Answer:
The correct answer is letter "A": voluntary agreements.
Explanation:
Informal institutions are groups of people that gather voluntarily because of common social rules under non-regulated scenarios. Clans are examples of informal institutions. Informal institutions are not considered as a culture and tend to have a self-enforcing regulatory operations approach.
Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues? (Note: Round your answer up to the nearest year.)
Answer:
The minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying the annual membership dues is 23 years.
Explanation:
The question is incomplete.
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $6,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues?
We have to equal the price of the lifetime membership with the present value of the annual membership. The anual membership present value is equal to a annuityof n years.
[tex]6,500=600*\sum_0^n\frac{1}{(1+0.074)^{n}} =600(\frac{1-(1.074)^{-n}}{0.074})\\\\\\\frac{6500}{600}*0.074= 1-(1.074)^{-n}\\\\1.074^{-n}=1-0.8017=0.1983\\\\-n*ln(1.074)=ln(0.1983)\\\\n=-ln(0.1983)/ln(1.074)=-(-1.6180)/0.0714=22.66\approx23[/tex]
You are the head of the Health Information Management department at Grady Health System. An FBI agent has arrived at your office with a search warrant in hand. He asks to speak with you about the hospitals health records and HIPAA violations. You start your response with some examples of HIPAA violations. What would you say? Provide a reference to support your thoughts.
I would initially apologize for the violations that are found in the hospital. Although this might not necessarily be my jurisdiction, I would still feel bad if the hospital did not operate as it should.
I would then proceed to name some examples of HIPAA violations. This would be:
Snooping on Healthcare RecordsFailure to Perform an Organization-Wide Risk Analysis.Failure to Manage Security Risks / Lack of a Risk Management ProcessInsufficient ePHI Access ControlsHIPAA violations can occur through unauthorized disclosure of patient information, failure to implement proper privacy measures, and lack of consent for using patient health information.
Explanation:HIPAA violations can occur in various ways. For example, if a healthcare provider discloses a patient's diagnosis to someone who is not authorized to receive that information, it would be a violation. Additionally, if a healthcare organization fails to implement strong privacy and security measures to protect patient records, it would constitute a HIPAA violation. Another example is if a healthcare provider fails to obtain proper consent before using or disclosing a patient's health information.
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A humane society reports that 19% of all pet dogs were adopted from an animal shelter.Assuming the truth of this assertion, find the probability that in a random sample of80 per dogs, between 15% and 20% were adopted from a shelter. You may assume thatthe normal distribution applies.
Answer:
The probability of pet dogs adopted between 15% and 20% is 0.4096.
Explanation:
Let X = number of pet dogs adopted from an animal shelter.
The proportion of pet dogs adopted from an animal shelter is, p = 0.19.
The sample of pet dogs selected is of size, n = 80.
A Normal approximation to Binomial can be applied in this case since,
np = 80 × 0.19 = 15.2 > 10n(1 - p) = 80 × (1 - 0.19) = 64.8 > 10So the sample proportion ([tex]\hat p[/tex]) of pet dogs adopted from an animal shelter follows a normal distribution.
Mean of [tex]\hat p[/tex] is:
[tex]\mu_{\hat p}=p=0.19[/tex]
Standard deviation of [tex]\hat p[/tex] is:
[tex]\sigma_{\hat p}=\sqrt{\frac{p(1-p)}{n} }[/tex]
Compute the probability of [tex]\hat p[/tex] between 15% and 20% as follows:
[tex]P(0.15\leq \hat p\leq 0.20)=P(\frac{0.15-0.19}{0.044}\leq \frac{\hat p-\mu_{\hat p}}{\sigma_{\hat p}}\leq \frac{0.20-0.19}{0.044}} )\\=P(-0.91<Z<0.23)\\=P(Z<0.23)-P(Z<-0.91)\\=0.591-0.1814\\=0.4096[/tex]
Thus, the probability of pet dogs adopted between 15% and 20% is 0.4096.
To find the probability of a specific range, we can use the concept of a normal distribution. By calculating the mean and standard deviation, we can find the z-scores and corresponding cumulative probabilities.
Explanation:To solve this problem, we can use the concept of a normal distribution. Given that 19% of all pet dogs are adopted from an animal shelter, we want to find the probability that between 15% and 20% of 80 pet dogs in a random sample are adopted from a shelter.
We can use the mean and standard deviation of the normal distribution to find the probability. The mean of the distribution is given by p*n, where p is the proportion of dogs adopted from a shelter (0.19) and n is the sample size (80). The standard deviation is calculated as √((p*(1-p))/n).
Using these values, we can calculate the z-scores for the lower and upper bounds of the range (0.15 and 0.20) and find the corresponding cumulative probabilities using a standard normal distribution table or a calculator.
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In preparing closing entries A. each revenue account will be credited. B. each expense account will be credited. C. the owner’s capital account will be debited if there is net income for the period. D. the owner’s drawings account will be debited.
Explanation:
The closing entries for the following accounts are shown below:
1. Sales Revenue A/c Dr XXXXX
To Income Summary XXXXX
(Being revenue account closed)
2. Income summary A/c Dr XXXXX
To Expenses A/c XXXXX
(Being expenses accounts are closed)
3. Income summary A/c Dr XXXXX
To Owner capital XXXXX
(Being the difference is recorded)
4. Owner capital XXXXX
To Owner Drawing XXXXX
(Being the drawing account is closed)
An investor has a $1,000,000 portfolio that is split evenly between "blue chip" stocks and treasury securities. The current economic environment is characterized by low interest rates and flat stock prices - and this is expected to remain unchanged for a number of years. However, the residential and commercial real estate market is expected to be strong
Answer:
Equity REITs
Explanation:
In an event of financial assets like when the stocks and bonds are not doing well, "hard" assets such as real estate and artwork tend to do better (since investors reallocate their investments away from financial assets into housing, etc.) A way that investors can participate in this is by investing in equity REITs. Since equity REITs own real estate, the share price movement of the REIT parallels the value of the real estate owned. Mortgage REITs invest in mortgages (essentially the same as investing in a bond) and thus are not the best choice when interest rates are low, since the yield is meager. And, if market interest rates rise, the value of the mortgages held drops. The same would be true for investments in mortgage bonds and Fannie Mae Pass-Through certificates.
A population of bears increased by 50% in 4 years. If the situation is modeled by an annual growth rate compounded continuously, which formula could be used to find the annual rate according to the exponential growth function? Leave your answer in terms of ln.
Answer:
[tex]r=\frac{ln(1.5)}{4}[/tex]
Explanation:
Given:
Total population after time (P) = 100% + 50% = 1 + 0.5 = 1.5
Starting population (p) = 100% = 1
Number of year (t) = 4 year
rate of growth = r
Computation:
Exponential growth function for population :
P = [tex]pe^{rt}[/tex]
1.5 = [tex]1\times e^{4\times r}[/tex]
1.5 = [tex]e^{4r}[/tex]
From taking log:
4r = ln(1.5)
[tex]r=\frac{ln(1.5)}{4}[/tex]
Answer:
ln(1.5)/4
Explanation:
An improvement in a firm's technology that improves productivity results in a(n): Group of answer choices downward movement along the supply curve. leftward shift of the supply curve. upward movement along the supply curve. willingness to supply a larger quantity than before at any given price.
Answer:
The correct answer is letter "D": willingness to supply a larger quantity than before at any given price.
Explanation:
As a result of an increase in productivity as a result of introducing new technology, a company will be able to supply more units to the market. The price will vary according to supply and demand flows and the investment needed for the introduction and maintenance of the new technology.
Increases in productivity can be caused by technological progress, capital investment or human capital development.
To get his company through some hard economic times, Ben's working hours have just been reduced from 40 hours a week to 33. Ben is upset about the reduction in time and pay, but he shows up at work every morning and is willing to patiently wait until economic times improve, and he can go back to working full time. Which of the following types of response is being displayed by Ben?
(A) voice
(B) neglect
(C) loyalty
(D) exit
(E) acceptance
Answer:
The correct answer is C) loyalty .
Explanation:
Organizational loyalty is an attitude of deep commitment of employees to the company and is manifested in the things that our subordinates are willing to give up or do with sacrifice for the sake of the organization.
In business management committees, time is often spent discussing how to increase employee loyalty to the company. Often some indices such as staff turnover, organizational climate and employee satisfaction are considered as key factors to increase loyalty. While it is true that improving these indicators is convenient, its impact is not necessarily direct on what we would call genuine loyalty.
Do you believe that the $785,000 amount at the center of the Overstock-Grant Thornton dispute was material? Defend your answer. What factors other than quantitative considerations should have been considered in deciding whether the $785,000 amount was material?
Answer: Yes
Explanation:
The $785,000 was material because it meets both the quantitative and qualitative factors for materiality. Quantitatively, it is more than 10% of the net income of the company ($7.7million) and qualitatively, it showed a relaxed attitude of management towards accounting misstatements.
Some factors other than quantitative considerations that can be used to determine the materiality of the amount in question are:
Effect on changing loss to profit or profit into loss .Effect of management’s compensation .Effect on the public/shareholders/share prices .Possibility of fraud or conflict of interest .Attitude of management to accounting misstatements .Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a specific market. If an excise tax is imposed on this good, who will bear the greater burden of the tax?
a. government
b. consumers
c. producers
d. both consumers and producers equally
Answer:
c. producers
Explanation:
Since it is given in the question that the price elasticity of demand is relatively elastic but the price elastic of supply is relatively inelastic but if the excise tax is imposed on the goods so the greater burden of the tax would be on the producers as the supply is inelastic so the producers could not changed much but if we compare to the consumers, the consumer could change the demand more than before due to the elastic in demand.
So, the correct option is c.
The comparative balance sheets for Blossom Company show these changes in noncash current asset accounts: accounts receivable decreased $90,000, prepaid expenses increased $38,000, and inventories increased $50,000. Compute net cash provided by operating activities using the indirect method, assuming that net income is $196,000. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Cash provided by operating activities is $198,000
Explanation:
Net Income $196,000
Decrease in receivable will increase the cash as more customers have paid than the new credit given in the period.
Increase in prepaid expense will decrease the cash balance as there more cash paid in advance against expenses than before.
Increase in inventory will increase the inventory cost and cash is paid against these expenses. More inventory means more cash outflow.
Decrease in receivable will be added and Increase in Prepaid expenses and Inventory will be deducted from operating cash flow calculation.
Cash provided by operating activities = Net Income + accounts receivable decreased - prepaid expenses increased - inventories increased
Cash provided by operating activities = $196,000 + $90,000 - $38,000 - $50,000
Cash provided by operating activities = $198,000
Self-employment taxes: a. Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment. b. Are not affected by wages the taxpayer earns as an employee. c. Consist of Medicare tax and Social Security tax. d. Apply to taxpayers with less than $400 in self-employment earnings.
Answer:
C. Consist of Medicare tax and Social Security tax.
Explanation:
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.
You figure self-employment tax (SE tax) yourself using Schedule SE (Form 1040 or 1040-SR). Social Security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
Answer: i think its c
Explanation: thx for the points :D
On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 to Twenties, Inc. On September 1, after 500 pair of have been delivered, Boogie and Twenties modify the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair. During September, Boogie delivers 200 pairs of shoes. How much revenue will Boogie recognize for the month of September?
A) $1, 375
B) $2,000
C) $1,625
D) $3,000
Answer:
B) $2,000
Explanation:
The revenue to be recognized in September will be dependent on the quantity sold during the month and the unit cost of each item as agreed in the contract. The product of the unit cost of a pair and the number of units delivered.
Given that Boogie delivers 200 pairs of shoes at $10 per pair, the total revenue to be recognized
= 200 * $10
= $2,000
The revenue Boogie will recognize for the month of September is $2,000 after modifying the agreement to sell the remaining 300 pairs at $10 each and delivering 200 pairs in September.
To determine this, let's review the details:
Boogie originally agreed to sell 800 pairs for $16,000, making the price per pair $20.
By September 1, 500 pairs have been delivered, leaving 300 pairs.
The agreement was modified to reduce the price of the remaining 300 pairs to $10 each.
During September, Boogie delivers 200 pairs.
For September:
New price per pair (for remaining 300 pairs) = $10
Number of pairs delivered in September = 200
Revenue for September = 200 pairs × $10 = $2,000
The revenue Boogie will recognize for the month of September is $2,000.
(Annuity payments) Calvin Johnson has a 5000 debt balance on his Visa card that charges 12.9 percent APR compounded monthly. In 2009 , Calvin's minimum monthly payment is 3 percent of his debt balance, which is $150. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $150 at the end of each month?
Answer:
41.49 approx 42 months
Explanation:
To calculate the number of months, we use the formula for loan
p = r(pv) / 1 - (1+r)-n
make n subject of the formula
p ( 1 - ( 1+r) ^-n) = r(pv)
p - p (1+r)^-n = r(pv)
p (1+r)^-n = p-r(pv)
(1+r)^-n = (p-r(pv)) / p
( 1+r)^n = p / (p-r(pv))
n In( 1+r) = In (p / (p-r(pv))
n = In ( p/ ( p - r(pv)) / In ( 1 +r)
n is the number of months, p is the payment per months
pv is the present value of 5000
substitute the values given into the equation
n = (In ( 150 / (150 - ( 0.129 / 12 × 5000)) / ( In ( 1 + ( 0.129 / 12) = 41.49 approx 42 months
It would take Calvin approximately 43 months to pay off his credit card debt if he continues to make the minimum monthly payment of $150, using the formula for annuity payments.
Explanation:In this problem, we're dealing with an amortization type setup. The credit card debt can be modeled as an annuity, where Calvin Johnson pays a fixed amount each period (month), and the debt decreases over time. The formula that we can use here is:
n = [-log(1 - (r * P) / A)] / log(1 + r) where P represents the principal amount ($5000), A is the annuity payment ($150), r is the monthly interest rate (12.9% / 12 months), and n is the number of payments required.
n=-log(1-(0.01075*5000/150))/log(1+0.01075) = 42.825
Therefore, it would take Calvin approximately 43 months (rounded up) to pay off the credit card debt if he continues to make the minimum monthly payment of $150.
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The following are two independent situations.
Situation 1: Conchita Cosmetics acquired 10% of the 204,600 shares of common stock of Martinez Fashion at a total cost of $15 per share on March 18, 2014. On June 30, Martinez declared and paid a $77,200 cash dividend. On December 31, Martinez reported net income of $123,100 for the year. At December 31, the market price of Martinez Fashion was $17 per share. The securities are classified as available-for-sale.
Situation 2: Monica, Inc. obtained significant influence over Seles Corporation by buying 32% of Seles's 32,800 outstanding shares of common stock at a total cost of $11 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $40,400. On December 31, Seles reported a net income of $87,500 for the year.
Required:
Prepare all necessary journal entries in 2014 for both situations.
Answer:
Explanation:
Situation 1:
March 18, 2014
investment at avialble for sale 3069000
Cash 3069000
To record the Investment at available for sale.
June 30
Cash 77200
dividend income 77200
To record the cash dividend.
December 31,
Cost of investment =204600*15 = 3069000
F.value of investment =204600*17 = 3478200
Gain/Loss = 409200
investment at avialble for sale 409200
Cash 409200
the invest is recorded at investment at avialble so the revaluation gain and loss will be recorded in the Other comprehensive income .
Situation 2:
invest in associate 360800
Cash 360800
To record the investment at cost
invest in associate (32800*4) 131200
Revaluation gain P/L (32800*4) 131200
to record the revaluation gain on investment in assocaite
Cash 40400
dividend income 40400
to record the dividend income
Compare the yield to maturity and the current yield. How do you explain this relationship? (Select the best response.)A.If a bond sells at a discount, the yield to maturity is greater than the current yield.B.If a bond sells for its par value, the yield to maturity is greater than the current yield.C.If a bond sells at a premium, the yield to maturity is greater than the current yield.D.There is no certain relationship between the yield to maturity and the current yield.
Answer:
A - If a bond sells at a discount, the yield to maturity is greater than the current yield
Explanation:
Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.
“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).
According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.
Final answer:
The yield to maturity and current yield are measures used to assess returns on bonds. The yield to maturity is generally higher than the current yield when a A. bond sells at a discount and vice versa.
Explanation:
The yield to maturity and the current yield are two different measures used to assess returns on bonds. The yield to maturity represents the total return an investor can expect to receive if they hold the bond until it matures, taking into account the purchase price, coupon rate, and time to maturity. On the other hand, the current yield only considers the annual interest payments relative to the bond's current market price.
In general, the yield to maturity is higher than the current yield when a bond sells at a discount. This is because a bond selling at a discount has a higher yield relative to its purchase price, resulting in a higher yield to maturity. Conversely, if a bond sells at a premium (above its face value), the yield to maturity is lower than the current yield. Therefore, the correct answer is option A: If a bond sells at a discount, the yield to maturity is greater than the current yield.
This chapter discusses the discounted dividend and corporate valuation models for valuing common stocks. Three alternative approaches, the P/E multiple, Enterprise Values, and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.
Answer: The P/E multiple and EVA approach and their use to value common stock.
P/E multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investor's willingness towards the current market price of the stock.
Economic value added(EVA): this approach is a measure to evaluate a company stock based on economic value, it has added at a specified time. It considers the opportunity cost of capital invested in the business and the next operating profit generated by the business.
Explanation: The P/E multiple is the basis to analyze the stock price with the earnings so that the appropriate value of a stock is estimated.
The P/E approach can be used as a starting point in stock valuation. If a stock's P/E ratio is well above its industry average and if the stock's growth potential and risk are similar to other firms in the industry, the stock's price may be too high. To estimate a ball-park value multiply the firm's EPS by the industry average P/E ratio.
An alternative approach is based on the concept of Economic Value Added (EVA). Remember, EVA = Equity(ROE - rs). Companies increase their EVA by investing in projects that provide shareholders with returns greater than the cost of capital. When you purchase a firm's stock, you receive more than just the book value of equity—you also receive a claim on all future value that is created by the firm's managers.
Final answer:
Common stock valuation involves methodologies like the Discounted Dividend Model, P/E Multiple, Enterprise Value, and EVA approaches, each considering different facets such as future earnings, industry standards, firm valuation, and profitability after capital costs.
Explanation:
Valuing common stocks involves different methodologies, such as the Discounted Dividend Model, the Price/Earnings (P/E) Multiple approach, the Enterprise Value approach, and the Economic Value Added (EVA) approach. To understand each:
Discounted Dividend Model: This method estimates the price of share today by calculating the discounted present value of the flow of dividend payments. If dividends are uncertain, you use the expected dividend and adjust the discount rate to include a risk premium according to the stock's riskiness and investors' risk aversion.
P/E Multiple Approach: This method values stock by multiplying the current earnings per share by the average P/E ratio for companies within the same industry. It reflects what investors are willing to pay today for a dollar of the company's earnings.
Enterprise Value Approach: This valuation technique considers the total value of the firm, including not only equity but also debt and minus cash. It represents the price to buy the whole business and is often used to assess takeover targets.
Economic Value Added (EVA): This approach measures a company's financial performance based on the residual wealth calculation by deducting the cost of capital from the company's operating profits, adjusted for taxes on a cash basis.
Each of these methods plays a crucial role in helping analysts and investors determine what they should be willing to pay for stock by considering factors like future earnings, industry standards, overall value of the firm, and financial performance after accounting for the cost of capital.
Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.
Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.
the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.
Answer:
During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
Explanation:
Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $109,500 for Dave's plumbing services. Which of the following is a true statement?
a. Dave is taxed on $109,500 of plumbing income this year.
b. Steve is taxed on $109,500 of plumbing income this year.
c. Steve is taxed on $109,500 of income from gifts received this year.
d. Dave may deduct the $109,500 received by Steve.
e. All of these are true
Answer:
Option A is correct
Explanation:
What we need to know to solve this question is how the cash method for accounting works in this scenario.
Thus, using the cash accounting method income is to be recognized when cash is received, thus the taxpayers for tax purposes will be reporting income when the income is received (in the form of services, cash, property, etc.).
14. The role price plays in a market is: a. they distribute scarce goods to those consumers who value them most highly. b. when prices are in equilibrium, product shortages or surpluses can occur. c. they help eliminate poverty. d. they eliminate scarcity.
Answer:
a. they distribute scarce goods to those consumers who value them most highly.
Explanation:
Price of a commodity is the amount a manufacturer or producer is willing to sell goods and services.
Attaching a price to a commodity is the easiest way to efficiently distribute scarce goods to the consumers that are in dire need of them.
Since resources for production are scare and limited. It takes a particular cost for production resources to be assembled into a finished product. The cost of production often translates to the asking price the producer is willing to sell it. Every commodity produced is aimed at satisfying a particular need for them. Price often brings disparity when consumers are choosing the most important goods they want. This often leads to the sorting of scale of preference usually based on needs and the importance they attach to them. This way scarce goods will reach consumers that place priority to them.A buyer uses a periodic inventory system, and it purchases $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. On December 15, it pays the invoice in full. Prepare the buyer's necessary journal entry for payment by selecting the account names from the drop-down menus and entering dollar amounts in the Debit and Credit columns. If there are multiple debits or multiple credits, enter the account titles in alphabetical order.
For a merchandise worth $4,000, purchased on credit terms of 2/10, n/30, the buyer records the purchase by debiting Purchases and crediting Accounts Payable by $4,000. When payment is made within 10 days, the Accounts Payable is debited by $4,000 against a credit (decrease in cash) of $3,920 (net of discount) and a credit to Purchase Discounts for $80 (2% of $4,000).
Explanation:Given the scenario, the buyer purchased $4,000 worth of merchandise and paid it fully within the discount period (10 days). This qualifies the buyer for a discount of 2% as per the credit term 2/10, n/30 which stands for a 2% discount if payment is made within 10 days, otherwise, the net payment is due within 30 days. The discount amounts to $80 ($4,000*2%).
The buyer needs to make two separate journal entries: one for the merchandise purchase and one for the payment. Here's how to record the journal entries:
For the merchandise purchase:Debit (increase) Purchases for $4,000Credit (increase) Accounts Payable for $4,000For the payment within the discount period:Debit (decrease) Accounts Payable for $4,000Credit (increase) Cash for $3,920Credit (increase) Purchase Discounts for $80Learn more about the Periodic Inventory System here:https://brainly.com/question/32807813
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Computing Revenues under Long-Term ContractsCamden Corporations agreed to build a warehouse for a client at an agreed contract price of $ 900,000. Expected (and actual) costs for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2015. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method.Cost-to-Cost Method% of total Costs expected Revenue Year incurred costs recognized Income2016 $Answer Answer% $Answer $Answer2017 Answer Answer% Answer Answer2018 Answer Answer% Answer AnswerTotal $Answer $Answer $Answer
Answer and Explanation:
Computation:
Cost-to-cost method
Year Cost cost(%) Revenue Income
2016 $202,500 30% $270,000 $67,500
2017 $337,500 50% $450,000 $112,500
2018 $135,000 20% $180,000 $45,000
Total $675,000 100% $900,000 $225,000
Cost % = Cost of particular year / Total cost
Revenue:
Year 2016 =$900,000 × 30% = $270,000
Year 2017 = $900,000 × 50% = $450,000
Year 2018 = $900,000 × 20% = $180,000.
Income:
= Revenue - Cost
Year 2016 = $270,000 - $202,500
Year 2017 = $450,000 - $337,500
Year 2018 = $180,000 - $135,000
Final answer:
To calculate revenues, expenses, and income under the cost-to-cost method, we ascertain the percent completed each year to determine the respective revenue to be recognized. This percentage is applied to the total contract price, with the revenue minus the actual costs for each year providing the income.
Explanation:
To compute revenues, expenses, and income for Camden Corporation under the cost-to-cost method, we first add up all the actual costs to determine the percentage of completion each year and apply it to the total contract price. This way, we can figure out how much revenue to recognize each year.
Total expected costs: 2016 costs + 2017 costs + 2018 costs = $675,000Percent complete 2016: 2016 costs / Total expected costs = $202,500 / $675,000 = 30%Revenue recognized 2016: Total contract price * Percent complete 2016 = $900,000 * 30% = $270,000Income 2016: Revenue recognized 2016 - 2016 costs = $270,000 - $202,500 = $67,500Repeat these steps for the subsequent years:
Percent complete 2017: (2016 costs + 2017 costs) / Total expected costs = $540,000 / $675,000 = 80%Revenue recognized by end of 2017: Total contract price * Percent complete 2017 = $900,000 * 80% = $720,000Income 2017: Revenue recognized by end of 2017 - Revenue recognized by end of 2016 - 2017 costs = $720,000 - $270,000 - $337,500 = $112,500Percent complete 2018: (2016 costs + 2017 costs + 2018 costs) / Total expected costs = 100%Revenue recognized 2018: Total contract price * Percent complete 2018 - Revenue recognized by end of 2017 = $900,000 - $720,000 = $180,000Income 2018: Revenue recognized 2018 - 2018 costs = $180,000 - $135,000 = $45,000For all three years combined:
Total Revenue: Contract price = $900,000Total Costs: $675,000Total Income: Total Revenue - Total Costs = $900,000 - $675,000 = $225,000When investors expect interest rates to ____, they may ____.a. increase; sell bonds and buy short-term securitiesb. increase; sell short-term securities and buy bondsc. decrease; sell bonds and buy short-term securitiesd.e. B and C
Answer: increase: sell bonds and buy short term securities --A
Explanation:
When investors anticipate higher interest rates , they sell Thier bonds than allow it to mature because they understand that the value of bonds in the market lies largely on the coupon rates of other bonds making market prices of old bonds with lower coupons to decrease allowing new buyers for their lower interest payments.
They also sell Thier bonds if The Issuing Entity becomes unstable financial-wise because it prevent Thier chances of profit in the future and they would not like to recover only part of their investment.
When they sell Thier bonds due to anticipated increased rates, they buy short term securities that would be more beneficial to them.
Presented below is information related to equipment owned by Vaughn Company at December 31, 2017. Cost $9,360,000 Accumulated depreciation to date 1,040,000 Expected future net cash flows 7,280,000 Fair value 4,992,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Collapse question part (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
The double for the impairment is given below
Dr Impairment loss expense(income statement) $3,328,000
Cr Accumulated depreciation $3,328,000
Explanation:
An asset is impaired if its carrying value(net book value) is higher than its recoverable amount.
Recoverable amount is the higher of fair value less costs to sell and value in use.
First of all, identifying the figures above individually would be a good starting point to calculating the impairment on the equipment.
Carrying value is $8320000 (cost less accumulated depreciation to date)
Recoverable amount under IAS 36 is the higher of fair value less costs of disposal and value in use
However,the calculation of impairment under U.S GAAP ,requires that the asset carrying amount is compared to fair value of the asset, as a result impairment is $3,328,000 ($8,320,000-$4,992,000)
Under IFRS the credit is posted directly to equipment account in the balance sheet
No entry is required to record the impairment of the asset at December 31, 2017.
Explanation:An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. In this scenario, the fair value of the equipment is $4,992,000, which is less than its carrying amount of $8,320,000 ($9,360,000 - $1,040,000).
Since the fair value is less than the carrying amount, an impairment loss should be recognized. However, because the question states that Vaughn will continue to use the asset in the future, impairment accounting rules dictate that the impairment loss is not recognized as long as the asset is expected to generate sufficient future cash flows to recover its carrying amount. Therefore, no entry is required at December 31, 2017.
In a competitive industry a. the industry has high barriers to entry b. the industry has high barriers to exit c. the industry has high barriers to entry and exit d. the industry has no barriers to entry or exit
Answer:
The answer is D.
Explanation:
In a competitive industry like perfect competitive market, the industry has no barrier to entry or exit. Firms can freely enter the market as long as it can make its profit and leave the industry anytime the firm likes.
This no barrier to entry and exit lead to the large number of sellers that we have in this type of market. And this large number of sellers make competition strong that no seller can influence the price of the market.
In a competitive industry, there are no significant barriers to entry or exit, distinguishing it from markets where barriers exist that can potentially lead to monopolistic conditions.
Explanation:In a competitive industry, the correct answer to whether the industry has high barriers to entry or exit is d. the industry has no barriers to entry or exit. Perfectly competitive markets are characterized by the lack of barriers to entry or exit, allowing for numerous firms to enter and leave the market freely, which leads to the efficient allocation of resources. When there are significant barriers to entry, perfect competition is compromised, and the possibility of a monopoly increases. Barriers to entry can take various forms, including government-enforced barriers such as licensing and regulations, and non-government barriers like strong brand names or control of scarce resources.
Learn more about Barriers to Entry here:https://brainly.com/question/29656127
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A Nike women's-only store in California offers women's running, training, and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of $586,000 per year and is located on prime real estate in the center of town. The store owner pays $17,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add $6,900 per month to her firm's profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store's profits.
What is the opportunity cost of continuing to operate the fitness studio within the store?
Answer:
Opportunity cost = $6900 monthly or $82800 yearly.
Explanation:
Opportunity cost = $6900 monthly or $82800 yearly.
The opportunity cost is the gain forgone for the other alternative, or ultimately a loss to acquire other opportunity.
Here, the opportunity cost is gain of $6900 forgone to operate the fitness studio within the store by Nike.
The opportunity cost of operating the fitness studio within the store is $6,900 per month, which is the amount the owner could earn by renting out the space instead.
The opportunity cost of continuing to operate the fitness studio within the store is the amount of money the store owner foregoes by not renting out the space. In this case, the owner has been offered $6,900 per month to rent out the space. Thus, by keeping the fitness studio running and not renting the space out, the owner is foregoing an additional profit of $6,900 per month.
Using the Yoga Center example, the situation shows different scenarios where the business must make decisions based on potential revenues, variable costs, and fixed costs. The contrast in scenarios also illustrates when a business should shut down in the short run or stay open to minimize losses, depending on whether the revenues can cover the variable costs. The situation serves as an example to illustrate the concepts of opportunity cost and decision-making based on costs and potential income.
The feminine personality of Whirlpool helps identify which styles and colors will be most appealing to buyers. The company now uses female voice-overs in its ads to align the advertising with the brand's personality more closely. This is an example of a company__________
Answer: Elaborating on a brand personality
Explanation: Brand personality is the attribution of a personal trait to a brand which helps the organization to mold the manner consumers feel about its commodity, service or purpose. In this case, characteristics of a human being like feminine voice-over signify the whirlpool personality through the person representing the brand along with advertising so as to be in the same position as the whirlpool brand.
Use the savings plan formula to answer the following question your goal is to create a college fun for your child suppose you find a fund that offers an apr of 7% how much should you deposit monthly to accumulate $87000 in 14 years?
Answer:
The monthly deposit to reach the goal should be of $507.21
Explanation:
Giving the following information:
Interest rate= 7% annual
deposit= monthly
Final value= $87000
n= 14 years
To calculate the monthly deposit, we need to use the following variation of the future value formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.07/12= 0.00583
n= 14*12= 168
A= (87,000*0.00583) / [(1.00583^168) - 1]
A= $507.21
The monthly deposit to reach the goal should be of $507.21
On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,000 was made on January 1, 2018. The present value of the lease payments is $4,561,300. The lease is appropriately classified as an operating lease. Assuming the interest rate for this lease is 9%, how much interest revenue will Savor record in Year 1 on this lease
Answer:
The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697
Explanation:
Present value of Lease Payment = $4,561,300
Less: First Payment on Jan 1, 2018 = $698,000
Remaining Balance = $3,863,300
Interest Revenue for Year 1 at 9% = $3,863,300 × 9%
Interest Revenue for Year 1 at 9% = $347,697
A technical analyst has been charting the price movements of ABC stock. The stock has been fluctuating in price between $41 and $46 per share for the past 3 months. If the analyst expects a breakout through the resistance level, which order should be placed?(A) Buy ABC @ $40 Stop GTC(B) Buy ABC @ $41 Stop GTC(C) Buy ABC @ $46 Stop GTC(D) Buy ABC @ $47 Stop GTC
Answer:
Buy ABC @ $47 Stop GTC
Explanation:
Since he expects a breakout through the resistance, that means above $46.
The order to be placed is a pending order, since he places the trade in anticipation of price break above. The type of pending order will be a Buy stop order.
See the attached diagram for clear explanation