Answer:
$3,842.78
Explanation:
We must determine the future value of the money invested and then calculate the difference between both return rates. We can use the future value formula: FV = present value x (1 + return rate)ⁿ
3.5% ⇒ FV = $238,000 x (1 + 3.5%)³ = $238,000 x 1.035³ = $263,874.85
4% ⇒ FV = $238,000 x (1 + 4%)³ = $238,000 x 1.04³ = $267,717.63
difference = $267,717.63 - 263,874.85 = $3,842.78
When determining whether to shut down in the short run, a competitive firm should ignore (i) fixed costs. (ii) variable costs. (iii) sunk costs. A. (ii) only B. (i) and (iii) only C. (iii) only D. (i), (ii), and (iii)
Answer:
B) (i) and (iii) only
(i) fixed costs.(iii) sunk costs.Explanation:
When a competitive firm must decide whether it shuts down or not in the short run, it must only focus on the variable costs and the marginal revenue. As long as the marginal revenue ≥ variable cost, then the firm should continue to operate in the short run, at least until the market stabilizes.
This occurs when total demand rises faster than the production of goods:
A cost-push inflation
B deflation
C hyperinflation
D demand-pull inflation
Answer:D
Explanation:
According to the video, _________________ is unplanned buying with little investigation of alternative stores, brands, or prices, whereas, _________________ is the process of considering alternative stores, brands, and prices.A. Comparison shopping; impulse buying.B. Impulse buying, comparison shopping.C. Influenced buying; substitute shopping.D. Substitute shopping; influenced buying.E. Influenced buying; opportunity shopping.
According to the video, Impulsive Buying is unplanned buying with little investigation of alternative stores, brands, or prices, whereas, Comparison shopping is the process of considering alternative stores, brands, and prices.
Explanation:
Impulsive buying refer to the phenomenon of buying something without any plan.It is just like you went to a shop you liked something and you bought it.Few example of impulsive buying are-buying chocolates,a scarf,a painting or even a furniture.Impulse buying is also termed as Pleasure buying.
Comparison shopping refers to the process of buying a product after comparing the price,brand with that of the other similar product in the market.
Daphne is one of the three project managers at Virgo Inc., an art and design studio. Raymond and Gabriel, the other two project managers, are unhappy working with Daphne as she always selects projects that suit her area of expertise and avoids projects which require more ambiguous work, have tight deadlines, and represent a low probability of success. Raymond and Gabriel feel that they deserve greater credit than Daphne for being open and accepting different work demands and situations, as opposed to Daphne, who always takes a conservative and risk-averse approach. Daphne is using the defensive behavior of _________ here.
A) scapegoating
B) ingratiating
C) stalling
D) retaliating
E) playing safe
Answer:
E) playing safe
Explanation:
Daphne is, as colloquially can be said, "playing it safe" within the company. She is a risk-averse individual who does not feel comfortable outside her comfort-zone, therefore, she tries to only work with projects that cater to her personal skills and experience, even if this strategy causes distress to the other two project managers.
Daphne is using the defensive behavior of playing safe by always selecting projects that align with her expertise and avoiding projects with more risk. This behavior is causing discontent among other project managers.
Explanation:Daphne is using the defensive behavior of playing safe. She always selects projects that suit her area of expertise and avoids projects with more ambiguous work, tight deadlines, and low probability of success. This risk-averse approach is causing dissatisfaction among the other project managers, Raymond and Gabriel, who believe they deserve more credit for being open and accepting different work demands and situations.
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A company sells each unit of its product for $ 107. The final department showed the following costs per equivalent unit: $ 48 transferred-in, $ 23 direct materials, $ 12 conversion. What is the gross profit on each unit sold by the company?
Answer:
$24
Explanation:
Gross profit is the net return from the selling price of the product less all the manufacturing cost associated with that product. These cost included material and conversion cost of all the departments working on the product.
Conversion cost is the some of all the manufacturing cost except the material cost, in other work all the cost incurred to convert the raw material to a finished product is called conversion costs.
Selling Price of the product = $107
Costs:
Material $23
Conversion cost $12
Cost Transferred In $48
Total Cost $83
Gross profit $24
"This model 107 electric nail gun will reduce the amount of time your crew spends roofing a 3,000 square foot home by 30 percent. This will lower your labor costs and allow you to bid more competitively in the market for your service." This opening statement is an example of a(n) _____ opening.
Answer:
E) benefit
Explanation:
An opening benefit statement focuses on what benefits will my customers obtain from purchasing and using my product or service. How can I make these benefits appear more attractive to them?
The purpose of all sales opening statements is to get the audience's attention and try to engage the largest amount of them.
The opening statement used in this case directly emphasizes on the lower labor costs resulting from using this electric nail gun.
A practical opening in a business or proposal context is designed to show immediate benefits and engage the audience, similar to a lead in an academic essay.
Explanation:The opening statement provided is an example of a practical opening. This type of opening is often used in proposals or business communications where the writer seeks to engage the audience by showing immediate practical benefits. By stating that the use of a model 107 electric nail gun will significantly reduce roofing time, the speaker or writer is hooking the audience with the promise of increased efficiency and cost savings, which is a powerful incentive for potential customers.
In the context of numerical problems like choosing whether to purchase the nail gun, a business would calculate the highest interest rate acceptable for a loan to buy the nail gun, based on the savings the nail gun provides over time. If the savings due to the efficiency brought by the nail gun exceed the costs of the loan's interest, then the purchase would be considered a good investment.
In academic terms, the concept of a 'lead' in an academic essay is similar to a practical opening in business, as both serve to immediately draw in the reader's interest and provide a clear indication of the benefits or key messages that will follow.
The Mickey and Mouse Cat Food Factory runs an aggressive marketing campaign and much to the delight, orders surge to twice their previous level. If their operations manager uses an EOQ policy, what is the impact on the order quantity?
Answer:
A) The order quantity will be 40% higher.
Explanation:
the economic order quantity (EOQ) is the order quantity that should minimize total inventory costs which include both order costs and carrying inventory costs.
the formula for calculating EOQ is:
EOQ = √(2DS / H)
D = annual demand in unitsS = order cost per purchase orderH = holding cost per unit per yearIf D doubled, that means that EOQ will increase by 41% = √2 - 1 = 0.41 or 41% ≈ 40%
A theater group made appearances in two cities. The hotel charge before tax is the second city was $ 1000 higher than in the first. The tax in the first city was 8.5 % and the tax in the second city was 5.5 %. The total hotel tax paid for the two cities was $ 790 . How much was the hotel charge in each city before tax?
Answer:
First city was= $ x = $ 5604
Second city was =$(x +1000) = $6604
Explanation:
The tax in the first city was 8.5%
The tax in the second city was 5.5%
Let the hotel charge amount before tax for the first city be $x
Let the hotel charge amount before tax for the second city be: $(x+1000)
Applying the tax
First city will be;
8.5/100*(x) = $0.085 x
Second city will be;
5.5/100* (x+100) =0.055(x+100) = $ (0.055x+5.5)
Total hotel tax paid for the two cities was ;
0.085 x + 0.055 x + 5.5 = $(0.14 x + 5.5)
This expression for total hotel tax paid for the two cities is equal to $790
$(0.14 x + 5.5) = $ 790
0.14 x = 790 -5.5
0.14 x = 784.5
x= 784.5/0.14
x=5603.57
x= $5604 ( nearest $)
Before tax, hotel charge for;
First city was= $ x = $ 5604
Second city was =$(x +1000) = $6604
The group paid $ 5250 at first city and $ 6250 at second city
Solution:Let x = the charge in 1st city before taxesLet y = the charge in 2nd city before taxesThe hotel charge before tax in the second city was $1000 higher than in the firstThen the charge at the second hotel before tax will be x + 1000y = x + 1000 ----- eqn 1The tax in the first city was 8.5% and the tax in the second city was 5.5%The total hotel tax paid for the two cities was $790Therefore, a equation is framed as:8.5 % of x + 5.5 % of y = 7900.085x + 0.055y = 790 ------- eqn 2Let us solve eqn 1 and eqn 2Substitute eqn 1 in eqn 20.085x + 0.055(x + 1000) = 7900.085x + 0.055x + 55 = 7900.14x = 790 - 550.14x = 735x = 5250Substitute x = 5250 in eqn 1y = 5250 + 1000y = 6250Thus the group paid $ 5250 at first city and $ 6250 at second city
Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue $26,000 Beginning Finished Goods Inventory 8000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.
Answer:
10,100
Explanation:
The cost of goods sold refers to the direct expense incurred in manufacturing products meant for sale.
the cost of goods sold is calculated using the formula
COGS = opening stock + purchase/ cost of goods manufactured - ending stock
For Fontana manufacturing
Beginning stock = 8,000
Ending stock =13, 500
Cost of goods manufactured 15,600
COGS= 8,000 + 15,600- 13,500
COGS = 10,100
A firm wants to develop a level material use schedule based on the following data. What should be the setup cost? Desired lot size: 60 Annual demand: 40,000 Holding cost: $20 per unit per year Daily production rate: 320 Work days per year: 250
Answer:
$0.45
Explanation:
Given that
Desired lot size = 60
Annual demand = 40000
Holding cost = 20 per unit
Daily production rate = 320
Workdays per year = 250
Recall that
S = (Q^2 H[1 - d/p])/ 2d
Where S = setup cost
D = annual demand
Q = order quality
P = daily production
Seeing that daily demand is not given. We find d
d = 40000/250 = 160
Therefore
S = [60^2 20( 1 - 60/320)] / 2 × 40000
S = 3600 20 ( -1.12)/ 80000
S = $0.45
A firm can develop a level of material. The setup cost is $0.45
What is the Holding cost?
The Desired lot size is = 60
Then Annual demand is = 40000
After that Holding cost is = 20 per unit
Then Daily production rate is = 320
The Workdays per year is = 250
Now, S is = (Q^2 H[1 - d/p])/ 2d
Where S is = setup cost
Then D is = annual demand
After that Q is = order quality
Then P is = daily production
Now we Seeing that daily demand is not given. We can find d
d is = 40000/250 = 160
Then S = [60^2 20( 1 - 60/320)] / 2 × 40000
After that S = 3600 20 ( -1.12)/ 80000
Therefore, S = $0.45
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Read the following scenario, and determine if the message is professional. Message sent from a BlackBerry mobile device to a client: Jack, are you available this evening? I’d like to touch base on the Smith project. Best, Katie. This message sent from a BlackBerry mobile device to a client is:________. A) Professional B) Unprofessional
Answer:
Professional
Explanation:
A professional message has the following in it content
Thank the recipient. If you are replying to a client's inquiry, you should begin with a line of thanks. ...
Purpose should be stated
Closing remarks will be added
End with a closing.
Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $9.00 is binding. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. If the minimum wage is set at $12.50, the market will not reach equilibrium. Binding minimum wages cause frictional unemployment.
Answer:
1. In this labor market, a minimum wage of $9.00 is binding : FALSE
2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE
3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE
4. Binding minimum wages cause frictional unemployment : FALSE
Explanation:
Question has been attached here
Unemployment is the term used to define those who are willing and are actively seeking work but cannot find any. A minimum wage is a price control, in the form of a price floor imposed by government legislation in order to protect laborers from low wages. Paying anything below the minimum wage is against the law.
1. In this labor market, a minimum wage of $9.00 is binding : FALSE
A minimum wage is binding only if it is set above the equilibrium price. In this scenario, the equilibrium price is at $12. Hence, $9 is not binding since a shortage of labor would gradually raise the price to the equilibrium.
2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE
When there is a shortage in the market, it means that the quantity supplied is higher than the quantity demanded. With any particular commodity such as bread or rice, a shortage creates a rise in price. Just as that, a shortage of workers creates an upward pressure on the price (wage). Since there are no price ceilings, market will reach equilibrium.
3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE
As shown in the diagram, the market equilibrium is $12. If the minimum wage was $12.50, there would be a surplus of labor (quantity supplied is higher than quantity demanded). Naturally, this may cause a downward pressure on wages until it reaches $12. However, when a minimum wage is imposed at $12.50, it cannot fall below that level. Thus, the market will not reach the equilibrium.
4. Binding minimum wages cause frictional unemployment : FALSE
Frictional unemployment is a type of unemployment that occurs when workers are temporarily unemployed while switching between jobs. It is normal and occurs even in the healthiest of economies. A binding minimum wage is more likely to cause structural unemployment. This occurs when there is a mismatch between the skills of the labor force and the skills expected to be possessed by employers to do a particular job. Hence, even if jobs are available, the laborers are not suited to do them and thus are unemployed.
The statements that are true are:
If the minimum wage is set at $12.50, the market will not reach equilibrium.In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium.What is minimum wage?A minimum wage is known to be the smallest form of income or remuneration that employers are said or required to legally pay all their employees.
Note that If the equilibrium wage is said to be higher than the minimum wage (at the price floor), then the minimum wage is said to have no kind of effect on the market, based on the fact that the equilibrium point is above the minimum wage.
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If an economy is in a steady-state with no population growth or technological change and the capital stock is above the Golden Rule level and the saving rate falls:
a. output, investment, and depreciation will decrease, and consumption will increase and then decrease but finally approach a level above its initial state.
b. output, consumption, investment, and depreciation will all decrease.
c. output and investment will decrease, and consumption and depreciation will increase and then decrease but finally approach levels above their initial state.
d. output and investment will decrease, and consumption and depreciation will increase.
Answer: A. output, investment, and depreciation will decrease and consumption will increase and then decrease but finally approach a level above its initial state.
Explanation: from the above question, an economy that is in a steady-state with no population growth or technological change and the capital stock is above the Golden Rule level and the saving rate falls then output, investment, and depreciation will decrease and consumption will increase and then decrease but finally approach a level above its initial state.
Answer:
c. output and investment will decrease, and consumption and depreciation will increase and then decrease but finally approach levels above their initial state.
Explanation:
If an economy is in a steady state with no population growth or technological change and the capital stock is above the Golden Rule level and the saving rate falls: output, investment, and depreciation will decrease, and consumption will increase and then decrease but finally approach a level above its initial state.
The Golden Rule capital stock is the level at which MPK = δ, so that the marginal product of capital equals the depreciation rate. When the economy begins above the Golden Rule level of capital, reaching the Golden Rule level leads to higher consumption at all points in time.
Therefore since in the scenario, capital stock is above golden rule level, consumption will rise, and fall as it approaches golden rule.
Clear Call Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider:__________.1. Erna's intended use for the phone.2. An available alternative design.3. DefDeals' method of accounting.4 .ClearCall's quality control efforts
Answer:
2. An available alternative design.
Explanation:
Product liability is the liability a manufacturer bears for putting a defective product in the hands of a consumer. Defective products are either those that are produced with functional inadequacy or liability can also be filed when sufficient information is not provided for safe use of the product.
In this scenario Ema files a product liability claim against clear call alleging design defects. The court may consider an alternative design in the bid to decide if clear call is liable in this lawsuit. The alternative can be given to Ema as replacement for the defective phone.
The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive layoffs by companies. The companies use the strategy of job termination to cut down their costs and reduce their output as the people are now more cautious with their spending. In the given scenario, the layoffs that take place exemplify _____.
Answer:
Trough
Explanation:
Trough economic situation is when the recession is hardest and comes after the phase of contraction where growth slows, employment declines (unemployment increases), and pricing pressures subside.
Trough is characterized by large number of people being unemployed due to extensive layoffs by companies in order to cut down their costs and reduce their output during the period of economic decline
At the beginning of the month, the baking department of Mario Company had no beginning work in process inventory. At the end of the month, 800 units that were 75% complete with respect to materials were in the in the ending work in process inventory of its baking department. During the month, 1,200 units were completed and transferred to Finished Goods. Assuming that the weighted-average method is used, the equivalent units in the ending work in process inventory with respect to materials of the baking department equal:_______.
Answer:
1800 units
Explanation:
Equivalent units refer to the number of units which would've been completed if all the efforts were directed at those units which were started during a month, which are of course less than the total units of work in process.
In the given case, equivalent units shall be computed as follows,
Equivalent number of units using weighted average method = Finished goods + Equivalent units in ending work in process
Equivalent number of units = 1200 + 800 × 0.75
Equivalent number of units = 1200 + 600 = 1800 units
All of the following would be excluded from GDP except ____________. A. a home-based business that grows spices. B. money from illegal drug cartels. C. the gardening Jack does on the weekend to improve his home. D. health care assistance that Mary gives to her elderly father after work.
Answer:
A home-based business that grows spices.
Explanation:
Gross Domestic Product can be described as the total value of all final goods and services in a monetary form made in a country within a period of one year, by all the residents of the country regardless of whether they are citizens or foreigners. It emphasizes the geographic aspect of production, that is, the value of output within a country. It, therefore, excludes the earnings of citizens or their investment abroad, but it includes the earnings of foreigners or earning from foreign investment in the country. However, GDP excludes money made from illegal business or goods, service not paid for e.g services rendered to oneself or others which are not paid for like giving a free ride to friends or services rendered by children or housewives.
formular for calculating GDP,
GDP = NDP (Net Domestic Product) + Depreciation
Among the options given, the home-based business that grows spices would be included in GDP, as it represents a measurable market transaction involving the production of goods, contrasting with illegal, unpaid, or non-commercial services that are excluded from GDP calculations.
Explanation:To determine what is included in Gross Domestic Product (GDP) and what is not, it's essential to understand that GDP measures the market value of all final goods and services produced within a country in a given period. It includes goods and services traded for money, which can be measured and reported. Therefore, all the options listed in the student's question, a home-based business that grows spices would be excluded from GDP except for this particular option, because it represents a market transaction where goods are produced and potentially sold, contributing to the nation's economy. In contrast, activities such as unreported personal gardening (Jack’s gardening), non-commercial care (Mary’s health assistance), and illegal transactions (money from illegal drug cartels) are excluded because they do not have a market transaction that can be quantified within the formal economy.
For instance, the cost of hospital stays (from the reference information) is a market transaction, and hence, it is included in GDP because it is a service for which people pay. On the other hand, activities that do not involve a market transaction or are illegal, such as the gardening Jack does on the weekend or money from illegal drug cartels, do not count towards GDP. This distinction is crucial for accurately measuring a country's economic activity and comparing it over time or against other countries.
On January 2, 1986, Beal, Inc. acquired a $70,000 whole-life insurance policy on its president. The annual premium is $2,000. The company is the owner and beneficiary. Beal chairqed officer's life insurance expense as follows: 1986 $2,000 1987 1,8001988 1,500 1989 1,100----------------------------------------- Total $6,400 In Beal's December 31, 1989 balance sheet, the investment in cash surrender value should be:____________.a. $0b. $1,600c. $6,400 d. $8,000
Answer:
B) $1,600
Explanation:
The ending cash surrender = total premiums paid - total amount charged to insurance expense = ($2,000 x 4 years) - ($2,000 + $1,800 + $1,500 + $1,100) = $8,000 - $6,400 = $1,600
In this case, a larger portion of the premiums paid are allocated to investments related to the life insurance.
Which analysis technique is particularly useful for companies that invest a significant amount of their media budget in offline media channels or companies that sell predominantly through local stores?
Answer:
Media mix model.
Explanation:
Media mix model is a method of analysis that allows marketers measure the effectiveness of marketing and advertising. It determines how various elements contributes to goal achievement.
Insights gained from the analysis is used to make future campaigns better.
Aggregate data is used to evaluate a large nber of channelsbthat are both traditional and digital.
This method was developed in 1960s- 70s to drive regional sales, and is very effective for companies that sell predominantly through local stores.
Ed owned and used his home in Kentucky as his principal residence for 15 years. He moved to another state in the 16th year and rented the Kentucky home. Two years later he sold the Kentucky home. Ed's brother, Fred, had two houses. Fred owned and used his home in Tennessee as his principal residence for 10 years. He had another home in Florida. In the 11th year, he moved into his Florida home. He resided there for 3 years and then sold the Florida home. Which brothers has "nonqualified use" of his principal residence that will reduce the exclusion on the gain on a sale of a personal residence?
Fred has "nonqualified use" of his principal residence that will reduce the exclusion on the gain on a sale of a personal residence.
Explanation:
Fred moved into his house post a period of “nonqualified use”. Nonqualified use can be stated as any period during which the particular asset is not used as the primary residence of the owner or taxpayer.
If a taxpayer moves between two houses, using each as his residence for consecutive periods of time, the home that the owner uses for most of the time will be stated as the person's principal residence.
Ed had 'Nonqualified Use' for his Kentucky home as he rented it out after moving, which will reduce his exclusion on the gain on sale. In contrast, Fred had no 'Nonqualified Use' as he turned his Florida house into his primary residence before selling it.
Explanation:Under the Internal Revenue Code, a provision permits homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of gain on the sale of a principal residence, provided they have owned and used the property for at least two of the last five years. However, there is a clause about Nonqualified Use, which largely refers to periods when the property is not used as a principal residence. Here, the property must not be rented out in any 5-year period before the sale.
In Ed's case, he had Nonqualified Use because after having used his Kentucky house as a principal residence for 15 years, he rented it out after moving to another state. This reduces his exclusion for the gain on the house's sale.
On the other hand, Fred moved from his primary home in Tennessee into his Florida home, making it his new primary residence before selling it. Hence, he had no non-qualified use of either home and will bear no reductions on his exclusions.
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According to our discussion in class, two reasons why capital may not flow to poor countries are that the poorer countries may:______.a. have economies unlike those described by a Cobb–Douglas production function and not be subject to diminishing returns to capital. b. have already accumulated high levels of capital relative to labor and may already have access to advanced technologies. c. legally prevent the inflow of foreign capital and provide strong legal protection of private property. d. have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).
Answer:
have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).
Explanation:
According to our discussion in class, two reasons why capital may not flow to poor countries are that the poorer countries may: have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).
Poor countries have lower levels of capital per worker and this explains, in part, the reason for their poverty. Although the expected return on investment might be high in many developing countries, it does not flow there because of the high level of uncertainty associated with those expected returns. and lack of enforcement of property rights
Final answer:
Capital may not flow to poor countries primarily due to their inferior production capabilities and weak enforcement of property rights, which generate substantial investment risks.
Explanation:
The discussion about why capital may not flow to poorer countries highlights two critical barriers: inferior production capabilities and the lack of enforcement of property rights. These barriers prevent poorer countries from effectively utilizing and protecting investments. Porous production capabilities, symbolized by a low value of A in the production function, suggest that even with capital, these economies might not achieve high productivity due to insufficient technology, skills, or infrastructure.
On the other hand, the non-enforcement of property rights creates a risky environment for investors, as there is a real threat of expropriation by governments. Both factors contribute significantly to the apprehension among foreign investors about directing capital towards these economies, despite the potential high returns due to a lack of capital.
A schedule listing account balances for the current and previous years, and columns for adjusting and reclassifying entries proposed by the auditors to arrive at the final mount that will appear in the financial statement, is referred to as a: _______.
A) Working trial balance.
B) Lead schedule.
C) Summarizing schedule.
D) Supporting schedule.
Answer:working trial balance
Explanation:
A trial balance is a statement prepared to test the mechanical accuracy of ledger transactions
Answer:A) Working trial balance
Explanation: A working trial balance is a trial balance which has not been adjusted,it is still in the process of being adjusted. A working trial balance is added any adjustments before the accounting period is to be closed. A working trial balance contains a schedule which lists account balances for the current and previous years, and columns for adjusting and reclassification etc.
Which of the following is true about a line of credit secured by the equity in the debtor's home? a. there is a three-day rescission period b. the same levels of disclosure for other types of credit are not required c. the monthly payments need not be disclosed d. All of the above are true.
Answer:
A) there is a three-day rescission period
Explanation:
The three day cooling off period applies to home equity lines of credit (HELOC).
HELOCs were very popular before the great recession and were one of its causes. A debtor will take a credit from a lender using his/her equity on their house as collateral. This type of credits were usually second mortgages that didn't have a definite purpose, but could be used freely by the borrowers.
Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 2016 are as follows:Oct. 3. Issued Invoice No. 622 for services provided to Palace Corp., $2,890.Oct. 5. Received cash from Champion Co., on account, for $1,060.Oct. 8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,940.Oct. 12. Received cash from Wayfarer Co., on account, for $1,450.Oct. 18. Issued Invoice No. 624 for services provided to Amex Services Inc., $2,970.Oct. 23. Received cash from Palace Corp. for Invoice No. 622 of October 3.Oct. 28. Issued Invoice No. 625 to Wayfarer Co., on account, for $900.Oct. 30. Received cash from Rogers Co. for services provided, $120.a. Prepare a single-column revenue journal to record these transactions. Enter transactions in chronological order.b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 2016
Answer:
Explanation:
REVENUE JOURNAL
DATE. DES. NO. DR. CR
3 Oct. Palace 622. $2,890
8 Oct Sunny. 623. $1,940
18 Oct Amex. 624. $2,970
28 Oct Wayfarer 625. $900
30 Oct. Rogers. . $120
Total revenue. $8,820
Less pmt in the month $3,010
Amount receivable. $5,810
Account receivable
Date. Description. Dr. Cr
1 Oct. Bal b/f. $2,510
3 Oct. Palace $2,890
5 Oct. Champion. $1,060
8 Oct Sunny. $1,940
12 Oct. Wayfare. $1,450
18 Oct Amex. $2,970
23 Oct. Palace. $2,890
28 Oct Wayfarer $900
Balance c/d. $5,810
any companies try to to organize their business into __________ centers, because they can hold the manager of each responsibility center accountable for the entire performance within his/her responsibility center. The problem with the other three types of responsibility centers is that excuses are so easy to come by: "I didn’t have the resources I needed", "Another department drove up costs," or "Another department didn’t sell enough." With _________ (same word as before) centers, the manager has authority over revenue, costs, and investments.
Answer:
The correct options to fill the gaps are
Responsibility Centres;Responsibility Centres.Fill the blank spaces in the sentences we have:
Many companies try to to organize their business into responsibility centers, because they can hold the manager of each responsibility center accountable for the entire performance within his/her responsibility center. The problem with the other three types of responsibility centers is that excuses are so easy to come by: "I didn’t have the resources I needed," "Another department drove up costs," or "Another department didn’t sell enough." With responsibility (same word as before) centers, the manager has authority over revenue, costs, and investments.
Explanation:
In order to have a better insight into the meaning of the above statement, let us understand the concept of A responsibility centre.
A responsibility center is a part or sub-unit of a company in which the manager has some degree of authority and responsibility. The company's detailed organization chart is a logical source for identifying responsibility centers. The most common responsibility centers are the numerous departments within a company.
FIND ATTACHED DIAGRAM OF A RESPONSIBILITY CENTRE
A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an income statement, each item could be shown as a percentage of net sales.1. True2. False
Answer:
1. True
Explanation:
Vertical analysis the the percentage calculation of each item of Income statement with Gross revenue. We calculate the percentage of Gross margin which is the percent of Gross income and gross sales. Just like this the COGS to sales, Net income margin, operating income margin and operating expenses to sales ratio are calculated in vertical analysis to check the sensitivity of each part of the income to the gross income.
Ye it is true that A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an income statement, each item could be shown as a percentage of net sales.
As the owner of a television studio, Kelvin is concerned about the high wages he must pay his employees relative to wages paid by other television studio owners. A consultant has suggested that his location is a contributing factor to these higher wages because he has built his studio in:_______________.
Answer:
Explained below.
Explanation:
As Kelvin has built his studio in a place, where other studios at that place pay their employees higher wages. So he also have to pay higher wages to his employees. The consultant's suggestion is right that location is one of the factor for increment of the employees wages.
So Kelvin should shift his television studio to a place where other studios at that place pay their employees less wages.
Answer:
a location that has frequent wildfires and floods.
Explanation:
As the owner of a television studio, Kelvin is concerned about the high wages he must pay his employees relative to wages paid by other television studio owners. A consultant has suggested that his location is a contributing factor to these higher wages because he has built his studio in a location that has frequent wildfires and floods.
Employees has to increase wages of their employee because of more severe positive compensating differentials, which is safe workplace.
Compensating differentials: It is a term used in labor economics to show relation of wage rate and risk factor in the job undertaken by labors. Additional wages is paid to employee to motivate employee to do unpleasant work.
Sue purchased a stock for $25 a share, held it for one year, received a $1.34 dividend, and sold the stock for $26.45. What nominal rate of return did she earn? 10.55% 14.23% 12.09% 11.16%
Answer:
11.16%
Explanation:
Given that
Purchase price of stock = $25
Sale price of stock = $26.45
Dividend = $1.34
So, The computation of the nominal rate of return is shown below:
Nominal rate of return = (Sale price of the stock - purchase price of the stock + Dividend) ÷ (Purchase price of the stock)
= ($26.45 - $25 + $1.34 ) ÷ ($25)
= 11.16%
Adrian Corp. sells goods on account for $100,000 on May 1. On May 15, the customer returns $40,000 of the merchandise. The customer has not yet paid for any of the goods. What will Adrian record on May 15?
Answer:
C. DEBIT TO SALES RETURNS
D. CREDIT TO ACCOUNTS RECEIVABLE
Explanation:
The journal entry to record the May 15 transaction is shown below:
Sales return and allowance A/c Dr $40,000
To Accounts receivable $40,000
(Being sales return is recorded)
For recording the given transaction we debited the sales return and credited the account receivable. Both are recorded for $40,000
During the adjusting process two transactions were missed. The first is for unearned rent revenue of which $450 was earned during the period, the second was for accrued interest payable of which $275 is owed for the period. As a result of these omissions
1. liabilities are overstated by $725.
2. assets are overstated by $725.
3. net income is understated by $175.
4. revenue is overstated by $725.
Answer:
3. net income is understated by $175
Explanation:
There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.
Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.
Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.