Answer:
Sets precedents
Explanation:
The function that does not fall under the category of an agency while doing is that it sets precedents. Fundamentally it authenticates a usage and tradition that should be followed tomorrow.
An illustration based on that is as follows:
She set a precedent by having the chaplain command the educational parade. Here the word precedent means a prior instance either a legal decision upon which coming up instances are related.
A particular stock has a dividend yield of 1.3 percent. Last year, the stock price fell from $64 to $59. What was the total percentage rate of return for the year?
Answer:
The total percentage rate of return for the year is -6.51%
Explanation:
Capital Gain Yield = ($59 – $64 )/ $64
= - $5 / $64
= -7.81%
Since the dividend yield is 1.3%:
Total return = -7.81% + 1.3%
= -6.51%
Therefore, The total percentage rate of return for the year is -6.51%
when a company in the United States employs people in India to answer there customer service calls, this is an example of ___?
(a.) traditional careers
(b.) outsourcing
(c.) entrepreneurship
(d.) non-traditional careers
Answer: Its b
Explanation: Yea this is a wired one but it for sure b
When a company in the United States employs people in India to answer their customer service calls, this is an example of outsourcing. Thus, the correct option is (B).
Outsourcing is a contract in which one business employs another company to be responsible for a planned or current operation that would otherwise be or might be carried out internally, i.e. in-house.
It may also include the transfer of workers and assets from one organization to another.
Companies also utilize outsourcing to scale back and focus on the core components of their business, offloading less vital processes to third-party organizations.
Therefore, the correct option is "B".
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Allison's wants to raise $12.4 million to expand its business. To accomplish this, it plans to sell 25-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 6.5 percent, with semiannual compounding. What is the minimum number of bonds Allison's must sell to raise the $12.4 million it needs?
Answer:
= 55,780.5 units
Explanation:
A bond is a financial instrument used by a company or government to borrow money.
Zero-coupon bond: Most bonds pay a fixed percentage of their face value - coupon- as interest payment at requalr intervals.
A zero- coupon bond pays no coupon. However, the return on it is the difference between its face value and price.
The Price of a bond is determined using the discounted flow method. Here the present value is calculated using its the face value and the yield. The face value is the amount promised by borrower to pay back. And the yield is the return on the bond expressed in %.
This can be captioned as follows:
P × (1+r)^n = FV,
P- price, FV- Face value, r = yield
P-?, FV- 1000, r = 6.5%/2 = 3.25% (semi-annual interest rate)
P × (1.0325)^(25× 2) = 1000
P × 4.9488 = 1000
P= 1000/4.4988
P= $222.28
P= $222.3
If the bond sells for $222.3, then to raise $12.4 million, Allison will have to sell:
= 12,400,000/222.3
= 55,780.5 units
Ace Industries has a current assets equal to $3 illion . the company's current ratio is 1.5. and its quick ratio is 1.0.
What is the firm's level of current liabilities?
What is the firm's level of inventories?
Answer:
$2,000,000
$1,000,000
Explanation:
We know that
Current ratio = Total Current assets ÷ total current liabilities
1.5 = $3,000,000 ÷ total current liabilities
So, the total current liabilities would be
= $2,000,000
And
Quick ratio = Quick assets ÷ total current liabilities
1.0 = Quick assets ÷ $2,000,000
Quick assets = $2,000,000
So, the inventory would be
= Total current assets - quick assets
= $3,000,000 - $2,000,000
= $1,000,0000
The publisher from needs to change his calculations. Before the book is actually produced, rising paper costs increase variable costs to $2.10 per book. If the company wants to start making a profit at the same production level as before the paper cost increase,
for how much should they sell the book now?
The publisher should increase the selling price of the book by the amount the variable costs have increased due to the rise in paper costs, in order to maintain the same profit levels. In this case, the selling price should be increased by $0.10.
Explanation:Given that the variable cost per book has increased from $2.00 to $2.10 due to rising paper costs, the publisher must adjust the selling price to maintain the same profit level. If the publisher was previously selling the book at a price 'P,' then the profit per book was (P - $2.00). Now, considering the increased variable cost to maintain the previous profit, the book's selling price should be (P + $0.10), an addition representing the rise in the cost of paper.
So if, for example, the original selling price of the book was $5.00, to start making a profit at the same production level as before the paper cost increase, the publisher should now sell the book for $5.10.
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Early in a project when very little detail is known about a project, it is impractical to render even a rough estimate of the final project cost.
True or False?
Answer:
The statement is: False.
Explanation:
The main purpose of project planning is determining the cost of handling a business to find out what is the amount of investment needed to keep the business going. Since the beginning, all the efforts of project planning involve coming up with all the factors that could involve offering a good or service and what their costs would be.
The statement is False. Rough estimates of the final project cost early on are feasible using expert insights and past project data. These early estimates provide a preliminary budget that can be refined as more details become available.
Estimating the final project cost early in a project's timeline can be challenging when there is little detail known about the project.
However, it is not impractical. Professionals in project management often use rough estimates or high-level approximations, even with limited information, by leveraging past experiences, expert insights, and statistical methods.These estimates, albeit rough, offer a preliminary budget which can be refined as more details emerge. The quality of any estimate is highly impacted by the planning horizon, with closer future activities resulting in more accurate estimates.Therefore, the statement is False. Estimations, even rough ones, are often necessary and feasible with the use of expert knowledge and past project data.Famaâs Llamas has a weighted average cost of capital of 7.9 percent. The companyâs cost of equity is 11 percent, and its pretax cost of debt is 5.8 percent. The tax rate is 25 percent. What is the companyâs target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Answer:
companyâs target debt-equity ratio = 0.87323
Explanation:
Given data:
Weighted Average Cost of Capital = 7.90%
cost of equity is 11 percent
pretax cost of debt is 5.8 percent
tax rate is 25 percent.
After-tax cost of debt = 5.8% (1 - 25%) = 4.35%
Weighted Average Cost of Capital = Debt weight * After tax cost of debt + equity weight * cost of equity
let debt weight is x
equity weight = 1-x
plugging all value
7.9 = 4.35*x*+11(1-x)
solving for x
x = 0.46616
so, equity weight = 1- 0.46616 = 0.533835 {equity weight = 1-x}
debt to equity ratio = [tex]\frac{0.466165}{0.533835} = 0.87323[/tex]
There are many potential goals of a corporation, such as: minimize costs, maximize sales, maximize employment, maximize earnings, maximize shareholder wealth, maximize dividend payments, etc. Which one is the best for the long-term health of the company and society?
Answer:
The best for long-term health of the company and society is maximize the shareholder wealth.
Explanation:
'Shareholder wealth' means the market price of common stock of a firm. The goal to maximize the shareholder wealth means that management should try to make the current value of the returns as maximum that are expected in future, for the shareholders of the firm.
'Market value' means the value at which the stock trades in the market, like what is its price in 'New York Stock Exchange' is its market value. So, out of the given goals, to maintain a good health of company for a long time, it should maximize the shareholder wealth.
At an activity level of 9,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $823,440 and its total fixed production engineering cost is $195,020.
What would be the total production engineering cost per hour, both fixed and variable, at an activity level of 9,800 machine-hours in a month?
Answer:
$107.5 per machine hour.
Explanation:
Step 1: Calculate the total production engineering cost per hour at activity level of 9,800 machine hours in a month
a. Calculate the Variable cost per Unit = total variable cost/units produced
= $823,440/9400 (initial machine hours)
= $87.6 per machine hour
b. calculate the total variable cost for 9,800 machine hours
=variable cost per unit x 9,800 hours
= $858,480
c. Calculate total production cost for 9,800 hours
=total variable cost + fixed cost
= $858,480 + $195,020
= =$1,053,500
d) calculate the production engineering cost per unit
= Total cost for 9,800/ number of hours
=$1, 053, 500 / 9800 hours
=$107.5 per machine hour.
Benson Co. purchased land and paid the full purchase price in cash. The journal entry necessary to record this event includes a: A. debit to Land and a debit to Cash. B. debit to Cash and a credit to Land. C. credit to Land and a credit to Cash. D. debit to Land and a credit to Cash.
Answer:
A. debit to Land and a debit to Cash.
Explanation:
Land, an asset, is increased with a debit, and cash, another asset is decreased with a credit.
The purchase of land by Benson corporation has been recorded as debit to Land and credit to cash. Thus, option D is correct.
Journal entry has been the financial record of the gain and reduction in the assets with the normal usage.
The assets have been given as valuable item or object owned by the company. It has been able to provide the economic benefit to the company and the individual.
Journal entryThe land has been given as the fixed assets for the organization. The cash has been the current assets in the organization.
The purchase of land by Benson corporation has been dealt with the cash. It has been marked with the decrease in the cash of the organization. Thus, the cash has been debited in the Journal entry.
The debit of current assets has been resulted in the addition of fixed assets in the form of land to the corporation. The addition has been given as the credit in the Journal entry.
Thus, the purchase of land by Benson corporation has been recorded as debit to Land and credit to cash. Thus, option D is correct.
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The gross domestic product (GDP) of the United States is defined as themarket value of allfinal goods and services produced within the United States in a given period of time.
true-false
Answer:
true
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP can be calculated using the expenditure approach.
GDP = Consumption spending + Investment + Government Spending + Net Export
GDP of the US for the 3rd quarter of 2019 was $5,385,635 million
I hope my answer helps you
Your brother has offered to give you either $10,000 today or $20,000 in 9 years. If the interest rate is 7% per year which option is preferable?
Answer:
receive $20000 in 9 years is preferable because its present value is greater than $10000 i.e $10878.67
Explanation:
given data
offered = $10,000 or $20,000
time = 9 year
interest rate = 7%
solution
here when you receive = $20000 received in 9 years
so present value = [tex]\frac{receive\ amount}{(1+rate)^{time}}[/tex] .................1
present value = [tex]\frac{20000}{(1+0.07)^9}[/tex]
present value = $10878.67
so here receive $20000 in 9 years is preferable because its present value is greater than $10000
Final answer:
To determine if $10,000 now is better than $20,000 in 9 years at a 7% interest rate, calculate the present value of $20,000 using the formula PV = FV / (1 + r)^n. If the present value is more than $10,000, choose the future payment; if less, take the money now.
Explanation:
The question involves comparing two financial options by calculating the present value of future money using the concept of interest rates. To determine whether the option of receiving $10,000 today is preferable to receiving $20,000 in 9 years at an interest rate of 7%, one would compute the present value of $20,000 discounted back 9 years. Using the formula PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years, one can find the present value of the $20,000.
To solve this problem, we take:
FV = $20,000r = 7% or 0.07n = 9 yearsThus, the present value (PV) = $20,000 / (1 + 0.07)^9.
After calculating the PV, if it is more than $10,000, then receiving $20,000 in 9 years is the better option considering the 7% interest rate. If it is less, then taking $10,000 today is better.
Types of Economic Data For each of the following e whether the data are cross-section, time series or panel data. (a) Quarterly data on the level of U.S. new housing construction from 2000 to 2018. (b) Data on number of doctor visits in 2018 for a sample of 192 individuals. (c) Data on annual health expenditures for each U.S. state from 2000 to 2018. (d) Data on usual mode of transportation used to commute to work for a sample of 151 individuals. xamples state whether the data are numerical or categorical, and state
Answer:
A. Time series
B. Cross Sectional
C. Panel
D. Cross Sectional
Explanation:
(a) Quarterly data on the level of U.S. new housing construction from 2000 to 2018, Time series data, numerical
(b) Data on number of doctor visits in 2018 for a sample of 192 individuals. Cross sectional data, numerical
(c) Data on annual health expenditures for each U.S. state from 2000 to 2018. Panel Data, Numerical
(d) Data on usual mode of transportation used to commute to work for a sample of 151 individuals. Categorical
Maas, Inc., sells washers and dryers that include a maximum one-year warranty covering parts. Past experience shows that warranty expense averages about 2 percent of the selling price of each washer and dryer. Net sales totaled $400,000 during the year ending December 31. Prepare the December 31 adjusting entry for Maas by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
See explanation section
Explanation:
Journal entry to be recorded -
Debit Warranty expense $8,000
Credit Estimated warranty liability $8,000
Calculation:
Net sales = $400,000
warranty expenses = 2% of the net selling price.
Therefore, estimated warranty expense = $400,000 × 2% = $8,000
Since, the company does not pay the expenses, a liability arises. Since we are estimating the value from past experience, the liability will be estimated.
Adjusting entry: Debit Warranty Expense $8,000, Credit Accrued Warranty Liability $8,000 for Maas, Inc.'s December 31 financials.
Here's the adjusting entry for Maas, Inc. on December 31:
| Account | Debit | Credit |
| Warranty Expense | $8,000 | |
| | | |
| Accrued Warranty Liability| | $8,000 |
Explanation:
- Warranty Expense is debited to recognize the expense for the warranties issued during the year, calculated as 2% of net sales ($400,000 * 0.02 = $8,000).
- Accrued Warranty Liability is credited to recognize the obligation Maas, Inc. has to fulfill warranty claims in the future.
Last year Randolph Company had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 45.0%. What was total assets turnover, what was equity multiplier, what was profit margin, and what was the ROE?
Answer:
13.82%
Explanation:
Data provided in the question:
Sales = $325,000
Net income = $19,000
Assets = $250,000
Total-debt-to-total-assets ratio = 45.0% = 0.45
Now,
Total asset turnover = Sales ÷ Total assets
= $325,000 ÷ $250,000
= 1.3
Profit margin = Net income ÷ Sales
= $19,000 ÷ $325,000
= 0.05846
Equity multiplier = 1 ÷ [ 1 - Debt to asset ratio]
= 1 ÷ [ 1 - 0.45 ]
= 1.818
thus,
ROE = Profit margin × Total asset turnover × Equity multiplier
= 0.05846 × 1.3 × 1.818
= 0.1382
or
= 0.1382 × 100%
= 13.82%
In the 19th century, when crop failures often led to bank runs, banks would make relatively fewer loans and hold relatively more excess reserves. By itself, these actions by the banks should have a. increased the money multiplier and the money supply b. decreased the money multiplier and increased the money supply. c. increased the money multiplier and decreased the money supply. d. decreased both the money multiplier and the money supply.
Answer:
Correct answer is (d). decreased both the money multiplier and the money supply.
Explanation:
In banking business, money multiplier represent how the money that was deposited can influence the money supply. By giving fewer loans and keeping more excess reserves, the money is not really working as it not in circulation, the consequence of this action is that it will decreased both the money multiplier and the money supply.
For each transaction, indicate the transaction's effect on the company's accounting equation by selecting either increase, decrease, or no effect for each area of the accounting equation. Do not leave any of the fields below blank. (If the transaction were to cause an increase and decrease to the same area of the accounting equation, """"no effect"""" should be chosen as the overall effect to that area) On May 1, issued 20,000 shares of $10 par common stock for $20 per share. On June 1, purchased 4,000 shares of treasury stock for $25 per share. On Sept 1, declared a 4-for-1 stock split. On Oct 1, declared a dividend of $10,000 to be paid on Nov 15. On Nov 15, paid the dividend previously declared on Oct 1.
Answer:
Accounting equation and the effects of transactions are given below:
[tex]Assets = Liabilities + Stockholders' Equity[/tex]
May-01 : Assets⇒ Increase , Stockholders' Equity⇒ Increase
Jun-01 : Assets⇒ No Effect
Sep-01 : Stockholders' Equity⇒ No Effect
Oct-01 : Liabilities⇒ Increase, Stockholders' Equity⇒ Decrease
Nov-15 : Assets⇒ Decrease, Liabilities⇒ Decrease
Explanation:
May-01: Issuing common stocks increases Asset(cash) and Equity(common stock) by $400,000(20,000×20).
Jun-01: Purchasing shares of treasury stock decreases Asset(cash) and at the same time increases Asset(investments) by $100,000. Thus net effect is zero.
Sep-01: Stock split is corporate action in which total outstanding shares are increased and the price of those shares is proportionally decreased to increase the liquidity of shares in the market. The outstanding no. of shares increases and the par value of shares decreases. Hence, there's no effect of these actions on the accounting equation. A memorandum entry, a short message, is entered in the general journal which does not contain any balance.
A 4-for-1 split means that every outstanding share will be increased by four times and the par value will be reduced by the same amount.
Oct-01: Declaring dividend creates liability for the company. So, when company declare dividend, its Liability( Dividend Payable) increases and Equity(Dividend) decreases.
Nov-15: Paying dividend already declared decreases Liability( Dividend Payable) and decreases Asset(Cash)
A stock split changes the number of shares outstanding, treasury stock is a contra-equity account, and paying a dividend reduces cash.
Explanation:On May 1, issuing 20,000 shares of $10 par common stock for $20 per share would increase the common stock (stockholders' equity) by $200,000 (20,000 shares * $10 per share) and increase the cash (assets) by $400,000 (20,000 shares * $20 per share).
On June 1, purchasing 4,000 shares of treasury stock for $25 per share would decrease the cash (assets) by $100,000 (4,000 shares * $25 per share) and decrease the treasury stock (stockholders' equity) by $100,000.
On September 1, declaring a 4-for-1 stock split would have no effect on the accounting equation since it only changes the number of shares outstanding but doesn't affect the total equity or assets.
On October 1, declaring a dividend of $10,000 decreases retained earnings (stockholders' equity) by $10,000.
On November 15, paying the previously declared dividend decreases cash (assets) by $10,000.
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Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March follows:Fees earned $1,100,000Wages expense 715,000Rent expense 80,000Supplies expense 9,000Miscellaneous expense 12,000Prepare an income statement for the month ended March 31.
Answer:
Income statement of Imaging services for the month ended March 31, 2018.
Amount in $'000 Amount in $'000 Revenue 1,100
Cost of sales (Supplies expense) (9)
Gross income 1,091
Operating expenses
Wages expense 715
Rent expense 80
Miscellaneous expense 12
(807)
Net operating income 284
Explanation:
The income statement is one that that shows the revenue and expenses of an organization accumulating to the net income of the organization.
It considers all elements of cost from the cost of sales to all operating expenses and is given over a period.
What is the present value of following streams of future cash flows if the discount rate is 11%?
Year 1: $10,000
Year 2: $11,000
Year 3: $13,000
a. $35,847
b. $27,949
c. $33,521
d. $29,067
e. None of the above
Answer:
b. $27,949
Explanation:
The computation of the present value is presented below
Year Amount DF factor @ 11% Present value
1 $10,000 0.90909 $9,090.91
2 $11,000 0.82645 $9,090.85
3 $13,000 0.75131 $9,767.03
Total $27,948.79
The present value of the given future cash flows at a discount rate of 11% is calculated using the present value formula, leading to a sum of $27,546.11, which means the correct answer is 'e. None of the above'.
The question asks about the present value of future cash flows given a discount rate of 11%. To determine the present value, we apply the formula for calculating the present value of a future payment:
PV = FV / (1 + r)ⁿ
Where, PV is the present value, FV is the future value, r is the discount rate, and n is the number of years until payment.
Applying this formula, we calculate the present values for each year's cash flows:
Year 1: PV = $10,000 / (1.11)¹ = $9,009.01
Year 2: PV = $11,000 / (1.11)² = $8,954.95
Year 3: PV = $13,000 / (1.11)³ = $9,582.15
Summing these gives us the total present value: $9,009.01 + $8,954.95 + $9,582.15 = $27,546.11. Hence, the correct answer is e. None of the above.
1. Wholesale Banners pays $ 240 comma 000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $ 25 comma 000, the building $ 150 comma 000, and the equipment $ 75 comma 000. Journalize the lump-sum purchase.
Answer:
To journalize the lump-sum purchase;
Item Value
Land $24,000
Building value $144,000
Equipment value $72,000
Lump-sum value $240,000
Explanation:
Step 1: Determine the total market value of the acquisition
Total market value=land+building+equipment market value
where;
land market value=$25,000
building market value=$150,000
equipment market value=$75,000
replacing;
Total market value=25,000+150,000+75,000=$250,000
Step 2: Determine the proportion of market value that contributes to the lump-sum
Land value=(land market value/total market value)×lump-sum
Land value=(25,000/250,000)×240,000=$24,000
Building value=(Building market value/total market value)×lump-sum
Building value=(150,000/250,000)×240,000=$144,000
Equipment value=(Equipment value/total market value)×lump-sum
Equipment value=(75,000/250,000)×240,000=$72,000
Step 3: Journalize the lump-sum purchase
To journalize the lump-sum purchase;
Item Value
Land $24,000
Building value $144,000
Equipment value $72,000
Lump-sum value $240,000
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales $ 687,900
Costs 442,800
Depreciation 115,400
EBIT $
Taxes (30%)
Net income $
Calculate the OCF.
What is the depreciation tax shield?
Answer:
OCF = $206,190
Depreciation tax shield = $34,620
Explanation:
The computation of the depreciation tax shield is shown below:
= Depreciation × tax rate
= $115,400 × 30%
= $34,620
And the operating cash flow is
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
= $687,900 - $442,800 - $115,400
= $129,700
And, the income tax expense is
= (Sales - cost of good sold - depreciation expense) × tax rate
= ($687,900 - $442,800 - $115,400) × 30%
= $129,700 × 30%
= $38,910
So, the OCF is
= $129,700 + $115,400 - $38,910
= $206,190
The following information pertains to Eagle Co.'s Year 5 sales: Cash Sales Gross $ 80,000 Returns and allowances 4,000 Credit sales Gross 120,000 Discounts 6,000 On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct write-off method for bad debts. No bad debts were recorded in Year 5. Under the cash basis of accounting, what amount of net revenue should Eagle report for Year 5?
Answer:
The amount of net revenue Eagle should report for Year 5 is $ 80,000.
Explanation:
Under Cash basis of accounting revenue and expenses are recorded when payment against them is made or received. Expenses and revenues incurred are not relevant.
The amount of net revenue will comprises of revenue received in cash during the reporting period. Detail Calculations are given below.
Cash Sales $ 80,000
Returns and allowances ($ 4,000)
Discounts ($ 6,000)
Opening Receivable $ 40,000
Closing Receivable ($ 30,000)
Net revenue $ 80,000
Final answer:
Eagle Co. should report a net revenue of $76,000 for Year 5 under cash basis accounting, calculated by subtracting returns and allowances ($4,000) from cash sales ($80,000).
Explanation:
To calculate Eagle Co.'s net revenue for Year 5 under cash basis accounting, we begin by considering only the actual cash transactions. We will add the cash sales and subtract any returns and allowances, while credit sales and receivables are not considered under cash basis accounting unless cash is actually received.
Here is the breakdown: Cash Sales are $80,000 and Returns and Allowances are $4,000. We don't include Credit Sales, Discounts, or the beginning and ending accounts receivable because these do not represent cash exchanged during the year.
Net Revenue = Cash Sales - Returns and Allowances
= $80,000 - $4,000
= $76,000.
The net revenue that Eagle Co. should report for Year 5 is $76,000.
The requirement that there should be reasonable support for a tax return position before a CPA recommends it to a client most directly aligns with which tax standard?
Answer:
There is a realistic possibility of success if the tax position is challenged.
Explanation:
A CPA should refrain from preparing a tax return which is only based on false numbers, or where the fees of the CPA is dependent on the tax liability generated for the client.
Which of the following is not a reason why managers use financial statement analysis? Enables managers to understand how stockholders and creditors will interpret their financial results. Estimates stock price appreciation. Provides valuable feedback on company's performance
Answer:
The correct answer is letter "B": Estimates stock price appreciation.
Explanation:
Financial Statement Analysis is the process of reviewing a company's statements to gain an understanding of its financial health. The goal of financial statement analysis is to equip business with the knowledge it needs to make effective decisions. It evaluates the past and projects a company's future performance.
Several forces influence a company's stock price but financial statement analysis is not a source that accomplishes that purpose.
Financial statement analysis enables managers to understand how stockholders and creditors interpret their financial results and provides valuable feedback on the company's performance. However, it does not estimate stock price appreciation.
Explanation:Managers use financial statement analysis for various reasons, including understanding how stockholders and creditors will interpret their financial results, estimating stock price appreciation, and providing valuable feedback on the company's performance.
However, the question asks for a reason that is not applicable, and in this case, it would be 'Estimates stock price appreciation' because financial statement analysis primarily focuses on understanding financial results and evaluating the company's performance.
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Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.(A) 240(B) 180(C) 120(D) 60
Answer:
The correct answer is letter "B": 180.
Explanation:
During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).
Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:
Name Number of Shares Cost
Dust Devil, Inc. 1,900 $81,700
Gale Co. 850 68,000
Whirlwind Co. 2,850 114,000
Total $263,700
The market price per share for the available-for-sale security portfolio on December 31, 2016, was as follows:
Market Price per Share,
Dec. 31, 2016
Dust Devil, Inc. $40
Gale Co. 75
Whirlwind Co. 42
Required:
a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016
b. Is there any impact of December 31, 2016 journal entry on the income statement?.
Answer:
As per accounting standards available-for-sale securities are recorded at fair value through profit and loss account or other comprehensive income. We assume that company choose to record it at fair value through profit and loss account.
The answer of each requirement is given below.
a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016
Loss on valuation $ 4,250
Investment Cost $ 4,250
Working
Dust Devil, Inc. = 40 * 1900 = 76,000 - 81,700 = -5,700
Gale Co. = 75 * 850 = 63,750 - 68,000 = -4,250
Whirlwind Co. = 42 * 2850 = 119,700 - 114,000 = 5,700
Profit/ (Loss) = (4,250)
b. Is there any impact of December 31, 2016 journal entry on the income statement
The company income for the year will be reduced by ($ 4,250).
Hedge funds are low risk because they are market-neutral. low risk if they buy Treasury bonds. low risk because they hedge their investments. high risk because they are market-neutral. high risk, even though they may be market-neutral.
Answer:
Hedge funds are: high risk, even though they may be market-neutral.
Explain why taking a monotonic transformation of a utility function does not change the marginal rate of substitution (MRS).
The Marginal Rate of Substitution (MRS) is not affected by monotonic transformations of the utility function as MRS is determined by relative preferences, not absolute utility levels. Monotonic transformations preserve this preference order, leaving MRS unchanged. This preference-based nature of MRS is evident in consumer's utility-maximizing choices and the impact of price changes.
Explanation:In your question, you're asking why taking a monotonic transformation of a utility function does not change the marginal rate of substitution (MRS). The MRS is a concept in microeconomics that represents the rate at which a consumer can give up one good in exchange for another good while maintaining the same level of utility. MRS depends only on the relative preferences between two goods, not the actual level of utility. Hence, a monotonic transformation, which preserves the preference order, does not change the MRS.
For example, consider a budget constraint where the total price of the two goods remains the same. Let's say at an optimal choice, the ratio of marginal utility to price for two goods matches. If we apply a monotonic transformation to the utility function, the new utility levels will preserve the original preference order. Meaning, our optimal choice won't change since it's determined by where the MRS equals to the price ratio, not the absolute utility levels.
The utility-maximizing choice along a budget constraint will be the point of tangency where the budget constraint touches an indifference curve at a single point.
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A collection of related activities that produce a produce or service of value to an organization is known as a business alignment
True
False
Answer:
The statement is: False.
Explanation:
A business process is the set of steps structured in a company to manufacture a product or to render services. A business alignment represents the consensus among the different departments of a firm to achieve the common goal all of them work for.
Auditors realize that at times corrective action is not taken even when agreed to by the appropriate parties. This should lead an internal auditor to :A: Decide the extent of necessary followup work.B: Allow management to decide when to follow-up, since it is management's ultimate responsibility.C: Decide to conduct follow-up work only if management requests the auditor's assistance.D: Write a follow-up audit report with all findings and their significance to the operations.
Answer: The correct answer is
A: Decide the extent of necessary followup work.
Explanation: It is the responsibility of the Chief Audit Executive to decide the follow up process to be done.
The nature, timing and extent of follow up is communicated by the Chief Audit Executive and he also has the responsibility to find out from management why actions have not been taken.
When internal auditors notice corrective actions are not being taken despite agreements, they should actively determine the scale of necessary follow-up work. This ensures that operations adhere to required standards and fosters accountability within the organization.
Explanation:When internal auditors realize that at times, corrective action is not taken despite being agreed upon by the relevant stakeholders, the appropriate course of action is to determine the extent of the necessary follow-up work. This is because internal auditors are responsible for ensuring that the organization's operations adhere to the set standards and procedures. The objective of follow-up work is to verify that management has carried out the agreed-upon change. If internal auditors permit management to decide when to follow up, there is a risk that the necessary rectifications will be delayed or ignored. Furthermore, waiting for management's request to conduct follow-up work can also lead to similar issues. Therefore, internal auditors should proactively decide the extent of follow-up work required to confirm that corrective action is taken. This helps maintain checks and balances to assure integrity and accountability in the organization.
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