Answer:
$57,000
Explanation:
We know because of the accounting equation that assets are equal to liabilities + stockholders equity, therefore, stockholders equity are equal to $45,000 if assets are $60,000 and liabilities are $15,000.
If revenues were $48,000 and expenses were $30,000, the difference $18,000 is added to the stockholders' equity value, which is now equal to $63,000 ($45,000 + $18,000).
We then add the $9,000 worth of shares that were issued, and now we have a stockholder's equity value of $72,000.
Finally, we substract the $15,000 of dividends paid to reach the final figure of $57,000 ($72,000 - $15,000).
An option trader writes 5 June 255 calls at 3 and 5 June 245 puts at 2. If the trader later repurchases the calls at 4 and the puts expire worthless, the trader's profit or loss will be:
Answer:
$500 profit
Explanation:
The calls are being made at 4. Therefore, the trader would be receiving
Income = 1000+1500 = $2500
The calls were purchase at 4 and puts expired worthless.
This implies; at 4 = 4×5 = 20
20×100 = $2000
Net profit/loss = 2500 - 2000
Net profit = $500
On January 2, 2019, Kornis Corporation acquired equipment for $ 300 comma 000. The estimated life of the equipment is 5 years or 80 comma 000 hours. The estimated residual value is $ 40 comma 000. What is the balance in Accumulated Depreciation on December 31, 2019, if Kornis Corporation uses the doubleminusdecliningminusbalance method of depreciation?
Answer:
$120,000
Explanation:
The computation of the accumulated depreciation for the December 31,2019 using the double -declining method is shown below:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 45
= 20%
Now the rate is double So, 40%
In year 1, the acquired cost is $300,000 , so the depreciation is $120,000 after applying the 40% depreciation rate
A large sporting goods store has recently been involved in a controversy involving its suppliers' use of child labor. As it works to resolve this controversy, what should the company monitor to get a better idea of how consumers feel about the company and its brand?
Answer:
The company must monitor Relevant Wikis
Explanation:
The Wikis relating to the use of child labor and about certain industrial areas where child labor is used to lower the cost of production. This makes it easier for the company to compete at prices in the international market. So if the company wants to monitor such practices of the supplier then it must monitor the relevant wikis that provide such confidential kept data. Other signs might be the increase in operating costs in the financial statement because of expensive electricity in such countries.
You are the sales manager for a pizza company and have been informed that the price elasticity of demand for your most popular pizza is greater than 1 (that is, the elasticity coefficient or Ed is greater than 1). To increase total revenues, you should
Answer:
decrease the sales price of that pizza.
Explanation:
When the price elasticity of demand (PED) is elastic, a small decrease in price will cause a larger increase in the quantity demanded.
For example, the PED is 1.5 (elastic) and the price of pizza is $8 and you sell 100 pizzas.
Prior to the price change total revenue = $8 x 100 = $800
You decrease the price by 10% to $7.20 per pizza, and the quantity demanded increases by 15% (= 1.5 x 10%) tot a total of 115 pizzas. Total revenue = $7.20 x 115 = $828
In other to increase total revenues, you as the sales manager should reduce the price of pizza.
Price Elasticity of Demand Shows the effect that changing prices will have on the demand for a good. An ED greater than 1 means that the change in demand will be greater than the change in price.If you reduce prices therefore, a situation will arise where more people demand the pizzas than the reduction in price. This will lead to more revenue for the business.
In conclusion, reduce the price.
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Assuming a system of flexible exchange rates between Mexico and the United States, indicate whether each of the following would cause the Mexican peso to appreciate or depreciate:
a. The United States unilaterally reduces tariffs on Mexican products.
b. Mexico encounters severe inflation
c. Deteriorating political relations reduce American tourism in Mexico.
d. The U.S. economy moves into a severe recession.
e. The United States engages in a high-interest-rate monetary policy.
f. Mexican products become more fashionable to U.S. consumers.
g. The Mexican government encourages U.S. firms to invest in Mexican oil fields.
h. The rate of productivity growth in the United States diminishes sharply.
Answer:
Explanation:
a. The United States unilaterally reduces tariffs on Mexican products.
Peso appreciate
b. Mexico encounters severe inflation
Peso depreciate
c. Deteriorating political relations reduce American tourism in Mexico.
Peso depreciate
d. The U.S. economy moves into a severe recession.
Peso appreciate
e. The United States engages in a high-interest-rate monetary policy.
Peso depreciate
f. Mexican products become more fashionable to U.S. consumers.
Peso depreciate
g. The Mexican government encourages U.S. firms to invest in Mexican oil fields.
Peso appreciate
h. The rate of productivity growth in the United States diminishes sharply.
Peso appreciate
Answer:
Explanation:
The United States unilaterally reduces tariffs on Mexican products.
The peso will appreciate.
Mexico encounters severe inflation
The peso will depreciate.
Deteriorating political relations reduce American tourism in Mexico.
The peso will depreciate.
The U.S. economy moves into a severe recession
The peso will depreciate.
The United States engages in a high-interest-rate monetary policy.
The peso will depreciate.
Mexican products become more fashionable to U.S. consumers.
The peso will appreciate.
The Mexican government encourages U.S. firms to invest in Mexican oil fields
The peso will appreciate.
The rate of productivity growth in the United States diminishes sharply
The peso will appreciate
A customer places an order to buy mutual fund shares directly from the fund wholesaler, and therefore does not use a broker-dealer included in the fund's selling group. Under FINRA rules, all of the following statements are true EXCEPT:
Complete question:
A. the wholesaler must be a registered FINRA member
B. the customer must pay the Public Offering Price as described in the prospectus
C. the wholesaler can offer the customer a lower sales charge since no concession will be paid to a selling group member
D. pricing of the fund shares must conform to the requirements of the Investment Company Act of 1940
Answer:
Under FINRA rules, all of the following statements are true EXCEPT: The wholesaler can offer the customer a lower sales charge since no concession will be paid to a selling group member
Explanation:
In the case that a consumer buys fund sharing directly from either a fund wholesaler rather than an individual in the distribution community, the customer still has to pay the referral bonus price as stated in the brochure.
The customer gets no further discount if he goes to the wholesaler directly. The FINRA must have been a wholesaler of the Company. In accordance with international law of the 1940 Investment Company Act, all fund securities shall be priced — such as mutual fund shares shall be "for-priced" under these laws.
Edward is in charge of hiring at his agency and consistently collects biographical data from applicants. What is a primary reason why Edward collects this information?a. It is a valid way to measure the applicant's aptitude for a given jobb. It predicts future behavior based on the applicant's pastc. It helps to assess for career maturityd. It helps the employer negotiate salary
Answer:
B) It predicts future behavior based on the applicant's past
Explanation:
Generally the biographical information collected by human resource managers includes your age, sex, education, work experience and interests or even hobbies. Obviously the age, education and work experience is the most relevant information for them. Biographical data or biodata is useful because it helps to predict future behavior based on their past activities.
An old factory was converted into condominiums on the top six floors, a health club on the fourth floor, offices on floors two and three, and specialty shops and restaurants on the ground floor. This would be an example of a(n) ________.
Answer:
Shopping center
Explanation:
To help herself remember the items she was to get from the market, Anna repeated the five-item list over and over under her breath. This is an example of which information-processing strategy?
Answer:
rehearsal
Explanation:
This information processing strategy is best referred to as a rehearsal.
Repeating the same thing over and over again helps to memorize and gain mastery of a particular detail or concept.
For Anna, rehearsing the item list helps her to process and hold on to the bits of information she has better. Other information processing strategy are organization, elaboration, mnemonic, systematic searching. They all serve various needs based on the information to be processed.Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. If Sharon fails to check the results and Mary wins the lottery, which of the following would be true of the contract between Mary and Sharon?A. Mary's promise is supported by consideration.
B. Sharon can claim for breach of contract against Mary.
C. Neither Mary nor Sharon can claim breach of contract.
D. Mary can claim for breach of contract against Sharon.
Answer:
C. Neither Mary nor Sharon can claim breach of contract.
Explanation:
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.
Sharon agrees to do so, provided she has the time for it.
If Sharon fails to check the results and Mary wins the lottery, then it would be true of the contract between Mary and Sharon that Neither Mary nor Sharon can claim breach of contract.
The reason is Mary's promise is based on the condition that Sharon checks the result, Sharon's promise is based on the condition that 'if she has the time for it.'
The condition was not met by Sharon hence she cannot claim a breach of contract because she did not check the results, similarly, Mary cannot sue Sharon because sharon made it clear that she will only check If she has the time.
Many owners of consulting companies took their own skills and launches businesses by selling those skills to other companies who needed them. This is an example of which of the following factors leading to business ideas?education and expertise
Answer:
education and expertise
Explanation:
Based on the scenario being described within the question it can be said that this is an example of education and expertise. By learning a skill or trade and gaining experience by continuously practicing and improving those skills anyone can sell those skills to other individual's or company's that require those skills but do not possess them. Such as the individuals in this scenario did.
Tony borrows $1300 at an annual interest rate of 6.0%. He receives the loan on the first day of the current month and will make monthly payments on the first day of each of the following months until the loan is repaid after 24 months (2-year loan). The monthly loan payment is $57.62. How much interest will Tony pay as part of the first loan payment?
Answer:
Tony will pay interest of $6.50 as part of the first loan payment.
Explanation:
Amount of Loan = $1300
Annual Interest = 6%
Monthly interest rate = 6% / 12 = 0.5%
Monthly Loan Payment = $57.62
Monthly installment is compromised of the interest payment on the due balance and the principal payment.
Interest payment in first installment = $1300 x 0.5%
Interest payment in first installment = $6.50
Principal portion of first installment = $57.62 - $6.50
Principal portion of first installment = $51.12
Tony pays $6.50 in interest out of his first monthly payment of $57.62 for the $1300 loan at an annual interest rate of 6.0%.
Explanation:Tony has borrowed $1300 at an annual interest rate of 6.0%, which translates to a monthly interest rate of 0.5% (since 6.0% divided by 12 months equals 0.5%). To calculate the interest paid as part of the first loan payment, we multiply the total loan amount by the monthly interest rate. Therefore, the interest for the first month is $1300 times 0.005, which equals $6.50.
Thus, out of the first loan payment of $57.62, Tony is paying $6.50 towards interest, and the remaining $51.12 will be used to reduce the principal amount of the loan.
When cash sales and bankcard sales transactions are recorded in the cash receipts journal, a check mark is placed in the Posting Reference column to indicate the amounts are not to be posted individually.1. True2. False
Answer:
The answer is false.
Explanation:
If a a check mark is placed in the Posting Reference column after the cash sales and bankcard sales transactions are recorded in the cash receipts journal, it means are the transactions have been posted to their respective accounts(i.e cash sales account and bank card sales account)
A check mark denotes 'YES'. or 'TRUE'.
A check mark in the Posting Reference column of a cash receipts journal does indicate that the amounts for cash sales and bankcard sales transactions will not be posted individually. Instead, these transactions will be summed and posted in a lump sum.
Explanation:The statement is
True
. In a
cash receipts journal
, a check mark in the Posting Reference column typically signifies that these amounts, from cash sales and bankcard sales transactions, will not be posted individually to the general ledger. This is because such transactions, due to their volume, are often summed and posted in a lump sum, for efficiency. The check mark therefore, helps keep track and ensure no individual posting occurs erroneously for these amounts. This practice is common in bookkeeping and accounting to ensure accurate and efficient recording of transactions.
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Gloria is a manager in a paints and coating manufacturing company. Although the authority of making the final decision lies with her, she is open to suggestions from her peers and employees and tries her best to incorporate them in various situations. In this case, Gloria is a(n) _____.
Complete answer:
Gloria is a manager in a paints and coating manufacturing company. Although the authority of making the final decision lies with her, she is open to suggestions from her peers and employees and tries her best to incorporate them in various situations. In this case, Gloria is a(n) _____.
a.free-rein leader
b. laissez-faire leader
c. autocratic leader
d. democratic leader
Answer:
Gloria is a democratic leader
Explanation:
The model of democratic leadership is a leadership that shares decision-making capacity with party members through the pursuit of the Group's values and the practice of social inclusion.
The cooperative leadership attributes include responsibility sharing, respect for members of the party and the decision taking of the supportive group.
Democratic leadership advantages include building happiness for staff and promoting creativity and innovative solutions to organisational challenges.
Final answer:
Gloria exemplifies a consultative management style by valuing her team's input and incorporating it into decision-making, aligning with modern trends toward a more collaborative manager/employee relationship.
Explanation:
Gloria is a manager in a paints and coating manufacturing company who, despite having the authority to make the final decision, remains open to suggestions from her peers and employees, striving to incorporate their input when possible. This managerial style is often referred to as being consultative. A consultative manager values the input of their team and understands the positive impact of including diverse perspectives in decision-making processes. Such a management approach falls in line with a modern understanding of the manager/employee relationship, which is more of a two-way street, beneficial for both the organization and the personal and professional growth of the employees.
In the context of Gloria's managerial approach, she likely aligns with the vision of a "perfect" manager, which includes being inspiring, confident in the team's abilities, and concerned about the growth and development of each employee. Gloria's approach not only contributes to a healthy work environment but also significantly influences the career satisfaction and growth of her employees. This type of leadership can be immensely powerful and positive for those she manages.
Eureka Pizza is considering investing in new infrared oven technology that allows them to cook their pizzas faster and more completely. Because none of his competitors are making this investment, they will be a first mover. According to the text, what is the biggest issue with Eureka being a first mover?
Answer:
The risk of being the first mover can be a few. The first and most important of all is the copy effect. Competitors, seeing the success the first mover is having, will try to copy and improve upon said new technique. Another one is that being the first mover is expensive since it is the first one to invest in new techniques. And, with that cost, comes the risk of losing investment in something that we can't know if it will make success because there's no history about it. We can mention regulatory resistance as well since depending on what new technique it is, it can be harder to obtain a regulatory license for it.
Which of the following completes the sentence, 'A person who shares their views about a product or service, even though they are not affiliated with the company, is referred to as ______'
Answer:
The correct answer is Citizen advertisers.
Explanation:
An advertiser is the company, organization or individual that pays for an advertising space or time to present an ad or persuasive message to the public. It comes from the Latin verb annunciare which means to announce or make known a story.
The system of presenting the advertisement is known as advertising. Through advertising, advertisers seek to generate greater consumption of their products or services through the "brand", which associates the name of the product or image with certain qualities in the minds of consumers. Advertisers are not always commercial, being able to spend money to advertise other elements than a product or service to the consumer, such as political parties, interest groups, religious organizations and government agencies.
Elyon holds a savings account in the Rochester City Bank in the United States. During an economic downturn, the bank suffers great losses. Elyon, however, is insured under the Federal Deposit Insurance Corporation and his savings are protected as the insurance covers his deposit value. Which of the following laws ensured the protection of depositors from a bank's failure?
A. The Sarbanes-Oxley Act
B. The Glass-Steagall Act
C. The Gramm-Bliley-Leach Act
D. The Securities Act
Answer:
Option B The Glass-Steagall Act
Explanation:
According to the Glass-Steagall Act, the commercial banking was separated from the investment banking. This was made to provide the investor investment security by creation of the Federal Deposit Insurance Corporation.
So here Elyon will be entertained with the imbursement of the amount at the deposit value which the insurance will safeguard the depositor's value due to bank failure.
Answer:
B) The Glass-Steagall Act
Explanation:
The Glass-Steagall Act was passed in 1933 and its main purpose was to divide banking activities into investment banks and commercial banks. Banks had to be either one of them, but they couldn't offer both services. It was finally repealed in 1999 by the Financial Services Modernization Act of 1999 which currently allows banks to provide both commercial and investment services.
The Glass-Steagall Act was extremely controversial at its time and it barely passed because Senator Carter Glass didn't have enough support for his law until Representative Henry Bascom Steagall joined him after the law included the creation of the Federal Deposit Insurance Corporation. The FDIC was created in 1933 just after the law was approved and since then it insures depositors from bank failures.
A large dairy has decided to focus its efforts on becoming a sustainable company. It needs to redesign the packages it uses for its products, work with distributors to find more sustainable solutions of transport, and treat their 10,000 cows more sustainably. All of this requires the dairy to be:
A large dairy needs to redesign packages, find sustainable transport solutions, and treat cows sustainably to become a sustainable company.
Explanation:The subject of this question is Business and the grade level is High School.
To become a sustainable company, the dairy needs to redesign its packaging, find more sustainable transportation solutions, and treat its cows more sustainably. For packaging, the dairy can consider using recyclable materials or reducing the amount of packaging used. In terms of transportation, they can work with distributors who use electric or hybrid vehicles or explore alternative modes of transportation such as rail or sea.
To treat the cows more sustainably, the dairy can focus on providing better living conditions, implementing practices that reduce waste and pollution, and promoting the overall health and well-being of the animals.
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Maricopa's Success scholarship fund receives a gift of $ 190000. The money is invested in stocks, bonds, and CDs. CDs pay 3.5 % interest, bonds pay 4 % interest, and stocks pay 7 % interest. Maricopa Success invests $ 10000 more in bonds than in CDs. If the annual income from the investments is $ 9425 , how much was invested in each account
Answer:
CDs = $55,000
Bonds = $65,000
Stock = $70,000
Explanation:
Given:
Interest rate on CDs = 3.5%
Interest rate on Bonds = 4%
Interest rate on Stocks = 7%
Total Interest from the investments = $9,425
Computation:
CDs + Bonds + Stocks = $190,000....................eq1
Total Interest from the investments = $9,425
0.035 CDs + 0.04 Bonds + 0.07 Stocks = $9,425..........................eq2
Given:
Bonds = $10,000 + CDs (Putting bonds value in eq1)
CDs + $10,000 + CDs + Stocks = $190,000
2 CDs + Stock = $180,000.......................eq3
(Putting bonds value in eq2)
0.035 CDs + 0.04 ($10,000 + CDs) + 0.07 Stocks = $9,425
0.035 CDs + $400 + 0.04CDs + 0.07 Stocks = $9,425
0.035 CDs + $400 + 0.04CDs + 0.07 Stocks = $9,425
0.075 CDs + 0.07 Stocks = $9,025.....................eq4
From eq 3 and eq 4
CDs = $55,000
Bonds = $10,000 + CDs = $55,000 + $10,000 = $65,000
Stock = $190000 - $55,000 - $65,000 = $70,000
You are preparing a statement of owner's equity for Johnson Motor Company. You have the following information: Beginning capital is $36,000, Net Income for the year is $14,000 and Drawing for the year is $6,600. Calculate the ending capital amount.
Answer:
$43,400
Explanation:
Remember that:
Closing Equity = Opening Equity + (Revenue - Expense) - Drawings
Now here we have opening equity of $36,000, Net Income which is equal to the difference of Revenue and expenses of $14,000 and drawings of $6,600.
So by putting values, we have:
Closing Equity = $36,000 + $14,000 - $6,600 = $43,400
Suppose you read a news article reporting that your local government has denied a request by an entrepreneur to build a new coffee shop on property it owned in a residential area because of a zoning issue. Would you support such a ruling? Why or why not?
Answer:
Yes, I would support the denial because rules and regulations apply to everyone, and that includes businesses. Zoning rules exist in real estate to make sure that some areas or neighborhoods are used for certain specific purposes, e.g. residential areas, industrial areas or commercial areas. If those rules regulations didn't exist, it would be a complete mess and anyone could just set a factory besides a condo or a school. Either everyone follows the rules or no one does.
Explanation:
Strategy at a ________ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers. 1. functional 2. business unit 3. corporate 4. divisional
Answer:
2. business unit
Explanation:
The business-level unit strategy refers to the strategy that mainly focused on the company products and the services that would be provided to the customers with the aim of gaining maximum profit, competitive advantage so that the company goals and the objectives could be accomplished.
Offering them better products and services create the long term relation with the customer that would result in a sustainable competitive advantage so that it could create a standardized position in a market
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's accounting profit is _______ and her economic profit is _________ Instructions:
a. $700; $400
b. $300; $100
c. $300; negative $100
d. $1,000; negative $1,100
Answer:
c. $300; negative $100
Explanation:
Accounting profit is total revenue less total cost or explicit cost.
Accounting profit = Total Revenue - Total cost
Total revenue = price x quantity
100 × $10 = $1,000
Total cost = $700
Accounting profit = $1000 - $700 = $300
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Implicit cost = $20 × 20 = $400
Economic profit = $300 - $400 = $-100
I hope my answer helps you
Final answer:
Linda's accounting profit is $300, calculated by subtracting explicit costs from total revenues. Her economic profit is negative $100, taking into account both explicit costs and the opportunity cost of her time. The correct option is c. $300; negative $100.
Explanation:
First, we need to calculate the accounting profit. Linda sells 100 bottles of homemade ketchup for $10 each, resulting in total revenues of $1,000 (100 bottles * $10 per bottle). The explicit costs, which include the cost of ingredients, bottles, and labels, amount to $700.
Therefore, the accounting profit is calculated by subtracting explicit costs from total revenues: $1,000 - $700 = $300.
Hence, Linda's accounting profit is $300.
To calculate the economic profit, we need to consider both explicit and implicit costs. Implicit costs include the opportunity costs of Linda's time. She could have earned $400 by working at her job ($20 per hour * 20 hours).
The economic profit is calculated by subtracting both the explicit and implicit costs from total revenues: $1,000 - $700 (explicit costs) - $400 (implicit costs) = negative $100.
Therefore, the correct answer is Linda's accounting profit is $300, and her economic profit is negative $100, which corresponds to option c. $300; negative $100.
Suppose on any given day there is an excess supply of reserves in the federal funds market. If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.
Answer:
... then the appropriate action for the Federal Reserve to take is a DEFENSIVE open market SALE, everything else held constant.
Explanation:
Defensive open market operations are carried out to temporarily offset fluctuation in the market of securities (either too much or too little demand, or supply).
A defensive pen market sale will lower the supply of reserves without having to change the current interest rates. If it doesn't do anything, the interest rates will probably decrease.
Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20° below zero. Ron orders a pair for his trip to Greenland. Upon delivery, Ron sees that the box states "will protect your feet in temperatures down to 30° below zero." The first night's temperature goes down to 27 below. Ron suffers frostbite on all of his toes. Ron then sues for breach of warranty. What is the result?
Answer:
A) Breach, because the latter express warranty is valid.
Explanation:
Based on the scenario being described within the question it can be said that the result would be a breach. This is mainly due to the fact that the box stated that "will protect your feet in temperatures down to 30° below zero." and this is a valid express warranty that is being marketed by the company that created the product. Therefore since the temperature did not go below 30 and Ron still suffered frostbite then he can rightfully sue.
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______. a. a debit to Allowance for Doubtful Accounts of $3,650.
b. is the same as it would be under the allowance method.
c. includes a credit to Bad Debt Expense of $3,650.
d. includes a credit to Cash of $3,650.
Explanation:
Under the direct write-off method , the journal entry is
Bad debt expense A/c Dr XXXXX
To Account receivable A/c XXXXX
(Being the bad debt expense is recorded)
For recording this journal entry, we Debited the bad debt expense and credited the account receivable
This is the answer. Hence, all the given options are incorrect
Earnings on pooled investments and changes in fair value of investments are allocated to the participants having an equity interest in the pool in proportion to their relative contributions to the pool.1. true2. false
Answer:
1) True
Explanation:
Generally pooled investments like mutual funds issue their own shares that basically include the value of all the securities that the pool has invested in. If you invest $2,000, then you are given shares that represent $2,000 in investments. if the value of the investment rises 10%, the value of your shares will increase to $2,200 (10%).
The statement is 1) true; earnings and changes in the fair value of pooled investments are allocated proportionally based on participants' contributions. This maintains fairness and transparency.
The statement is true. This process ensures fairness and transparency in how investment returns and value changes are distributed among participants.
For example, if a participant has contributed $10,000 to an investment pool worth $100,000, they hold a 10% stake.
Therefore, if the pool earns $5,000 in investment income or experiences a $5,000 change in fair value, this participant would receive $500, proportional to their 10% contribution.
This method of allocation helps maintain an equitable distribution of financial benefits derived from pooled investment activities, ensuring that each participant benefits in direct correlation to their level of investment.
A company uses proprietary computer software to offer services that other companies have not been able to emulate. These services have enabled Marketing to enter new markets and have caused new organizational structures to be formed. This is an example of which of the following?A) Objective.
B) Mission.
C) Distinctive competence.
D) Strategic decision.
Answer:
C. Distinctive competence
Explanation:
Distinctive competence -
It refers to the complete skill and practice , which enables to give rise to a very tough competition to the rest of the organisations , and thereby makes the particular organisation to stand out from crowd , is referred to as the distinctive competence .
The distinctive competence of a particular company or firm act as a weapon or a protective agent during their tough time .
Hence , from the given scenario of the question ,
The correct answer is C. Distinctive competence .
Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales and costs over the past 3 years to determine if any trends are present and also determine where the firm might need to make changes. Which one of the following statements will best suit her purposes?A. Income statementB. Balance SheetC. Common- size income statementD. Common-size balance sheetE. Statement of cash flows
Answer:
C. Common- size income statement
Explanation:
Common- size income statement is the statement which is best suited her purposes.
Because common- size income statement is a kind of statement in which value of the materials sales can be easily presented accordingly in percentage.
And common- size income statement will be easy and helpful for the company to compare the sales and costs of the last three years, by presenting the sales and costs in percentage.
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,513 instead of the correct amount of $170,230. The effect on the balance sheet and income statement would be ________.
Answer:
The inventory would be increased by $55,283 and the profit has been decreased by the same amount.
Explanation:
The reason is that the closing inventory has been increased by the difference of the correct and incorrect amount which is:
Closing inventory difference = $225,513 - $170,230 = $55,283
This will increase the closing inventory in the balance sheet and the increase in the closing inventory will decrease the cost of goods sold. The lower the cost of goods sold the greater is the profit.