Answer:
Oligopoly
Explanation:
Oligopoly - it is referred to as a marketing structure in which there are few suppliers in the market and every supplier has its own unique function and unique control over the market.
In the given question, cleftell Inc is also one of that firm which has its own control over the market that is why government back them so that they will supply the coal in discounted rate as before
The benefits of trade extend beyond simple exchange. For example, trade allows us to take advantage of _____, the reduction in costs that arise when goods are mass-produced.
Answer: Economies of sale
Explanation:
The advantage of economics of sale in the firm is refers to the increase in the level of the output and it also helps in developing the various types of rapid economic for the purpose of supporting the large firms in the specific geographical areas.
According to the given question, the benefits of the various types of trade allows for using the main concept of the economics of sales by reducing the overall cost of the system.
The main advantage of the economics if sale is to providing the large business expansion and it also increase the productivity that is sales in an organization.
Therefore, Economies of sale is the correct answer.
U. s. recording studios are feeling the pinch in profits due to the fact that artists' music is copied and sold overseas within 24 hours of the music selling in the u. s. market. as a student who is now aware of the challenges businesses face in global trade, which of the following statements do you think is an accurate representation of this situation?
a. the copying and selling of the artist's original music is illegal and enforceable by international copyright law.
b. the copying and selling of the artist's music is legal due to the fact that the internet has changed copyright laws.
c. u. s. copyright laws do not necessarily apply globally.
d. copyright laws only protect the artist, but not the recording studios.
Answer:
C. U.S. copyright laws do not necessarily apply globally.
Explanation:
The reason for this is the inability to enforce the law
. For example, let's say that you are violating the copy right low in united States. In such situation, the police department in united states can force you to court and fine you for your violation.
If the one that violate the copyright live in another country (Let's say China). The police department in united states do not have the authority/jurisdiction to arrest and fine Chinese citizens.
The only way this barrier of enforcement can be passed is if the two nations made an explicit argument to allow police department to arrest violators in each other's country.
In a SWOT Analysis, the primary objective of managers participating in this exercise is to:a. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. b. utilize a consultant group to gain an outside perspective on how the company's strategies can be improved. c. impress the CEO and other leaders in the organization with their knowledge and strategic decision making. d. define at least two future states of the company and build strategies that address those specific scenarios.
Answer:
a. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses.
Explanation:
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.
It is used to assess an organization's competitive strength and to devise strategies accordingly.
Strengths relate to an organization's specialization which provides a competitive edge to it.
Weaknesses refer to shortcomings or limitations of an organization. Weaknesses could be inherent.
Opportunities refer to favorable situations available at the disposal of the organization which it must seize immediately.
Threats relate to dangers arising out of changes in the business environment.
The aim of SWOT analysis activity is to come up with those strategies which make the most out of available opportunities, overcome threats, further build up strengths and eliminate weaknesses.
The correct option is: a) identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. The primary objective of managers conducting a SWOT Analysis is to identify strategies that utilize the company's internal strengths and weaknesses while responding to external opportunities and threats to enhance performance and ensure future success.
The primary objective of managers participating in a SWOT Analysis is to identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. This is because the components of SWOT—strengths, weaknesses, opportunities, and threats—are essential for understanding both the internal and external factors that can impact a company's performance. Strengths and weaknesses are internal factors within the organization's control, such as resources and capabilities, whereas opportunities and threats are external factors beyond the company's control that arise from the market or environment. In practical application, when a manager utilizes a SWOT Analysis, they often focus on a specific aspect that is deemed most critical for the company's success. For instance, if a company like Hewden is facing significant external economic threats, a manager might prioritize those threats in the analysis and develop strategies to mitigate them indirectly, for example, by cutting costs or leveraging brand strength. The goal is not just to impress leadership with knowledge but to create actionable insights that could secure the firm's future. In the context of coursework, students need to first comprehend and then apply SWOT analysis on a specific company, like Company X, in order to make persuasive arguments about the priorities the company should focus on.
Jameson and Harrison were both eligible for promotion. However, Patrick, their manager,decided to promote Harrison because he had been with the company for six years and wasa more consistent performer than Jameson. Which of the following did Patrick lead by topromote Harrison?1. Bureaucracy2. Coercion3. Synergy4. Patriarchy
Answer:
1. Bureaucracy
Explanation:
-Bureaucracy refers to a structure in which there is a standard procedure, a hierarchy, a formal division of the responsabilities, impersonal relationships and everyone has the same chances for advancement. It focuses on how well individuals perform their tasks.
-Coercion refers to convincing a person to do something by using threats.
-Synergy refers to combining two or more things into a greater one that provides superior performance.
-Patriarchy is a system in which men have more power and the most important roles.
According to this, Patrick lead by bureaucracy to promote Harrison because he focused on the years he had at the company and his performance to give him the promotion.
Investment X and Investment Y are both growing perpetuities with initial cash flow of $ 100. Both investments have the same interest rate (r). The present value of Investment X is $5,000, while the present value of Investment Y is $4,000. Which of the following is true? Investment X has a higher growth rate than Investment Y. Investment X has a lower growth rate than Investment Y. The answer cannot be determined without knowing the interest rate for both investments. This makes no sense - with the same initial cash flow and the same interest rate Investment X and Investment Y should have the same present value.
Answer:
Investment X has a higher growth rate than Investment Y
Explanation:
Applying the formula for the Present Value (PV) of a perpetuity on an investment on both Investment X and Investment Y, given an interest rate of (r), a growth rate of (g), and an initial investment of (A).
[tex]PV = \frac{A}{r-g}[/tex]
Since both Investments X and Y, have the same initial investment (A) and interest rate (r), the difference in their present values (PV of Investment X = $5,000, and PV of Investment Y = $4,000) is accounted for by the difference in their growth rate (g).
Given that a higher growth rate will translate to a higher present value, therefore, the present value of Investment X is higher than the present value of investment Y because Investment X has a higher growth rate than Investment Y.
Maria, a single mother of three, has been saving to buy the family's first home. Her budget is limited, but there is a home she can easily afford on the market. Unfortunately, there have been zoning changes in the area, and a twenty-four hour convenience store is located across the street. Is this deterioration curable or incurable?
A. Curable
B. Incurable
C. It may be curable if the surrounding neighborhood is well-maintained and the upkeep is good. If the remainder of the area is on the decline, it is probably incurable.
D. Both A and C
The presence of a convenience store across from Maria's potential home is an example of incurable deterioration because it is an external change caused by zoning regulations and cannot be economically remedied by Maria.
Explanation:The question asks whether the deterioration of a property's value due to a change in the neighborhood, specifically the construction of a twenty-four hour convenience store across the street, is curable or incurable. In real estate terms, a curable deterioration is one that is economically feasible to fix, meaning the increase in property value will be greater than the cost of the remedy. On the other hand, an incurable deterioration is one that cannot be fixed in a cost-effective manner.
The presence of the convenience store is considered an external factor and typically falls under incurable deterioration because Maria cannot change or control the zoning regulations or the existence of the store. Therefore, the best answer is B. Incurable, since the zoning changes and the convenience store's presence are outside of Maria’s control and cannot be economically remedied by her. Answer C suggests a condition where curability may be determined by the surrounding neighborhood, but in this context, the specific issue of the store being close to the property would remain regardless of the upkeep of surrounding areas.
The Krakozhian fashion market has many brands that sell clothing. However, each brand sells clothing designed for different niches in the market. In this scenario, the market structure prevalent in the Krakozhian fashion market is _________.
Final answer:
The Krakozhian fashion market, with many brands offering niche clothing designs, exemplifies a monopolistic competition market structure.
Explanation:
The market structure prevalent in the Krakozhian fashion market is monopolistic competition. This type of market is characterized by having a large number of firms that sell clothing designed for different niches, which results in similar but varied products. There are few barriers to entry, allowing for many producers to supply these differentiated products to the market. For instance, the Mall of America, a real-world example, features a variety of stores each offering distinctive clothing styles catering to different customer preferences, which is a hallmark of monopolistic competition.
During a discussion about the budget for a project, the discussion gets personal between two managers of trion llc. they digress from the topic and start venting their anger on each other. in this scenario, the managers have _____ conflict.
a) intellectual
b) cognitive
c) c-type
d) a-type
Answer:
d) a-type
Explanation:
it is referred to those conflicts that are based on disagreement over individual matter and it can be very detrimental to the performance of the team.
In this type of conflict, the individual suffered from himself. A person is struggling against two desires, out of which one is evil and one is good. sometimes this type of conflict is difficult to solve.
Final answer:
The two managers of Trion LLC are experiencing an A-type conflict, which involves personal attacks and is generally counterproductive. It's crucial to handle such conflict by refocusing on the problem and avoiding personal issues to maintain a constructive work environment. Option d is correct.
Explanation:
In the scenario where two managers from Trion LLC shift from a project budget discussion to personal attacks against each other, they are experiencing an A-type conflict or affective conflict. A-type conflict is characterized by interpersonal issues and is often counterproductive to teamwork as it focuses on emotions and personal issues rather than tasks or problems at hand. This is in contrast to C-type conflict or cognitive conflict, which is associated with differences in perspectives or ideas and can potentially be constructive if managed properly by focusing on the facts and issues without getting personal, as seen in Intel Corporation's approach to constructive confrontation.
An effective way to handle such conflict is to use critical thinking and address the problem rather than the individuals. This can involve refocusing the discussion, setting aside personal differences, and working collaboratively to find solutions that align with the project's goals. Option d is correct.
Value consists of: a. a product's performance characteristics and attributes for which customers are willing to pay. b. a product's proprietary characteristics and attributes for which customers are willing to pay. c. a product's proprietary characteristics and attributes for which customers consider paying. d. a product's performance characteristics and attributes for which customers consider paying.
Answer:
A) a product's performance characteristics and attributes for which customers are willing to pay.
Explanation:
Only customers can assign value to a product. A manufacturer can set a product's price, but if the customers do not accept that price and assign a lower value to the product, then they will not purchase it. This applies to every single market situation (except for command economies) including monopolies, free markets, monopolistic competition, etc. Customers value a product depending on its performance characteristics and attributes, e.g. sports cars are value for being fast, Volvos for being safe, compared to other similar products. Customers do not value unique one of a kind characteristics, they value relative characteristics, i.e. the best product has a higher value.
Value stems from a product's performance characteristics and attributes that customers are willing to pay for. These factors create a product's value and are essential in hedonic pricing models, which explain a product's price based on its valued characteristics.
Explanation:Value consists of both a product's performance characteristics and attributes for which customers are willing to pay. These characteristics may be proprietary or not but ultimately define the item's utility and worth, as perceived by the consumer. Whether it's a car's horsepower or the crispiness of a snack, each aspect contributes to the hedonic pricing models, where multiple attributes bundle together to form the product's overall value.
Consumers determine a product's utility based on their subjective experiences and personal feelings, with their willingness to pay signifying the value they attribute to it. This determination of value is influenced by a product's objective characteristics, such as its physical or chemical properties, but is also reflective of a consumer's individual preferences and the satisfaction they anticipate gaining from the product.
Therefore, the correct answer to the question is: a. a product's performance characteristics and attributes for which customers are willing to pay, as it is the performance characteristics alongside the attributes that consumers value and are willing to pay for, which could be described using hedonic pricing models.
True or False: The shape of the production function reflects the law of diminishing marginal returns.
Answer:
True
Explanation:
When we graph a production function, we obtain an upward-sloping curve whose gradient (or slope) reaches a peak, and then, begans to flatten until it is fully flat.
This is because the law of diminishing returns states that there is a point when capital and labor are used optimally, and after that point, any additonal unit of capital or labor has a lower marginal productivity.
I will attach a graph of the production function that illustrates this point.
The statement is true. The shape of the production function reflects the law of diminishing marginal returns, where increasing units of a variable input eventually produce smaller increases in output.
The statement is true. The shape of the production function indeed reflects the law of diminishing marginal returns.
The law of diminishing returns, also known as the law of diminishing marginal returns, states that as more units of a variable input are added to a fixed input, the additional output generated by each new unit of input will eventually decrease.
To explain further, initially, adding more of the variable input (such as labor) to a fixed input (like machinery) can increase total output at an increasing rate.
However, due to the constraint imposed by the fixed factor of production, there comes a point where each additional unit of the variable factor adds less to the total output, thereby illustrating diminishing returns.
This phenomenon produces the characteristic shape of the production function, which can be seen as initially increasing at an increasing rate, then increasing at a decreasing rate, and eventually flattening out. This reflects the diminishing additional output gains as more units of input are added.
An example of this is observed in agricultural production: initially, adding more fertilizers to land can significantly boost crop yields.
However, after a certain point, additional fertilizers result in smaller increments in crop yield, due to the limited capacity of the soil to absorb fertilizers effectively.
Ethan is a purchasing manager for an industrial chemical company. Kim is a salesperson for a raw materials provider is contacting Ethan in an effort to initiate a relationship. Kim is adopting a ___________ format, which is probably the worst sales presentation format for this situation.A) Directed sales presentation
B) Written sales presentation
C) Organized sales presentation
D) Canned sales presentation
E) Customized sales presentation
Answer:
c) organized sales presentation
Explanation:
Ethan is a purchasing manager for an industrial chemical company. Kim is a salesperson for a raw materials provider is contacting Ethan in an effort to initiate a relationship. Kim is adopting a ___________ format, which is probably the "BEST" sales presentation format for this situation.
By Kim making a relationship with Ethan he has created the best source to get the right information needed in other to give an outstanding presentation that would yield a positive break through for him to sell the required raw material for Ethan"s industrial chemical company.
Which of the following will allow managers to create graphical presentations of how brands relate to other brands, including those of competitors? A. Reverse engineering B. Syndicated research C. Statistical modeling D. Multidimensional scaling E. Data visualization
Answer:
D. Multidimensional scaling
Explanation:
Multidimensional scaling is a method used to visualize the similarity between different individual data sets, in the case of brands, multidimensional scaling helps visualize the position of one brand with respect to others in that cartesian space.
Regarding financial accounting for public companies, the role of the Securities and Exchange Commission (SEC) as currently practiced is to ___________.A. Regulate financial disclosures for corporate, state, and municipal reporting.B. Make rules and regulations pertaining more to disclosure of financial information than to the establishment of accounting recognition and measurement principles.C. Develop and promulgate most generally accepted accounting principles.D. Make rules and regulations regarding filings with the SEC but not to regulate annual or quarterly reports to shareholders.
Answer:
Make rules and regulations pertaining more to disclosure of financial information than to the establishment of accounting recognition and measurement principles.
Explanation:
The SEC is primary involved in regulating the external financial reporting activities like financial disclosures. The FASB is primarily.concerned with the establishment of accounting recognition and measurement principles.
Answer:
C. Develop and promulgate most generally accepted accounting principles.
Explanation:
The Securities and Exchange Commission (SEC) does have the authority to control financial reporting from outside. It has decided to allow the accounting profession (via the FASB) to set principles.
It has appointed the FASB as the body responsible for implementing public company accounting standards in the US. On 1 July 1973, the FASB replaced the board of accounting principles (APB) of the American Institute of Certified Public Accountants (AICPA)
Most organizations spend more time and money on the systems ________ phase than on any of the other phases. Group of answer choices maintenance design development analysis
Answer:
maintenance phase
Explanation:
Maintenance phase -
It refers to the phase of making the changes in the software , hardware and documentation to improve the operations effectively , is referred to as the maintenance phase .
The phase is important , as it enhances the efficiency and corrects the problem .
The company or the organisation tries to invest the maximum amount in the maintenance phase .
Hence , from the given statement of the question,
The correct option is maintenance phase .
The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large___________________________
Answer and Explanation:
marketing
Crane Music Store borrowed $30,600 from the bank signing a 10%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be _________.
Answer:
Dr. Cr.
Interest Expense $255
Interest Payable $255
Explanation:
Interset Accrue on September 30 = 30,600 x 10% x 1/12 = $255
Only Interest expense of one month is payable on September 30 the principal will be paid on December 1. So, the accrual entry of the interest expense will be recorded on September 30 as monthly statement is being prepared.
Consider a production possibilities boundary showing the quantity of military goods and the qumdity of civlian goods on the two axes. A movement along the production possibilities boundary could be caused by A) the employment of previously idle resources. B) the reallocation of resources between military and civilian goods. C) the growth of productive capacity. D) an increase in the labour supply E) technological progress.
Answer:
B) the reallocation of resources between military and civilian goods.
Explanation:
PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.
Given same resources & technology, the two goods are inversely related - one good's quantity can be increased by decreasing the quantity of other good.
PPC is based on the assumption that resources are efficiently utilised & all points on PPC denote product combinations efficiently utilising resources.
So, movement along the PPC boundary means production level intact at full efficiency level & just reallocation of resources between good 1 to good 2, i.e here b/w military & civilian goods.
__________ represent(s) income received by investors on foreign investment in financial assets (securities).a) Portfolio income.b) Direct foreign income.c) Unilateral Transfers.d) Factor Income.e) None of the above.f) Capital Account.
Answer:
d. Factor Income
Explanation:
Factor Income -
It refers to the income obtained from the various sources like , foreign investment and factors of production , is referred to as factor income .
The factors of production are the capital , labour , land .
The factor income obtained from any type of land property is referred to as rent .The factor income obtained from any type of capital is referred to as profit .The factor income obtained from labor is referred to as wage .Hence , from the given information of the question,
The correct option is d. Factor Income .
The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone ------
Answer:
Remain same
Explanation:
In this situation, China makes tablets and smartphones only. The equipment used to manufacture these two products is nearly the same, the same collection of tools is equally useful in manufacturing both smartphones and tablets. So there is the constant opportunity cost of both commodities.
Resources are similarly appropriate for the manufacturing of two varied goods at a constant opportunity cost.
Therefore, the opportunity costs for additional smartphone remains the same.
In economics, the PPF reflects the combinations of goods a country can produce. As China produces more smartphones and fewer tablets, the opportunity cost of each additional smartphone increases, according to the Law of Increasing Opportunity Cost. This means as more of any good is produced, the cost of foregone production of the next best alternative good increases.
Explanation:The production possibilities frontier (PPF) in economics symbolizes the different combinations of goods a country can generate given its resources. As China decides to make more smartphones and fewer tablets, the opportunity cost of each additional smartphone increases, which is called the Law of Increasing Opportunity Cost. This law suggests that as you produce more of any good, the opportunity cost (i.e., the cost of foregone production of the next best alternative good) will increase.
For example, if China can produce either 1000 smartphones or 2000 tablets, and chooses to produce 200 more smartphones, they may have to give up production of 300 tablets. This means that the opportunity cost of each additional smartphone (in terms of tablets foregone) is increasing.
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When consumers started using cell phones, it became evident to technology corporations that helping consumers find a way to "shop" on their phone would be a well-accepted practice. As a result, "apps" became an adaptation to this new cell phone environment. These "apps" are an example of _________.
Answer:
Innovation.Explanation:
Implementation of news ideas or the launching of new products or services is known as Innovation. Those ideas which tend to find loopholes and opportunities in the current market just like what these apps did. They observed that it would get easy for the customers to shop just using their cellphones, so they innovated apps to cover that gap.
Humbert believes that he is in control of his own destiny. If he works hard and keeps on working hard, he will be able to overcome any obstacle he encounters/ Humbert has a _____ locus of control.
Explanation:
Let us understand the term internal locus of control.
Internal locus is having a high belief on oneself. The term can be explained in deeper saying, a person belief himself that he is sole responsible for the result which is derived from his own action.
For eg:
Every person would be expecting his school results. So depending on the result like pass or fail, a person with high internal locus believe that, he has done well so he got pass, or he has not prepared properly so he failed.
Suppose Janet earns $700 per week working as a jewelry appraiser for Classy's Jewelry Store. She uses $10 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Felix $450 per week to work the cash register. Felix uses $100 to purchase a necklace from Classy's Jewelry Store.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
a. Felix earns $450 per week working for Pillmart Pharmacy.
b. Janet earns $875 per week working for Classy's Jewelry Store.
c. Felix spends $325 to purchase necklace from Classy's Jewelry Store.
Answer:
A) Felix earns $450 per week working for Pillmart Pharmacy. Resource market: Felix sells his resources (labor) to the Pillmart Pharmacy in exchange for a salary.
B) Janet earns $875 per week working for Classy's Jewelry Store. Resource market: Janet sells her resources (labor) to the Classy's Jewelry Store in exchange for a salary.
C) Felix spends $325 to purchase necklace from Classy's Jewelry Store. Product market: the Classy's Jewelry Store sells its products to Felix.
Chris has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Pete, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Pete's approach is based on:A. transaction-oriented marketing.B. premium pricing.C. his seniority at the firm.D. special incentives from tour operators.E.value co-creation.
Answer:
Option E
Explanation:
Co-creation of value refers to the business strategy, one that facilitates and supports the active involvement of the consumer in the creation of goods on demand and made to order. Consumers get just what they want with co-creation, and have a hand in making it happen.
Co-creation grants total freedom for customers to operate with assets provided by the company to produce their own significance products. The continued involvement of engaged customers in the manufacturing in their own use as well as exchange value inverts the company's longstanding marketing ideology as the value arbiter.
All of the following are true about time series methods EXCEPT a. they discover a pattern in historical data and project it into the future. b. they involve the use of expert judgment to develop forecasts. c. they assume that the pattern of the past will continue into the future. d. their forecasts are based solely on past values of the variable or past forecast errors.
Answer:
B. they involve the use of expert judgement do develop forecasts
Explanation:
A time series is a series of events that is spaced equally in time. It is a statistical technique used to identify a time based trend of events and them make forecast using data from the trend/time series.
Time series requires certain processes which include discovering of a pattern in the historical data, projection of the historical data into the future, assumption that the pattern will remain the same(constant) as the time goes by, etc.
In time series method, since historical data is the point of reference for making a forecast, no expert judgements is required to develop forecasts. This is because once the data of the series from the past has been taken and a trend/pattern has been identified, that becomes the basis for future forecasts.
Cheers.
The statement 'they involve the use of expert judgment to develop forecasts' is not true about time series methods. These are quantitative techniques based on historical data, and they project that past patterns will continue in the future.
Explanation:All the options about time series methods are indeed true, except for 'b. they involve the use of expert judgment to develop forecasts'. Time series methods are mostly quantitative in nature and rely predominantly on historical data and statistical techniques to make future predictions. The assumption is that future patterns will mirror past ones, as indicated in options 'a', 'c', and 'd'. Expert judgment is often used in qualitative forecasting methods, not so much in time series analysis.
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Capital controls may take a variety of forms EXCEPT: A. prohibitions B. currency boards C. taxes D. quotas
Answer: B. Currency Boards
Explanation: Capital control is a process through which Organisations put in place different actions and programs to regulate the capital used in the business. This can be in the form of prohibitions(a capital control by preventing certain spending)
Taxes are also means of controlling capital by Organisations.
Quotas are also used to control capital by assigning certain level of spending or investment.
Answer:
B
Explanation:
Currency boards
Capital control is any measure that is taken by a government, central bank or other regulatory bodies to limit the flow of foreign capital in and out of the domestic economy. These controls imay take variety of forms like taxes, tariffs, legislation, volume restrictions, and market-based forces.
While a currency board is a monetary authority that makes decisions about how to value the nation’s currency, specifically whether to peg the exchange rate of the local currency to a foreign currency
Choose the correct statement(s) below regarding A. the direct write-off method for calculating bad debt expense. B. It is not normally consistent with GAAP and accrual accounting. C. Its use tends to result in an overstatement of accounts receivable on the balance sheet. D. Under this method, bad debt expense is recognized when a specific account is determined to be uncollectible.
Answer: The correct answer is "B, C, and D".
Explanation: All of these are corrects statements regarding the direct write-off method for calculating bad debt expense.
This method is generally not consistent with GAAP and accrual accounting.Using this method generally causes an over estimate of accounts receivable in the company's balance sheet.One of the peculiarities of this method is that it only recognizes the expense for bad debts when a specific account is determined uncollectible.In order for an economy to be successful, there must be some form of organization. Firms produce products that are marketed and sold. There must be people who desire to purchase and consume the products that are produced by the firms. This group of individuals that consumes the products that are produced in a market economy are known as households.
Answer:
TRUE
Explanation:
What generally happens in an economy in order to strike a balance and achieve success, is the interdependence of Firm and household
Firms use households to pay factor incomes which is rent, wages, interest and profit.
1. Household supply factors of production to firms
2. Firms pay factor incomes to Households for the supply of factors of production in the form of rent, wages, interest and dividends.
3. Firms will use factors of production provided by household to produce output in the form of goods and services.
4. The output of Firm are supplied to Household in the form of goods and services and household pays for these purchases.
Which of the following statements concerning the procurement process are TRUE?a. Vendor billing is one of the steps.b. Only one FI document is created.c. Goods receipt is one of the steps.d. The send payment step involves creation of an FI document.e. Two material documents are created.
Answer:
a. Vendor billing is one of the steps.
c. Goods receipt is one of the steps
d. The send payment step involves creation of an FI document
Explanation:
The procurement includes the billing of the vendor, that is to negociate with suppliers for the price and accept the agrements made. Then we are going to receive the goods and check if they fulfil the quantity and quality requested.
Finally, the procurement department will pay the supplier. The FI document stands for the accounting entry to record transactions into the accounting
At the end of the current year, the accountant for Navistar Graphics forgot to make an adjusting entry to accrue Wages payable to the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is one of the effects of this error?
A. Net income is overstated.
B. Liabilities are overstated.
C. Net income is understated.
D. Expenses are overstated
Answer: The correct answer is A). Net income is overstated.
Explanation: Net income is equal to Income less expenses. When an accrued expense is not recognised it results in an understated expense which in turn leads to an overstated net income.
Wages payable is a liability. An omission of such a liability means that wages expenses is also omitted.
Identify the accounting concept that was violated in each of the following situations.
1. Astro Turf Company recognizes an expense, cost of goods sold, in the period the product is manufactured.
2. McCloud Drug Company owns a patent that it purchased three years ago for $2 million.
3. The controller recently revalued the patent to its approximate market value of $8 million.
4. Philips Company pays the monthly mortgage on the home of its president, Larry Crosswhite, and charges the expenditure to miscellaneous expense.
Answer:
Expense Recognition
The Historical Cost (original transaction value) Principle
The Economic Entity Assumption
Explanation:
The principle of expense recognition is a fundamental part of the accounting accrual scale, which maintains that income is identified when earned and expenditures when consumed.
The theory of historical cost specifies that firms must report and account for most financial assets and liabilities at either purchase or lease price.
The business entity principle is an accounting principle claiming that all business financial records should be recorded separately from his holders.
The violated accounting concepts are:
1) Matching Principle
2) Historical Cost Principle
3) Conservatism Principle
4) Business Entity Concept
The accounting concept violated in this situation is the matching principle. The matching principle states that expenses should be recognized in the same period as the revenues they help to generate.
In the case of Astro Turf Company, recognizing the cost of goods sold when the product is manufactured does not match the expense with the revenue it will generate when the product is sold.
Instead, it should be recognized as an expense when the product is sold, aligning with the revenue recognition principle.
The accounting concept violated here is the historical cost principle. The historical cost principle dictates that assets should be initially recorded on the balance sheet at their original cost.
McCloud Drug Company should have recorded the patent at its purchase price of $2 million and not at its current market value.
The accounting concept violated is the conservatism principle. The conservatism principle suggests that assets should not be overvalued but rather reported at the lower of cost or market value.
Revaluing the patent to $8 million without proper justification or impairment testing violates this principle.
The accounting concept violated in this case is the business entity concept. The business entity concept states that the business's finances should be separate from the personal finances of its owners or executives.
Charging the monthly mortgage of the president's home to miscellaneous expenses blurs the line between personal and business expenses, violating this concept.
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