Answer:
Correct answer is (B). function.
Explanation:
By assigning workers to different department base on the skill, the HipHop Music Company is differentiating their tasks base on the functions of each department
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: "The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes." Do you agree or disagree with this view? Explain
Answer:
The tobacco industry is not classically influenced by demand and supply, as it is always a sensitive topic for government policies and economics in general. Since tobacco products (cigarettes) are not an ordinary product, but impose a threat to health instead, their prices are mostly influenced by government or regulatory body decision, rather than general market rules.
So, if cigarette prices become higher (as an aftermath of a regulatory body decision), they will remain that way, no matter if the demand decreases.
The correct statement will be that the prices of cigarettes will not affect the smoking habits of a person, as the person derives pleasure from such smoking.
The example given above is a classic situation to the exception to the law of diminishing marginal utility, where the law does not apply, as the smoker will derive additional utility from each unit.
Exceptions to the law of demandA smoker's habit of smoking will not get affected by the price of cigarettes, as he derives more and more satisfaction with each unit of cigarette consumed by such person, This is an exception to the law of demand that if the prices of a commodity change, the demand will also change. Similar law applies to or an alcoholic.Hence, we can derive that a person who smokes cigarettes will not change his number of units of cigarettes smoked with a change in the price of cigarettes.
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Billy’s Exterminators, Inc., has sales of $749,000, costs of $306,000, depreciation expense of $58,000, interest expense of $39,000, a tax rate of 35 percent, and paid out $73,000 in cash dividends. The firm has 100,000 shares of common stock outstanding.
What is the earnings per share?
What is the dividends per share?
Answer:
Earnings per share = $2.25
Dividend per share = $0.73
Explanation:
given data
sales = $749,000
costs = $306,000
depreciation expense = $58,000
interest expense = $39,000
tax rate = 35 percent
paid out dividends = $73,000
no of share = 100,000
solution
first we get here Net income that is
Net income = Profit before tax (PBT) - Tax .........1
EBIT = sales - costs - depreciation expense
EBIT = $749,000 - $306,000 - $58,000
EBIT = $385,000
and
Profit before tax = EBIT - interest = $385,000 - $39,000 = $346,000
tax is = 35 % of Profit before tax
tax = 35% of $346,000 = $121,100
so
Net income = $346,000 - $121,100
Net income = 224,900
and
Earnings per share will be here as
Earnings per share = Net income ÷ Number of shares ..................2
Earnings per share = [tex]\frac{224900}{100000}[/tex]
Earnings per share = $2.25
and
Dividend per share will be here as
Dividend per share = Cash dividends ÷ Number of shares .....................3
Dividend per share = [tex]\frac{73000}{100000}[/tex]
Dividend per share = $0.73
Match the various information flows to the smart TV purchase steps. Store to Manufacturer Buyer to Manufacturer Manufacturer to Distribution Center and Buyer Store to Distribution Center Customer to Store Store to Buyer Match each of the options above to the items below Smart TV purchased POS terminal sends data Corporate inventory order Frequent, direct reorder Request delivery schedule Advanced shipping notice
Final answer:
The discussion revolves around tying sales, a controversial sales tactic requiring customers to buy a second, potentially unwanted product with their initial purchase. It also touches on the historical shift to department stores, which altered consumer habits and retail experiences significantly.
Explanation:
The subject in question pertains to tying sales, a business practice where a customer is permitted to buy one product only on the condition that they also purchase another item. These kinds of sales are considered controversial because they may force consumers to buy an additional product they may not need or desire, potentially lacking any real benefit to them. For example, if a customer wishes to buy a popular DVD but is mandated to also purchase a specific portable TV model, this practice restricts consumer choice and does not allow customers to select from a wide market range, thus conflicting with the notion of free market principles.
Another aspect of the business that is highlighted is the historic shift in consumerism with the rise of department stores. The evolution from small, family-run shops to large department stores signified a change towards modern shopping habits, including fixed pricing and the spread of advertising, alongside the availability of a broad array of goods.
On January 2, Sue contracts to sell and Bertha contracts to buy five cases of racquet balls at $200 per case for delivery on February 1. The balls are to be shipped F.O.B., Bertha's city, and Bertha is to pay after receipt and acceptance. On January 15, Sue informs Bertha that she will not perform. On February 1, Bertha buys balls that are reasonable substitutes for $225 per case. Bertha sues Sue. The measure of damages is (assuming no incidental expenses)
Answer:
$125.00
Explanation:
Since Sue breached contract, Bertha is entitled to compensation in the amount of the extra cost incurred by her when buying the substitute balls.
If the original contract was for five boxes for $200 each and Bertha paid $225 per substitute box, the measure of damages is:
[tex]D=5*(\$225-\$200)\\D= \$125.00[/tex]
The measure of damages is $125.00.
On July 8, Action Co. issued a $70,000, 6%, 120-day note payable to Scanlon Co. Assuming a 360-day year, what information is needed to calculate the maturity value of the note? a.The interest rate (6%) and the term (120 days) are needed to calculate the maturity value of the note. b.The face value of the note ($70,000) is needed to calculate the maturity value of the note. c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note. d.None of the information given is needed to calculate the maturity value of the note.
Answer:
c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.
Explanation:
maturity value = face value + interest
interest = face value*interest rate*period
= $70,000*6%*120/360
= 1400
face value = 70,000
maturity value = 70,000 + 1400
= 71400
Therefore, face value and interest rates needed to calculate the maturity value of the rate.
Final answer:
To determine the maturity value of Action Co.'s note, the face value of $70,000, the interest rate of 6%, and the 120-day term are required. Ensuing the calculation, the interest amounts to $1,400, leading to a maturity value of $71,400.
Explanation:
To calculate the maturity value of a note, we need to take into account several components, including the face value, the interest rate, and the term of the note. In the case of Action Co.'s note payable to Scanlon Co., the face value is $70,000, the annual interest rate is 6%, and the note's term is 120 days. Using these variables, we can compute the interest of the note and add it to its face value to arrive at the maturity value.
The interest can be calculated as follows:
Interest = (Face Value imes Interest Rate imes Term) / (360-day year)
Interest = ($70,000 imes 6% imes 120) / 360
Interest = ($70,000 imes 0.06 imes 120) / 360
Interest = $1,400
Add the interest to the face value to get the maturity value:
Maturity Value = Face Value + Interest
Maturity Value = $70,000 + $1,400
Maturity Value = $71,400
Thus, we will need option c: The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.
Consider a first-price sealed-bid auction as the one analyzed in class. Suppose bidders' valuations are v1 0 and v2-10. Suppose bidder 2 submits a bid b2-10. Then, in a Nash equilibrium in pure strategies bidder 1 must be submitting a bid equal to In this Nash equilibrium, bidder 1's payoff is equal to please, enter numerical values on y, for example: 4
Answer:
A first-price sealed bid auction (blind auction) is a normal auction, where all the bidders submit their bids (sealed) simultaneously and no bidder knows the bid of any other participants.
The highest bidder pays the price they had submitted.
Suppose there are two bidders '1' and '2', whose valuations are 'V1 = 10' and 'V2 = 10'.
Also, assume that the bidder '2' submits a bid 'b2 = 10'.
If a bidder does not know the bid submitted by other participant, then he/she will submit his/her bid 'b1 = 10' as well because any number less than '10' will reduce his/her chances of winning the auction.
Hence, the bid submitted by bidder '1' is equal to b1 = 10
If both the bidders submit b1 = b2 = 10', then their pay-offs (profits) will be zero as this is their maximum valuation. Both will have zero pay-offs.
Hence, the pay-off of bidder “1” is zero
Adjustments for ________ would not be included in the required reconciliation of the Governmental Fund Balance Sheet to the governmental activities Statement of Net Position.
Answer:
Adjustments for enterprise fund-basis statements from their original modified accrual basis would not be included in the required reconciliation of the Governmental Fund Balance Sheet to the governmental activities Statement of Net Position.
At the beginning of the year, Sheridan Company had total assets of $845,000 and total liabilities of $600,000. (Treat each item independently.) (a) If total assets increased $177,000 during the year and total liabilities decreased $71,000, what is the amount of stockholders' equity at the end of the year?(b) During the year, total liabilities increased 592,000 and stockholders' equity decreased $72,000. What is the amount of total assets at the end of the year?(c) If total assets decreased $90,000 and stockholders' equity increased $100,000 during the year, what is the amount of total liabilities at the end of the year?
Answer:
A. Stockholders equity at the end is $493,000.
B. Closing total assets is $865,000.
C. Closing liability is $410,000.
Explanation:
A. Closing total assets:
= Opening assets + increase in assets
= $845,000 + $177,000
= $1,022,000
Closing liability:
= Opening liability - Decrease in liability
= $600,000 - $71,000
= $529,000
Closing equity:
= Closing assets - Closing liability
= $1,022,000 - $529,000
= $493,000
B. Opening equity:
= Opening assets - Opening liability
= $845,000 - $600,000
= $245,000
Closing assets:
= Opening assets + increase in liability - Decrease in equity
= $845,000 + $92,000 - $72,000
= $865,000
C. Closing liability:
= Opening liability - decrease in assets - increase in equity
= $600,000 - $90,000 - $100,000
= $410,000
The solutions for the given question can be obtained through the Accounting Equation. The solutions are as follows:
a. Stakeholder's equity = $4,93,000
b. Assets = $13,65,000
c. Liabilities = $4,10,000
What is Accounting Equation?An accounting equation or simply a balance sheet equation represents the relationship between the assets, liabilities, and equity of an entity as:
[tex]\rm Assets = Liabilities + Equity[/tex]
On the basis of the accounting equation, the value of equity at the beginning of the year is:
[tex]\begin{aligned} \rm Assets &= Liabilities + Equity\\$8,45,000 &= $6,00,000 + Equity\\Equity &= $8,45,000 - $6,00,000\\Equity &= $2,45,000\end[/tex]
a. Calculation of the equity when assets increased by $177,000 and liabilities decreased by $71,000:
[tex]\begin{aligned} \rm Assets &= Liabilities + Equity\\\$8,45,000 + \$1,77,000 &= (\$6,00,000 - \$71,000) + Equity\\\$10,22,000 &= \$5,29,000 + Equity\\Equity &= \$10,22,000-\$5,29,000 \\Equity &= \$4,93,000\end[/tex]
The value of equity is $4,93,000.
b. Calculation of assets when total liabilities increased by $592,000 and stockholders' equity decreased by $72,000:
[tex]\rm Assets &= Liabilities + Equity\\Assets = (\$6,00,000 +\$5,92,000) + (\$2,45,000 - \$72.000)\\Assets = \$11,92,000 + \$1,73,000\\Assets = \$13,65,000[/tex]
The value of assets is $13,65,000.
c. Calculation of liabilities when total assets decreased by $90,000 and stockholders' equity increased by $100,000:
[tex]\begin{aligned} \rm Assets &=\rm Liabilities + Equity\\\$8,45,000 -\$90,000 &= \rm Liabilities + (\$2,45,000 + \$1,00,000)\\\$7,55,000 &= \rm Liabilities + \$3,45,000\\\rm Liabilities &= \$7,55,000 - \$3,45,000\\\rm Liabilities &= \$4,10,000\end[/tex]
The value of liabilities is $13,65,000
Therefore the solutions to the problem are $4,93,000, $13,65,000, and $13,65,000.
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Many accounting professionals work in one of the following three areas:
A. Financial accounting
B. Managerial accounting
C. Tax accounting
Identify the area of accounting that is most involved in each of the following responsibilities:
1. Investigating violations of tax laws.
2. Planning transactions to minimize taxes.
3. Preparing external financial statements.
4. Reviewing reports for SEC compliance.
5. Internal auditing.
6. External auditing.
7. Cost accounting.
8. Budgeting.
Answer:
1. C.Tax accounting
2. C. Tax accounting
3. A. Financial accounting
4. C. Tax "
5. B. Managerial "
6. A. Financial "
7. B. Managerial "
8. B. Managerial "
Explanation:
Tax accounting: accounting methods focused on tax.
Financial accounting: summary, analysis and reporting of financial transactions.
Managerial accounting: analyzing and communicating financial data to managers.
Final answer:
The three areas of accounting—financial, managerial, and tax accounting—each have specific responsibilities. Tax accountants handle tax law investigations and tax planning, financial accountants prepare external financial statements and conduct both internal and external audits, while managerial accountants deal with cost accounting and budgeting.
Explanation:
Many accounting professionals specialize in different areas, such as financial accounting, managerial accounting, and tax accounting. Each area is involved with specific responsibilities:
Investigating violations of tax laws is most likely the responsibility of someone in tax accounting.Planning transactions to minimize taxes would also fall under the purview of tax accounting.Preparing external financial statements is a primary task of a financial accountant.Financial accounting also includes reviewing reports for SEC compliance, ensuring that statements meet the requirements of the Securities and Exchange Commission.Internal auditing may be considered a part of managerial accounting, as it involves examining efficiency and risk management within the company.External auditing, similar to internal auditing, is typically handled by financial accountants who review a company's financial statements and practices from an outside perspective.Cost accounting is a subset of managerial accounting, which focuses on the costs of production.Budgeting is also a task for managerial accountants, who help organizations plan for future financial decisions.Understanding how transactions shape an organization's basic financial statements is a critical skill for professionals in financial accounting. These statements include the balance sheet, income statement, and cash flow statement, each telling us something about the company's financial status. Through analysis of these statements, organizations make informed financial decisions based on the past earnings record to estimate future earnings potential.
Why are information policy, data administration, and data quality assurance essential for managing the firm's data resources?
Answer and explanation:
Information policy sets the guidelines of how information must be transmitted and stored within an organization. Data administration allows handling that information according to the purpose of its use. Data quality refers to how good the information provided is and how it can be of use for achieving the company's objectives. All these three factors are essential for managing the organization's data resources to ensure they provide useful information according to the procedures established by the company and that can be of easy use for different purposes.
Final answer:
Information policy, data administration, and data quality assurance are essential for accurately managing a firm's data, impacting price, quantity, and quality while ensuring compliance and protecting against information overload and privacy breaches.
Explanation:
Information policy, data administration, and data quality assurance are crucial components for managing a firm's data resources efficiently and effectively in the Information Age. Information policy lays the foundation by setting the standards, guidelines, and protocols for managing information. This policy helps in reducing the risk of imperfect information affecting the company's operations.
Data administration involves the management and oversight of data assets, ensuring data is organized, accessible, and protected. This function is essential for maintaining data integrity and ensuring that information is accurate and reliable, which, in turn, directly impacts price, quantity, and quality of products or services.
Data quality assurance comprises processes and systems that aim to enhance the accuracy, completeness, and reliability of data. It offers mechanisms that safeguard against information overload, which can lead to flawed decision-making. For instance, modern farmers manage their production more effectively by utilizing accurate and quality data, rather than relying on traditional, less precise sources like the Farmer's Almanac.
Moreover, the preservation of personal, financial, and medical information privacy is a pressing concern in today's data-driven landscape, further underlining the necessity for robust information management strategies.
Which level of PPE uses APR/PAPR and also includes a chemical/splash over garment, double gloves and chemical resistant boots?
Level B of PPE usage includes the use of APR or PAPR, a chemical/splash overgarment, double gloves, and chemical-resistant boots. It is often used in situations involving hazardous materials.
Explanation:The level of Personal Protective Equipment (PPE) that uses Air-Purifying Respirators (APR) or Powered Air-Purifying Respirators (PAPR), and includes a chemical/splash overgarment, double gloves, and chemical-resistant boots is Level B protection. This level is utilized when the type of airborne substance is known, and measurable but requires a high level of respiratory protection but less skin protection. This level of protection is commonly used during situations involving hazardous materials, such as dealing with spills of chemical substances.
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A company has the following liabilities at year end: Mortgage note payable; $16,000 due within 12 months $355,000 Short-term debt that the company is refinancing with long-term debt 175,000 Deferred tax liability arising from depreciation 25,000 What amount should the company include in the current liability section of the balance sheet?
Answer:
The amount that the company should include in the current liability section of the balance sheet is $16,000
Explanation:
The short-term debt that the company is refinancing with long-term debt is non-current and deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.
Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000
Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income tax provision that would allow people to deduct the cost of snow removal equipment purchased during the year.
Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction’s financial condition by $300,000.
On what assumptions is this forecast based?
Answer:
'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.
Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.
Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:
Taxes should be sufficient to fulfill the government's requirements Taxes should be convenient for the government to implement and for the citizens to pay Taxes should be efficient economically Taxes should be fairThere may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences
Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.
In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.
By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.
Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?
The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.
The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000
Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,300 cash and equipment valued at $19,300 in exchange for common stock. Purchased $200 of office supplies on credit. Paid $2,500 cash for the receptionist's salary. Sold a custom frame service and collected $5,800 cash on the sale. Completed framing services and billed the client $330. What was the balance of the cash account after these transactions were posted?
Answer:
$44,600
Explanation:
Balance of the cash account after these transactions were posted:
= Cash brought in by Larry Bar - payment of salary to receptionist + receipt of cash for sale
= $41,300 - $2,500 + $5,800
= $44,600
Note: There is no cash in the remaining transactions.
Therefore, the ending cash balance is $44,600.
1) 44,100
2)An increase in dividend in dividend account
3)Accounts receivable
4)$60,500
Explanation:
1)
Determine the ending cash balance as shown in the table 1 attached
Note :there is no cash flow in the remaining transactions
Therefore, the ending cash balance is $44,00.
2)
The dividend account normally has a debit balance. The balancer in divided account increases when it is debited and decreases when credited.
Therefore, the debit is used to record the increase in divided account.
3)
Unearned revenue and accounts payable is classified under liabilities.
service revenue is classified under stockholders' equity.
Accounts receivable represents the amount due from the customers and is classified under asset.
4)
Determine the ending balance of accounts receivable accounts in the table 4
note : the cash collected for service to be provided will not affect the account receivable account.
therefore, value is $ 60,500.
At the end of every year Mr. E deposits $2,000 into a savings account that earns interest at a 6% compounded annual rate. What will his account balance be after 9 years have passed
Answer:
A = $3378.95
Explanation:
Given data:
Deposit amount = $2000
Compound annual rate 6%
Duration of deposition = 9 yr
amount after 9 year can be computed by using following formula[tex]A = P(1+ \frac{r}{n})^{nt}[/tex]
plugging all value in above formula
where n = 1,
P = 2000
r = 0.06
t = 9 year
interest is compounded annually
[tex]A = 2000 ( 1 + \frac{0.06}{1}^{1\times 9}[/tex]
A = $3378.95
Service industry, job costing, law firm. Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (5 partners and 25 associates) who work directly with its clients. The average budgeted total compensation per professional for 2014 is $97,500. Each professional is budgeted to have 1,500 billable hours to clients in 2014. All professionals work for clients to their maximum 1,500 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2014 is $2,475,000. Prepare an overview diagram of Kidman’s job-costing system. Compute the 2014 budgeted indirect-cost rate per hour of professional labor. Kidman & Associates is considering bidding on two jobs: Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor Prepare a cost estimate for each job.
Answer:
Explanation:
Budgeted direct cost rate= budgeted direct cost/professional labor hours available =97500/1500=$65 per labor hour
Budgeted indirect cost rate= Budgeted indirect cost/ professional labor hours = 2475000/45000= $55
Job R:
Direct cost:
Job R - 120H*65=7800
Add: Indirect cost:
120H* 55=6600
TOTAL R JOB=14400
Job P:
DC:
Job P - 160H*65=10400
IC:
160H*55=8800
TOTAL P JOB=19200
The budgeted indirect cost rate per professional labor hour is $55, calculated by dividing total indirect costs by total budgeted labor hours. The cost estimate for the Richardson job is $14,400 and $19,200 for the Punch job, calculated by multiplying the required hours by the combined cost of direct labor and indirect cost rates.
Explanation:To compute the budgeted indirect-cost rate per hour of professional labor, divide the total indirect costs by the total budgeted labor hours. The total indirect costs for 2014 are stated as $2,475,000. Given that Kidman & Associates employs 30 professionals with each averaging 1,500 billable hours per year, there are 45,000 billable hours in total (30 professionals * 1,500 hours). You would therefore divide $2,475,000 by 45,000 hours to arrive at an indirect cost rate of $55 per billable hour.
When preparing a cost estimate for the Richardson, Inc. job requiring 120 billable hours, and the Punch, Inc. job requiring 160 billable hours, multiply the required number of hours by the combined cost of the direct labor rate and the indirect cost rate. As the compensation per professional is $97,500 for 1,500 billable hours, the per hour compensation (direct cost) is $65 ($97,500 divided by 1,500 hours), and the indirect cost is $55 per hour, the combined cost is $120 per hour. Hence, the Richardson, Inc. job would cost $14,400 (120 hours * $120/hour), and the Punch, Inc. job would cost $19,200 (160 hours * $120/hour).
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Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment: (1) $10,000 cash, (2) equipment worth $80,000, and (3) to assume responsibility for a $28,000 note payable related to the equipment.
(a) Analyze the transaction using the accounting equation.
(b) Prepare general journal entries for the above transactions.
(c) Post the entry using T-accounts to represent ledger accounts.
Groro Co. receives $10,000 cash, $80,000 worth of equipment, and assumes a $28,000 note payable. The accounting equation is balanced, and the journal entries are recorded in the Cash, Equipment, and Note Payable accounts.
Explanation:(a) Analyzing the transactions using the accounting equation:
The accounting equation is Assets = Liabilities + Equity. In this transaction, Groro Co. receives $10,000 cash, which increases their assets. They also receive equipment worth $80,000, which increases their assets. Additionally, they assume a responsibility for a $28,000 note payable, which increases their liabilities. Therefore, the accounting equation is balanced.
(b) General journal entries:
Date | Account Title | Debit | Credit
xxx | Cash | $10,000 |
xxx | Equipment | | $80,000
xxx | Note Payable | | $28,000
(c) Posting the entries using T-accounts:
Cash:
Debit (+) | $10,000
Equipment:
Credit (-) | $80,000
Note Payable:
Credit (-) | $28,000
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Universal Containers has successfully implemented a large Service Cloud rollout for their national call center 3 months ago.
true/false
Answer:
True.
Explanation:
Universal Container has implemented a large service cloud roll out almost 3 months ago at their national call center successfully, but agents are having trouble to open the cases for united automotive whenever they try to create a new case. There were more than 15000 open cases but the problem appears again.
What are some of the major economic reform themes that are common to the three international organizations promoting globalization?a.The primary role of these institutions was to rebuild the broken world financial and trade systems that could help lead to global peace and prosperity.
Final answer:
Major economic reform themes in globalization promoted by the World Bank, IMF, and WTO include market-oriented economic reforms, human capital development through investments in health and education, managing international financial flows, and the challenge of sustaining economic growth rates.
Explanation:
The ongoing process of globalization has been facilitated by several major economic reforms, promoted by international organizations like the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO). These reforms are essential to integrating national economies into the international framework, providing guidelines for international trade, finance, and investment.
Market-oriented economic reforms are crucial in this undertaking. They include liberalization of trade to promote exports and imports, deregulation to remove unnecessary barriers for businesses, and privatization to transfer ownership from the public to the private sector. These reforms aim to create a more efficient and competitive economic environment globally.
Additionally, the focus on human capital development through health and education is vital. By investing in the population's skills and well-being, countries can escape poverty traps and sustain growth. Modern technology plays a significant role here, making such investments more feasible than ever before.
However, amidst these reforms, it is important to address the challenges that come with international financial flows. The Asian Financial Crisis illustrated the volatility that can accompany rapid inflows and outflows of capital, raising concerns about trade deficits and economic stability. Careful monitoring and policy frameworks are needed to mitigate these risks.
Lastly, sustaining economic growth rates is a continuous challenge for both developed and developing nations. Striking a balance between integration in the global market and managing domestic economic policies is key to long-term prosperity and resilience.
Inventories Raw materials $ 43,000 $ 52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Predetermined overhead rate based on direct labor cost 70 % Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer:
Explanation:
Overhead:
Indirect materials 15,000.00
Indirect labor 80,000.00
Other overhead costs 120,000.00
If we sum up everything = 215,000.00
Overhead applied 185,500.00
Underapplied OH 215000-185500=29,500.00
Demand-pull inflation results from an increase in the aggregate demand curve in both the classical and the intermediate ranges of the aggregate supply curve, while the aggregate supply curve is fixed.
True or False?
Answer: True
Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up.
_________ exists when the entire supply of a good is controlled by a single seller. A monopoly Perfect competition Oligopoly Pure Capitalism
Answer:
The correct answer is letter "A": A monopoly.
Explanation:
A monopoly occurs when one company is the sole or nearly sole provider of a good or service within an industry. This potentially allows that company to become powerful enough to prevent competitors from entering the marketplace leading to limited consumer choice, higher prices, and limited response to customers' concerns.
Below are various transactions that a local corporation had occur during the month. For each transaction, indicate the transaction's effect on the company's accounting equation by selecting either increase, decrease, or no effect for each area of the accounting equation. Do not leave any of the fields below blank. Note: If the transaction were to cause an increase and decrease to the same area of the accounting equation, "no effect" should be chosen as the overall effect to that area. A. Received $50,000 in cash from the sale of its common stock to stockholders. B. Borrowed $20,000 from the local bank by signing a note promising to pay back the $20,000 loan plus interest in two years. C. Paid $8,000 for the purchase of equipment. D. Provided services to customers for $5,000 on account. E. Received $5,000 from the customers in "D" above. F. Paid $1,200 for one year's worth of insurance in advance. G. Paid $800 to employees for salaries. H. Purchased supplies costing $1,400 on account.
Answer:
Explanation:
As per accounting equation,
Assets = Liabilities + Owners Equity
Following would be the effect of the transactions:
A. Received $50,000 in cash from sale of common stock
This transaction would increase the assets as cash is an asset at the same time it would increase capital or owners equity by the same amount.
So this will cause an increase in amount on both sides by $50,000
B. Borrowed $20,000 from the local bank by signing a note promising to pay loan plus interest in 2 years
This would result into an increase in the liability by the money borrowed at the same time would increase cash balance i.e the assets.
Thus it will increase the accounting equation by $20,000.
C. Paid $8000 for the purchase of an equipment
This increases the assets balance at the same time reduces the cash balance. Since both equipment and cash are assets, the net effect of the transaction on equation would be NO EFFECT.
D. Provided services to customer on account
This would increase debtors or accounts receivables balance and at the same time would increase sales.
So the effect would be an increase on the assets side of the equation. Also since this represents a credit sale, this would increase the profits which would form part of reserves which in turn increases the owners equity.
Thus, an increase in assets and owners equity which shall increase the equation by $5000
E. Received $ 5000 from customers above
This shall increase cash balance and at the same time reduce debtors balance by $5000. Since both are assets, the transaction will have NO EFFECT.
F. Paid $1,200 for one years worth of insurance in advance
Premium paid in advance is a prepaid expense and an asset. This shall increase prepaid expenses and at the same time reduce cash by the same time so it will have NO EFFECT on the equation.
G. Paid $800 to employees for salaries
This reduces the profits by $800 i.e owners equity and at the same time reduce cash (an asset).
So the equation will decrease by $800.
H. Purchased supplies costing $1,400 on account
This refers to credit purchases which shall increase the purchases balance which in return would reduce profits and hence owners equity. At the same time it will create a liability for creditors which shall increase the balance of liabilities by the same amount. So NO CHANGE
The effects of various transactions on a company's accounting equation are explained with examples.
Explanation:To determine the effect of each transaction on the accounting equation, we need to understand the basic accounting equation, which is Assets = Liabilities + Equity. Here are the effects of each transaction:
A. Received $50,000 in cash from the sale of common stock. Effect: Increase in Cash (Assets) and Increase in Common Stock (Equity).
B. Borrowed $20,000 from the local bank. Effect: Increase in Cash (Assets) and Increase in Notes Payable (Liabilities).
C. Paid $8,000 for the purchase of equipment. Effect: Decrease in Cash (Assets) and Decrease in Equity (assuming the purchase is made using cash).
D. Provided services to customers for $5,000 on account. Effect: Increase in Accounts Receivable (Assets) and Increase in Revenue (Equity).
E. Received $5,000 from the customers. Effect: Decrease in Accounts Receivable (Assets) and Increase in Cash (Assets).
F. Paid $1,200 for one year's worth of insurance in advance. Effect: Decrease in Cash (Assets) and Increase in Prepaid Insurance (Assets).
G. Paid $800 to employees for salaries. Effect: Decrease in Cash (Assets) and Decrease in Equity (assuming salaries are an expense).
H. Purchased supplies costing $1,400 on account. Effect: Increase in Supplies (Assets) and Increase in Accounts Payable (Liabilities).
_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.
Answer:
Convergence
Explanation:
Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.
Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Gross income $ 25,240,000 Total sales 24,324,000 Total credit sales 18,785,000 Net income 2,975,000 Cost of goods sold 12,600,000 Total assets 10,550,000 Average inventory 2,875,000 Average receivables 3,445,000 a. Compute the receivable turnover ratio.
Answer:
Receivable turnover ratio is 5.4528
Explanation:
Receivable turnover ratio:
It is used to measure how efficiently a company or firm is issuing the credits to its customers and collection g funds from them. It is a measure how assets are used by the company efficiently.
Formula:
Receivable turnover ratio=(Total credit Sales)/ (Average receivables)
[tex]Receivable\ turnover\ ratio=\frac{\$18,785,000}{\$3,445,000} \\Receivable\ turnover\ ratio= 5.4528[/tex]
It is unit less.
Receivable turnover ratio is 5.4528
When an organization lacks policies, its operations become less predictable. Which of the following is a challenge you can expect without policies?a. Lower costsb. Increased regulatory compliance c. Customer dissatisfactiond. Low retention rates for employees
Answer:
The correct answer is letter "C": Customer dissatisfaction.
Explanation:
In front of a lack of policies, companies are likely to fail in accomplish their basic objectives such as manufacturing their goods on time or covering the minimum quality standards for the product to be attractive to consumers. Under that scenario, little by little the company will lose its market share as a result of customers' dissatisfaction.
The financial statement that organizes costs by their behavior instead of by their function is the
Answer:
The correct answer is: contribution margin income statement.
Explanation:
The contribution margin income statement organizes costs by behavior and not by function thus it is not used for financial reporting. The variable expenses are deducted from sales to be recorded at a contribution margin. Fixed expenses are subtracted from the net profit obtained at the end of the accounting period.
Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers a. What is the real interest rate? b. What if the inflation premium is 3 percent while the nominal interest rate is 0.5 percent?
Answer:
(a) Real Interest Rate = -1 %
(b) Real Interest Rate = -2.4 %
Explanation:
Real Interest Rate = (1+ Nominal Interest rate)/(1+Inflation Rate) -1
(a)Real Interest Rate = (1+0.01)/(1+0.02)-1
= -1 %
(b) Real Interest Rate = (1+0.005)/(1+0.03) -1
= -2.4 %
Real Interest Rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.
Electronic business (e-business) goes beyond e-commerce and e-procurement by using information systems and the Internet to perform business-related tasks and functions. Group of answer choices
accounting, finance, marketing, manufacturing, and human resource activities.
Answer:
All of them
Explanation:
Electronic business has revolutionised the concept of business and the method of doing business. Now a person can sit at home and do business globally. E-business has multiple advantages and routes. It can perform various business activities such as accounting, finance, marketing, manufacturing, and human resource activities. E-business is important because people perform various activities concerning various disciplines.
In what accounts should the following items be classified?
(a) Coins and currency.
(b) U.S. Treasury (government) bonds.
(c) Certificate of deposit.
(d) Cash in a bank that is in receivership.
(e) NSF check (returned with bank statement).
(f) Deposit in foreign bank (exchangeability limited).
(g) Postdated checks.
(h) Cash to be used for retirement of long-term bonds.
(i) Deposits in transit.
(j) 100 shares of Dell stock (intention is to sell in one year or less).
(k) Savings and checking accounts.
(l) Petty cash.
(m) Stamps.
(n) Travel advances.
Answer:
(a) Coins and currency. Cash And Equivalents
(b) U.S. Treasury (government) bonds. Investments
(c) Certificate of deposit. Time Deposits
(d) Cash in a bank that is in receivership. Cash And Equivalents
(e) NSF check (returned with bank statement). Cash And Equivalents
(f) Deposit in foreign bank (exchangeability limited). Cash And Equivalents
(g) Postdated checks. Cash And Equivalents
(h) Cash to be used for retirement of long-term bonds. Other Assets
(i) Deposits in transit. Other Assets
(j) 100 shares of Dell stock (intention is to sell in one year or less). Investments
(k) Savings and checking accounts. Cash and equivalents
(l) Petty cash. Cash and equivalents
(m) Stamps. Cash and equivalents
(n) Travel advances. Prepaid expenses