Answer:
A. The real output did not change or changed by $0
B. The real output changed by $10,000,000
Explanation:
First, the question is incomplete, the following is the completion
a. Assuming that the price of gold increased by 100 percent over the same period, by what numerical amount did Glitter Gulch’s real output change?
b. If the price of gold had not changed, what would have been the change in Glitter Gulch’s real output? $ million.
A) First, the real output in the question refers to the gold amount as produced by the mind.
Sales revenue for the first year is $10,000,000 and then it doubled the next year to $20 million. Also, since the price of gold also increased by 100% over the same period, it means that it was the price increase by 100% that led to the 100% increase in sales revenue. This means that the real output of gold from the mine did not change.
b) The Hypothetical situation where the price however remains the same, means that to achieve an 100% increase in sales revenue then the real output of Glitter Gulch changed by 100%.
Specifically, the numerical value of the change =$20,000,000-$10,000,000= $10,000,000
Carmen operates a franchise tanning salon. Negative publicity about the effects of tanning has diminished her ability to grow the business. Carmen has a(n):________.
a. attractive small firm.
b. micro-business.
c. high-potential venture.
d. lifestyle business.
Answer:
Option "B" is the correct answer to the following statement.
Micro-business.
Explanation:
Micro companies are enterprises with small average revenue and estimated assets as opposed to the other company with fewer workers including the owner. This same effort and dedication have driven many micro-enterprises to expand into bigger companies this makes up the small business market.
The results of this study suggest that the presumed magnitude of negative advertising about the unethical behavior of an enterprise founder is having a detrimental effect on the business's positive image.A _____________ is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.
Answer is: Liability
Explanation: This includes a past transaction, a future payment for assets/services and a present obligation. A liability can't be reported when the following aren't included.
A liability is a probable future payment of assets or services that a company is presently obligated to make. It represents a debt or obligation that the company owes.
Explanation:A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. It represents a debt or obligation that the company owes.
For example, if a company borrows money from a bank, the borrowed amount is considered a liability because the company is obligated to repay the loan in the future.
In the context of accounting, liabilities are typically classified on a company's balance sheet under long-term liabilities or short-term liabilities.
Learn more about liability here:https://brainly.com/question/28483469
#SPJ12
In the eyes of contemporary consumer behavior researchers, "Consumption" refers to a process in which consumers use up the values of products, services, ideas, or experiences.
True / False.
Answer:
True
Explanation:
According to contemporary consumer behavior researchers, buying decisions are based on sentiments, experiences, and perceived values of product or services.
A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?a. it should have no bearing on the player's decision from an economic standpointb. it would increase the opportunity cost of becoming a broadcasterc. it would cause the production possibilities frontier to become convexd. it would increase the opportunity cost of continuing to play professional basketballe. it would not affect the opportunity cost of playing basketball or of broadcasting
Answer:
B) It would increase the opportunity cost of becoming a broadcaster.
Explanation:
Opportunity costs are defined as the cost of choosing one alternative activity or investment over another.
The basketball player has two options, he can continue to play for an NBA team with a much better salary, or he can decide to become a broadcaster. If the player decides to quit basketball, then he will lose more money due to pay raise. That amount of money that he will lose if he decides to become a broadcaster is the opportunity cost of becoming a broadcaster. Since the pay increase raised the player's salary, the opportunity cost of becoming a broadcaster also increases.
The world price of grapefruits is above the price that currently prevails in Cuba in the absence of trade. Assuming that Cuba is a small economy compared to the rest of the world, what happens if Cuba decides to open up trade with the world grapefruit market?
The price of domestic Cuban grapefruit for consumers will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Cuban exports of grapefruits will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Answer:
B, B
Explanation:
If Cuba decides to open up trade with the world grapefruit market, the price of domestic Cuban grapefruit for consumers will Increase because the opening of trading with the world will decrease amount of grapefruit available for the people in Cuba thereby creating shortage which will lead to increase in price. Cuban exports of grapefruits will Increase by virtue of opening to the rest of the world.
Kelly Corp. barters with Ace Corporation for goods that are similar in nature and value. The value of the goods was $1,000. The cost of the goods was $400. If Kelly uses IFRS to prepare financial statements, what amount should Kelly recognize as income?
a. $1,000.
b. $0.
c. $400.
d. $600.
Answer:
Option 1 is correct because Income is the amount that we receive from our customers when we sell them our product. In this case, the amount should be received was $1000, which the Kelly can use to buy the product she has exchanged its product with the item.
The entry will be contra entry:
Dr Purchases $1000
CR Income $1000
Brenda kraft has proven herself to be an able manager. her section has a high project completion rate with the highest-quality product and the lowest defects in her division. in addition, she accomplishes this with fewer full-time people than other managers. co-workers say that the secret of her success is in her ability to determine what needs to be done and by whom, and her understanding of the basic "management processes."
Answer:
D) an effective manager
Performing a large number of projects is making a dream come true. Objective-realization is an indicator of a manager's success. "An efficient manager" is misleading because it says nothing about how good Brenda is when performing tasks. Likewise, "a good spokesperson" and "a good resource allocator" are not right, as there is no evidence of Brenda's ability as a knowledge provider (speaker) or decision-maker (resource allocator) in the article.
An estate is transferred with the stipulation that alcohol will never be consumed on the premises or the seller will take back the property. This kind of estate is a
A. fee simple absolute.
B. pur autre vie.
C. conventional remainder.
D. fee simple defeasible.
Answer: Fee simple defeasible.
Explanation:
The estate sales is an example of fee simple defeasible contract, where a property is sold with a conditionality. A fee simple defeasible contract is a kind of property sales contract, where a property is sold on conditionality that if violated, the property would be returned back to the seller.
Answer:
Fee simple defeasible
Explanation:
Fee Simple Defeasible
A fee simple defeasible is a of propertythat has certain conditions attached to it. The holder of a fee simple defeasible possesses the property as long as he or she has met the conditions attached to the property. If the condition is violated or not met, then the property will go back to the original owner.
Who was your most difficult customer?
• Give me an example of a time when you did not meet a client's expectation. What happened, and how did you attempt to rectify the situation?
• When you're working with a large number of customers, it's tricky to deliver excellent service to them all. How do you go about prioritizing your customers' needs?
• Tell the story of the last time you had to apologize to someone.
Answer: when I was working at AXA as a Financial Advisor, my most difficult clients or customers are the SKEPTICAL CUSTOMERS ( their ask much questions and always doubt everything you say).
one of the days I never meet a clients need, was the day a client wants to liquidate his money market investment ( it's a fixed account where clients deposit money and expect good returns or interest when ever they want to cash out the money). The clients wants his money immediately, but at that moment we had some Network issue, and claims has to be posted before liquidation can be done. I called the head office to inform them the issue on ground, as they work to rectify it, I took the client to our lounge room, I bought him ice cream and cake, we ate together and I cracked some jokes, we laughed together as we wait for the Network issue to be resolved,
Customers satisfaction is actually difficult when it comes to large number, I always have a note book, to write down appointment and discussions with customers, so it will be easy for me to satisfy everyone according to what we have discussed earlier. When I have much work to do per hour, I have to inform them on how each issue will be treated accordingly, as their patiently wait.
The last time I apologized to someone was few hours ago, I mistakenly stepped on someone's foot in a public transport, I just have to apologize immediately.
Explanation:
The customer is the client of the company and needs to be kept satisfied in order to have profit.
Customer's satisfaction matters for the growth and the development of the company and many matters are related to large organizations. The organizations such as MNC have a large client base and need to meet each and every client expectation. The need to build a goodwill and a mutual understanding.Learn more about the most difficult customer.
brainly.com/question/3880151
Behavioral economics A. studies why people optimize. B. studies why people choose not to optimize. C. studies why people sometimes don't optimize. D. studies why people behave badly when buying and selling.
Answer:
B. Studies why people sometimes don't optimize
Explanation:
Behavioral economics is the combination of psychology and economics applied to explain why individuals sometimes behave irrationally and don't make optimal economic decisions.
Behavioral economics takes into account human factors such as emotions, influence etc and cites them as one of the reasons as to why individuals act irrationally sometimes.
For example,most of our buying decision are influenced by what our peers buy and many a times lead us into buying those articles which we don't actually require.
Thus, behavioral economics (C). studies why people sometimes don't optimize.
The nurse instructs a client on how to collect a 24 hour urine specimen for a creatinine clearance test. which statement by the client would cause the nurse to intervene?
A client collecting a 24-hour urine specimen must be instructed to include all urine passed in that period, starting after the first morning's urination. Discarding the first urine and then collecting every drop until the same time the next day is crucial for accurate results. Misunderstanding the instructions by the client would require the nurse to intervene to ensure valid results.
The client statement that would cause the nurse to intervene when collecting a 24-hour urine specimen for a creatinine clearance test might be, "I will start collecting my urine in the morning and finish the next morning, discarding the first urine of the day." It is essential to include the first morning's urine and end with the same timing on the following day, without including that day's first morning urine. The nurse would need to correct the misunderstanding because proper collection is crucial for accurate test results.
Educational reinforcement should include instructions to collect every drop of urine during the 24-hour period, starting with the second urination of the day after discarding the first morning's urine. The sample collection is critical to assess kidney function accurately, preferably without long delays in testing or without proper refrigeration to prevent the decomposition of urinary constituents.
Presence of white blood cells in the urine, for instance, might suggest an infection or inflammation within the urinary tract. Furthermore, accurate 24-hour urine collection data are vital for diagnosing potential health issues such as renal failure, which might require additional medical interventions like blood tests and ultrasonography to rule out urinary tract obstruction or other causes.
One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different proprietorships: Determine the missing amounts. Additional investment in the $ Revenue $ Withdrawals from the business $
Final answer:
The question involves finding the missing information in balance sheets and income statements for different proprietorships. The calculations include determining the merchandise balance and the current account balance, using basic accounting principles and known relationships between accounts.
Explanation:
The question entails the task of completing missing information from summaries of balance sheets and income statements for proprietorships. The task requires an understanding of basic accounting principles, particularly balance sheets and income statements, which are crucial for determining the financial health of businesses. It includes calculations such as the merchandise balance and the current account balance.
To calculate the merchandise balance, you will need to consider the values of exports minus imports. The current account balance is broader, including the merchandise balance alongside net income from abroad and net current transfers. Thus, it reflects the net flow of goods, services, and unilateral transfers during the period.
The missing information can be found by using known accounting equations and the relationships between the different accounts. For example, the owner's equity at the end of the period can be calculated by adding the net income, additional investments, and subtracting any withdrawals from the business.
Marshall McLuhan's "global village" metaphor suggests that the world's cultures are becoming increasingly disconnected and independent
A. True
B. False
Answer:
The answer is "Option B"
Explanation:
Marshall McLuhan invented a word to describe the planet "shrunk under", that is also known as modern communications technologies. He associates with an expanded central nervous system with the vast network of Communication Systems, that eventually connected all of them worldwide. In his, a global village defines the world's integrated trend as a result of the proliferation of information technologies around the planet, that's why it is wrong.
Gamma is a company that develops software to help businesses with data processing. Their software performs multiple business functions, including processing payrolls, generating tax information for employees, and managing performance evaluation reports. The software is hosted on a remote server maintained by Gamma, and client businesses can access it online. Which technology is being used by Gamma to perform the computing tasks for other businesses?
Answer:
They use CLOUD COMPUTING
Which mission area includes restoring health and social services networks and returning economic and business activities to a healthy state?
Answer:
The correct answer is letter "A": recovery.
Explanation:
The U.S. Federal Emergency Aid (FEMA) is an agency that aims to provide the necessary support needed in front of major events and natural disasters. The FEMA has five (5) mission areas: prevention, protection, mitigation, response, and recovery. FEMA's recovery mission is to put back on track communities affected by incidents. FEMA's core capabilities include planning, health and social services, infrastructure systems and economic recovery.
Final answer:
The correct mission area for restoring health and social services and revitalizing economic and business activities after an emergency is the Recovery phase. This phase is critical for community stabilization and resilience building.
Explanation:
The mission area that includes restoring health and social services networks and returning economic and business activities to a healthy state is Recovery. The Recovery phase is crucial in emergency management and addresses the long-term revitalization of the affected community. Option B
By stabilizing the economy using various strategies, such as economic stimulus, and restoring services and infrastructure, the community can work towards regaining normalcy. This involves actions like re-establishing health services and social protection measures, as well as the rehabilitation of the ecosystem and green infrastructure damaged by extreme events. Recovery is aimed at reducing vulnerabilities and increasing the resilience and capacity of communities to withstand future incidents.
What are five characteristics which help differentiate projects from other functions carried out in the daily operations of the organization?
Answer:
Explanation:
5 characteristics of project:
change - projects are used to change an existing process. For example, project to improve the performance of existing software will bring change in working of software
temporary - project is temporary, it is held to achieve some results or bring change and has a completion time
cross-functional - it involves people from various departments and backgrounds
uncertainty - every project has an element of uncertainty. There are no guarantees
unique - there are no absolutely similar projects
Agent Norm just started working for Sunshine Realty. He was required to pay an initial fee of $120 for training and $50 for business cards. The $170 is usually referred to as what?
Answer:
Start-up cost
Explanation:
The $170 is usually referred to as Start-up cost. Start-up costs are the expenses incurred during the creation process of a new business. All companies are different and various types of start-up costs are expected.
Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be?
Answer: $105.788
Explanation: property tax amount is calculated by multiplying the assessed value by the tax rate.
Tax rate =0.63% = 0.0063
Assessed value = $201,500
Property tax = tax rate * assessed value
Property tax = $201,500 * 0.0063
Property tax = $1269.45
Property tax is calculated on a yearly basis. Therefore,
Monthly tax=$1269.45÷12=$105.79
Suppose the demand curve for medical care services is perfectly inelastic. What will happen to the equilibrium price and quantity if supply increases?
Answer:
Equilibrium price would fall
Equilibrium quantity would remain unchanged
Explanation:
A perfectly inelastic demand means the quantity demand doesn't change regardless of changes in price.
If supply increases, equilibrium price falls while quantity remains unchanged.
Refer to the image attached for a graphical explanation.
I hope my answer helps you
Final answer:
With a perfectly inelastic demand curve for medical care services, an increase in supply will lower the equilibrium price, while the equilibrium quantity remains unchanged.
Explanation:
When the demand curve for a good or service is perfectly inelastic, it means that consumers' quantity demanded does not change in response to a change in price. In the context of medical care services, if the supply of these services increases, the usual expectation would be for the equilibrium price to fall and the equilibrium quantity to increase. However, because we have a perfectly inelastic demand, the equilibrium quantity remains constant regardless of any changes in supply.
Therefore, the increase in supply will lead to a decrease in the equilibrium price of medical care services, but the quantity of services consumed will stay the same. This is because, in the case of perfectly inelastic demand, consumers are willing to pay any price for the same quantity due to the necessity or lack of substitutes for the service.
Flounder Company purchased a delivery truck for $33,000 on January 1, 2020. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 13,800 in 2020 and 10,200 in 2021. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense per mile Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.
Answer:
Through straight line method
In year 2020 =3100
In year 2021 = 3100
Through double declining method
In year 2020=6600
In year 2021= 5280
Through activity based
in year 2020=4544
in year 2021=3366
Explanation:
Through straight line method
Formula is (Cost-salvage)/Useful years
So,
Cost of good is $33000
Salvage amount is $2000
Number of useful years 10
Putting the values
(33000-2000)/10
3100
As, this is straight line method, depreciation for the next year (2021) would also remain same. 3100
Through double declining method
Formula is 2* depreciation rate
so, 2* 1/10
double declining rate is 1/5
So, 33000*1/5= 6600
6600 for 2020
Next year (2021),
Now we would subtract the amount of 6600 (already depreciated) from the 33000.
So, 33000-6600= 26400
Applying the rate, 26400*1/5 = 5280
So, next year 5280
Through activity based
we depreciate the truck according to its usage
So, in first year it was used 13800 miles. Maximum it can be used for 100,000 miles
First year 13800/100000= 13.8% used
we depreciate then 33000*13.8%= 4554
So, in 2020 4554
Next year (2021)
It was driven 10200 which is 10200/100000= 10.2%*33000
So, 0.102*33000= 3366
In 2021, depreciation of machine according to the activity based system was 3366
Which of the following statements is correct?
a. The balance sheet gives us a picture of the firm's financial position at a point in time.
b. The income statement gives us a picture of the firm's financial position at a point in time.
c. The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity.
d. The statement of cash flows tells us how much cash the firm must pay out in interest during the year.
e. The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year.
Answer:
a. The balance sheet gives us a picture of the firm's financial position at a point in time.
Explanation:
The assets, liabilities, and stockholder equity are reported in the balance sheet. The accounting equation shown below is used for this purpose.
Total assets = Total liabilities + owners equity
The balance sheet debit and credit side should always be equal.
In addition, it is always prepared on the date defined.
The income statement is prepared for a specified period that records total revenues and total expenditures
The statement of cash flows represents the cash position with respect to cash inflow and the cash outflow of cash
And the four most important financial statements provided in the annual report are the balance sheet, income statement, statement of stockholders' equity, and statement of cash flows.
The accurate statement among the options provided is that the balance sheet gives us details about the firm's financial position at a particular moment in time. It displays what the firm owns, owes, and the investment made by the shareholders.
The accurate statement is option A: The balance sheet gives us a picture of the firm's financial position at a point in time. This financial statement shows the firm's assets, liabilities, and stockholders' equity at a specific date, in essence displaying what the firm owns, owes, and the amount invested by the shareholders. Conversely, the income statement (option B) shows the company's revenue and expenses over a period, not at a point in time. The four main financial statements (option C) are the balance sheet, income statement, statement of cash flows, and statement of stockholders' equity, not cash budget. The statement of cash flows (option D) provides information about the company's cash receipts and payments during a period, not specifically about interest payments. There's no statement of cash needs (option E) as a individual formal financial statement.
Learn more about Balance Sheet here:https://brainly.com/question/34287613
#SPJ3
Customers arrive at Rent a Wreck and hope to score an inexpensive and unsightly vehicle to use for what typically is a short period of time. About twenty customers show up in any hour of the day and it takes the customer service representative about two minutes to photocopy their driver's license and insurance card and take an impression of a credit card. Assume that the service and arrival rates are governed by the Poisson distribution; how long does it take for the average customer to clear the system?
A) 10 minutes.B) 6 minutes.C) 3.33 minutes.D) 3 minutes.
Answer: B- 6 minutes
Explanation: From the question above, In one hour, about 20 customers shows up at Rent a Wreck.
It takes 2 minutes to photocopy their driver's license and insurance card and take an impression of a credit card
therefore 20/2=10
in one hour which is 60 min = 60/10
=6 minutes
Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggregate output expands in the short run. What does this say about situations in which the classical model of the price level applies?
Answer:
It illustrates that the classical model of the price level best applies to economies with persistently high inflation.
Explanation:
When a very low inflation rate has been constant in an economy, and the money supply increases suddenly, in the short run that change will not immediately increase the inflation rate, but instead it will increase real output.
Classical economists argue that an increase in the money supply will immediately affect the inflation rate, but that theory applies mostly to economies that have a certain level of inflation. For example, for the past 12 years, European nations have been experiencing very low inflation rates, sometimes even negative rates. But during that same period, the European Central Bank has carried on a huge expansionary policy. It favored economic growth, although not as much as expected, but it didn't skyrocket inflation rate as the classical economy model predicted.
Final answer:
An increase in the money supply initially expands output in contradiction to the classical model, but in the long run, the Keynesian model suggests output returns to potential as wages adjust, while the rational expectations theory suggests immediate adjustments keep output constant with only prices rising.
Explanation:
When there is a large increase in the money supply in an economy that had low inflation, it supports a short-term expansion in aggregate output. This scenario suggests a deviation from the classical model of the price level, which posits that changes to the money supply only affect price levels, not real output. In the short run, according to the Keynesian model, an increase in the money supply shifts the aggregate demand curve to the right, leading to increased output and price levels (inflation). However, in the long run, nominal wages adjust, causing the short-run aggregate supply to decrease and thus returning the real GDP to its potential output, without changing the long-run output. The rational expectations theory suggests a different outcome; it proposes that people anticipate the inflation caused by an increased money supply, leading to immediate wage adjustments and thus keeping the real GDP at its potential level without changing output, but with higher prices.
the difference between money coming into a country from exports and money leaving a country due to imports, plus money flows from other factors, is known as the:
a. balance of trade
b. balance of payments
c. free trade
d. trade deficit
Answer:
Balance of payments (BOP)
Explanation:
The balance of payments is referred to details of the transaction that held between two entities either in the same country or outside the country of a particular time period.
when the transaction was done for another country, there is a deduction of credit from the balance of payment and when transaction was done for the same country then credit is added to the BOP
Coronado Industries is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Coronado's lawyer states that it is probable that Coronado will lose the suit and be found liable for a judgment costing Coronado anywhere from $1,830,000 to $8,980,000. However, the lawyer states that the most probable cost is $5,430,000. As a result of the above facts, Coronado should accrue:________.
a) a loss contingency of $1,800,000 and disclose an additional contingency of up to $7,200,000.b) a loss contingency of $5,400,000 and disclose an additional contingency of up to $3,600,000.c) a loss contingency of $5,400,000 but not disclose any additional contingency.d) no loss contingency but disclose a contingency of $1,800,000 to $9,000,000.
Answer:
b) a loss contingency of $5,400,000 and disclose an additional contingency of up to $3,600,000.
Explanation:
There are 2 conditions that must be met in making provisions, as stated by the International Accounting Standards (IAS 37). They are:
1. Present Obligation
2. Are outflows probable (i.e. more likely than not)
3. Can the outflows be reliably measured.
1. Present Obligation
In the given scenario, it was mentioned that there is a present obligation because ''Coronado Industries is being sued for illness caused to local residents as a result of negligence on the company's part'' hence this already informs that there is an obligation.
2. Are outflows probable (i.e. more likely than not)
From the scenario, it can be gathered that outflows are probable because the lawyer has stated ''it is probable that Coronado will lose the suit and be found liable'' that implies that there is a liability to be recognised
3. Can the outflows be reliably measured.
It is stated in the scenario that ''However, the lawyer states that the most probable cost is $5,430,000'' Hence, this represents a reliable estimate.
Furthermore, the other likely fraction in the worse case scenario should be shown in the disclosures or additional information.
Does this situation describe an equilibrium?
Every student enrolled in Economics 101 must also attend a weekly tutorial. This year there are two sections offered: section A and section B, which meet at the same time in adjoining classrooms and are taught by equally competent instructors. Section A is overcrowded, with people sitting on the floor and often unable to see the chalkboard. Section B has many empty seats.
This is not an equilibrium. If students from section A attended section B instead, they would be better off: they could get seats and see the chalkboard without incurring any cost (since the section meets at the same time and is taught by an equally competent instructor). Over time, you should expect students to switch from section A to section B until equilibrium is established. TRUE or FALSE
Answer:
True
Explanation:
Equilibrium exists when there are no remaining opportunities for individuals to make themselves better off. In this case, equilibrium will be reached once the students divide themselves between both classrooms and all of them are able to sit on chairs and see the chalkboard.
It will cost $20,000 a year for four years to send an 8-year-old child to college. How much should be invested today if the child will make the first of four annual withdrawals 10 years from today? The expected rate of return is 8 percent.
Answer:
To achieve their goal, they will need to invest $30,684.111 today
Explanation:
The value of money always reduces as time moves due to inflation. Therefor if we were to compare the current value of money now and maybe ten year ago, we notice that the value ten years ago was higher than the current value. It was determined the amount of money used to buy a piece of property now was higher than the amount of money used to buy the same property ten years ago. In our case above, we need to determine the present value of the future cash flows that will be needed to be invested today in order to meet the child's college education. This can be achieved as follows using the formula below;
P.V=C/(1+r)^n
where;
P.V=present value=unknown
C=future cash flows=$20,000 per year
r=rate of return=8%=8/100=0.08
n=number of year
Year Present Value Result
11 {20,000/(1+0.08)^11} 8,577.657
12 {20,000/(1+0.08)^12} 7,943.275
13 {20,000/(1+0.08)^13} 7,353.958
14 {20,000/(1+0.08)^14} 6,809.221
Total=(8,577.657+7,943.275+7,353.958+6,809.221)=$30,684.111
To achieve their goal, they will need to invest $30,684.111 today
A country's per capita national debt is its national debt divided by its population. Is the per capita national debt of Country G within $5 of $500 ?
(1) Country G's national debt to the nearest $1,000,000,000 is $43,000,000,000.
(2) Country G's population to the nearest 1,000,000 is 86,000,000.
Final answer:
Using the details provided, Country G's national debt per capita calculates exactly to $500, which is indeed within $5 of $500 as per the question's requirement.
Explanation:
You are asking whether the per capita national debt of Country G is within $5 of $500. To answer this, we need to calculate the per capita national debt using the information given in statements (1) and (2).
According to the information provided
Country G's national debt is approximately $43,000,000,000.
Country G's population is approximately 86,000,000.
To calculate the per capita national debt:
Divide the national debt by the population.
The calculation would be $43,000,000,000 / 86,000,000 = $500 per person.
Why is it that horizontal analysis is performed only on the income statement and balance sheet, but not on the statement of cash flows? A. When searching for fraud, examining the statement of cash flows is not as effective as comparing actual changes in account balances.B.Horizontal analysis converts balance sheet and income statement to change statements whereas the statementof cash flow is already a change statement.C. The statement cash flow of cash flows does not provide any valuable fraud-related information.D. Horizontal analysis of balance sheets and income statements is relatively easy, while applying the same procedure to the statement cash flows is complicated.
Horizontal analysis converts balance sheet and income statement to change statements whereas the statementof cash flow is already a change statement.
Explanation:
Horizontal analysis (also referred to as trend analysis) is a form of financial analysis that shows improvements over a period of time in the quantities of associated financial statement products. It is a helpful tool for assessing trends. The declarations are used in horizontal analysis for two or more periods.
The horizontal review of financial statements consists of the comparison over several tax years of a revenue ratio, a benchmark or a line item. Such research can be carried out, for example, on profits, operating expenses, investment, assets, capital, equities and liabilities.
Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabilities account on the common-size balance sheet of the same firm increased. The firm has ________ its liquidity over the past year.
Answer:
Decreased
Explanation:
Liquidity or current ratio = Current Assets / Current liabilities
If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.
The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.
Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).
Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.