subjective performance measure at parent firm level? a. Profitability b. Market share c. Stlck market reaction d. Assessment of goal attainment e. Stability and longevity of the alliance
Answer:
d. Assessment of goal attainment
Explanation:
In cases where an alliance occurs between a parent firm and a subsidiary, the parent firm subjectively measures performance by assessing the extent to which the alliance has contributed to achieving the organization's goals.
There is no difference between you driving your car on public streets and Ford selling a product that it knows will sometimes explode. True or False? What unmentioned factor might your answer depend on?
Answer:
1) The statement is: True.
2) The correct answer is letter: Cost-Benefit Analysis.
Explanation:
2) The Cost-Benefit Analysis is a tool used to make decisions based on cost and benefit. You can use the Cost-Benefit Analysis to evaluate a single option or compare two or more alternatives to choose the best. The Cost-Benefit Analysis is used to calculate all the costs of a particular decision and compare them with the expected benefits of that decision.
1) In the example, driving on a street has the cost of being in danger of crashing but the benefit of traveling comfortably in your vehicle. Ford selling cars could cost some of them -for an "x" reason- to explode but the benefit is to profit from the sales. Thus, there is no fundamental difference comparing the costs individuals are exposed while driving a car on the street and Ford being exposed to their cars' explosion.
You put aside $300 a month in an account that returns 9% a year, compounded monthly. How long do you need to contribute to save $1,000,000
Answer:
36 years 4 months and 2 days
Explanation:
Data provided in the question:
Monthly payment = $300
Rate of return, i = 9% = 0.09
Future value = $1,000,000
Now,
we know
Future value = Monthly payments × [tex]\left[ \frac{(1+i)^{n}-1}{i} \right][/tex]
or
1000000 = $300 × [tex]\left[ \frac{(1+0.0075)^{ }-1}{ 0.0075 }[/tex]
or
[tex]\frac{ 1000000}{ 300} &= \frac{ 1.0075^{n} - 1}{ 0.0075}[/tex]
[tex]3333.33333 &= \frac{ 1.0075^{n} - 1}{ 0.0075}[/tex]
[tex]1.0075^{n} - 1 &= 3333.33333 \times0.0075[/tex]
or
1.0075ⁿ - 1 = 25
or
1.0075ⁿ = 26
ln( 1.0075ⁿ) = ln(26)
or
n × ln( 1.0075 ) = ln(26)
or
n = [tex]\frac{ \ln (26) }{ \ln( 1.0075 ) }[tex]
or
n = 436.04 months
or
n = 36 years 4 months and 2 days
Answer:
436 months or 36.33 years
Explanation:
monthly principal P = $300
Amount to be obtained A = $1,000,000
ROI per annum R% = 9%
or ROI per month r% = 9/12 = 0.75%
and n = no. of months
We know that
[tex]A= P(1+\frac{r}{100})^n[/tex]
plugging values we get
[tex]1,000,000= 300(1+\frac{0.75}{100})^n[/tex]
solving the above equation we get
n = 436 months
which is equal to 36.33 years.
Suppose a city facing a shortage of rental apartments eliminates rent controls. Which of the following is most likely to occur?
A. a decrease in rents and a decrease in the number of apartment units supplied.
B. an increase in rents and an increase in the number of apartment units supplied.
C. a decrease in the demand for apartments and an increase in the number of apartment units supplied.
D. an increase in the demand for apartments and a decrease in the number of apartment units supplied.
Answer:
The correct answer is (B)
Explanation:
A shortage of rental apartments will lead to an increase in the rents. There is a shortage of apartments that has eliminated the rent control. Overall, the owners will increase the rents of the apartments and as a result the demand will decrease. A decrease in demand will lead to an increase in the supply of apartments.
Eliminating rent control in a city faced with a shortage of rental apartments would likely lead to an increase in both rents and the supply of apartment units. This is due to landlords being able to charge more, which could incentivize more rental housing investment.
Explanation:If a city facing a shortage of rental apartments eliminates rent controls, the most likely occurrence will be B. an increase in rents and an increase in the number of apartment units supplied.
Rent control laws are implemented to keep housing affordable, but they might also discourage investment in new rental housing because of potentially lower returns. If those controls are removed, landlords would likely raise rents to market prices, which could encourage more landlords to supply apartments as they could potentially earn more income.
Learn more about Rent Control here:https://brainly.com/question/36704708
#SPJ11
A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $54,000. Another month he had total costs of $20,800 on a sales volume of 400 items. He also finds that the break-even point is 20 items.
(a) Find the revenue function. (I solved this part of the question).
(b) Find the cost function. (I need help with this question).
Answer:
Revenue Function = 90x
cost function = 50x + 800
Explanation:
given data
sales volume = 600 items
revenues = $54,000
total costs = $20,800
sales volume = 400 items
break-even point = 20 items
solution
first we get here Price per unit for Revenue Function that is express as
Price per unit = [tex]\frac{total\ sale}{no\ of unit}[/tex]
Price per unit = [tex]\frac{54000}{600}[/tex]
Price per unit = $90
so here Revenue Function will be
Revenue Function = 90x .......................1
here x is sale volume
and
cost function will be
cost function = ax +b .........................2
here
a is Variable cost per unit and b is fixed cost and x is sale function
so when cost at 400 units will be
$20800 = 400a + b .......................3
and
Cost at break even point will be
$90 × 20 = 20a + b ..........................4
as here total cost = total revenue
so from equation 3 and 4 we get a and b
380a = $19000
a = $50
and
b = $20800 - 400 × 50
b = $800
so here Cost Function will be from equation 2
cost function = 50x + 800
Final answer:
Finding the cost function requires separating fixed and variable costs from the total costs. However, the provided info includes a fixed cost of $40,000 and a variable cost of $0.3 per item, which doesn't align directly with the given data of $20,800 for 400 items. Additional context may be necessary for an accurate calculation.
Explanation:
The cost function for a business based on given information about sales volume, revenue, and costs. To find the cost function, we need to understand that it typically consists of fixed costs and variable costs. Given that the total costs for 400 items sold were $20,800, we can use this information to determine the variable cost per item and the fixed cost. However, the provided information hints at a fixed cost of $40,000 and a variable cost of $0.3 per item for an ice cream bar venture, which is not directly related to the figure provided. This discrepancy suggests that more specific details or context might be needed to accurately calculate the cost function based on the given data.
The major disadvantage of a multichannel system is that it is harder to control and it can generate ________.
a. declining employee morale
b. greater conflict
c. less net profit
d. inefficiency
Answer:
The correct answer is letter "B": greater conflict.
Explanation:
A typical problem of multichannel systems is the channel conflict. This inconvenience arises when components of a supply chain such as manufacturers, retailers or distributors compete among them for the sales of the same product. The situation generates a greater conflict since the business operations of one can be stopped because of the reluctance of the other for cooperating.
The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and going concern. Consider the four independent situations below.
1. Jumbo's is a local restaurant. Due to a bad shipment of potatoes, several of the company's customers become ill, and the company receives considerable bad publicity. Revenues are way down, several of its bills are past due, and the company is making plans to close the restaurant at the end of the month. The company continues to report its assets in the balance sheet at historical (original) cost.
2. Gorloks Tax Services is owned and operated by Sam Martin. The company has the usual business assets: land, building, cash, equipment, and supplies. In addition, Sam decides to buy a boat for him and his family to enjoy on the weekends. Sam includes the boat as an asset on the balance sheet of Gorloks Tax Services.
3. Claim Jumpers International, a U.S.-based company, has operations in the United States and in Europe. For the current year, the company purchased two trucks in the United States for $10,000 and three trucks in Europe for €20,000 (euros). Because of the differences in currencies, the company reported "Five Trucks" with no corresponding amount in the balance sheet.
4. Cobbers Etc. sells specialty music equipment ranging from African bongo drums to grand pianos. Because of the fluctuating nature of the business, management decides to publish financial statements only when a substantial amount of activity has taken place. Its last set of financial statements covered a period of 14 months, and the set of financial statements before that covered a period of 18 months.
Required:
For each situation, select which of the underlying assumptions of GAAP is violated.
Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.
The four situations highlight violations of GAAP assumptions including going concern, economic entity, monetary unit, and periodicity.
Explanation:Situation 1: The violation of GAAP assumption is going concern. The company is making plans to close the restaurant, indicating uncertainty about its ability to continue operating.
Situation 2: The violation of GAAP assumption is economic entity. Sam has included his personal asset (the boat) on the balance sheet of Gorloks Tax Services, which should only include business assets.
Situation 3: The violation of GAAP assumption is monetary unit. The company reported five trucks without providing the corresponding amounts in the balance sheet, creating a discrepancy due to the use of different currencies.
Situation 4: The violation of GAAP assumption is periodicity. Cobbers Etc. publishes financial statements irregularly, covering periods of 14 months and 18 months, instead of following the regular time intervals.
Learn more about GAAP assumptions here:https://brainly.com/question/31556605
#SPJ3
_____ requires coordination among government departments and agencies, as well as cooperation toward common objectives across commands
a)Unified direction
b)Unity of decision
c)Unity of effort
d)Unified action
"Unity of effort" requires coordination among government departments and agencies, as well as cooperation toward common objectives across commands.
Answer: Option C
Explanation:
At the national level the unity of effort is basically a cooperative effort involving a number of departments and agencies of the United States Government. "Unity of effort" is about teamwork and collaboration directed towards common goals although participants do not generally form part of the same command or organisation that is the result of effective unified action.
The aim of promoting cohesion of action is to generate a ellaborative consensus approach while applying national power instruments towards common goals. The unity of effort is a continuous process which demand constant effort to sustain inter-organizational relationships.
Asset allocation is important to help diversify a portfolio but has little impact on the portfolio's return.
True/False
The given statement is false
Explanation:
Asset allocation is an important because it is an investment strategy in which there will be risks involving the tolerance the goal and the investment of the time frame and the main focus will be done on the characteristics of the portfolio
All the risks and the rewards will be balanced by using the percentage of investment in each assets and also by adjusting the investments and the percentage so the given statement is false
The strategic planning process for an information technology organization and the factors that influence it depend on:
Answer:
The correct answer is letter "A": how the organization is perceived by the rest of the organization.
Explanation:
Information Technology (IT) companies could be a cost center-service provider, or a business partner-business peer business. Thus, the perception of different departments on regards which path the organization should take to handle heir business will definitely influence the information planning process of the firm.
Johnson Waterworks Company provides plumbing services. The company is a sole proprietorship. Transactions during the first year of operations are provided below. a) The owner, Mitchell Johnson, contributed $14,000 cash in exchange for capital b) Paid $1,100 for equipment to be used for plumbing repairs. c) Borrowed $14,000 from a local bank and deposited the money in the checking account. d) Paid $600 in rent for the year. e) Paid $300 for plumbing supplies to be used on various jobs next year. Completed a plumbing repair for a law firm and received $3,400. Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $300 are left at the end of the year. OA. $28,000 O B. $1,100 OC. $1,400 D. $30,800
Answer:
D. $30,800
Explanation:
The computation of the total assets is shown below:
= Cash + equipment + supplies
where,
Cash would be
= Capital - paid cash for equipment + borrowed amount - rent paid - supplies + received amount
= $14,000 - $11,000 + $14,000 - $600 - $300 + $3,400
= $19,500
And, the other items would be same
So, the total assets would be
= $19,500 + $11,000 + $300
= $30,800
Gardial & Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 17%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.
Answer:
Total assets turnover = 5.5
Equity multiplier = 1.55
Explanation:
The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):
[tex]0.11=0.02*TAT\\TAT = 5.5[/tex]
The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):
[tex]0.17=0.11*EM\\EM=1.55[/tex]
The company's total assets turnover is 5.5
The firm's equity multiplier is 1.55
The company's Total Assets Turnover is 5.5, indicating it generates 5.55 times its total assets in sales. The Equity Multiplier is 1.54, meaning there is more than one and a half times the total shareholders' equity in assets.
Explanation:These calculations revolve around certain financial ratios that businesses often use to evaluate their performance. First, the Total Assets Turnover is calculated by dividing the firm's sales by its total assets, which can be rearranged as profit margin times total assets turnover equals Return On Assets (ROA). Given the fact that ROA is 11% and the profit margin is 2%, the Total Assets Turnover is therefore 11%/2% = 5.5.
Secondly, the Equity Multiplier, typically used to measure a company's financial leverage, is calculated by dividing the company's total assets by its total shareholders' equity. This can be rearranged as: Return on Assets (ROA) times the Equity Multiplier (EM) equals Return On Equity (ROE). With the details that ROA is 11% and ROE is 17%, the Equity Multiplier is calculated as follows: 17%/11% = 1.54.
Learn more about Financial ratios here:https://brainly.com/question/31531442
#SPJ6
The model of short-run economic fluctuations focuses on _____
(A) the price level and real GDP.
(B) Dproductivity and economic growth.
(C) the neutrality of money and inflation.
(D) None of the above is correct.
Answer:
The correct answer is letter "A": the price level and real GDP.
Explanation:
The model of short-run economic fluctuations is a method that measures the changes in the output level of an economy. According to this model, the increase in money supply increases production which causes prices to decrease. It considers two variables: the average level of prices and the production of the economy based on the real Gross Domestic Product (GDP).
Calvin has difficulty seeing, but uses voice recognition software allowing him to dictate articles. His computer is also specially designed for visually impaired individuals. The Daily Times interviews Calvin but offers the job to a sighted person instead. The Daily Times may have violated the ADAThe ADA Defines a Disability as Including Any of the Following:1. a physical or mental impairment that substantially limits one or more of the major life activities of the affected individuals2. a record of having such an impairment3. being regarded as having such an impairment
Answer:
The correct answer are numbers (1), (2), and (3).
Explanation:
The Americans with Disabilities Act (ADA) of 1990 is a law passed by United States Congress that forbids any type of discrimination to impaired employees or applicants with disabilities to walk, see, read, see, and talk, those who have been regarded with those disabilities and who have a history regarding the impairment. Besides, the ADA covers those individuals from any kind of obstacles in front of job payments, promotions, and firing.
Mr. G obtains a $70,000 loan today. He will repay the bank with equal payments to be made at the end of each 6-month period, or twice each year, for 6 years. If the interest rate the bank charges is an 8% annual percentage rate, what amount of money will each payment be?
Answer:
The amount of each payment after every 6 months will be $7,458
Explanation:
We need to find the amount of payment made every 6 months. For that we need to know the present value of the loan which is 70,000, the interest rate which is 8% but we will divide it by 2 because there are semiannual payments so interest rate will be 4%, after that we need to know the number of compounding periods, because the payments are semi annual and there are 6 years we will multiply 6 by 2 and get 12 which is our compounding periods. Because there are equal payments and no payment to be made at end the future value of the loan is 0. Now we will input the following data in a financial calculator.
PV= 70,000
I= 4
N= 12
Fv=0
Compute PMT=7,458
Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the company's total resources are:
Answer:
total resources = $45,000
Explanation:
given data
contributes = $20,000
borrows = $25,000
purchase supplies = $5,000
equipment computer system = $10,000
solution
$45,000 [cash 30,000(20,000+25,000-5,000-10,000) equipment 10,000; supplies 5,000]
we get here company's total resources are as
total resources = cash + purchase supplies + equipment computer system ............1
here cash = $20,000 + $25,000 - $5,000 - $10,000
cash = $30,000
so from equation 1
total resources = $30,000 + $5,000 + $10,000
total resources = $45,000
Margot's total resources after her initial cash contribution, bank borrowing, and subsequent expenses comes to $30,000.
Explanation:The company's total resources would be calculated by totalling initial contributions and borrowings and then subtracting any expenses or investments made. So, if Margot begins with $20,000 in cash and also borrows $25,000 from the bank, her total initial resources are $45,000. She then buys supplies for $5,000, and a computer system for $10,000 reducing her resources by $15,000. The remaining resources then are the initial $45,000 minus the $15,000 spent, ending with a total of $30,000 in resources for the company.
Learn more about Business Finance here:https://brainly.com/question/31424918
#SPJ3
In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,200 million of retained earnings. The previous retained earnings were $1,140 million. How much in dividends were paid to shareholders during the year?
Answer:
$140 million
Explanation:
Given that,
Ending Retained Earnings = $1,140 million
Beginning Retained Earnings = $1,200 million
Net Income = $80 million
Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
$1,140 million = $1,200 million + $80 million - Dividends
Dividends = $1,200 million + $80 million - $1,140 million
= $140 million
Therefore, the dividend of $140 million were paid to shareholders during the year.