Answer: C
Explanation:
Wealth is the gradual gathering of profits, assets or income over a period of time. It is the gradual increase in ones assets over a sustained period.
Wealth creating transactions can be found both in contract enforcement and private property rights. The prosperity and economic development of a country can be attributed to the respect accorded to its citizens property rights.
Property rights gives room for entrepreneurship which can eventually lead to wealth accumulation. Contract enforcement also generate wealth for individuals.
Final answer:
Wealth creating transactions are more likely to occur with both private property rights and contract enforcement.
Explanation:
Wealth creating transactions are more likely to occur with both private property rights and contract enforcement.
Property rights allow individuals and firms to own property and use it as they see fit, including the right to trade or sell that property. Contractual rights, which are based on property rights, allow individuals to enter into agreements with others regarding the use of their property.
Both private property rights and contract enforcement create a legal environment that gives individuals the ability to use their property to their fullest and highest use. Without contract enforcement, people would be less likely to enter into contracts for current or future services due to the risk of non-payment, making it difficult to transact business and slow economic growth.
Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Providing tax breaks and patents for firms that pursue research and development in health and sciences Imposing restrictions on foreign ownership of domestic capital Protecting property rights and enforcing contracts Increasing taxes on income from savings
Answer:
1)Protecting property rights and enforce contracts.
2)Providing tax breaks and patents for firms that pursue research and development in health and sciences.
Explanation:
These two alternatives are the most applicable in relation to policies that are most consistent with the goal of increasing productivity and growth in developing countries. The first alternative is related to the protection of property rights and compliance with contracts, which guarantees stability and political confidence to the country, which is important to attract new investors and consequently to leverage the growth and development of a country.
The other alternative concerns tax incentives and patents for companies seeking research and development in health and science. What is a way to encourage the growth of this sector, which in addition to generating savings and productivity for the country, also brings innovations and relevant discoveries in health and science, which helps the growth and development of the country.
Instructions: Read the Grand View Grocers Corporation case below.
Grand View Grocers Corporation, headquartered in Clewiston, Florida, is among the nation’s top grocery chain companies, with over $34 billion in revenue. It operates and owns approximately 1,500 grocery stores in 10 states and will be expanding operatons to Washington, D.C. in the near future.
Grand View Grocer’s Corporation’s operating strategy distinguishes it from other grocery chain companies. Each grocery store has a Training and Development Methods manager that allows decisions to be made locally, close to the client. This also makes Grand View Grocer Corporation’s service more responsive, reliable, and empathetic to its customers.
Recently, Grand View Grocers Corporation has identified a that there is an increase in the annual turnover rate for cashiers nationwide. The increase was found in newly hired cashiers, so it was determined that on-the-job training was ineffective.
Under the direction of the store manager, cashiers perform a variety of tasks, including:
*Receive payment by cash, check, credit cards, vouchers, or automatic debits.
*Issue receipts, refunds, credits, or change due to customers.
*Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and that there is adequate change.
*Greet customers entering establishments.
*Maintain clean and orderly checkout areas.
*Establish or identify prices of goods, services or admission, and tabulate bills using calculators, cash registers, or optical price scanners.
*Issue cashier’s checks, money orders, mailing stamps, and redeem food stamps and coupons.
*Resolve customer complaints.
*Answer customers' questions, and provide information on procedures or policies.
*Cash checks for customers.
*Weigh items sold by weight in order to determine prices.
*Calculate total payments received during a time period, and reconcile this with total sales.
*Compute and record totals of transactions.
*Sell lotto tickets and other items to customers.
*Keep periodic balance sheets of amounts and numbers of transactions.
*Bag, box, wrap, or gift-wrap merchandise, when needed.
*Sort, count, and wrap currency and coins.
*Process returns and exchanges.
*Request information or assistance using paging systems.
*Stock shelves, and mark prices on shelves and items, when needed.
*Compile and maintain non-monetary reports and records.
Essential cashier functions include the following:
Perform for or Working Directly with the Public -- Performing for people or dealing directly with the public. This includes serving customers in restaurants and stores, and receiving clients or guests.
Establish and Maintain Interpersonal Relationships -- Developing constructive and cooperative working relationships with others, and maintaining them over time.
Get Information -- Observing, receiving, and otherwise obtaining information from all relevant sources.
Identify Objects, Actions, and Events -- Identifying information by categorizing, estimating, recognizing differences or similarities, and detecting changes in circumstances or events.
Process Information -- Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Describe in 350- to 525- words the training method or combination of training methods that you would recommend for training.
Justify in 350- to 525- words your choice of method(s).
Solution and Explanation:
The following would be the specifications of the training module for the cashiers:
1. There would be multiple modules consisting of the job responsibilities as refresher courses and at the same time, the new market conditions and additional job related things that they must be doing in the near future would be the other modules.
2. The key areas that the multi module training program would be focussing on would be, customer relationship training, system and data maintenance training, documentation and accounting module
3. The training intervention would be preferably on job and alongside there would be a mentor/coach allotted to the cashiers who are experts in the field preferably store managers and functional experts. For the system related modules, they would be having simulation based modules. Only during the non rush-hours there would be offline training and update sessions with respect to the progress made on their training and the productivity improvement they have achieved over the past week.
The incentives associated with the productivity improvement would be translated into incentivising the cashiers to take up the training modules. The weekly update on the productivity improvement and the progress in their training would inturn make them competitive in nature. While coming to why such distribution has been done with respect to the modules, essentially if we look at the job of the cashiers, it’s a round the clock job and they would lose out on precious working hours if the training is done on an offline basis.
The simulations would definitely help understand the process but the on job training would be the one that is standing out, as they would be continuing their task and at the same time, the result is right in front on them to experience and therefore the distribution of the modules to not stress them out and at the same time not losing out on their time as well.
Match the way each of the items listed below with how it should be reported in a balance sheet at December 31, 2018. Customer advances. Noncommitted line of credit. Commercial paper. Note due June 9, 2019. Accounts payable. Long-term bonds that will be callable by the creditor in the upcoming year unless an existing violation is not corrected (there is a reasonable possibility the violation will be corrected within the grace period). Long-term bonds callable by the creditor in the upcoming year that are not expected to be called. Estimated cost of quality-assurance warranty. Interest accrued on note, Dec. 31, 2018. Short-term bank loan to be paid with proceeds of sale of common stock. A material gain contingent on a future event that appears extremely likely to occur in three months. A. Disclosure note only B. Long-term liability C. Current liability
Answer:
1. Customer Advances (will be matched to Current Liabilities).
2.Non-committed line of Credit (will be matched to disclosure note only).
3.Commercial Paper (will be matched to Current Liabilities).
4.Note due June 9 2019 (will be matched to Current Liabilities).
5.Accounts Payable (will be matched to Current Liabilities).
6.Long-term bonds callable in 2019 (will be matched to Current liabilities)
7.Estimated cost of Quality Assurance Warranty (will be matched to Current liabilities for expected claims within one year and long term liabilities for expected claims falling due after 1 year)
8.Interest accrued on note, Dec. 31, 2018. (will be matched to Current Liabilities)
9.Short-term bank loan to be paid with proceeds of sale of common stock (will be matched to Current Liability)
10.A material gain contingent on a future event that appears extremely likely to occur in three months (will be matched to disclosure note only)
Explanation:
Customer Advances (will be matched to Current Liabilities).
These are advance payment of Cash made by our Customers for the Purchase of our goods also called Prepayments. Usually such purchases occur within a financial year of Trading and therefore qualifies as a current liability.
Non-committed line of Credit (will be matched to disclosure note only).
This is a bank facility that hasn't been utilized. Hence it is only reasonable to show as a disclosure note only for information purposes
Commercial Paper (will be matched to Current Liabilities).
Commercial Papers are usually short term in nature. They are unsecured debts issued by companies to cover for its working capital requirements. as such we will classify these as Current Liabilities
Note due June 9 2019 (will be matched to Current Liabilities).
Although not falling due within the current financial year 2018, it falls due within 1 year from the Balance Sheet date. Thus it qualifies to be regarded as a Current Liability
Accounts Payable (will be matched to Current Liabilities).
These are payments due Vendors for transactions occurring in the outgoing financial year. The Payment terms for such services or supplies vary by company, it ranges between 30 days to 120 days in most instances however.
Long-term bonds callable in 2019 (will be matched to Current liabilities)
Even though the Bond has been classified as Long term, it falls callable within 2019, meaning it has a not more than 1 year life span to expire. it will be classified under Current liabilities as long-term debt falling due within 1 year.
Long-term bonds callable in 2019, but not expected to be called (will be matched to Current liabilities)
Falling due within one year gives us an indication it is a current liability. However going by the information it will very likely not be called, we may indicate this extra information in the notes disclosure but retain the liability under Current Liability.
Estimated cost of Quality Assurance Warranty (will be matched to Current liabilities for expected claims within one year and long term liabilities for expected claims falling due after 1 year)
Where it can be reasonably estimated what the warranty expense would be, the Business should accrue in 2018 the likely warranty liability due with respect to 2018.
Where Warranty granted exceeds current year, a warranty provision will have to be made covering the duration of Warranty. If extending beyond 1 year, we should then classify these as Long term liability
Interest accrued on note, Dec. 31, 2018. (will be matched to Current Liabilities)
These relate to interest due up to Dec 31 2018 on note issued.
Short-term bank loan to be paid with proceeds of sale of common stock (will be matched to Current Liability)
It is a short term loan, meaning it will be due for payment within a short period of less than 1 year.
The way it will be paid (through sales of Common Stocks) is an information the Shareholders need have as a disclosure note since the sales hasn't occurred.
A material gain contingent on a future event that appears extremely likely to occur in three months (will be matched to disclosure note only)
The prudence concepts precludes a business from recognizing a gain before it is realized, hence the Business can only note this in its disclosure note giving details to shareholders of pending gains.
Answer: (a) current liability (b ) Disclosure note only (c) current liability (d) current liability (e) current liability (f) current liability (g) current liability (h) current liability (i) current liability (j) Long term Liability (k) Disclosure note only
Explanation:
Balance sheet is a statement prepared at the end of each trading period of a business which consist of the summary of debit and credit balance of assets and liabilities in the ledger accounts. It is prepared in order to know the financial position or the strength of the business. The important terms in the balance sheet includes Long term Liabilities which are the debts that are payable in the near future that is not within a year such as mortgage, other terms are the current liabilities which are the debts which must be paid quickly and certainly within or about a year examples of such are outstanding expenses, loans, bill payable and sundry creditors. We also have fixed asset which are the properties of a durable nature in an organization likely to be retained for a considerable number of period. Also we have current asset which are the resources used in the trading activities of the business. However, a disclosure note is not in the balance sheet .it is simply a note which shows certain information pertaining to the business which cannot be shown in the balance sheet such as the business accounting policies such as method of deprecation, investment, the values of their fixed asset and so on. I will therefore match the items in the balance sheet as follows
(a) customer Advances is a current liability
(b) Non committed line of credit is a Disclosure note only
(c) Commercial paper is a current liability
(d) Note due June 9, 2019 is a current liability
(e) Account payable is a current liability
(f) Long term bonds that will be callable by the creditor in the upcoming year unless an existing violation is not corrected ( there is a reasonable possibility the violation will be corrected within the Grace period ) is a current liability
(g) Long term bond callable by the creditor in the upcoming year that are not expected to be called is a current liability
(h) Estimate cost of quality assurance is a current liability
(i) Interest accrued on note is a current liability
(j) December 31,2018 short term bank loan to be paid with proceed of sale of common stock is a Long term Liability
(k) A material gain contingent on a future event that appears extremely likely to occur in 3 months is a Disclosure note only
Historically, common crimes (such as robbing a bank) were punished more severely than white collar crimes (like embezzlement). Why do you think that is? Since 2003, there has been a steady push to punish white collar crimes at least as severely as common crimes are punished. Do you feel that this is in the best interest of society? Should white collar crimes be punished more severely, less severely, or the same as comparable common crimes?
Answer:
They must be severely punished.
Explanation:
Common crimes earlier were more threat full to the society than any other act and that is the reason they were mentioned more.
Since, the new era has new crimes, and one of the kind is white collar crimes which happens when companies’ heads try to misguide people with false financial reports, adding more losses to avoid taxes and sometimes showing more profit to attract potential investors, now it has become even severe.
Whichever the case, both crimes ultimately effect society and its stakeholders, however, common crimes are more frequent than white collar crimes.
Hence, they must be severely punished because they are committing crimes under the disguise of an innocent professionals.
Eight years ago you borrowed $142,000 at a fixed annual rate of 10.5 percent p.a. to buy a house. Your loan is a 30-year, monthly payment loan. Calculate the current payoff of the loan (immediately after the 112th payment) assuming that you did not make any additional payments for the first 112 payments
Answer:
[tex]Payoff=\$131,338.81[/tex]
Explanation:
Except for other fees or interests that you might owe, the payoff should be equal to the debt balance. Then, assuming no other fees or interests that you might owe, you just must calculate the balance of your debt after 112 payments (11 years, not 8).
There is a very important formula to calculate the outsdanging balance of a loan, whithout calculating the complete sheet of all the monthly payments:
[tex]balance=Loan\times \dfrac{[(1+r)^n-(1 + r)^m]}{[(1+r)^n-1]}[/tex]
Where:
balance is the outstanding balance after m monthsr i s the fixed monthly rate: 10.5%/12 = 0.105/12n is the number of total months of the loan: 30years × 12month/year = 360 monthsm: 112[tex]balance=\$142,000\times \dfrac{[(1+(0.105/12))^{112}-(1 + (0.105/12))^{112}]}{[(1+(0.105/12))^{360}-1]}[/tex]
[tex]balance=\$131,338.81[/tex]
Etcetera Clothing sold merchandise inventory on account at a price of $15,000 with payment terms of 2/10, n/30. The merchandise cost Etcetera Clothing $10,000. If the customer paid for the merchandise 5 days after receiving the invoice, how much cash was collected by Etcetera Clothing?
Answer:
$14,700
Explanation:
We know,
2/10, n/30 means if a customer pays within 10 days, he/she will get a discount of 2% of his original purchase. However, the customer has to pay the full amount within 30 days.
As Etcetera Clothing received the payment within 5 days, the company gave a discount of 2% according to the terms. Therefore, Etcetera Clothing would receive =
$15,000 - ($15,000 × 2%)
= $15,000 - 300
= $14,700
According to the dynamic AD-AS model, what is the most common cause of inflation? A. AD increases by more than LRAS. B. Total spending increases faster than total production. C. The U.S. Mint prints too much currency. D. All of the above. E. A and B only.
Answer: Option E
Explanation:
Inflation is an economic term that refers to a situation of continuous increase in the price level of goods and services. Inflation can either be as a result of a rise in demand or due to a rise in the production cost.
When the available resources in the economy are used in the production process, such economy will have little supply of products in the long run.
When there is an increase in aggregate demand as a result of other factors apart from the price of the product, there will be a rightward shift of the aggregate demand curve on the LRAS.
The rightward shift in aggregate demand curve will result into an increase in price but the quantity supplied does not increase which leads to inflation.
Answer:
A and B only.
That is
A. AD increases by more than LRAS.
B. Total spending increases faster than total production.
Explanation:
Inflation can be defined as loss of value of goods and services. The price of a basket of goods and services increases over time, meaning the purchasing power of money reduces.
In the AD-AS model inflation occurs of total spending occurs faster than total production. Goods and services become scarce, there is too much money chasing scare product, prices will go up resulting in reduction of purchasing power of money (inflation).
When AD increases more than the LRAS (long run aggregate supply) it results in shortage of goods and increase in price of goods.
Using your knowledge of SMART goals, select the best goal. I will start saving money toward a new house next week. I will save $40,000 by January 3, 2014, to use as a down payment on a home. I will buy a new house soon so my family will have a place to live. I will pay off my credit cards so I can start saving money for a house. g
Answer: I will save $40,000 by January 3, 2014, to use as a down payment on a home.
Explanation: SMART goals are:
Specific: they are well defined. Here, the goal is to save money towards the down payment of a house. It is clearly defined.
Measurable: it can be quantified with a number. The options, I will start saving money towards a new house does not state exactly how much. It can not be measured so it is impossible to say whether you have achieved the goal or not.
Achievable: It should be doable. We don't have enough information here to know if saving $40,000 by January 3 2014 is doable. For instance if the person setting this goal earns $80,000 per year and is setting this goal in 2012 or January 2013, it may be achievable. It is not if he makes $20,000 per year.
Relevant: the goal should be one that motivates you because it is important to you.
Time bound: There should be a time by which you want to achieve the goal.
The chosen option is the best goal of the because it meets more of the SMART goals criteria than the others: It is Specific, Measurable and Time-bound.
The best SMART goal for saving for a house down payment is 'I will save $40,000 by January 3, 2014,' since it fulfills all the criteria of being Specific, Measurable, Attainable, Realistic, and Time-oriented. The other options lack one or more of these critical components.
When applying the principles of SMART goals, the best goal selection would be 'I will save $40,000 by January 3, 2014, to use as a down payment on a home.'
This goal is Specific (saving $40,000), Measurable (has a clear monetary value), Attainable/Achievable (assuming the person has a plan and financial capacity to save that amount), Realistic/Relevant (since typical house down payments are between 3% and 5% of the purchase price, it matches real-world expectations), and Time-oriented/time-bound (with a clear deadline of January 3, 2014).
Conversely, the other options presented lack specificity, measurability, and timeliness, essential components of SMART goals.
For instance, saying 'I will buy a new house soon so my family will have a place to live' is not time-specific or measurable.
Similarly, 'I will start saving money toward a new house next week' is neither specific about the amount to save nor provides a target date to achieve it.
And, 'I will pay off my credit cards so I can start saving money for a house' is a precursor to setting a SMART goal but is not the goal itself for purchasing the home.
It does not state how the payment of credit card debt will transition into savings for a house nor does it offer a time-frame or specific amount to save for the house down payment.
In the year, 2005 Janice Quinn sells a five-year-old car to Used Car, Inc. for $3,000. In the same year, Used Car, Inc. resells the car to Ima Goner for $3,500. What is the contribution of this transaction to GDP in the year 2005
Answer:
$500
Explanation:
The computation is shown below:
Data provided in the question
Sale value of five year old car to used car = $3,000
Now in the same year, the resales value to Ima Goner = $3,500
So, the contribution made in the GDP for the year 2005 is
= Resales value to Ima Goner - Sale value of five year old car to used car
= $3,500 - $3,000
= $500
Taylor and Sons buys equipment on Aug. 1, 2008 for $100,000 cash. They estimatethe equipment will have a salvage value of $13,000 and a useful life of 5 years. a. Write the journal entry to record depreciation for 2008.
Answer:
Journal Entry
Dr. Depreciation Expense $7,250
Cr. Accumulated Depreciation $7,250
Explanation:
Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.
Cost of Equipment = $100,000
Useful life of the asset = 5 years
Salvage value of the asset = $13,000
Depreciable value of the asset will be expenses equally every year over 5 years.
Depreciable value = Cost of the asset - Salvage value = $100,000 - $13,000 = $87,000
Depreciation Expense = Depreciable Value / Useful Life of the asset = $87,000 / 5 years = $17,400 per year
As only 5 month have been passed in 2008, the depreciation expense account will be charged as follow
Depreciation charge in 2008 = $17,400 x 5 / 12 = $7,250
On March 31, 2018, the Freeman Company leased a machine. The lease agreement requires Freeman to pay 10 annual payments of $6,000 on each March31, with the first payment due on March 31, 2018. Assuming an interest rate of 10% and that this lease is treated as an installment sale, Freeman willinitially value the machine by multiplying $6,000 by which of the following factors?A)Present value of $1 at 10% for 10 periods.B)Present value of an ordinary annuity of $1 at 10% for 10 periods.C)Present value of an annuity due of $1 at 10% for 10 periods.D)Future value of an annuity due of $1 at 10% for 10 periods.
Answer:
Correct answer is: Present value of annuity due of $1 at 10% for 10 periods
10 annual payments to be made each of $6000 with the Discount factor of Present value of annuity due of $1 at 10% for 10 periods Freeman will get the initial value (Present value which is to be paid in future)
C. Reither Co. reports the following information for 2014: sales revenue $700,000; cost of goods sold $500,000; operating expenses $80,000; and an unrealized holding loss on available-for-sale securities for 2014 of $60,000. It declared and paid a cash dividend of $10,000 in 2014. C. Reither Co. has January 1, 2014, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2014. Prepare a statement of stockholders' equity.
Answer:
Explanation:
Statement of Share holder equity is given below
Balance on January 01, 2014
Equity / Common stock 350000
Retained Earning 90000
Accumulated other comprehensive 80000
income
unrealized holding loss on 60000
available-for-sale securities for 2014
Sales Revenue 700000
Cost of goods sold 500000
Operating Expense 80000
Net income = Sales Revenue - Cost of goods sold - Operating Expense
Net income = 700000 - 500000 - 80000 = 120,000
Comprehensive income = Net income - unrealized holding loss on available-for-sale securities for 2014
Comprehensive income = 120000 - 60000 = 60000
Shareholder equity
Equity / Common stock 350000
Retained Earning 90000
Comprehensive income 60000
Accumulated other comprehensive income 80000
Total Shareholders equity 580,000
Create a journal entry, t account and trial balanceMaquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.
Transactions on May 1:1. Jay BradFord invested $40,000 cash in the company, as its sole owner.2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,500 per month.3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.4. Purchased furniture and equipment costing $33,000. A cash payment of $12,000 was made immediately; the remainder will be paid in 6 months.5. Paid $1,600 cash for a one-year insurance policy on the furniture and equipment.Transactions during the remainder of the month:6. Purchased basic office supplies for $600 cash.7. Purchased more office supplies for $1,600 on account.8. Total revenues earned were $21,000—$8,000 cash and $13,000 on account.9. Paid $400 to suppliers for accounts payable due.10. Received $2,800 from customers in payment of accounts receivable.11. Received utility bills in the amount of $400, to be paid next month.12. Paid the monthly salaries of the two employees, totaling $5,000.
Answer:
Total balance of debit in trial balance = Total balance of credit in trial balance
Explanation:
Maquoketa service
Journal entry
1. Dr Cash 40000
Cr Capital- Jayford 40000
(Investment in company)
2. Dr Salary expense 5000
Cr Salary payable 5000
(Salary expense for the m/o of may-2017 @$2500 each)
3. Dr prepaid rent 24000
Cr Cash 24000
( Paid advance rent for warehouse)
4. Dr Furniture and equipment 33000
Cr Cash 12000
Cr Accounts payable 21000
(Purchase furniture and equipment on cash and on account)
5. Dr Prepaid insurance 1600
Cr Cash 1600
( Purchase one year insurance policy of furniture ad equipment)
6. Dr office supplies 600
Cr Cash 600
(Purchase basic office supplies)
7. Dr Office supplies 1600
Cr Accounts payable 1600
( Purchase office supplies on account)
8. Dr Cash 8000
Dr Account receivable 13000
Cr Sales revenue 21000
( Revenue earned on cash and on account)
9. Dr Accounts payable 400
Cr Cash 400
( Paid cash to supplier)
10. Dr Cash 2800
Cr Account receivable 2800
( Received cash from customer which was due)
11. Dr Utilities expense 400
Cr utilities payable 400
( utility expense for the month)
12. Dr Salary payable 5000
Cr Cash 5000
(Paid salary of 2 employee).
Maquoketa service
T-account
Cash Capital - Jayford
Dr___________Cr____ DR ___________CR
40000 ---- 24000 ----- 40000
---- 12000
--- 1600
--- 600
8000 --- 400
2800 --- 5000
Salary expense Salary payable
Dr____________Cr______ DR ___________Cr
5000 ---- 5000 ------5000
Prepaid rent Furniture and equipment
Dr ____________Cr____ Dr _____________Cr
24000 ------ 33000 --------
Accounts payable Prepaid insurance
Dr_____________Cr___ Dr ___________Cr_
-------21000 1600 -----
------ 1600
400 -----
Office supplies Account receivable
Dr_____________Cr___ Dr ______________Cr
600 ----- 13000 ------
1600 ----- 2800
Utilities expense Utilities payable
Dr____________Cr___ Dr __________Cr__
400 ------ -------400
Sales revenue
Dr_______________Cr __________________
------21000 -------
Maquoketa Services
Trial Balance
Cash 7200 40000 Capital-Jayford
Salary expense 5000 Salary payable
Prepaid rent 24000 22200 Account payable
Furniture and Equipment 33000 400 Utilities payable
Prepaid insurance 1600 21000 Sales revenue
office supplies 2200
Account receivable 10200
utilities expense 400
Total Debits 83600 = 83600 Total credits
Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price changes to P 1 P1 , quantity demanded is Q 1 Q1 . Move the components of the midpoint formula for elasticity of demand to their correct positions. price elasticity of demand = ∣ ∣ ∣ ∣ ∣ ( − ( + 2 ) ) ( − ( + 2 ) ) ∣ ∣ ∣ ∣ ∣ price elasticity of demand=|( − ( + 2))( − ( + 2))|
Answer:
Price Elasticity of Demand 1
Explanation:
We are given the following data:
[tex]\left[\begin{array}{ccc}Price&Quantity\\0&0\\1&1\end{array}\right][/tex]
We solve for price elasticity which is the reaction to demand based on the price:
[tex]\frac{q_1-q_2}{\frac{q_1+q_2}{2}} \div\frac{p_1-p_2}{\frac{p_1+p_2}{2}}[/tex]
We post our values into the formula:
[tex]\frac{0-1}{\frac{0+1}{2}} \div \frac{0-1}{\frac{0+1}{2}}[/tex]
And solve for the price elasticity of demand
[tex]\frac{-1}{\frac{+1}{2}} \div \frac{-1}{\frac{+1}{2}}[/tex]
[tex]-0.5 \div -0.5[/tex]
Price Elasticity of Demand 1
The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price, calculated using the midpoint formula. This is the percentage change in quantity demanded per percentage change in price, taken as an absolute value for practical purposes.
Explanation:The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated using the midpoint formula for elasticity, which states:
Price Elasticity of Demand = ∣ ∣ ∣ (Q1 - Q0) / ((Q1 + Q0) / 2) ) / (P1 - P0) / ((P1 + P0) / 2) ∣ ∣ ∣
In your case, Q1 and Q0 are the final and initial quantities demanded respectively, and P1 and P0 are the final and initial prices respectively. The absolute value | | ensures that the result is a positive number, as elasticity is usually taken as an absolute value. The formula effectively calculates the percentage change in quantity demanded for each percentage change in price.
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Arundel Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $805,000 in credit sales. Arundel assumes that 2.0% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 4,000. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?
Answer: The dollar amount that should be credited to Allowance for Uncollectible Accounts at year end is $12,100.
Explanation: As provided in the question, Arundel Company already had a credit balance of $4,000 in allowance for uncollectible accounts, before adjustment. Remember, the allowance account is usually in credit balance and mapped to the accounts receivable account to show the net balance of the receivables that is recoverable, and to show the true and fair position of that amount.
The 2% of credit sales (2% of $805,000) is $16,100 - this should serve as additional provision for bad debts expense at year end and the following journals should have been recorded: Debit Bad debt expense $16,100; Credit Allowance for uncollectible accounts $16,100. But there is $4,000 balance in the allowance account, which serves as the opening balance. The amount deemed irrecoverable during the year is $16,1000, which should represent the additional provision but since there is an exisiting balance in the allowance account, the differential would be recorded as additional provision ($16,100 - $4,000).
Choose the appropriate term for each statement. Word Choices:
(A) income
(B) interest rate
(C) expectations
(D) wealth
(E) household debt
(F) taxes
1. Keynesian economists think that _____ is the key determinant of consumption and spending.
2. Classical economists think that the higher the _____, the more people will save, which means that they will consume less.
3. A person's _____ about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.
4. The more _____ the person has, the less current consumption he/she undertakes.
5. A person's total income can be divided into three components: consumption, savings, and _____.
6. Savings, which is total income minus consumption and taxes, can be used to create more _____.
The provided statement terms are filled in with the appropriate economic aspects reflecting individual and broad economic behaviors in response to income, interest rates, expectations, household debt, taxes, and wealth.
Explanation:The following are the appropriate terms for each statement:
Keynesian economists think that (A) income is the key determinant of consumption and spending.Classical economists think that the higher the (B) interest rate, the more people will save, which means that they will consume less.A person's (C) expectations about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.The more (E) household debt the person has, the less current consumption he/she undertakes.A person's total income can be divided into three components: consumption, savings, and (F) taxes.Savings, which is total income minus consumption and taxes, can be used to create more (D) wealth.This selection of terms represents key elements of macroeconomic theory as it relates to savings, spending, and income creation.
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Under what conditions does a Cobb-Douglas production function,
q= 10L^0.71. K^0.84
Show how output changes if both inputs are doubled.
Answer:
Exhibits increasing returns to scale.
Explanation:
Given that,
Cobb-Douglas production function:
[tex]q=10(L)^{0.71}(K)^{0.84}[/tex]
If both inputs are doubled, then
[tex]q=10(2L)^{0.71}(2K)^{0.84}[/tex]
[tex]q=10(2)^{(0.71+0.84)}(L)^{0.71}(K)^{0.84}[/tex]
[tex]q=10(2)^{1.55}(L)^{0.71}(K)^{0.84}[/tex]
Therefore, this Cobb-Douglas production function exhibits the increasing returns to scale because the power of 2 is greater than 1. Under the condition of increasing returns to scale, an increase in the output of the firm is greater than the increase in the input of the firm.
On July 1, an investor holds 50,000 shares of a certain stock. The market price is $30 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the September Mini S&P 500 futures contract. The index is currently 1,500 and one contract is for delivery of $50 times the index. The beta of the stock is 1.3.
What strategy should the investor follow?
Answer:
The strategy the investor should follow is to short the September Mini S&P 500 futures contract by 26
Explanation:
Parameters:
Portfolio value= P = 50,000 * 30 = $1,500,000
Beta of stock β = 1.3
Index price = 1,500
Multiplier = $50
Futures Value A = 1,500*50 = $75,000
The formula to calculate number of contract N;
N= β ∗ P/A
N= 1.3*1,500,000/75,000
N= 26
The strategy the investor should follow is to short the September Mini S&P 500 futures contract by 26
To hedge their portfolio, the investor should enter into a short position of approximately 26 September Mini S&P 500 futures contracts. This allows the investor to mitigate risk associated with market movements.
Explanation:In this scenario, the investor is looking to hedge their portfolio using the September Mini S&P 500 futures contract. Given that their portfolio has a beta of 1.3, it suggests that the portfolio is more volatile than the market. The use of futures can help to reduce this risk.
The investor needs to calculate the number of futures contracts to enter into, which can be calculated using the formula:Hedging Ratio = Beta x (Value of the Portfolio / Future Price). In this case, the Value of the Portfolio is $1,500,000 (50,000 shares x $30/share). While, the Future Price is $75,000 (1,500 index value x $50). Plugging these into the formula, the investor would need approximately 26 futures contracts to hedge their portfolio.
So, the investor should short 26, September Mini S&P 500 futures contracts.
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In order to earn some extra money to pay for college, you have decided to open your own tattoo parlor one block from campus. You come up with a business plan and realize that you will need financing to get your business off the ground. You appear on a reality show where you pitch your idea to potential investors. Someone likes your business idea, and they write you a check to get things going. Is this financing option direct or indirect?
Answer:
Indirect Financing
Explanation:
Direct financing is when the borrower borrows money directly from the market such as issuing the stocks/shares directly in the market.
While the indirect financing is the type of financing when the borrower does borrows the fund via the help of intermediaries or third parties.
Hope this helps and clear things up.
Thank You.
Answer:
The correct answer is: Indirect.
Explanation:
Indirect financing refers to pooling money from sources that are not from the entrepreneurs themselves. Investors come into play to provide entrepreneurs the capital needed for them to develop their business idea. For such a purpose, entrepreneurs make detailed business plans where they include different analyses of why the venture could be successful in an attempt to attract capital.
Consider the following model of a very simple economy. Household saving and investment behavior depend in part on wealth (accumulated savings and inheritance). In the late 1990's many were concerned with very large increase in stock value (a form of wealth) and it's possible effect on saving and investment.
The following consumption function incorporate wealth (W) as a determinant of consumption. We have the following information on consumption (C) and investment (I):
C=45+0.60Y+0.05W
I=100
W=800
We are ignoring the fact that saving adds to the stock of wealth.
Calculate the value of equilibrium Y,C, and savings (S). (Enter you responses as Integers. )
Answer:
Equilibrium Y = 462.5 , Equilibrium C = 362.5 , Equilibrium S = 100
Explanation:
At equilibrium : Aggregate Demand = Aggregate Supply[ AD = C + I ] = [ AS = C + S = Y ]
45 + 0.6Y + 0.05 W + 100 = Y → 45 + 0.6Y + 0.05 (800) + 100 = Y
45 + 40 + 100 + 0.6Y = Y → Y ; 185 + 0.6Y = Y
Y - 0.6Y = 185
0.4Y = 185
Y = 185 / 0.4 = 462.5
Consumption C = 45 + 0.6Y + 0.05WPutting Y value : C = 45 + 0.6 (462.5) + 0.05 (800) → C = 45 + 277.5 + 40
C = 362.5
Income Y is either consumed (C) or saved (S). So, Y = C + SHence , S = Y - C → 462.5 - 362.5 = 100
Alternatively : As C + I = C + S
Hence, I = S
Equilibrium Savings = Given Investment = 100
Final answer:
Given the consumption function C=45+0.60Y+0.05W with W=800 and I=100, the equilibrium values for this simple economy are found to be income (Y)=463, consumption (C)=364, and savings (S)=99 when rounded to integers.
Explanation:
Considering a simple economy where the consumption function incorporates wealth as a determinant of consumption, we are given a consumption function C=45+0.60Y+0.05W, with I=100 and W=800. To find the equilibrium values for income (Y), consumption (C), and savings (S), we follow these steps:
First, substitute the given wealth (W) into the consumption equation: C=45+0.60Y+0.05(800).
Since W=800, substituting this gives us C=45+0.60Y+40, simplifying to C=85+0.60Y.
For equilibrium in a simple economy without government or foreign trade, investment (I) equals savings (S), and Y=C+I. Hence, total output (Y) also equals consumption (C) plus investment (I).
Using the equilibrium condition Y=C+I, we substitute the values to get Y=85+0.60Y+100.
This simplifies to 0.40Y=185, solving for Y yields Y=462.5.
By substituting Y back into our consumption equation, C=85+0.60(462.5) = 363.5.
Finally, savings (S) is the difference between output (Y) and consumption (C): S=Y-C=462.5-363.5=99.
Therefore, the equilibrium values are Y=463, C=364, and S=99 when rounded to integers.
Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $440,600; Purchase Returns and Allowances $11,980; Purchase Discounts $8,247; and Freight-in $16,900. Tracy Company has beginning inventory of $57,710, ending inventory of $88,110, and net sales of $649,500.
Determine the amounts to be reported for cost of goods sold and gross profit.
Cost of goods sold:
Gross profit:
Answer:
(a) $406,873
(b) $242,627
Explanation:
Given that,
Purchases = $440,600;
Purchase Returns and Allowances = $11,980;
Purchase Discounts = $8,247; and
Freight-in = $16,900.
Beginning inventory = $57,710,
Ending inventory = $88,110
Net sales = $649,500
Cost of goods sold:
= Beginning inventory + Purchases + Freight-in - Purchase Returns and Allowances - Purchase Discounts - Ending inventory
= $57,710 + $440,600 + $16,900 - $11,980 - $8,247 - $88,110
= $406,873
Gross profit:
= Net sales - Cost of goods sold
= $649,500 - $406,873
= $242,627
In the first step in the grievance procedure, an employee who believes the company has violated the contract complains to the ___, who may accept or assist in writing up a grievance. Group of answer choices local negotiating committee arbitrator union steward industrial relations representative
Answer:
Complains to the Employer who may assist in writing up a grievance.
Explanation:
In the first step in grievance procedure, the employee complains to the employer giving their details of grievance and the employer makes an initial attempt to resolve the grievance informally.
The Acas code of practice on discipline and grievance procedure provides the guidance that the employers are to follow in regards to grievance process.
Ibis Paper Company prepared the following static budget for November: Static Budget Units/Volume 11 comma 000 Per Unit Sales Revenue $ 20.00 $ 220 comma 000 Variable Costs 6.00 66 comma 000 Contribution Margin 154 comma 000 Fixed Costs 13 comma 500 Operating Income/(Loss) $ 140 comma 500 If a flexible budget is prepared at a volume of 13 comma 600 units, calculate the operating income. The production level is within the relevant range.
Answer:
If a flexible budget is prepared at a volume of 13 comma 600 units, Operating Income (gain) $176,900
Explanation:
The production level is within the relevant range. If a flexible budget is prepared at a volume of 13 comma 600 units, Fixed Costs will not change.
Total Sales = Sales per unit x 13,600 = $20.00 x 13,600 = $272,000
Total Variable costs = $6.00 x 13,600 = $81,600
Operating Income = Total Sales - Total Variable costs - Fixed Costs = $272,000 - $81,600 - $13,500 = $176,900
The president of a company gave two talks, one on Monday and one on Tuesday. A total of 405 employees attended the Monday talk, 275 attended the Tuesday talk and 55 went to both. How many employees attended at least one of the talks
Answer:
625 employees
Explanation:
Given that,
Let the Monday talk be A and the Tuesday talk be B,
Employees attend Monday talk: I A I = 405
Employees attend Tuesday talk: I B I = 275
Employees attend both talks: I A ∩ B I = 55
Employees attended at least one of the talks: I A ∪ B I
= I A I + I B I - I A ∩ B I
= 405 + 275 - 55
= 625
Describe a situation in which there could be a conflict of interest between an IT consultant’s self-interest and the interests of a client. How might this potential conflict be addressed?
Answer:
An example of a situation in which there could be a conflict of interest between an IT consultant’s self-interest and the interests of a client is a delay in duration for completion of a project.
This potential conflict can be addressed by providing a report of activities that have ensued within the time lapse and give reasons for extension of time.
Explanation:
An IT consultant saddled with the responsibility of developing a website for a client could have a disagreement with the client if he does not deliver on the job as at when due.
This could be due to his inability to concentrate on the project as a result of other personal engagements he has which could make him earn more.
To assuage his client's disapproval, he can present a detailed report showcasing the progress on the project and estimate an additional time to complete it.
He must be calm and courteous in his approach no matter how infuriated his client is.
What do you believe are the top five characteristics of a good leader? What are the top five for a good manager? Discuss the similarities and differences between a manager and a leader. g
Answer:
The answer to characteristics of a good leader are:
1) Honesty
2) Communication
3) Sense of humor
4) Commitment
5) Creativity
The answer to a Good manager characteristics:
1) Leadership
2) Communication
3) Reliability
4) Time management
5) Experience
Explanation:
In understanding the difference between leaders and managers is that leaders have people follow them while managers have people who work for them. A successful business owner needs to be both a strong leader and manager to get their team on board to follow them towards their vision of success. Leadership is about getting people to understand and believe in your vision and to work with you to achieve your goals.
The similarities between a leader and a manager can be clearly seen as both rely on effective communication, both are accountable for results, both supervise groups or teams of people, both will typically evaluate employees.
A random sample of 40 students were asked how much money they spent on entertainment in the last week. They spent an average of $28, with a standard deviation of $18. What is the 90% confidence interval for mean amount spent on entertainment?
Answer:
In between $23.3 and $32.7
Explanation:
standard deviation = $18
sample mean = $28
sample size = 40 students
Significance level = 1 - confidence interval = 1 - 0.9 = 0.1
Using the confidence interval calculator
90% Confidence Interval: $28 ± $4.68
($23.3 to $32.7)
With 90% confidence the population mean is between 23.3 and 32.7 based on 40 samples."
What makes buying a foreclosed property risky? Select two. The title fee is set later and can’t be negotiated They’re usually sold "as is" Usually, you can’t inspect the home in advance You must use an adjustable-rate loan for purchase
They’re usually sold "as is" and Usually, you can’t inspect the home in advance makes buying a foreclosed property risky.
Purchasing a foreclosed property is dangerous for the following two reasons:
They're usually sold "as is"
Frequently, foreclosed homes are offered for sale as-is, with no alterations done by the bank or the prior owner.
This implies that you may be buying a house with hidden problems or damage that would cost a lot of money to rectify. You can incur unforeseen fees after buying the home if you are unable to negotiate repairs or renovations before the purchase.
Usually, you can't inspect the home in advance:
Many often, prospective purchasers of foreclosed homes are not given the chance to perform a comprehensive examination before finalizing the purchase.
Due to the lack of an assessment, there may be repulsive after-purchase shocks, such as finding basic troubles, plumbing or electrical issues, or other covered-up imperfections that were not seen amid the initial seeing. You'll not have comprehensive information on the genuine state of the property you're buying without an intensive examination.
Hence, buying a foreclosed property risky cause Usually, you can't inspect the home in advance and They're usually sold "as is".
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The correct options are B and C. Buying a foreclosed property is risky because they are usually sold 'as is' and prospective buyers often cannot inspect them in advance.
The correct answers are:
They’re usually sold “as is”Usually, you can’t inspect the home in advanceForeclosed properties are often sold “as is”, meaning the buyer takes responsibility for any existing issues without expecting repairs or improvements from the seller. Furthermore, prospective buyers often cannot inspect the home in advance, which increases the risk of unforeseen problems that may require costly repairs after the purchase.
Complete question
What makes buying a foreclosed property risky? Select two.
A. The title fee is set later and can’t be negotiated
B. They’re usually sold “as is”
C. Usually, you can’t inspect the home in advance
D. You must use an adjustable-rate loan for purchase
"Assume the following information: Also assume that a U.S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$600,000 in 1 year. You are a consultant for this firm. Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge
Answer and Explanation:
Borrow in New Zealand dollars
600000/1.1 = 545454.5 NZ$
Convert the New Zealand dollars to
USD
545454.5 0.39 = 212727.3 USD
Invest the USD to get
USD US deposit rate
212727.3 1.11 = 236127.3
236127.3 is the value of the exports after 1 year.
What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the constant-growth rate is 2.85%, and you require a 15.5% rate of return?
Answer:
Stock price = $41.50
Explanation:
We know,
Stock price, Po = Dividend of next year (D1) ÷ (Required rate of return (k) - divindend growth rate, g)
Given,
Dividend for the next year, D1 = $5.25
Required rate of return, k = 15.5% = 0.155
Constant growth rate, g = 2.85% = 0.0285
Putting the values into the right formula, we get,
Po = D1 ÷ (k - g)
or, Po = $5.25 ÷ (0.155 - 0.0285)
or, Po = $5.25 ÷ 0.1265
Therefore, Po = $41.50
Therefore, the company's share price is stable and acceptable.