Answer:
Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are not principles, standards, concepts, or values common to business ethics is a FALSE statement.
Explanation:
The GAAP has a wide range of applications owing to the unanimous addition of functions to the discipline of accountancy. Other than GAAP, certain countries and businesses follow the accounting methods given by 'other comprehensive basis of accounting' (OSBOA). Some businesses choose to follow both at once, while the majority choose to follow either of them.The statement is false. Just like the GAAP, there are indeed common principles, standards, concepts or values within business ethics, including but not restricted to honesty, fairness, responsibility and accountability (option b).
Explanation:The statement in the question is actually false. In fact, there are principles, standards, concepts, or values common to business ethics. Much like the Generally Accepted Accounting Principles (GAAP) that serve as a guide for accountants, business ethics also has its own set of guidelines designed to manage ethical behavior in business environments.
These include but are not limited to honesty, integrity, transparency, fairness, respect, responsibility, and accountability. There's also the concept of Corporate Social Responsibility (CSR), which encourages companies to behave ethically and contribute to societal goals.
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On May 1, 2016, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9.3 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development costs in preparing the mine $2,500,000 Mining equipment 143,400 Construction of various structures on site 36,500After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $12,000. The structures will be torn down. Geologists estimate that 730,000 tons of ore can be extracted from the mine. After the ore is removed the land will revert back to the state of New Mexico. The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs:Cash Outflow Probability$530,000 40%630,000 30%730,000 30%Hecala’s credit-adjusted risk-free interest rate is 7%. During 2016, Hecala extracted 113,000 tons of ore from the mine. The company’s fiscal year ends on December 31.Required:1. Determine the amount at which Hecala will record the mine. (Round "Depreciation" and "Depletion" rates to 4 decimal places.)2. Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2016, assuming that Hecala uses the units-of-production method for both depreciation and depletion. (Round "Depreciation" and "Depletion" rates to 4 decimal places.)3. How much accretion expense will the company record in its income statement for the 2016 fiscal year?(Round "Depreciation" and "Depletion" rates to 4 decimal places.)4. Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income statement?5. During 2017, Hecala changed its estimate of the total amount of ore originally in the mine from 730,000 to 930,000 tons. Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2017 assuming Hecala extracted 143,000 tons of ore in 2017. (Round "Depreciation" and "Depletion" rates to 4 decimal places.)
Answer:
Explanation:
1. Mineral mine - $9.3 million
Development costs - $2500 000
1/[(1+0.07)^4]=0.76290
Restoration costs = $472995 = [(530k * 0.4)+(630k * 0.3)+($730k * 0.3)] *0.76290
Cost of mine= $9.3 million+$2500 000+$472995 = $12272995
2. Depletion:
($12272995/730000tons)*113000tons=$1899792
Depreciation of machinery=($143400-$12000)/730000 * 113000tons = $20340
Depreciation of structures=($36500/730000tons)*113000tons=$5650
3. Accrecion expense recognized:
$472995*0.07*8/12=$22073
For the following activity, indicate which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. Developing a bonus reward system for the managers of the various offices of the AAA (American Automobile Association) Travel Agency.a. Providing information for decision making and planning. b. Assisting managers in directing and controlling operational activities. c. Motivating managers and other employees toward the organization's goals. d. Measuring the performance of activities, subunits, managers, and other employees within the organization. e. Assessing the organization's competitive position, and working with other managers to ensure the organization's long-run competitiveness in its industry.
Answer:
c. Motivating managers and other employees toward the organization's goals.
Explanation:
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2013, for $105,000 when the book value of Gates was $600,000. During 2013 Gates reported net income of $150,000 and paid dividends of $50,000. On January 1, 2014, Dodge purchased an additional 25% of Gates for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2013 but Dodge has deemed it necessary to change to the equity method after the second purchase. During 2014 Gates reported net income of $200,000 and reported dividends of $75,000.
1. Which adjustment would be made to change from the fair-value method to the equity method?
Answer:
Goodwill 35,000 debit
Investment in Gates 25,000 credit
Retained Earnings 10,000 credit
--to adjust for change of method--
Explanation:
600,000 x 15% = 90,000
purchased at 105,000
goodwill of 15,000
+ 150,000 x 15% of net income = 22,500
- 50,000 x 15% dividends = (7,500)
investment at the end of 2013:
90,000 + 22,500 - 7,500 = 105,000
Then we purchase 25%
105,000 represent 15%
thus 25% would be: 105,000 / 0.15 x 0.25 = 175,000
purchased at 200,000
goodwill of 25,000 to be recognized.
So, equity method will be:
105,000 + 175,000 = 280,000 for the proportional equity
and 15,000 + 25,000 = 35,000 goodwill
Total of 315,000
While fair value will not recognize goodwill. and also, the investment is not modified when dividends and the gain for the year are delcared.
It measure at cost unless the market value of the stock decrease so we got:
105,000 1st purchase + 200,000 2nd purchase = 305,000
To adjust we are going to decrease investment by 25,000 and increase goodwill by 35,000 the other will go into retained earnings to balance out.
To switch from the fair-value method to the equity method, an adjustment is needed for the initial investment in Gates Corporation.
Explanation:To change from the fair-value method to the equity method, an adjustment needs to be made for the initial investment in Gates Corporation. The fair-value method recognizes changes in the value of the investment each reporting period, while the equity method only recognizes the investor's share of the net income or loss of the investee. Therefore, the adjustment would involve removing any fair-value adjustments made under the fair-value method and recording the initial investment at its original cost.
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Beck was the general manager of Chilkoot Lumber Co. Haines sold fuel to the company. To persuade Haines to sell on credit, Beck signed a paper by which he promised to pay any debt the lumber company owed Haines. He signed this paper with his name followed by "general manager." Haines later sued Beck on this promise, and Beck raised the defense that the addition of "general manager" showed that Beck, who was signing on behalf of Chilkoot, was not personally liable and did not intend to be bound by the paper. Was Beck liable on the paper?
Answer:
No
Explanation:
Beck was the general manager of company. By signing the company's document, actually company is liable to pay that amount not individual. The claim that Haines make is incorrect as any liability is supposed to be beared by company. The claim that Beck made is correct. because he wrote general manager which means he is an employee of that company. So, liability falls on company rather than individual.
Beck's liability for the debt of Chilkoot Lumber Co. to Haines depends on whether he signed the promise with the intent to be personally bound or merely in his capacity as general manager. Typically, indicating the role next to the signature aims to avoid personal liability, but the context and wording of the agreement are crucial in determining the actual liability.
The question relates to whether Beck, who was the general manager of Chilkoot Lumber Co., is personally liable for the debt of the company to Haines after signing a paper promising to pay the company’s debt. Beck signed the paper with the addition of “general manager,” which he argues shows his intent not to be personally bound by the agreement. In general, when a representative of a company signs an agreement while clearly indicating their representative capacity, they typically are not personally liable for the debts of the company. The specific facts of the case, however, such as the exact wording of the promise and the context in which it was signed, will ultimately determine Beck's liability. If it can be shown that he intended to assume personal responsibility or that he acted beyond the scope of his authority, he might be held liable.
Joe Baker, the runner for a small coffee shop, had a bad habit of helping himself to cash from the deposit on the way to the bank. He covered his tracks by substituting a check from the next day's deposit for the amount he stole from the previous day's deposit. This is an example of what type of concealment?a. Deposits in transitb. Deposit lappingc. Force balancingd. None of the above
Answer:
The correct answer is letter "B": Deposit lapping.
Explanation:
Deposit lapping is the fraudulent act in which an individual alters accounts receivables -typically in the form of checks, to cover transactions for cash that has been stolen. The individual takes the following account receivable to cover the theft over and over for as many times as he wishes.
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $10.00, $8.20 and $2.80. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price?
Answer:
The answer is: The current share price is $47.96.
Explanation:
The current share price is equal to the present value of its expected dividend stream discounting at required return rate of 16%.
We have the dividend stream as followed:
Year 1: $22.00; Year 2:$10.00; Year 3: $8.20; Year 4: $2.80; Year 5: $2.80 * 1.05 = $2,94 and will be growing at 5% constantly afterward ( as dividend will be growing at 5% per year from Year 4 afterward).
So, the current share price is equal to:
22/1.16 + 10/1.16^2 + 8.2/1.16^3 + 2.8/1.16^4 + [Present value as at the end of year 4 of growing perpetuity which is dividend payment after year 4] / 1.16^4 = 33.20 + [ 2.94 / ( 16% - 5%) ] /1.16^4 = $47.96.
So, the current share price is $47.96.
The following are responsibilities of the governance team when managing a portfolio system EXCEPT
A. Deciding how they wish to balance the available organizational resources among the different types of projects
B. Publishing the priority of every project and ensuring the process is open and free of power politics
C. Evaluating the progress of the projects in the portfolio
D. Constant scanning of the external environment to determine if organizational selection criteria need to be changed
E. Communicating which projects are approved
Answer:
The correct answer is letter "A": Deciding how they wish to balance the available organizational resources among the different types of projects.
Explanation:
While managing a portfolio system, the governance team has many duties such as assessing the risk the portfolio represents, giving also an overview of all the project management activities and the measure of those projects compared to competitors. How to allocate the company resources for each organizational project of the firm, relies on managers directly.
The responsibilities of the governance team when managing a portfolio system involve tasks such as resource allocation, project prioritization, and progress evaluation.
Explanation:The responsibility of the governance team when managing a portfolio system involves several tasks, including:
Deciding how they wish to balance the available organizational resources among the different types of projects. This involves determining the allocation of resources such as budget, personnel, and equipment.Publishing the priority of every project and ensuring the process is open and free of power politics. This helps in creating transparency and fairness in project selection and execution.Evaluating the progress of the projects in the portfolio. This involves monitoring and tracking project milestones, deliverables, and performance.Therefore, the correct answer is C. Evaluating the progress of the projects in the portfolio.
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Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2017. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $600,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31, 2019, what is the Investment in Evan Company balance (equity method) in Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31st, what was the investment in Evan company balance (equity method) in Shalina's record?a. $600,000b. $660,000c. $690,000d. $708,000
Answer:
D. $708,000
Explanation:
Step 1: Calculate the Value in excess of Cost over book value for the acquistion
a. Shalina Purchased 40% or Evans outstanding stock for $600,000
b. Evan's net assets was $1,200,000 on that same January 1, 2017
To calculate the excess value
Evan's Net Assets $1,200,000
The Book value of Shalina's acquisition ( 40% x $1,200,000) $480,000
Subtract: The Cost of Acquisition by Shalina ($600,000)
Total = Excess of Cost over Book Value for Acquisition $120,000
This excess is Assigned to Goodwill $120,000
Calculate Goodwill Amortization
= Excess of Cost over book value- Goodwill = $0 (since all were assigned to Goodwill)
Step 2: Calculate the Investment of Shalina in Evan's Company as at 31st December, 2019
Investment Cost by Shalina $600,000
Portion of 2017 Income accrued to Shalina (40% of $140,000) $56,000
Subract: Shalina Portion of Dividend declared (40% of $50,000) ($20,000)
Portion of 2018 Income accrued to Shalina (40% of $140,000) $56,000
Subract: Shalina Portion of Dividend declared (40% of $50,000) ($20,000)
Portion of 2019 Income accrued to Shalina (40% of $140,000) $56,000
Subract: Shalina Portion of Dividend declared (40% of $50,000) ($20,000)
Shalina's Investment in Evan as at 31st December, 2019 $708,000
Note: Since, Evans company declares the same profit of $140,000 and dividend of $50,000 yearly, it means Shalina's portion of investment should be calculated based on these same figures for the three years.
Which of the following is NOT considered when the bank evaluates your loan application?
A. Your high school or college transcript
B. Your employment status and your ability to make payments now and in the future
C. Your credit history report
D. Your savings or other assets
Answer:
A. Your high school or college transcript
Explanation:
The banks will evaluate the loan application considering all factors that are pointers to the person's or entity's ability to repay the loan and in due time.
These factors include employment status and your ability to make payments now and in the future, credit history report, savings or other assets (in case there is a need to recover the loan through asset seizures).
The option not considered is high school or college transcript.
Option A.
Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $520,000 and has a present value of cash flows of $1,300,000. Project 2 requires an initial investment of $5 million and has a present value of cash flows of $6 million.
Compute the profitability index for each project.
Based on the profitability index which project should the company prefer?
Answer:
1. 2.5; 1.2
2. Project A
Explanation:
Given that,
Project 1 requires:
Initial investment = $520,000
Present value of cash flows = $1,300,000
Project 2 requires:
Initial investment = $5,000,000
Present value of cash flows = $6,000,000
1.
Profitability index = Present Value of Cash inflows ÷ Investment
Project A = $1,300,000 ÷ $520,000
= 2.5
Project B = $6,000,000 ÷ $5,000,000
= 1.2
2. Project A will be preferred because it has a higher profitability index than project B.
Final answer:
To determine the preferable project for Yokam Company, the profitability index is calculated for both projects. Project 1 has a profitability index of 2.5, and Project 2 has a profitability index of 1.2. Thus, Project 1 is preferable due to its higher profitability index.
Explanation:
The question asks to compute the profitability index for two projects and determine which project Yokam Company should prefer based on this index. The profitability index (PI) is calculated as the present value of cash flows divided by the initial investment.
For Project 1, PI = $1,300,000 / $520,000 = 2.5.For Project 2, PI = $6,000,000 / $5,000,000 = 1.2.Based on the profitability index, Yokam Company should prefer Project 1 as it has a higher PI, indicating a greater return per dollar invested.
To establish res ipsa loquitur in most states, the plaintiff must demonstrate all but which of the following?
A direct evidence of the defendant's lack of due care
B the harm ordinarily would not occur in the absence of negligence
C the plaintiff had no role in causing the harm
D the defendant had exclusive control of the thing that caused the harm
Answer:
The correct option is C.
the plaintiff had no role in causing the harm.
Explanation:
red IPSA loquitur is a Latin word that means 'the things speaks for itself.'
It means a situation that occurred due to negligence
Therefore the right option is c.
The plantiff must demonstrate all but ;
the plaintiff had no role in causing the harm.
Final answer:
In establishing res ipsa loquitur, direct evidence of the defendant's lack of due care is not required. This legal doctrine implies negligence from the nature of the accident or injury, under circumstances indicating that the defendant had control, and it would not have occurred without negligence.
Explanation:
To establish res ipsa loquitur in most states, a plaintiff must demonstrate certain elements. These typically include that the harm would not ordinarily occur without negligence, the plaintiff did not contribute to the cause of the harm, and the defendant had exclusive control of the thing that caused the harm. The one element that is not required for res ipsa loquitur is direct evidence of the defendant's lack of due care because res ipsa loquitur is a doctrine used precisely when there is a lack of direct evidence, and the circumstances of the incident imply negligence.
Therefore, the correct answer is A: direct evidence of the defendant's lack of due care is not necessary to establish res ipsa loquitur.
Which of the following is true about the studies reported by Norton, Mochon, and Ariely (2012)? (Answer: Labor leads to more love when participants successfully completed the task).
Answer:
Labor leads to more love when participants successfully completed the task.
Explanation:
The answer is already provided in the question.
Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity.
Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
(A) 0.220
(B) 1.000
(C) 0.800
(D) 0.476
Answer:
Explanation:
Labor productivity = Total output/ Total Input
Labor rate = $10. Labor hours = 1,000
So total labour input = 1,000*10= 10,000.
Materials and energy cost input = 2000+500
⇒ total input = 10,000+ 2000+500= 12500
Total output (units produced) = 10,000
Labor productivity= 10,000/12500= 0.80
Suppose that many people who earn a living raising cows decide they can make more money selling t-shirts and switch occupations.
How will this change affect the amount of beef supplied by producers?
A. There will be an increase in supply.
B. There will be a decrease in supply.
C. There will be no change in supply.
Answer:
B. There will be a decrease in supply.
Explanation:
The switch would cause the amount of cow rearers to fall. The amount of cow available would fall and there would be a decrease in the supply of beef.
I hope my answer helps you
If people raising cows switch to selling t-shirts, the supply of beef will decrease. Fewer producers in the market mean less quantity of beef produced and supplied. Other variables, such as importation of beef, are ignored.
Explanation:Effect on Beef SupplyIf many people who earn a living raising cows decide to switch occupations and start selling t-shirts, this will lead to a decrease in supply of beef. This is because when these producers exit the beef production market, less beef is produced and supplied. Less producers in the market equates to less quantity of the product (in this case, beef) being supplied. This concept is fundamental in the realm of supply and demand in economics. It's important to note, however, that other variables, such as importation of beef, is ignored in this scenario.
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Suppose that Candonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 8 million pounds of lemons for 8 million pounds of coffee.
This ratio of goods is known as the price of trade between Candonia and Sylvania.
True or False?
What is the total federal income tax withholding reported on the Matthews’ Form 1040?
a . $2,803
b . $3,974
c . $5,056
d . $6,778
Answer:
correct answer is d . $6,778
Explanation:
we get here total federal income tax that will be
as we know that
federal income tax withholding barbara = $2784
federal income tax withholding mark =$2253
form SSA 1099 = $1721
and form 1099 interest income = $20
we get total federal income tax that is sum of all four
total federal income tax = $2784 + $2253 + $1721 + $20
total federal income tax = $6,778
so correct answer is d . $6,778
Red Industries began operations on April 11th, 2022. Red purchased $2,100 of supplies, and a physical count showed that $400 of supplies were on hand at year-end. Which is the appropriate journal entry at year-end
Answer:
Explanation:
The journal entry is shown below:
Supplies expense A/c Dr $1,700
To Supplies A/c $1,700
(Being supplies account is adjusted)
The supplies expense is computed below
= Purchase value of supplies - supplies on hand at year end
= $2,100 - $400
= $1,700
For recording, this given transaction we debited the supplies expense account as the remaining balance is transferred to supplies expense and credited the supplies account
If Sharon has a surplus of $4400 per year and chooses to save that surplus for her future, needs, how much wealth will her surplus savings be worth after 25 years if she can earn a 11% rate of return?
Answer:
Her surplus savings will be worth $503,418 after 25 years.
Explanation:
In this question we are told than Sharon if Sharon saves 4400 each year for 25 years how much money will she have at the end of 25 years if she earns 11% compounded interest. To solve this question we will need a financial calculator.
The present value of her investment is 0. She contributes 4400 each year so her payments are 4400, the number of years are 25, and the interest rate is 11% so we will input these values in a financial calculator and find the future value of her savings.
PV=0
PMT=-4400
I=11
N=25
Compute FV=503,418
Rio Games and the Brazilian Real. Ryan Lock had planned his trip to the Olympic Games in Rio de Janeiro, Brazil, for many months. He had budgeted-saved-$16 comma 000 for expenses while in Rio. But he had postponed exchanging the dollars for Brazilian currencylong dashreal (BRL or R$)long dashuntil the very last minute on August 8th, doing it in the airport in the United States at BRL 3.1429equals1.00 USD. Given the following average monthly exchange rates in 2016, when should he have exchanged the dollars for real to maximize his Brazilian spending money?
To maximize his spending in Brazil, Ryan should have exchanged his money when the USD to BRL exchange rate was at its highest. Without specifics about the exchange rates over various months, it's impossible to precisely determine when he should have done so. The principle remains, the most advantageous time would be during the peak USD/BRL exchange rate.
Explanation:In this scenario, to maximize his Brazilian spending money, Ryan should have exchanged his money when the exchange rates were highest. This means Ryan should have selected the month where 1 USD was valued at the maximum possible amount of Brazilian Real (BRL or R$). However, the question doesn't provide any specific exchange rates aside from the one he got at the airport.
For instance, imagine that in June the exchange is BRL 3.5 per 1 USD. If he had exchanged his $16,000 then, he would have gotten BRL 56,000. On another time, the exchange rate might be lower (let's say BRL 3.1 equals 1.00 USD). Here, if he exchanged his dollars, he would get a lesser amount of BRL.
Therefore, without knowing the other rates, we cannot accurately or definitively say when Ryan should have exchanged his money, but the principle remains: he should do so when the USD/BRL exchange rate is at its peak.
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Ryan Lock was looking for the best time to exchange his dollars for Brazilian Real to have maximum spending money in Rio. The best time would have been when the exchange rate was the highest, providing more BRL per USD. Without concrete monthly exchange rates for 2016, we cannot determine the exact optimal exchange moment.
Ryan Lock needs to find the optimal time to exchange his dollars for Brazilian Real (BRL) to maximize his spending money during the Olympic Games in Rio de Janeiro. To determine when he should have exchanged his dollars for real, one must consider the average monthly exchange rates. The goal is to find the time period when the dollar's value was highest relative to the real, thus yielding more real per dollar.
From the given information, the market exchange rate for the Brazilian Real could potentially be 35 cents/real. However, Brazil's government might set it at 30 cents/real. To maximize Brazilian spending money, Ryan would be interested in a lower exchange rate value, the number of reals per dollar, because that would give him more reals for each dollar he exchanges.
Dakota Company experienced the following events during 2018: Acquired $30,000 cash from the issue of common stock. Paid $12,000 cash to purchase land. Borrowed $10,000 cash. Provided services for $20,000 cash. Paid $1,000 cash for utilities expense. Paid $15,000 cash for other operating expenses. Paid a $2,000 cash dividend to the stockholders. Determined that the market value of the land purchased in Event 2 is now $12, 700. Required The January 1, 2018, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. Prepare an income statement for the 2018 accounting period. Prepare a statement of changes in equity for the 2018 accounting period. Prepare a year-end balance sheet for the 2018 accounting period. Prepare a statement of cash flows for the 2018 accounting period. Determine the percentage of assets that were provided by retained earnings. Can you determine the cash in retained earnings?
The question involves recording transactions in general ledger accounts, preparing financial statements, and analyzing a company's financial health. Accounting profit is determined by subtracting explicit costs from total revenues. Shareholders invest in a company typically through the purchase of stock, and a bank's net worth can be calculated by subtracting its liabilities from its assets.
Explanation:The student's question covers several fundamental accounting tasks, including recording transactions, preparing financial statements, and analyzing financial health through ratios. To record the events in the general ledger accounts, each transaction must be categorized and entered according to the principles of double-entry bookkeeping. Subsequently, financial statements such as the income statement, statement of changes in equity, balance sheet, and statement of cash flows can be prepared using the information from the ledger accounts.
For example, to calculate accounting profit, we subtract explicit costs from total revenues. Using the self-check question as a guide:
Accounting profit = total revenues minus explicit costs = $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000.
To address the question about shareholders and company financing:
A company typically obtains money from its sale through issuing shares which can occur during an IPO or secondary offerings.To create a T-account balance sheet for a bank:
Assets | Liabilities
-----------------------------------------|-------------------
Government Bonds: $70 | Deposits: $400
Loans: $500 |
Reserves: $50 |
-----------------------------------------|-------------------
Net Worth: $220
The bank's net worth is calculated as total assets ($70 + $500 + $50) minus liabilities ($400), which equals to $220.
Lastly, it is not possible to directly determine the cash in retained earnings from the information provided without additional context or a complete set of financial statements.
Select the necessary words to complete the following statements.
1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the audtor on whether the financial statements are presented fairly in all material respects, in accordance with the applicable ___________.
2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as ___________.
3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare financial statements in the United States are ____________.
4. Public company audit reports must be addressed to the board of directors and the ____________.
Answer:
1. Standards
2. Audit and Attest Standards
3. Generally Accepted Accounting Principles (GAAP)
4. Shareholders
Explanation:
1. Financial statements are required to be audited and should be in accordance with all applicable standards followed in the country.
2. AICPA issues, develops and enforces different standards (example code of professional conduct and consulting services standard). Auditing standards board of AICPA pronouncements are also known as Audit and Attest Standards.
3. The standards which are followed in the United States is GAAP Generally Accepted Accounting Principles. It’s a rule based accounting principle which is enforceable in the United States.
4. Audit report is required to be addressed to the Board of Directors and the company shareholders.
Answer:
1. Financial Reporting Framework
2. Statements on Auditing Standards (SASs)
3. Generally Accepted Accounting Principles (GAAP)
4. Shareholders
Explanation:
1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the audtor on whether the financial statements are presented fairly in all material respects, in accordance with the applicable Financial Reporting Framework.
2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as Statements on Auditing Standards (SASs).
3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare financial statements in the United States are Generally Accepted Accounting Principles (GAAP).
4. Public company audit reports must be addressed to the board of directors and the Shareholders.
Suppose that your tuition to attend college is $14,000 per year and you spend $5,000 per year on room and board. If you were working full time, you could earn $26,000 per year. What is your opportunity cost of attending college?
A. $19,000
B. $31,000
C. $40,000
D. $45,000
Answer:
Option (d) is correct.
Explanation:
The opportunity cost refers to the benefit that would be obtained from the next best alternative.
Here, given that
Tuition cost for attending college = $14,000 per year
Room cost = $5,000
Money income could be earned = $26,000
Therefore, the Opportunity cost is as follows:
= $14,000 + $5,000 + $26,000
= $45,000
Because of the violent nature of the sport, professional American football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. Violent collisions involving hits to the head are particularly risky. Suppose the commissioner of the National Football League (NFL) institutes a rule requiring players to wear a new, lighter helmet that is designed to reduce head trauma during collisions between players on the field. While the new helmets ________ the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play more __________ , which could potentially _________ the amount of violent collisions and thus the number of concussions suffered by NFL players, all else equal.
Answer:
The new helmets will decrease the probability of a concussion resulting from each individual collision as there will be a decrease in the risk of head trauma. The new helmets could also give football players an incentive to play more recklessly which in turn increases the amount of violent collisions. Therefore, the numbers of concussions suffered by NFL players are equal.
Answer:
The new helmets will decrease the probability of a concussion resulting from each individual collision as there will be a decrease in the risk of head trauma.
Explanation:
You have a budget of $5,000. You want to buy email addresses, and each address costs $0.41. How many addresses can you purchase? a) 12,195 b) 13,251 c) 14,200 d) 15,220
a) 12,195 is the answer
You have a budget of $5,000. You want to buy email addresses, and each address costs $0.41. $12195 addresses you can purchase in $5,000. The correct option is a.
What is the main purpose of an email?A digital message delivered digitally over the internet from one computer to one or more others is known as an email. Emails are adaptable and can be used for a variety of purposes, including asking a question, providing a status update, recommending something, serving as documentation, confirming something, explaining rules and procedures, and delivering directions.
To calculate how many email addresses can be purchased with a budget of $5,000 at a cost of $0.41 per email address, we need to divide the total budget by the cost per email address:
$5,000 / $0.41 per email address = 12,195 email addresses. Therefore, the answer is 12,195 email addresses.
Thus, the ideal selection is option a.
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Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. Total Assets $420,000 Total Liabilities 133,000 Total Equity 287,000 What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)
Answer:
debt ratio = 31.67 %
Explanation:
given data
Total Assets = $420,000
Total Liabilities = 133,000
Total Equity = 287,000
to find out
debt ratio
solution
we get here debt ratio that is express as
debt ratio = [tex]\frac{total\ liability}{total\ assets}[/tex] × 100 ............................1
put here value and we will get
debt ratio = [tex]\frac{133000}{420000}[/tex] × 100
debt ratio = 0.31666 × 100
debt ratio = 31.67 %
The debt ratio of Durable Plastics Company as of December 31 is 31.67%.
Explanation:The debt ratio is a financial ratio that measures the proportion of a company's total debt to its total assets. It indicates the percentage of a company's assets that are financed by debt. To calculate the debt ratio, divide the total liabilities by the total assets and multiply by 100. In this case, the debt ratio for Durable Plastics Company as of December 31 would be:
Debt Ratio = (Total Liabilities / Total Assets) × 100
Debt Ratio = (133,000 / 420,000) × 100
Debt Ratio = 31.67%
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To be competitive firms must create and sustain core competencies that are in tune with their customer’s order winners (T/F)
Answer:
The statement is: True.
Explanation:
Order winners are those products that customers recognize of having the minimum requirements so they can consider to purchase them and that are better than their competitors eventually making consumers buy them. Thus, firms must keep core competencies aligned to the customers' order winners.
Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies, has production facilities in Poland and Spain. Based on this information, Green Cleaners can be classified as what type of enterprise?
Answer: MULTINATIONAL
Explanation: MULTINATIONAL ENTERPRISE is any Enterprise that has its presence and does business in two or more countries. The presence can be in the form of Production facilities, Marketing facilities,joint ventures or even Franchise etc
Companies like Green Cleaners Inc., a U.S. company which has expanded to Spain and Poland are multinationals. Multinational organizations or enterprises have huge capital base through which they are able to acquire properties abroad.
Green Cleaners Inc. is classified as a multinational enterprise (MNE) because it has production facilities in both Poland and Spain. Multinational enterprises operate in multiple countries besides their home country. Green cleaning products focus on sustainability and environmentally-friendly processes.
Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies and has production facilities in Poland and Spain, can be classified as a multinational enterprise (MNE). A multinational enterprise is a company that has business operations in multiple countries, aside from its home country. In this case, Green Cleaners Inc. operates production facilities outside the U.S., making it a classic example of a multinational enterprise.
Green cleaning refers to using environmentally friendly ingredients and procedures designed to preserve human health and environmental quality. Companies that specialize in green products often avoid the use of toxic chemicals and emphasize the sustainability and biodegradability of their products.
The Role of Theory in Research, which of these represents the relationship between theory and research:______a. Theory is completed before research b. Research is completed before theory c. Research and theory are independent d. Research and theory are interdependent
Answer:
The correct answer is letter "D": Research and theory are interdependent.
Explanation:
A theory is the conclusion of an idea regarding a certain topic. To support that idea, facts are needed. Those facts are found thanks to research. However, research itself would not have a purpose if the main intention of the study would not be to propose a theory. Thus, both theory and research are interdependent.
You have just borrowed $20,000 to buy a new car. The loan agreement calls for 36 monthly payments of $700 each to begin one month from today. If the interest is compounded monthly, what is the effective annual rate on this loan?
Answer:
The effective rate on the loan is 13/18% or 0.722%
Explanation:
36 monthly payments of $700 will give = 700*36=$25200
Amount= $25200
Principal= $20000
Interest= amount - principal
Interest= 25200 -20000
=$5200
Rate= (100* interest)/principal*time
= (100*5200)/(20,000*36)
=13/18 %
= 0.722%
The effective annual rate on the loan is 0.722%
The marginal prospensity is to consume 0.75, marginal prospensity to invest is 0.3 and the marginal prospensity to import is 0.2. What is the size of the multiplier
Answer:
1.33
Explanation:
The size of the multiplier is the one which grounded on the marginal decisions of the household for spend, that is called as the MPC (stands for Marginal Propensity to consume), also referred to as the marginal propensity to save (MPS).
The formula to compute the size of the multiplier is as follows:
Size of multiplier = 1 / MPS
where
MPS is 0.75
So,
Size of multiplier = 1 / 0.75
= 1.33