Answer:
a) The table is completed in the explanation
b) Net income = $16,700
Explanation:
The question is to complete a calculation table for each of the transactions as follows:
Transaction Assets = Liabilities + Stockholders Equity
a. Cash $54,000 Revenue 54,000
b. Supplies +4,650 Account Payable +4,650
c. Cash +62,600 Notes Payable +62,600
d. Equipment +25,200
Cash -$25,200
e. Cash -$19,800 Accounts Payable +9,900 Sell Exp -29,700
f. Prepaid Expense +$8,200 rent Exp -8,200
Cash -$16,400
$93.850 $77,150 $16,700
2. Calculate the Preliminary Net income for the company
Description Amount
Sales Rev. $54,600
Subtract:
Selling Expenses ($29,700)
Rent Expenses ($8,200)
Net Income $16,700
The transactions affected various accounts under the accrual basis in different ways, some increasing and some decreasing. The preliminary net income for the month was calculated to be $16,700.
Explanation:Transaction (a): Cash account increases by $54,600 (+). Revenues increase by $54,600 (+), affecting stockholders' equity positively.
Transaction (b): Supplies account increases by $4,650 (+). Accounts Payable increases by $4,650 (+), affecting stockholders’ equity negatively.
Transaction (c): Cash account goes up by $62,600 (+). Long-term Notes Payable increase by $62,600 (+), which doesn't affect stockholders' equity directly.
Transaction (d): Equipment account increases by $25,200 (+). Cash account decreases by $25,200 (-), which doesn't affect stockholders’ equity directly.
Transaction (e): Selling expenses amount to $29,700 (+), which decreases stockholders' equity. Cash goes down by $19,800 (-) and Accounts Payable go up by $9,900 (+).
Transaction (f): Prepaid Rent account goes up by $8,200 (+). Cash account decreases by $16,400 (-). Rent Expense decreases stockholders’ equity by $8,200 (-).
Preliminary Net Income: This is the total Revenue minus the Expenses. If we count the revenues as $54,600 and selling expenses as $29,700 and rent expense as $8,200, the preliminary net income will come out to $16,700.
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The Blue Bonnet's 2010 balance sheet showed net fixed assets of $2.2 million, and the 2011 balance sheet showed net fixed assets of $2.6 million. The company's income statement showed a depreciation expense of $900,000. What was the amount of the net capital spending for 2011?
Answer:
$1,300,000
Explanation:
The movement in a fixed asset account is usually based on; depreciation, additions to asset, disposal, write offs and transfers from Capital work in progress.
Given
Opening fixed asset balance = $2.2 million
Net fixed asset -ending = 2.6 million
Depreciation = $900,000
The net capital spending consisting of disposals and acquisition of assets be x
Then
2,200,000 + x - 900,000 = 2,600,000
x = 900,000 + 2,600,000 - 2,200,000
x = $1,300,000
The amount of the net capital spending for 2011 is $1,300,000.
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$419,000 –$37,000 1 47,000 19,800 2 59,000 13,900 3 76,000 15,600 4 534,000 12,400 The required return on these investments is 11 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A years Project B years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Net present value Project A $ Project B $ (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return Project A % Project B % (d) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project A Project B (e) Based on your answers in (a) through (d), which project will you finally choose?
Answer:
a. The payback period for project A=3.44 years, and the payback period for project B=2.21 years.
b. Net present value for project A=$78,560.951, and the Net present value for project B=$11,694.239
c. IRR for Project A= 16.57% and IRR for Project B=25.72%
d. Probability index (P.I) for Project A=1.187 and the Probability index (P.I) for Project B=1.316
e. The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.
Explanation:
PROJECT A PROJECT B
Year Cash flow Cash flow
0. $419,000 $37,000
1. $47,000 $19,800
2. $59,000 $13,900
3. $76,000 $15,600
4. $534,000 $12,400
a.
The payback period for Project A can be determined as follows;
The cash flows at Year 0 represent the initial investment to the project. The payback period is the number of years it will take until the return on the project is equal to the initial investment. This can be calculated as shown;
419,000-(47,000+59,000+76,000)
=419,000-182,000=$237,000
After 3 years, the total cash flow will be=$182,000 which is still $237,000 less from the initial investment. Determine the number of months in the fourth year that it will take to cover the remainder;
(237,000/534,000)=0.44 years
Total number of years=3+0.44=3.44 years
The payback period for project A=3.44 years
The payback period for Project B can be determined as follows;
37,000-(19,800+13,900)
=37,000-33,700=$3,300
After 2 years, the total cash flow will be=$33,700 which is still $3,300 less from the initial investment. Determine the number of months in the third year that it will take to cover the remainder;
(3,300/15,600)=0.21 years
Total number of years=2+0.21=2.21 years
The payback period for project B=2.21 years
b.
Net present value for project A is;
NPV=-419,000+{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)=-419,000+(42,342.342+47,885.724+55,570.545+351,762.340=$42,378,560.61
Net present value for project A=$78,560.951
Net present value for project B is;
NPV=-37,000+{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)=-37,000+(17,837.837+11,281.552+11,406.586+8,168.264=$11,694.239
Net present value for project B=$11,694.239
c.
The IRR for each project A is:
$419,000 = $47,000 / (1 + IRR) + $59,000 / (1 + IRR)^2 + $76,000 / (1 + IRR)^3 + $534,000 / (1 + IRR)^4
Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:
IRR = 16.57%
The IRR for each project B is:
$37,000 = $19,800 / (1 + IRR) + $13,900 / (1 + IRR)^2 + $15,600 / (1 + IRR)^3 + $12,400 / (1 + IRR)^4
Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:
IRR = 25.72%
d.
Probability index (P.I) for Project A;
P.I=[{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)]/419,000=(42,342.342+47,885.724+55,570.545+351,762.340=1.187
The Probability index (P.I) for Project A=1.187
Probability index (P.I) for Project B;
[{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)]/37,000=(17,837.837+11,281.552+11,406.586+8,168.264=1.316
The Probability index (P.I) for Project B=1.316
e.
The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.
This question involves the calculation of financial terms including payback period, NPV, IRR, and profitability index to evaluate and compare two projects. The project which offers the shortest payback period, the highest NPV, IRR, and profitability index should be chosen.
Explanation:To answer this question, we first need to make some calculations. Each of the terms used (payback period, NPV, IRR, profitability index) represents a different method of assessing the profitability or feasibility of a project.
Payback period is simply the amount of time it takes for an investment to generate enough cash flows to recover the initial investment. To calculate this, you need to add up the cash flows until the initial investment is recovered.
To calculate the NPV (Net Present Value), you need the cash inflows from each period, the initial investment (cash outflow), and the required rate of return. The NPV is calculated by subtracting the present value of cash outflows (initial investment) from the present value of cash inflows.
Calculating the IRR (Internal Rate of Return) requires a rather complex equation (an iterative process or financial calculator/Excel's IRR function is used). The IRR is the discount rate when the NPV of the project is zero. The Profitability Index (PI) refers to the ratio of the present value of future cash flows and the initial investment cost. A PI greater than 1 indicates a good project, and a PI of less than 1 indicates a bad project.
Depending on the results of these calculations, you would choose the project that displays a shorter payback period, higher NPV, higher IRR, and higher PI.
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Fred is starting a software writing company. He is the owner and has only three employees. He wants a simple, inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business. His best choice of ownership would be ________.
Answer:
Sole proprietorship.
Explanation:
The best property choice for Fred's business would be a sole proprietorship.
This corresponds to a popular commercial form due to the simplicity of business operations, ease of implementation and relatively low cost.
In the sole proprietorship, a single owner will be able to register the name of his business (which can be the name of the owner or a fictitious name) and obtain the necessary licenses for the start of operations. It is an easy way to start a new business without the greatest risks found in some type of business partnership, since in exclusive ownership, the business responsibilities are solely of the owner, including gains and losses.
April works diligently to accomplish the company goals in an efficient and effective manner, utilizing her employees through planning, organizing, leading, and controlling company resources. April is:_____a. Entrepreneurship.b. Eveloping synergy.c. Delegating.d. Vision planning.e. Managing.
Answer:
Letter e is correct. Managing.
Explanation:
Managing is the organizational process of assuming essential responsibilities for the correct use of resources and for achieving objectives and goals. Therefore, it is necessary to define the expected results, which corresponds to planning. Organize the necessary resources for the effective execution of the work. Communicate necessary information and coordinate the processes for carrying out the work, that is, directing. And finally, controlling, that is, monitoring the results, the evolution of activities and correcting flaws for organizational effectiveness and obtaining the expected results.
The decision by GE to do business, through subsidiaries, with Iran would have been made at what organizational level? a. First-line management b. Middle-level marketing management c. Front-line supervisor d. Top management e. Administrative management
Answer:
D. Top management
Explanation:
The top management of a company has the duty to oversee the entire company's operation. They are also the one that make a decision which will heavily influence the company's position in the future.
A decision for company to do business with subsidiaries with another country possess a lot of risk. It tends to require a lot of investment but with equally higher return. Decision with this magnitude will most likely fall to the hands of the top managers in the company.
the owner’s initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. The company’s $17,350 equipment purchase is paid in cash. The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $13,320 consulting fees earned.
Answer:
What the question asks is to journalize the transactions.
Explanation:
The owner’s initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock.
Account Debit Credit
Cash $37,480
Land $45,910
Common Stock $83,390
The company’s $17,350 equipment purchase is paid in cash.
Account Debit Credit
Equipment $17,350
Cash $17,350
The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries yet to be paid.
Account Debit Credit
Office Supplies $2,720
Accounts Payable $2,720
Wages Expense $5,250
Wages Payable $5,250
No cash has been collected on the $13,320 consulting fees earned.
Account Debit Credit
Accrued Revenue $13,320
Fees Revenue $13,320
Nathan's Athletic Apparel has 1,500 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $20,000 in 2021.
Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?
Preferred stockholders of Nathan's Athletic Apparel will receive $18,000 if the stock is cumulative and $9,000 if it's noncumulative, with common stockholders receiving $2,000 and $11,000 respectively from the $20,000 dividend in 2021.
If Nathan's Athletic Apparel has issued 1,500 shares of 6%, $100 par value preferred stock, the dividends owed on this stock annually would amount to $9,000 (1500 shares * $100 par value * 6%). With a planned dividend of $20,000 in 2021, we need to calculate how much of this amount will go to preferred stockholders and how much to common stockholders, considering both cumulative and noncumulative scenarios.
For cumulative preferred stock, dividends not paid in previous years must be paid out before any dividends can go to common stockholders. In this case, 2020's unpaid dividend of $9,000 would be added to 2021's dividend for preferred stockholders. Therefore, preferred stockholders would receive $18,000 in total ($9,000 for each year), leaving $2,000 for common stockholders ($20,000 total dividend - $18,000 for preferred stockholders).
In the scenario with noncumulative preferred stock, dividends not paid in the past do not accumulate. Thus, in 2021, preferred stockholders would receive just $9,000 (the dividend for that year), allowing common stockholders to receive the remaining $11,000 ($20,000 - $9,000).
In order to effectively revise and proofread a document, you should: a. attempt to see things from the audience's perspective. b. avoid taking suggestions from others on rewriting the document. c. revise the document until you find new ways to improve it.
Answer:
A. Attempt to see things from the audience's perspective.
Explanation: Proofreading is the process of ensuring that a document is void of major errors,in proofreading,the person involved is trying to read from the perspective of audience to ensure that the document meets certain criteria as stated if it is an academic project or research to be submitting or if it's a Novel or an article, effective proofreading will help to guarantee that the audience will find it Acceptable.
Final answer:
To revise and proofread a document effectively, one must adopt the audience's perspective, be open to feedback, and vet the writing through multiple revisions for both major structural changes and detailed proofreading.
Explanation:
To effectively revise and proofread a document, it is crucial to adopt the audience's perspective to better understand how your writing will be received. This approach involves several stages, starting with a substantial revision to see the big picture, which includes reorganizing and refining ideas and arguments to better suit the document’s purpose and reader's expectations. After taking a break to gain fresh eyes, engage a series of revisions, where each pass focuses progressively on fine-tuning the language, style, and accuracy of the text.
One key method for gaining perspective is to employ a checklist that centers on the audience's view of your work, allowing you to diagnose issues that may not be immediately apparent. Moreover, being open to feedback from others can offer invaluable insights that may not emerge in isolation. Importantly, revisions should go beyond mere editing to encompass substantive changes that improve the overall coherence and effectiveness of the document.
The revision process is not simply about finding new ways to rephrase words but about enhancing the entire document to ensure clarity, coherence, logical flow, and the fulfillment of the assignment’s objectives. In addition to self-review, seeking unbiased feedback and being open to constructive criticism can lead to significant improvements before finalizing the document.
Remember that effectively revising and proofreading are about refining both the global aspects of the document and the minutiae, ultimately resulting in a polished and comprehensible piece of writing that resonates with the intended audience.
Hometown Grocery, Inc. has 41,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding. The common stock is $6.00 par value; the preferred stock is 4% noncumulative with a $100.00 par value. On October 15, 2018, the company declares a total dividend payment of $55,000. What is the amount of dividend that will be paid for each share of common stock? (Round your answer to the nearest cent.)
Answer:
Dividend Per Each Share = $0.85 per share
Explanation:
given data
common stock outstanding = 41,000 shares
preferred stock outstanding = 5,000 shares
common stock = $6.00 par value
preferred stock 4% noncumulative = $100.00 par value
total dividend payment = $55,000
solution
we get here Total Preferential Divided that is
Total Preferential Divided = Shares × Face Value × 4% ........1
Total Preferential Divided = 100 × 5000 × 4%
Total Preferential Divided = 20000
so as that Total Equity Dividend is
Total Equity Dividend = Total Dividend - Total Equity Dividend .............2
Total Equity Dividend = $55,000 - 20000
Total Equity Dividend = 35000
so Dividend Per Each Share will be
Dividend Per Each Share = [tex]\frac{Equity\ Dividend}{Total\ Equity\ Shares}[/tex] ..............3
Dividend Per Each Share = [tex]\frac{35000}{41000}[/tex]
Dividend Per Each Share = $0.85 per share
The long-run aggregate supply curve: Question 15 options: a) is horizontal. b) shows the economy reaching an equilibrium at the natural rate of unemployment. c) shows prices, wages, and interest rates to be inflexible. d) can never shift.
The long-run aggregate supply curve "shows prices, wages, and interest rates to be inflexible".
Answer: Option C
Explanation:
The long-run aggregate supply graph is vertical, reflecting the views of economists that show variations in aggregate demand only affect the overall performance of the economy briefly. Only capital, labor, and technology influence cumulative output in the long run, because it is believed that everything in the economy is efficiently utilized.
If the output things influence in quantity, the long-run aggregate supply curve can change. While the short-run aggregate supply curve is influenced by the cost of production including subsidies, labor wages, taxation and production prices.
Discuss the lengths to which you would go to manage political risk relative to the kinds of returns you would expect to gain?
Answer: In managing a political risk, the first thing to do is to go on a research, to determine the type of political risk that is likely to occurs in the country or state, and the level of influence this risk has on your business. If the risk is manageable, then investment can start, but before start, you should get a political risk insurance certificate, from a national insurance body or an international insurance body. If at a time the risk becomes higher, that it is likely to affect the production of my profit. The business will be incorporated with a government owned business. So as to sustain the business profit, because no Government will want to establish any law that will have big negative effect upon its own business. If the high risk is as a result of the host community, then the business should be incorporated with the community, so that their will see a sense of belonging to the business.
Explanation:
The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.
St. Joseph's Day School is a private Catholic elementary school. It employs 43 people. Paula is a fourth grade teacher at the school. She is unmarried. When she announces to her supervisor that she is pregnant, she is fired the next day. Paula files a claim with the EEOC. What is the likely result and why
Answer:
The EEOC would not be able to do anything because the school is a Catholic religious institution and that falls under Title VII. With that being said the school cant be touched because its simply enforcing its religious beliefs.
Explanation:
Under Title VII, religious organizations are exempt when performing their religious activities. There is no basis for her claim and the EEOC will find no reasonable cause for her complaint.
Final answer:
The EEOC is likely to rule in Paula's favor since termination based on pregnancy is a form of illegal discrimination under the Pregnancy Discrimination Act, which is part of Title VII of the Civil Rights Act of 1964.
Explanation:
When Paula files a claim with the EEOC after being fired for being pregnant, the likely result would be that the school could face legal consequences for violating anti-discrimination laws. According to laws enforced by the EEOC, it is illegal to discriminate against an employee on the basis of pregnancy. As St. Joseph's Day School is a private Catholic elementary school and employs more than 15 people, it falls under the purview of the EEOC. Furthermore, the Pregnancy Discrimination Act of 1978, which is an amendment to Title VII of the Civil Rights Act of 1964, prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions.
While religious institutions have certain exemptions from discrimination laws, such as the ministerial exception clarified in Hosanna-Tabor Evangelical Lutheran Church and School v. EEOC, these typically do not extend to non-ministerial staff, and pregnancy discrimination would not likely be considered a permissible reason for termination.
Thus, if the EEOC finds that Paula's firing was indeed due to her pregnancy, St. Joseph's Day School could be ordered to provide remedies such as back pay, reinstatement, or other forms of compensation.
In a laissez-faire economic system: A. government's role includes planning the economy's output. B. the government owns most nonhuman productive resources. C. the government takes on a substantial degree of economic and regulatory control over the private sector. D. government's role is limited to protecting and enforcing property rights and providing public goods.
Answer:
D. government's role is limited to protecting and enforcing property rights and providing public goods.
Explanation:
Laissez-faire economic system -
It refers to the theory , which does not agrees to the intervention of the government in any of the business affairs , is referred to as Laissez-faire economic system .
The basic principle of this economic system is to " leave alone " .
The government does not have any right to interfere in the business practices .
Hence , from, the given information of the question,
The correct option is d.
Bases of business or organizational market segmentation that center on the customer attributes are categorized as: Group of answer choices a. Soft qualitative criteria. b. Hard qualitative criteria. c. economic bases. d. bottom-up bases. e. concentration bases.
Hard qualitative criteria
Explanation:
The qualitative requirements in marketing begin with a quick-term target, in which the qualitative standards: architecture, online distribution platforms, customer satisfaction and e-loyalty are also included.
Briefly, the process of gathering large amounts of data by polls, surveys and voting techniques relates to quantitative market research. Qualitative market research, alternatively, involves trying to determine customer motivation through close analysis ––typically in a tiny group or face-to-face encounter.
Final answer:
The most appropriate categorization for business market segmentation based on customer attributes is 'hard qualitative criteria' as it involves measurable customer characteristics that can support distinct grouping and differential pricing mechanisms.
Explanation:
Bases of business or organizational market segmentation that center on customer attributes generally involve qualitative data. However, when these bases allow for the distinct grouping of customers and support differential pricing or self-selection mechanisms, they might better be described using quantitative or semi-quantitative criteria. Within the question's context, the closest answer choice is hard qualitative criteria. This categorization typically involves identifiable and measureable customer characteristics such as geography, lifestyle, family life cycle, and perceived benefits. The economic bases criterion as mentioned in economic base analysis employs quantitative methods like the location quotient for market analyses, which leans more toward precise numerical data rather than qualitative attributes. Hence, the firmest alignment with the question would be with option (b) hard qualitative criteria, which allows for segmentation based on distinguishable customer attributes.
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Inventory Beginning Ending Raw materials $9,500 $16,180 Work in process 5,670 8,560 Finished goods 9,700 6,800 Costs incurred: raw materials purchases $58,740, direct labor $50,330, manufacturing overhead $23,960. The specific overhead costs were: indirect labor $6,740, factory insurance $4,430, machinery depreciation $4,720, machinery repairs $2,290, factory utilities $3,840, and miscellaneous factory costs $1,940. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.
Answer:
Cost of goods manufactured $ 123,460
Cost of goods sold: $ 126,360
Explanation:
Raw materials
beginning 9500
purchased 58740
ending (16180)
used in production 52060
cost added
materials 52060
direct materials 50330
overhead 23960
total 126350
COGM
beginning WIP 5670
added 126350
ending WIP (8560)
COGM 123460
COGS
beginning FG 9700
COGM 123460
ending FG (6800)
COGS 126360
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A with the item from List B that is most appropriately associated with it.
List A =
1. Expense recognition
2. Periodictiy
3. Historical cost principle
4. Materiality
5. Revenue recognition
6. Going concern assumption
7. Monetary unit assumption
8. Economic entity assumption
9. Full-disclosure principle
List B =
1. A common denominator is the dollar
2. All information that could affect decisions should be reported
3. Concerns the relative size of an item and its effect on decisions
4. Criteria usually satisfied for products at point of sale
5. Record expenses in the preiod the related revenue is recognized
6. The enterprise is separate from its owners and other entities.
7. The entity will continue indefinitely
8. The life of an enterprise can be divided into artificial time periods.
9. Thje original transaction value upon acquistion.
Answer:
Find it below
Explanation:
1. Expense Recognition - Record expenses in the preiod the related revenue is recognized
2. Periodicity - The life of an enterprise can be divided into artificial time periods.
3. Historical cost principle - The original transaction value or cost upon acquistion.
4. Materiality - Concerns the relative size of an item and its effect on decisions
5. Revenue recognition - Criteria usually satisfied for products at point of sale.
6. Going concern assumption - The entity will continue indefinitely
7. Monetary unit assumption - A common denominator is the dollar
8. Economic entity assumption - The enterprise is separate from its owners and other entities.
9. Full-disclosure principle - All information that could affect decisions should be reported
.
Final answer:
The provided list matches accounting concepts, such as the Expense Recognition and the Revenue Recognition, to their definitions, like recording expenses in the period revenue is recognized and criteria usually satisfied at the point of sale, respectively.
Explanation:
The question involves pairing accounting terms with their appropriate descriptions. Here is the correct association between List A and List B:
Expense recognition (List A) is associated with Record expenses in the period the related revenue is recognized (List B).Periodicity (List A) is associated with The life of an enterprise can be divided into artificial time periods (List B).Historical cost principle (List A) is associated with The original transaction value upon acquisition (List B).Materiality (List A) is associated with Concerns the relative size of an item and its effect on decisions (List B).Revenue recognition (List A) is associated with Criteria usually satisfied for products at point of sale (List B).Going concern assumption (List A) is associated with The entity will continue indefinitely (List B).Monetary unit assumption (List A) is associated with A common denominator is the dollar (List B).Economic entity assumption (List A) is associated with The enterprise is separate from its owners and other entities (List B).Full-disclosure principle (List A) is associated with All information that could affect decisions should be reported (List B).The principles and assumptions discussed are integral to accounting and provide a framework for financial reporting that ensures consistency and comparability across different entities.
Is it possible for a country with a regressive tax system to have a tax-spending system that transfers resources from the rich to the poor? a. Yes, if the poor get more in spending than they pay in taxes. b. No, because regressive taxes cannot be combined with transfers from the rich to the poor. c. Yes, if the poor get as much in spending as they pay in taxes. d. No, because the regressive tax would outweigh any spending program.
Answer:A
Explanation:
A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.
"The balance sheet of Ambiance Corporation reported current assets of $186,708, total assets of $300,000, current liabilities of $36,139, and total liabilities of $125,000. What is the company’s current ratio?"
The current ratio of Ambiance Corporation is approximately 5.17, indicating a strong short-term financial health, as it suggests that current assets are more than sufficient to cover current liabilities.
The company’s current ratio is calculated by dividing its current assets ($186,708) by its current liabilities ($36,139). To find the current ratio, you perform the following calculation: $186,708 / $36,139, which equals approximately 5.17. This ratio is a liquidity ratio that provides insight into the company's short-term financial health. A current ratio above 1 suggests that the company has adequate resources to meet its short-term obligations, and with a current ratio of 5.17, Ambiance Corporation appears to be in a strong short-term financial position.
__________________ is a political system in which the government tolerates little or no opposition but permits nongovernmental centers of influence and allows debate on some issues of public policy. Select one: a. Democracy b. Authoritarianism c. Monasticism d. Totalitarianism
Answer:
Authoritarianism
Explanation:
an authoritarianism government will not tolerate opposition but will permit the existence of debate on some issues of public policy.
Is important to notice that Decracy does allow for opposition to the government and relies on a healty opposition to keep the system working
While Totalitarianism will not tolerate any kind of though which is not in their belief system
In accounting for credit losses: Select one: A. The allowance method matches losses with related sales better than the direct write-off method B. The direct write-off method involves estimating credit losses C. The direct write-off method consistently understates assets on the balance sheet D. Both B and C
Answer:
A. The allowance method matches losses with related sales better than the direct write-off method.
Explanation:
Credit losses refers to those losses which arise as a consequence of an enterprise extending credit to it's customers. This is in the form of default by customers upon payment, termed as bad debts losses.
Under the allowance method, a percentage of sales which is estimated as non recoverable is provided for as Bad debts for the current period and recorded via an adjusting entry at the end of accounting period.
It represents a provision created against debtors as doubtful debts. This is an estimation. Later when such bad debts are confirmed, following journal entry is passed:
Allowance for Bad and doubtful debts Dr.
To Accounts Receivables
(Being loss on account of bad debts recorded)
Under direct write off method, bad debts losses are directly written off as and when they occur and no allowance or provision is made in advance against them.
A stock you are evaluating just paid an annual dividend of $2.70. Dividends have grown at a constant rate of 2.4 percent over the last 15 years and you expect this to continue.If the required rate of return on the stock is 15.8 percent, what should the fair value be four years from today?
Answer:
Value of the stock in four years: $22.69
Explanation:
We use the gordon model to sovle for the intrinsic value (fair value) of the share according to their future cash flow:
[tex]\frac{divends_1}{return-growth} = Intrinsic \: Value[/tex]
the formula uses next year dividends so we need to calcualte:
2.70 x 1.024 = 2,7648
Now we can solve for the value of the stock:
g = 0.024
r = 0.158
[tex]\frac{2.7648}{0.158-0.024} = Intrinsic \: Value[/tex]
Present Value = 20.63283582
That is the value of the stock today.
Now we apply the grow factor for the next four year:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 20.63283582
time 4.00
rate 0.02400
[tex]20.6328358208955 \: (1+ 0.024)^{4} = Amount[/tex]
Amount 22.69
Peter Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Andrew Chance prepared the following budget for the year:
Chance Manufacturing, Inc. is inviting several consultants to bid for work. Andrew Peters wants to submit a bid. He estimates that this job will require about 250 direct labor hours.
Direct labor hours (professionals) 25,000 hours
Direct labor costs (professionals) $2,500,000
Office rent 320,000
Support staff salaries 1,260,000
Utilities 420,000
Requirements:
a. Compute Peters Realtors’ (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate.
b. Compute the predicted cost of the Chance Manufacturing job.
c. If Peters wants to earn a profit that equals 50% of the job’s cost, how much should he bit for the Chance Manufacturing job?
Answer:
the professional charges $100 dollar per hour
while the overhead is rate is $80 per hour
the bid will be for 67,500 dollars
Explanation:
wee add up the expected overhead cost:
320,000 rent
1,260,000 salaries
420,000 utilities
2,000,000 total
now we divide over the proposed driver (labor hours)
2,000,000 / 25,000 hours = $80
hourly bill: 2,500,000 / 25,000 = $100
the bid should be:
250 x ($100 + $80) = $45,000 cost
now we add the gain
$45,000 x ( 1 + 0.5) = $ 67,500 bid
Imprudential, Inc., has an unfunded pension liability of $568 million that must be paid in 15 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.1 percent, what is the present value of this liability?
Answer:
$233,677,865.61
Explanation:
The computation of the present value of this liability is given below:
As we know that
Future value = Present value × (1 + rate)^number of years
So,
Present value = Future value ÷ (1 + rate)^number of years
= $568,000,000 ÷ (1 + 6.1%)^15
= $568,000,000 ÷ 2.430696628
= $233,677,865.61
A movie theater manager asks an employee, "Should we distribute tickets to the movie on a first-come-first-served basis or through a lottery?" The manager's question is best classified as which one of the following fundamental economic questions?
a)For whom to produce
b)What to produce
c)How to produce
Answer:
For whom to produce.
Explanation:
This fundamental question tends to answer the sector of the customers the company will produce for. It reflects the customer's buying power and willingness.
For example, If the customer we are producing has enough money, so we should go for first come first served basis, OR, If the customer lacks money and it hinders the customer to watch a movie so we motivate them to participate in a lottery so are in guise targeting that section as well.Which level of the pyramid of global corporate social responsibility and performance represents acompany's efforts to be a good global corporate citizen, such as supporting community programs? 79)
______
A) Legal responsibility
B) Economic responsibility
C) Ethical responsibility
D) Financial responsibility
E) Philanthropic responsibility
Answer:
E) Philanthropic Responsibility
Explanation:
The Corporate Social Responsibility (CSR) represents the four type of responsibilities an organisation or corporation has to engage in. The pyramid at the base has the economic responsibility which means the corporation has the responsibility to be profitable
The second from the base is the legal responsibility which means the corporation has the responsibility to obey the law
The third which is also the second to the top of the pyramid is the ethical responsibility which signifies the responsibility of the corporation to be ethical, fair and transparent in all its dealings.
The top of the pyramid represents Philanthropic Responsibilities rooted in the responsibility of the firm to make efforts to be a good corporate citizen of a given society. This can be done by ensuring and being part of the progress of the society in form of support, carrying out development projects among others.
The level of the pyramid of global corporate social responsibility and performance that represents a company's efforts to be a good global corporate citizen, such as supporting community programs, is E. Philanthropic responsibility.
Explanation:Philanthropic responsibility refers to a corporation's ethical obligation to engage in charitable activities and contribute to social and community well-being beyond its core business operations. It reflects a commitment to make a positive impact on society through voluntary giving and community support. It is the level of the pyramid of global corporate social responsibility that represents a company's efforts to be a good global corporate citizen, such as supporting community programs.
This level focuses on voluntary actions that go beyond legal and economic responsibilities, with an emphasis on giving back to society and making a positive impact. Companies engage in philanthropic responsibilities by donating to charities, supporting community initiatives, and participating in sustainable development projects.
Learn more about Philanthropic responsibility here:https://brainly.com/question/34402276
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In addition to the individual income tax, individuals may be required to pay other taxes. Taxpayers with a large amount of tax preference items and itemized deductions may be subject to the _____
Answer:
Taxpayers with a large amount of tax preference items and itemized deductions may be subjected to the alternative minimum tax (AMT).
Explanation:
Alternative minimum tax is a form of tax that applies to individuals who have enjoyed large tax benefits on their high economic income. This tax serves as a redressing tool to make sure that individual pays a minimum tax.
Alternative minimum tax is the surplus of supposed minimum tax over the regular tax. When calculating the supposed minimum tax, the income of an individual, deduction and exemptions are considered and alternative minimum tax rate is applied.
After getting the supposed minimum tax, it`s compared with the regular tax. If it higher than the regular tax, then the individual is subjected to alternative minimum tax.
The key component underlying bureaucracies is ________. Select one: a. standardization b. wide span of control c. the organizational pyramid d. dual lines of authority e. flexibility
Answer:
The correct answer is letter "A": standardization.
Explanation:
Bureaucracy refers to a system in which hierarchy is well-defined within an organization. They follow a centralized, top-down approach in making decisions being the lower layers the most affected since the transmission of information tends to be slow. Bureaucracies aim to provide a standard method of working for every organizational activity.
Answer: A. Standardization
Explanation: Bureaucracy in different terms can be understood as government by bureaus (administrative units) or their administrators or officers. In business and the organizational theory, it is a system of administration based upon organisation into bureaus, division of labour, a hierarchy of authority, etc., designed to dispose of a large body of work in a routine manner. As such it is quite centered around structured around hierarchy, standardization, and specialization. Standardization as key component of bureaucracies indicates they're characterised by excessive red tape and routine all in a bid to comply (or evaluate by comparing) with a standard. In this, theoretically bureaucracies improve efficiency while ensuring equal opportunities (which is always not the case).
If the cost of the beginning work in process inventory is $50,000, direct materials cost is $340,000, direct labor cost is $206,000, an overhead cost is $309,000, and the ending work in process inventory is $45,000, calculate the cost of goods manufactured:
Answer:
The cost of goods manufactured is $860,000
Explanation:
The cost of goods manufactured = The cost of the beginning work in process inventory + direct materials cost + direct labor cost + overhead cost - the ending work in process inventory.
The company has the cost of the beginning work in process inventory is $50,000, direct materials cost is $340,000, direct labor cost is $206,000, an overhead cost is $309,000, and the ending work in process inventory is $45,000
The cost of goods manufactured = $50,000 + $340,000 + $206,000 + $309,000 - $45,000 = $860,000
Consider two bonds, a 3-year bond paying an annual coupon of 12%, and a 20-year bond, also with an annual coupon of 12%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 16%. a. What is the new price of the 3-year bond? (Round your answer to 2 decimal places.) b. What is the new price of the 20-year bond? (Round your answer to 2 decimal places.) c. Do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates? Longer Shorter
Answer:
longer bonds will be more sensitive to change in interest rate as their cash flow are mor exposed to interest related to short.term bonds. Notice the PV of the maturiry values for each one to notice the greater difference.
3-year bonds $ 910.16
20-year bonds: $ 762.85
Explanation:
3-years bonds if rate increase to 16% then:
PV of the coupon payment
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 120.00
time 3
rate 0.16
[tex]120 \times \frac{1-(1+0.16)^{-3} }{0.16} = PV\\[/tex]
PV $269.5067
PV of maturity
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.0000
time 3
rate 0.16000
[tex]\frac{1000}{(1 + 0.16)^{3} } = PV[/tex]
PV 640.6577
PV c $269.5067
PV m $640.6577
Total $910.1644
20-years bonds:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 120.00
time 20
rate 0.16
[tex]120 \times \frac{1-(1+0.16)^{-20} }{0.16} = PV\\[/tex]
PV $711.4609
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.0000
time 20.00
rate 0.16000
[tex]\frac{1000}{(1 + 0.16)^{20} } = PV[/tex]
PV 51.3855
PV c $711.4609
PV m $51.3855
Total $762.8464
Which of the following practices will lead to effective recognition and rewarding of employees? Select one: a. Tying rewards to immeasurable performance so that employees provide more attention to quality rather than quantity b. Rewarding behavior, not just results c. Rewarding employees only through cash rewards as money is the most important and effective motivating factor for most employees d. Giving individual rewards rather than team rewards because team rewards can ignore the contributions of individual employees to the team
The methods that would lead to the practice of effective recognition and rewarding to the employee would be.
The effective recognition is through the use of rewards and the company giving them the value they deserve. There contribution to the team and the company overall. Hence the option Trying to reward the employee so that they can provide more attention and provide quality work.Learn more about the will lead to effective recognition and rewarding.
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