Answer:
Cost-Benefit Principle.
Explanation:
The constraint that states that information disclosed by the entity must have benefits to the user which are greater than the costs of providing it is called the Cost-benefit principle. Basic logic behind the cost-benefit principle is that any information is not free of cost, all information bears somehow or other some kind of cost associated with it. Companies spend loads of amount to information entering into their logs, statements, financial statements etc. Outside stakeholders want to know about the organisation, how it is performing, what products they are making, whats the company' health in terms of numbers and figures. So company gather all that information for its stakeholders. But here is the main question that whether it makes any logic of getting that information by spending huge amount to make it available for its stakeholders, does this cost can be justified by the benefits coming from those particular stakeholders.
If Newton Manufacturers has an accounts receivable turnover of 4.8 times and net sales of $7,812,379, what would its receivables be?
Answer:
$1,627,579
Explanation:
The formula and the computation of the account receivable turnover ratio is presented below:
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
4.8 times = $7,812,379 ÷ Average accounts receivable
So, the average accounts receivable would be
= $7,812,379 ÷ 4.8 times
= $1,627,579
The airline industry requires substantial investments in equipment or technology to produce a product. As a result, there are a relatively small number of sellers, each holding substantial market share, in a market with many buyers. Because there are few sellers, the actions of each directly affect the others. This is an example of ___________.
Answer:
This is an example of an Oligopoly
Explanation:
Oligopoly is a market structure where a few number of firms, usually two or more firms, which gives high market shares to those firms involved, but the number of firms must be low enough for one firm's actions to significantly influence other firms
The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits.
True or False.
Answer:
The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits. This statement is True.
Explanation:
Since 1970, the credit industry of United States is growing. Credit is marketed also very well because they take high interest rates and fees and continue to flourish by earning huge profits with these.
Banks also lend more money to consumers as they earn high profits by taking more interest rates. Though this credit is actually not good for an individual's financial condition, as they have to re-pay the credit in addition of the high interest. So, the credit structure is designed such that it can sustain high unemployment and income instability these days. Thus, the given statement is True.
A Coverdell Education Savings Account may be preferred to a Sec. 529 Education Savings Account under all of the following circumstances EXCEPT:(A)The student beneficiary will use the money to pay for high school expenses.(B)The grantor's modified adjusted gross income is below a certain threshold amount.(C)The grantor is in a low tax bracket.(D)The grantor wants to make a one-time contribution of $15,000 to the account.
A Coverdell Education Savings Account may be preferred to a Sec. 529 Education Savings Account under certain circumstances, but not when the student beneficiary will use the money to pay for high school expenses.
Explanation:A Coverdell Education Savings Account may be preferred to a Sec. 529 Education Savings Account under all of the following circumstances EXCEPT:
(A) The student beneficiary will use the money to pay for high school expenses. A Coverdell Education Savings Account can be used to pay for qualified education expenses for elementary, secondary, and higher education. A Sec. 529 Education Savings Account is specifically designed for higher education expenses.(B) The grantor's modified adjusted gross income is below a certain threshold amount. Both a Coverdell Education Savings Account and a Sec. 529 Education Savings Account have income limits.(C) The grantor is in a low tax bracket. Both accounts can be beneficial for individuals in low tax brackets.(D) The grantor wants to make a one-time contribution of $15,000 to the account. Both accounts allow contributions, but there may be annual contribution limits.Learn more about Coverdell Education Savings Account here:https://brainly.com/question/29490147
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Which term refers to items that are imported without the consent of the trademark holder? A. Product adaption strategy B. Gray market goods C. Dumping D. Free trade zone E. Backward invention strategy
Answer:
B. Gray market goods
Explanation:
Gray market goods is the term which refers to items that are imported without the consent of the trademark holder.
Unlike 'backward invention strategy and 'product adaptation strategy' where products are re engineered and re adapted to suite the peculiarities of the developing economies, Grey Market is trade of commodities through authorized distribution channels but are not authorized by the original manufacturer or owner of the trade mark.
Central City needs to have an income of $3,560,000. The total property is valued for taxation at $92,000,000.What is the tax rate?%
Answer:
3.87%
Explanation:
Data provided in the question:
Income needed by the central city = $3,560,000
Total Value of the property for the taxation = $92,000,000
Now,
The income needed by the central city = Tax collected
or
The income needed by the central city = Total Value of the property for the taxation × Tax rate
or
$3,560,000 = $92,000,000 × Tax rate
or
Tax rate = $3,560,000 ÷ $92,000,000
or
Tax rate = 0.0387
or
Tax rate = 0.0387 × 100%
= 3.87%
The total rewards approach has arisen from the:
A) changing business environment of the last several decades.
B) organizationʹs business needs.
C) executive boardroom.
D) changing global economy.
E) employeeʹs requirement for stability.
Answer: Changing business environment of the last several decades.
Explanation:
The total reward approach covers the totality of payments and benefits an employee gains from his employer. The total reward approach for running businesses has changed overtime, as employers have discovered more efficient ways of handling employee welfare.
admission to a county fair costs 20 for two adults and one child and 16 for one adult and two children. what is the cost for one adult?
Answer:
cost of 1 adult = 8
Explanation:
two adults and one child == 20
one adult and two children == 16
what is the cost for one adult?
2 adults + 1 child == 20
1 adult and 2 children == 16
if 1 adult price is x and let 1 children be y
2x + y = 20 ........(1)
x + 2y =16 .........(2)
using simultaneous equation of substitution method
eqn (1) becomes y = 20- 2x ........(3)
input eqn (3) in (2)
x + 2(20- 2x) =16 .........(4)
x + 40 - 4x = 16
40 -3x =16
-3x = 16 - 40 = -24
x == 8
since x equal 8
therefore, cost of 1 adult = 8
Rodney is a senior salesperson in a pharmaceutical company. Every time Jeff places an order of 2,000 units from the company, Rodney pays 7 percent of the total amount of sales to Jeff for helping him achieve his sales targets. This is an example of a _____
Answer:
kickback
Explanation:
In business, kickbacks are illegal because they are a form of bribery. A kickback happens when an illegal sales commission is paid to an individual that works for another company but is responsible for placing an order. Kickbacks include other things besides money, such as trips, gifts, etc.
Kickbacks are illegal because the person that receives the commission (Jeff) is not making unbiased purchase decisions.
Which modern small-town institution is most like an ancient Sumerian temple in terms of its social power and economic importance to its hometown?
Answer:
Local factory: provides thousands of employment opportunities of both professional and unprofessional to the locals, they have charity affiliations, they own lots of the local market real estate and have good ties with political leaders.
The primary goal of a financial manager is ________. A. maximizing wealth B. minimizing return C. minimizing risk D. maximizing profit
Answer:
D. maximizing profit
Explanation:
Maximizing profit because maximizing wealth may also maximize expenses by a certain limit . Minimizing return or risk may not result in maximum profit.
Maximum profit may help the business to develop grow and have the best results. The primary objective of financial managers is to make the business and company more worthy to its owners employees etc. This is achieved by getting the maximum profits. The maximum profits in turn reward every person connected with the company.
The primary goal of a financial manager is maximizing wealth. So, option A is correct.
The primary goal of a financial manager is maximizing wealth. In traditional economics and corporate finance, this is often equated to profit maximization, which means seeking to maximize the difference between revenues and costs. Financial managers are tasked with making decisions that increase the firm's value, where profit serves as a primary indicator of financial health and potential for growth. While minimizing risk and maximizing returns are also concerns for a financial manager, these are typically sub-goals within the broader objective of wealth maximization for the shareholders. Profit maximization can sometimes lead to tensions between ownership and corporate goals, as managers may pursue strategies that prioritize short-term profits at the expense of long-term growth and sustainability. Understanding the marginal decision rule is critical - firms should produce additional units only when the marginal revenue exceeds the marginal cost. In the context of ensuring that the firm operates at least cost while maximizing revenues, a financial manager plays a crucial role in steering the firm towards its primary goal.
Complete the following sentence. If, as the price of orange juice decreases, the quantity of grapefruit juice that people buy decreases, then orange juice and grapefruit juice are _______.
Answer: Substitutes
Explanation:
The consumers take orange juice and grape fruit juice as substitute for each other: when goods are substitutes, one can be consumed in place of the other, therefore an increase in demand for one substitute would directly lead to the decrease in demand of the other.
Tristan owns a local flower shop. His customers are already finding him online, but he's curious whether Google My Business can do more than just list his phone number and address. How can Google My Business help Tristan engage his customers?
a. By responding to reviews.b. By sending e-mail newsletters.c. By tracking search history.d. By collecting online payments.
Answer: By responding to reviews
Explanation:
Google my business can also help Tristan respond to reviews/comments made by customers online about his business. Google my business is a tool which business owners make use of, to make their business easily accessible when searched about online and it provides a section for reviews which a business can respond to.
G-My Business can help Tristan engage customers by allowing him to actively respond to customer reviews. Other functions, such as sending newsletters, tracking search history or collecting online payments are not available within the G-My Business platform.
Explanation:G-My Business can indeed offer Tristan additional avenues for engaging his customers beyond simply listing his contact details. Out of the options presented, option a, which is to actively respond to reviews is the way G-My Business can help engage customers. Not only does this approach allow for direct interaction with customers but it also gives Tristan an opportunity to handle any complaints publicly and demonstrate his commitment to customer service.
By responding to reviews: Tristan can use G-My Business to respond to customer reviews. This feature shows clients that their opinions are valued and that Tristan is engaged.However, it's worth noting that G-My Business doesn't offer newsletter services, search history tracking or online payment collection. For these, Tristan might need to explore other digital platforms tailored towards these purposes.
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According to the IASB Framework, the two criteria required for incorporating items into the income statement or statement of financial position are that:_________
A) It meets the definition of relevance and faithful representation.
B) It meets the definition of an element and can be measured reliably.
C) It satisfies the criteria of capital maintenance.
D) It meets the requirements of comparability and consistency.
Answer:
A) It meets the definition of relevance and faithful representation.
Explanation:
According to IASB Framework, an asset or liability is recognised only if recognition of that asset or liability and of any resulting income, expenses or changes in equity provides users of financial statements:
a) Relevant information about the asset or liability and about any resulting income, expenses or change in equity
b) A faithful representation of the asset or liability and of any resulting income, expenses or changes in equity.
So based on the above discussion, the answer is A) It meets the definition of relevance and faithful representation.
The IASB framework has been capable of providing a relevant and faithful representation to the financial statement. Thus, option A is correct.
The International Accounting Standards Board (IASB) had issued the documentation that has been dealing with the financial statement in the year 1989. The framework has been helpful in providing the format for the external users.
The framework provides the assets and liabilities to the consumers when there have been the presence of relevant and faithful information for the income source,
Thus, the IASB framework has been capable of providing a relevant and faithful representation to the financial statement. Thus, option A is correct.
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Taxes on the property Buyer Alan is purchasing are $3,200 due on December 31. If the closing is set for October 15, using the 365-day method, how much of the taxes will be credited to the buyer?A) The seller's share of $2,533.38B) The buyer's share of $666.62C) The seller's share of $2,525.76D) The buyer's share of $674.24
Answer:
C). The seller's share of $2,525.76
Explanation:
The 365-day assumes a total of 365 days in a year. So the number of days up to when the closing is set should be determined as shown;
Step 1: Determine total number of days up to October 15
Total days up to October 15=Number of days in January+number of days in February+number of days in March+number of days in April+number of days in May+number of days in June+number of days in July+number of days in August+number of days in September+number of days up to October 15
where;
number of days in January=31
number of days in February=28
number of days in March=31
number of days in April=30
number of days in May=31
number of days in June=30
number of days in July=31
number of days in August=31
number of days in September=30
number of days up to October 15=15
replacing;
Total days up to October 15=(31+28+31+30+31+30+31+31+30+15)=288 days
Step 2: Determine the amount of taxes that will be credited to the buyer
Sellers share=(number of days up to October 15/total number of days in a year)×Taxes due on December 31
where;
number of days up to October 15=288 days
total number of days in a year=365
Taxes due on December 31=$3,200
replacing;
Sellers share=(288/365)×3,200=2,524.93 which is approximately equal to 2,525.76
The seller's share of $2,525.76
The buyer's share of the taxes credited will be $2,610.46.
Explanation:To calculate the amount of real estate taxes that will be credited to the buyer, we need to determine how many days the seller owned the property and deduct that from the total taxes. Here is the calculation:
Calculate the number of days from January 1 to October 15: 31 (Jan) + 28 (Feb) + 31 (Mar) + 30 (Apr) + 31 (May) + 30 (Jun) + 31 (Jul) + 31 (Aug) + 30 (Sep) + 15 (Oct) = 298 days.Calculate the daily tax rate: $3,200 / 365 days = $8.77 per day.Calculate the amount credited to the buyer: $8.77 per day × 298 days = $2,610.46.The buyer's share of the taxes credited will be $2,610.46.
Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store’s needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores. A. Accumulating B. Assorting C. Allocating D. Buying and selling E. Sorting
Answer:
B. Assorting
Explanation:
Assorting is defined as the term in which the sorting is done on the basis of the kind or classification of the product or the service etc.
This term can also be used for arranging or distributing the product or the service based on the category of the product or the service.
Now, here in the given question the wal-mart sorts the products required by the stores from the large variety available and then distributing it.
Wal-Mart performs the assorting function when it selects and combines various products based on the specific needs of each store for shipment, thereby optimizing their supply chain to meet customer demands at different locations.
Wal-Mart distribution centers are involved in various functions to adjust their supply chain logistics effectively. When Wal-Mart decides what each store's needs are and combines different products together for shipping to each location, it is performing the assorting function. This involves creating a variety of products from multiple manufacturers to meet the specific needs of each store.
The assorting function supports the idea of providing a tailored set of goods that corresponds with consumer demand at different locations. This is in contrast to the accumulating or sorting functions, which involve collecting similar items or categorizing them into groups, respectively. By performing the assorting function, Wal-Mart is adjusting its product offerings to maximize efficiency and satisfy customer needs in its widespread retail locations.
Assume Metro Company had a net income of $2,100 for the year ending December 2018. Its beginning and ending total assets were $33,500 and $19,500, respectively. Calculate Metro's return on assets (ROA). (Round your percentage answer to two decimal places.)
Answer:
7.92%
Explanation:
The computation of the return on total assets is shown below:
Return on assets = (Net income) ÷ (average of total assets)
where,
Net income is $2,100
Average total assets = (Beginning total assets + ending total assets) ÷ 2
= ($33,500 + $19,500) ÷ 2
= $26,500
Now put these values to the above formula
So, the ratio would equal to
= $2,100 ÷ $26,500
= 7.92%
The Return on Assets (ROA) for Metro Company is 7.92%. This is calculated by dividing the net income by the average total assets for the year.
Explanation:The Return on Assets (ROA) is calculated by dividing the Net Income by the average total assets for the same period. The Net Income for Metro Company is $2,100. The average total assets is found by adding the beginning and ending total assets and dividing by 2. In this case, the beginning assets were $33,500 and the ending assets were $19,500. Therefore, the average total assets is ($33,500 + $19,500) / 2 = $26,500. The ROA is then $2,100 / $26,500 = 0.0792 or 7.92% when rounded to two decimal places.
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Which of the following is NOT an example of central economic control:
A. Family or clan leaders.
B. Warlords.
C. Dictators.
D. Tribal chieftains.
E. All of the above are examples of central control.
Answer:
The correct answer is that none of the above mentioned options are the examples of the central economic control.
Explanation:
Central economic control, also called as the command economy, which is described as the economic system in which the central authority like the government takes the decisions of the economy in relation to the distribution as well as the manufacturing of the products.
Therefore, dictators, family lenders or the warlords, none of them are the examples of the central economic control as this system is dealt with the central authority which could be the government.
NOTE: The correct option is not stated so providing the direct answer.
Bonita Realty Management Co. received a check for $30,000 on October 1, which represents a one yearadvance payment of rent on an office it rents to a client. Unearned Rental Revenue was credited for the full $30,000. Financial statements are prepared on December 31. The appropriate adjusting journal entryto make on December 31 would be
A.Rent Revenue $2,500Unearned Rent Revenue $2,500
B.Rent Revenue $22,500Unearned Rent Revenue $22,500
C.Unearned Rent Revenue $22,500Rent Revenue $22,500
D.Unearned Rent Revenue $7,500Rent Revenue $7,500
Answer:
D. Unearned Rent Revenue $7,500 Rent Revenue $7,500
Explanation:
The journal entry is shown below:
Unearned Rent Revenue Dr $7,500
To Rent Revenue $7,500
(Being the unearned rent revenue is recorded)
The computation is shown below:
= Unearned rent revenue × (number of months ÷ total number of months in a year)
= $30,000 × (3 months ÷ 12 months)
= $7,500
Since the unearned rent revenue is credited for $30,000 but for adjusting for 3 months we have to debit this account and credited the rent revenue account
Final answer:
The correct adjusting journal entry on December 31 for Bonita Realty Management Co. is to debit Unearned Rent Revenue and credit Rent Revenue for $7,500, which represents rent for the three months out of the year that has been earned.
Explanation:
When Bonita Realty Management Co. receives a payment of $30,000 for one year of advance rent, this amount is initially recorded as Unearned Rental Revenue because the service (the use of the office space) has not yet been provided. This is in keeping with the accrual basis of accounting, which requires that revenues be recorded when they are earned, regardless of when the cash is received.
By December 31, three months of rent have been 'earned', since the office has been in use for that time period by the client. Therefore, the adjusting journal entry should move one quarter of the total payment from Unearned Rent Revenue to Rent Revenue to reflect the rent that has been earned from October 1 through December 31.
The calculation is as follows:
$30,000 ÷ 12 months = $2,500 per month
$2,500 per month x 3 months = $7,500 earned rent
The correct journal entry on December 31 is:
Debit Unearned Rent Revenue $7,500
Credit Rent Revenue $7,500
This entry recognizes that $7,500 of the prepaid rent is now earned, leaving the balance of prepaid rent to be recognized in the following months of the lease term.
Licensee Gary advises Buyer Tim that a property Tim is interested in is zoned for commercial use. In fact, Gary does not know what zoning applies to the property. Tim put in a purchase contract on the property and later finds out that the zoning in place actually would prevent him from using the property as he intends. Which statement is TRUE?
Answer:
Gary committed misrepresentation.
Explanation:
Misrepresentation refers to making a false statement in order to induce a buyer (or even a seller) to enter or exit a contract. If the buyer can prove that the real estate agent lied and that they entered a contact based on that lie, then he/she can sue the real estate agent for any damages incurred. The misrepresentation (the lie) must be both false and fraudulent, which means that it was made in order to induce another party into entering or exiting a contract.
In this case, even though Gary did not know what zoning regulations applied to this property, he made a false statement on purpose in order to convince Tim of buying the property.
The true statement in regard to the context carries the meaning that Garry has committed misinterpretation.
A misrepresentation situation occurs when a real estate investor misinterprets a property's content feature. Failures to disclose, which occur when a real estate agent fails to acknowledge or expose a content function of the estate, are commonly grouped in with misstatements.
Therefore, the correct statement is the second one.
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If an economy is in a recession and the government opts for an expansionary fiscal policy to shift AD closer to potential output, an economist with a typical functional finance view who acknowledges partial crowding out would conclude that the AD:
Answer:
Shifts to the right as a result of increase in government expenditure
Explanation:
An economist with functional finance view is one that has experience or training in finance related field. An economist that acknowledges partial crowding out is one that is persuaded that government cannot spend its way out of recession without a crowding out effect.
Crowding out is when government spending reduces investment spending by the private sector. Therefore an economist with this mindset will naturally conclude that aggregate demand Shifts to the right as a result of increase in government expenditure.
Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith's independence would be impaired under which of the following circumstances?
Answer:
A. Smith is a Director of Hometown Bank
Explanation:
First, the multiple Options
a. Smith is a director of Hometown Bank.
b. Smith has a collateralized automobile loan with Hometown Bank.
c. Smith had an account with Hometown Bank 2 years ago.
d. Smith and a Hometown Bank board member belong to the same church.
Basically, there are 5 characteristics of an auditor whose responsibility is access the financial statement of an organisation and give a true and fair report on the state of the business. One of these characteristics is Independence and Objectivity.
When there are potential risks to the ability of the auditor to give a true and fair view of the audited books, the we say the auditor's independence is impaired.
An auditor's independence is impaired as a result of business relationship with clients. This includes any form of business association with client as manager, employee, director among others.
Based on these definitions, Smith as a director of Hometown Bank and a partner of Johnson Accounting firm risks the impairment of his independence because of the business relationship of being a Director with the client.
The trees these moths used to live on were white, but have been covered in soot from coal factories. Which moth will be more successful in this environment?
Dark mothLight mothBoth will be equally successfulNeither will be successful
Answer:
Dark moth
Explanation:
The survival of the fittest.
Before, the white moth's characteristics made them the fittest moth to survive in this environment, but as the environment changed and the color of the trees got darker, the advantage shifted to the dark moths. The dark moth's characteristics are now the best ones to survive on the environment, and therefore they will multiply, while the number of white moths will decrease. Now the dark moth is the fittest, and will survive in larger numbers.
S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
1. Legal Actions
2. Insurance with other insurers
3. Entire Contract
4. Reinstatement
Answer:
Option "3" is the correct answer for the following situation.
Entire Contract
Explanation:
S takes out a whole contract of medical insurance which includes a clause specifying that the provider has no power to change the contract or to remove any of its clauses.
The entire contract is a type of agreement where both sides need to deliver on the promise in a contract. The purpose of this sort of contract is to satisfy the whole of the contract. This kind of contract is also referred to as an indivisible contract.The provision in question that states the agent does not have the authority to change the policy or waive any provisions is the Entire Contract provision.
The health insurance policy provision in question is the Entire Contract provision. This element stipulates that the policy document, including any endorsements or amendments, represents the full and complete agreement between the insurer and the insured. Importantly, it also mentions that the agent does not possess the authority to change the policy or waive any of its terms. This is a critical feature designed to protect both parties by ensuring that the terms of the insurance agreement cannot be altered without formal amendments to the policy itself, thus maintaining the integrity of the contractual agreement.
In the context of managing health risks and ensuring fair practices, regulations such as the Affordable Care Act (ACA) play a pivotal role. The ACA introduced measures to prevent insurers from excluding individuals with pre-existing conditions and implemented controls on the ability of insurance companies to arbitrarily set or change insurance rates. These measures contribute to leveling the playing field for consumers, emphasizing the importance of clear, unchangeable contractual terms as outlined in the Entire Contract provision.
a company saw a drop in sales after negative publicity around a scandal involving safetry reports. the strategic changes the company makes to deal with this situation are reactive changes.
Answer:
The question is not complete, below is the complete question:
A company saw a drop in sales after negative publicity around a scandal involving safety reports. the strategic changes the company makes to deal with this situation are reactive changes?
(A) True
(B) False
Correct answer is (A) True
Explanation:
This shows that a company external environment, as an impact on the company sales of goods and services.
Final answer:
Reactive changes are strategic adjustments made in response to a crisis in business, often handled by crisis communication professionals.
Explanation:
Reactive changes are strategic adjustments made by a company in response to a crisis or negative event such as a scandal impacting its operations.
These changes aim to address the issues at hand and mitigate the damage caused by the crisis. In the business world, organizations often employ crisis communication professionals to handle such situations effectively.
________ is reported as a current asset on balance sheet. a. Cost of goods sold b. Accounts payable c. Operating income d. Merchandise inventory
Answer:
d. Merchandise inventory
Explanation:
The current assets comprise cash, inventory, account receivable, prepaid insurance, short term investment, etc
This current asset are presented on the asset side of the balance sheet
Whereas the cost of good sold are presented on the income statement, the account payable are displayed on the liabilities side of the balance sheet, and the operating income is also presented on the income statement
Income from known sources subtracted from the total income gives a reasonable estimate of: a. Unknown funds b. Liabilities c. Living expenses d. Net worth
Answer:
The correct answer is (a)
Explanation:
Income is generated from known and unknown sources. Generally, it is hard to know the unknown sources from where the income is generated but it is easier to know the amount of income generated from the unknown sources. Likewise, when the amount of income from known sources is subtracted from total income the amount of income from unknown sources can be estimated.
Hard Rock Mining is a mineral mining company. The CEO of Hard Rock Mining died last month. The news led to a short-term decline in the company's stock price, but the price bounced back after the company announced its increased quarterly earnings. This is an example of:
This is an example of:
a. An LLP/LLC
b. A corporation
c. A proprietorship
d. A partnership
Answer:
b. A corporation
Explanation:
Hard Rock Mining is a corporation because they are the only business types that have shareholders.
An LLP/LLC and partnership is owned by partners.
A sole proprietorship is owned by one person. The death of the ceo would most likely lead to the dissolution of the business.
I hope my answer helps you
Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal annual year-end payments of $5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note?
a. $5,045
b. $5,560
c. $8,000
d. $9,000
Answer:
b. $5,560
Explanation:
The computation of the total interest revenue is shown below:
The five equal annual year-end payments = $5,009
For five years, the total amount is
= $5,009 × 5 years
= $25,045
And, the present value of recording the note is $19,485
So, the total interest revenue earned would be
= Five years amount - present value of recording the note
= $25,045 - $19,485
= $5,560
Your firm wants to use external sources for new product ideas. After consulting with a friend you learn that all of the following are common external sources except ________.
a. the firm's executives
b. competitors
c. suppliers
d. customers
e. trade shows and magazines
Answer:
A. The firm's Executives
Explanation:
External Sources to a firm are those sources that are related to be not part of the day to day running of the affairs of the firm. As such the firm's executives are internal sources because they represent the interest of the firm.
In case of a sole proprietorship or partnership business, these executives are the owners of the business while in the case of listed firms, they represent the interest of the owners of the firm. They cannot therefore be regarded as external sources
Competitors are related as they are within the same product line but they are not involved in the daily affairs of the firm, suppliers make raw materials available while customers patronise the business. Trade shows magazine on the other hand independently report the progress of all firms within the industry. These are the external sources.