Answer:
"E "
Explanation:
Just in time inventory is an inventory management system where inventory required for production are ordered at the point of production.
This practice helps to maximize profit as investment on inventory carriage and storage are minimized , aiding an improved working capital management.
It is of importance that machine break down is avoided and there is a reliability of man power in order to avoid operation down time when there is a demand.
Also , there must be a solid arrangement with supplier for it to be effective.
Where there is a lack of good performance measures, it is difficult to motivate managers by using
A. Performance-based incentives
B. Monetary rewards
C. Compensation
D. Rewards for products46. Which of the following is a truestatement regarding performance evaluation?
Answer:
Option "A" is the correct answer.
Performance-based incentive.
Explanation:
Performance-based incentives also include financial and pre-monetary incentives to encourage well being-related actions or accomplishment of performance goals. ... To change those health-related habits, they are transmitted electronically to families or patients.
Participants are involved in incentive programs. Studies have found that incentive programs can boost job interest.Measuring performance accurately is essential for motivating managers using performance-based incentives or monetary rewards.
Explanation:When there is a lack of good performance measures, it becomes difficult to motivate managers using performance-based incentives or monetary rewards. This is because without accurate performance measures, it becomes challenging to assess and reward individual performance effectively.
For example, if incentives are based on team performance without considering individual efforts, employees may be motivated to shirk in their jobs because they can still benefit from the rewards even if others do the work. This is known as the informativeness principle, which suggests that measures reflecting individual employee effort should be incorporated into employee contracts.
Therefore, the correct option is A. Performance-based incentives.
To what extent do you think Semler would succeed as a leader in other types of organizations
Answer:
to a large extend
Explanation:
Remember Semler's business was a marine-pump business, which he transformed into a multi national business.
He did so by:
democratizing his workplace, which could be done in other types of organisations.changing his own leadership style by giving workers more control. Thus even in other types of organisations positive leadership style changes could be successful.Ricardo Semler's leadership could succeed well in organizations valuing autonomy and innovation but may face challenges in highly regulated or traditional industries requiring stringent compliance and structure. Adaptation to organizational culture and industry context would be crucial for success.
Ricardo Semler's leadership approach, as exemplified by his practices at Semco, has been unconventional yet highly successful within the context of Semco. Evaluating the extent to which he would succeed in other types of organizations involves considering both the strengths and challenges of his leadership style:
Strengths:
1. Empowerment and Trust: Semler's approach emphasizes decentralization, empowerment of employees, and trust in their decision-making abilities. This can foster a more engaged and motivated workforce in any organization where employees desire autonomy and responsibility.
2. Flexibility and Adaptability: His model encourages adaptability to change and responsiveness to market conditions. This is crucial in dynamic industries or sectors where agility and innovation are key to staying competitive.
3. Employee Satisfaction and Retention: By prioritizing employee well-being, work-life balance, and democratic decision-making, Semler has achieved high employee satisfaction and retention rates. This can contribute to organizational stability and productivity in various contexts.
4. Innovation and Creativity: Semler's approach encourages innovation and creativity by challenging traditional hierarchical structures and promoting a culture of questioning and experimentation. This could be beneficial in industries that require continuous innovation.
Challenges:
1. Resistance to Change: Semler's leadership model may face resistance in organizations with deeply ingrained hierarchical structures or rigid corporate cultures. Implementing such radical changes requires strong leadership and gradual adaptation.
2. Risk Management: His decentralized decision-making approach might pose challenges in organizations where risk management and compliance are highly regulated or critical to operations.
3. Scale and Complexity: Scaling Semler's model to larger organizations or those with complex operations may present logistical challenges. Maintaining cohesion and alignment across diverse functions and geographies requires robust systems and processes.
4. Industry Fit: The applicability of Semler's model may vary across industries. For instance, highly specialized or regulated industries may require a more structured approach to ensure compliance and safety.
The complete question is:
Harvard Case study - Ricardo Semler : A revolutionary model of Leadership
To what extent do you think Ricardo would succeed as a leader in other types of organizations? Give Arguments
Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold):
Total Annual Costs (150,000 units)
Direct Material $200,000
Direct Labor $180,000
Manufacturing overhead $150,000
Selling, general, and administrative $100,000
Total = $630,000
a) Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 150,000 units
b) Compute Breed's dollar sales that will yield a projected 20% profit on sales, assuming variable costs per unit are 60% of the selling price per unit and fixed costs are $225,000
c) Management believes that a selling price of $9 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)?
Answer:
(a) $8.20
(b) $1,125,000
(c) 125,000
Explanation:
(a) Unit selling price:
= (Total cost incurred + Desired profit) ÷ Number of units sold
= ($630,000 + $600,000) ÷ 150,000
= $8.20
(b) Profit = Dollar sales - Variable cost - Fixed cost
($ sales × 20% profit) = $ sales - ($ sales × 60%) - $225,000
($ sales × 20% profit) = ($ sales × 40%) - $225,000
$225,000 = ($ sales × 40%) - ($ sales × 20% profit)
$225,000 = ($ sales × 20%)
Dollar sales = $225,000 ÷ 20%
= $1,125,000
(c) No. of units required to be sold:
= Dollar sales ÷ Selling price per unit
= $1,125,000 ÷ $9
= 125,000
In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________.
Answer: Company objective and the resources
Explanation:
For evaluating the different types of marketing segment of an organization it basically involve the two main factors such as the overall segments's attractiveness and also the main objective of the company and its resources.
By evaluating the marketing segment we can easily evaluating each segment of the company so that the company producing the desirable result according to the consumer requirements.
The company objective is one of the type of goals of the company that helps in achieving the desirable result and the opportunities. Therefore, Company objective and the resources is the correct answer.
________ relies on the methodical identification, collection, analysis, and distribution of data to discover and solve marketing problems or enhance decision making.
Answer:
Market Research
Explanation:
Market Research is the term which is explained as the process of determining the viability of the new product or service by research which is directly conducted or performed with the potential customers.
It allows the business to discover the target market and the get feedback from the customers regarding their interest in the service or product.
Therefore, market research is the one which relies on the analysis, identification, distribution of the data in order to discover and slove the marketing problems.
Mr. G obtains a $70,000 loan today. He will repay the bank with equal payments to be made at the end of each 6-month period, or twice each year, for 6 years. If the interest rate the bank charges is an 8% annual percentage rate, what amount of money will each payment be?
Answer:
The amount of each payment after every 6 months will be $7,458
Explanation:
We need to find the amount of payment made every 6 months. For that we need to know the present value of the loan which is 70,000, the interest rate which is 8% but we will divide it by 2 because there are semiannual payments so interest rate will be 4%, after that we need to know the number of compounding periods, because the payments are semi annual and there are 6 years we will multiply 6 by 2 and get 12 which is our compounding periods. Because there are equal payments and no payment to be made at end the future value of the loan is 0. Now we will input the following data in a financial calculator.
PV= 70,000
I= 4
N= 12
Fv=0
Compute PMT=7,458
Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.
a) Regulating cable TV prices
b) Providing some poor with vouchers that can be used to buy food.
c) Prohibiting smoking in public places
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies.
e) Imposing higher personal income tax rates on people with higher incomes
f) Instituting laws against driving while intoxicated.
Answer:
a) Regulating cable TV prices - This is motivated by the concern about efficiency. Since one cable TV company can easily become a monopolist and manage cable TV prices on its own, market power (a type of market failure) is hindered by regulation. These measures aim to decentralize power and distribute it once again.
b) Providing some poor with vouchers that can be used to buy food. - Being a concern for equality, this regulation aims to improve fairness and equality among society levels by giving vouchers to poor people. Equality measures are usually non-efficient by the means of concern, and are a common practice in all governments.
c) Prohibiting smoking in public places - Being a concern about efficiency, this aims to overcome a possible externality. Third parties (non-smokers) are affected by something they cannot influence, which indicates a case of externality failure. Government regulation is essential
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies. - Once a monopoly, Standard Oil is broken down into several smaller, competition-oriented companies. The market failure regarding market power is regulated by this move. When this happens, Standard Oil will not be able to dictate prices.
e) Imposing higher personal income tax rates on people with higher incomes - Being an equality measure by nature, this economic remedy tries to create less discrepancy among income across all social levels. The standard deviation becomes smaller, which is the result of equality measures. Although people with higher incomes will always have a similar income, regulation vastly influences people with less income.
f) Instituting laws against driving while intoxicated. - This is an efficiency measure (against externality), as sober drivers and traffic participants become influenced by drunk drivers who they cannot control. In case of an accident, the third party is imposed a cost that could be fatal. Therefore, it has to be regulated.
The brief explanation about the government activities is motivated by a concern about equality or a concern about efficiency is:
a) Regulating cable TV prices
This has to do with the concern for efficiency
b) Providing some poor with vouchers that can be used to buy food.
This has to do with the concern for equality
c) Prohibiting smoking in public places
This has to do with the concern for efficiency
d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies.
This has to do with the concern for efficiency
e) Imposing higher personal income tax rates on people with higher incomes
This has to do with the concern for equality
f) Instituting laws against driving while intoxicated.
This has to do with the concern for efficiencyWhen a free market operates within the regulations of the government, then it means that the government is protecting the consumers from monopoly, overcharging and other morally wrong practises.
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Consider the effects of the independent transactions, a through h, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages. a. Wages are earned by employees but not yet paid. b. Inventory is purchased on credit. c. Inventory purchased in transactions b is sold on credit (and for more than its cost). d. Collected cash from transaction c. e. Equipment is acquired for cash. f. Paid cash for inventory purchased in transaction b. g. Paid cash toward a note payable that came due. h. Paid cash for interest on borrowings.
Answer:
Explanation:
A. The Balance of Income Statement I mean Net Profit will decrease because of increase in expenses and the balance of Current Liabilities in Balance Sheet will increase because it will become salaries payable and there will be no effect on statement of cash flows.
B. This will affect gross Profit and Net Profit negatively means bot will decrease and cost of goods sold will increase, in Balance sheet it will increase current assets as inventory is asset and it will also increase current liabilities and it is purchased on Credit. and there will be not affect on statement of cash flows.
C. This will increase sales and hence Net Profit in Income Statement. The balance on Balance sheet will will increase because it is sold so accounts receivable will increase which is current asset and also as inventory is sold so inventory will decrease but it will decrease by less amount because we record inventory on cost and we have sold it for more than its cost so the value of current assets will increase as the amount of accounts receivable will be greater than the decrease of the amount of inventory. there will be no change in statement of cash flows.
D. There will be no affect on Income Statement. There willbe no change in the balance of balance sheet because the accounts receivable will decrease by the same amount as cash will increase. Balance on statement of Cash Flows will increase as the company have received cash so it will increase its cash inflows.
E. There will be no change in the Balance of Income Statement as acquisition is related to balance sheet. This will not change the overall balance of balance sheet but it will decrease the balance of current assets as cash is paid for acquisition and it will increase the balance of fixed assets as equipment is bought. But the balance of total assets will remain same. The balance of statement of cash flows will decrease because cash is paid so there is cash outflow.
F. This will not affect Income Statement. this will decrease the balance of current assets as cash is paid so it is a current asset and also it will decrease the balance of current liabilities as it was purchased on credit so accounts payable will decrease. also this will decrease the balance of statement of cash flows as it is a cash outflow.
G. This will not affect Income Statement. this will decrease the balance of balance sheet. as cash is paid so current assets will decrease and as notes payable are liabilities so it will also decrease because it has been paid off. there will be a decrease in the balance of statement of cash flows because it is a cash outflow.
H. The balance of Income statement will decrease means net profit will decrease as Interest is an expense. The Balance of Balance sheet will decrease because cash is paid and it is current asset. it will decrease the balance of statement of cash flows because it is a cash outflow.
This question discusses the effects of various transactions on a company's financial statements, including the balance sheet, income statement, and statement of cash flows.
Explanation:Effect on Balance Sheet:a. Increase in wages payable (liability)b. Increase in inventory (asset) and increase in accounts payable (liability)c. Decrease in inventory (asset) and increase in accounts receivable (asset)d. Increase in cash (asset) and decrease in accounts receivable (asset)e. Increase in equipment (asset) and decrease in cash (asset)f. Decrease in cash (asset) and decrease in inventory (asset)g. Decrease in cash (asset) and decrease in note payable (liability)h. Decrease in cash (asset) and decrease in interest expense (expense)Effect on Income Statement:c. Increase in revenue (income)h. Increase in interest expense (expense)Effect on Statement of Cash Flows:a. Increase in operating activities (cash outflow)b. No effect on cash flow statementc. Increase in operating activities (cash inflow)d. Increase in operating activities (cash inflow)e. Increase in investing activities (cash outflow)f. Decrease in operating activities (cash outflow)g. Decrease in financing activities (cash outflow)h. Decrease in operating activities (cash outflow)Learn more about Effects of Transactions on Financial Statements here:https://brainly.com/question/31233201
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Which of the following statements about financial statement analysis is most correct?
a. The current ratio is the best available measure of liquidity.
b. Du Pont analysis is based on the fact that return on equity (ROE) can be expressed as the sum of four other ratios.
c. It is relatively easy to interpret a ratio in the absence of comparative data.
d. There are no limitations to financial statement analysis, so analysts can always be confident of their conclusions.
e. None of the above statements is correct.
Answer:
The answer is e) None of the above statements is correct.
Explanation:
The current ratio, which measures the coverage of current assets against current liabilities, though used widely faces the limitation that it does not adequately reflect how well a company pays-off its short term debt. In simple terms, a high current ratio indicating how well a company pays short term debt is not forcefully appreciated in a given economic condition. as it is affected by elements such as time for collectinig bills. This is why to move in line with the going-concern principle, the acid test ratio is the best available measure of liquidity.
Du pont analysis is a form of financial ratio tools that comprises of 3 other financial ratios to provide better comprehension of the Return on Equity of a company. That is Net Profit Margin, Asset Turnover and Totat assets to Total equity ratios.
Interpretation of financial ratios requires the use of data so as to provide a comparison and determine the changes in the financial position of a company.
There are existing limitations to financial statement analysis such as the effect of inflation, the fact that data used for comparison is based on past information and it becomes to hard to predict the future. Considering these, analysts should rather be careful when communicating financial information.
The correct answer is 'b' - Du Pont's analysis is based on a relationship between ROE and three other ratios, not four. The statement 'a' isn't entirely true as the current ratio ignores the type and quality of current assets. Statements 'c' and 'd' are incorrect as analyzing a ratio without comparative data is misleading and limitations exist in financial statement analysis.
Explanation:The correct statement about financial statement analysis is option 'b. Du Pont's analysis is based on the fact that return on equity (ROE) can be expressed as the product of three other ratios: the net profit margin, the total assets turnover, and the financial leverage ratio, not four. It's crucial to note that, while the current ratio can provide insight into a company's liquidity, it's not universally 'the best' measure because it fails to account for the nature and quality of current assets. Statements 'c' and 'd' are also incorrect; interpreting ratio data without comparative data lacks context and can be misleading, and financial statement analysis does have limitations such as not considering non-financial factors or possible manipulation of financial statements.
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_____ requires coordination among government departments and agencies, as well as cooperation toward common objectives across commands
a)Unified direction
b)Unity of decision
c)Unity of effort
d)Unified action
"Unity of effort" requires coordination among government departments and agencies, as well as cooperation toward common objectives across commands.
Answer: Option C
Explanation:
At the national level the unity of effort is basically a cooperative effort involving a number of departments and agencies of the United States Government. "Unity of effort" is about teamwork and collaboration directed towards common goals although participants do not generally form part of the same command or organisation that is the result of effective unified action.
The aim of promoting cohesion of action is to generate a ellaborative consensus approach while applying national power instruments towards common goals. The unity of effort is a continuous process which demand constant effort to sustain inter-organizational relationships.
When speaking online, you should look into the camera as if you were making eye contact with an audience that is right in front of you.
O True O False
Answer:
Yes the given statement is true.
Explanation:
When we are speaking online, you should look into the camera only to have eye contact.
Now many training sessions are conducted online, many meetings are conducted through video conferencing, etc. So it is essential to look into the camera and speak, because
the camera shows your face to the person in remoteif you look at the monitor and talk, the person who is in remote will see your eyes pointing somewhere elseYou can also take an example of taking selfie, if you look at the screen then when you are looking at your photo, your eyes will look somewhere else and not straight. So the same suit for online conversation too.
You put aside $300 a month in an account that returns 9% a year, compounded monthly. How long do you need to contribute to save $1,000,000
Answer:
36 years 4 months and 2 days
Explanation:
Data provided in the question:
Monthly payment = $300
Rate of return, i = 9% = 0.09
Future value = $1,000,000
Now,
we know
Future value = Monthly payments × [tex]\left[ \frac{(1+i)^{n}-1}{i} \right][/tex]
or
1000000 = $300 × [tex]\left[ \frac{(1+0.0075)^{ }-1}{ 0.0075 }[/tex]
or
[tex]\frac{ 1000000}{ 300} &= \frac{ 1.0075^{n} - 1}{ 0.0075}[/tex]
[tex]3333.33333 &= \frac{ 1.0075^{n} - 1}{ 0.0075}[/tex]
[tex]1.0075^{n} - 1 &= 3333.33333 \times0.0075[/tex]
or
1.0075ⁿ - 1 = 25
or
1.0075ⁿ = 26
ln( 1.0075ⁿ) = ln(26)
or
n × ln( 1.0075 ) = ln(26)
or
n = [tex]\frac{ \ln (26) }{ \ln( 1.0075 ) }[tex]
or
n = 436.04 months
or
n = 36 years 4 months and 2 days
Answer:
436 months or 36.33 years
Explanation:
monthly principal P = $300
Amount to be obtained A = $1,000,000
ROI per annum R% = 9%
or ROI per month r% = 9/12 = 0.75%
and n = no. of months
We know that
[tex]A= P(1+\frac{r}{100})^n[/tex]
plugging values we get
[tex]1,000,000= 300(1+\frac{0.75}{100})^n[/tex]
solving the above equation we get
n = 436 months
which is equal to 36.33 years.
Gardial & Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 17%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.
Answer:
Total assets turnover = 5.5
Equity multiplier = 1.55
Explanation:
The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):
[tex]0.11=0.02*TAT\\TAT = 5.5[/tex]
The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):
[tex]0.17=0.11*EM\\EM=1.55[/tex]
The company's total assets turnover is 5.5
The firm's equity multiplier is 1.55
The company's Total Assets Turnover is 5.5, indicating it generates 5.55 times its total assets in sales. The Equity Multiplier is 1.54, meaning there is more than one and a half times the total shareholders' equity in assets.
Explanation:These calculations revolve around certain financial ratios that businesses often use to evaluate their performance. First, the Total Assets Turnover is calculated by dividing the firm's sales by its total assets, which can be rearranged as profit margin times total assets turnover equals Return On Assets (ROA). Given the fact that ROA is 11% and the profit margin is 2%, the Total Assets Turnover is therefore 11%/2% = 5.5.
Secondly, the Equity Multiplier, typically used to measure a company's financial leverage, is calculated by dividing the company's total assets by its total shareholders' equity. This can be rearranged as: Return on Assets (ROA) times the Equity Multiplier (EM) equals Return On Equity (ROE). With the details that ROA is 11% and ROE is 17%, the Equity Multiplier is calculated as follows: 17%/11% = 1.54.
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Historically auditing standards have been organized into three categories, including: A) Standards of field work. B) Purpose of an audit. C) Responsibilities of the auditor. D) Proper planning and supervision
Answer:
The correct answer is letter "A": Standards of field work.
Explanation:
The Generally Accepted Auditing Standards or GAAS are the rules auditors follow when analyzing the financial statements of a company. The GAAS has three (3) main categories: general standards, standards of fieldwork, and standards of reporting. The body in charge of reviewing the GASS is the Auditing Standards Board (ASB).
Linda inherited a sum of $50,000 from one of her grandparents. She would like to wisely invest the inheritance in one of the following three investment opportunities available for a period of 10 years. Help choose the best investment opportunity for Linda from the following alternatives:i) 9% compounded quarterly.ii) 8.90% compounded hourly.iii) 8.95% compounded monthly.
Answer:
Comparison shows that the best investment is 8.95% compounded monthly. (Part C or Number 3 option is best)
Explanation:
General Formula For Future Value:
[tex]FV=PV(1+\frac{i}{n})^{n*k}[/tex]
Where:
FV is the future Value
PV is the present Value
i is the interest rate
n is the compound interest period
k is the Total number of years
Part A:
when i=9% . Using above formula:
n is the quarters in 1 year=4
[tex]FV=\$50,000(1+\frac{0.09}{4})^{4*10}\\ FV=\$121,759.4488[/tex]
Part B:
when i=8.90% . Using above formula:
Considering year of 365 days
n is the hours in 1 year=24*365=8760 hr/year
[tex]FV=\$50,000(1+\frac{0.089}{8760})^{8760*10}\\ FV=\$121,755.9321[/tex]
Part C:
when i=8.95% . Using above formula
n is the months in 1 year=12 months
[tex]FV=\$50,000(1+\frac{0.0895}{12})^{12*10}\\ FV=\$121,961.0711[/tex]
The above comparison shows that the best investment is 8.95% compounded monthly. (Part C or Number 3 option is best)
The investment with 8.90% interest compounded hourly offers the highest return and is the best choice for Linda's investment.
Explanation:The subject matter relates to the mathematical concepts of interest compounding and financial management. Here, we need to determine which investment option will yield the highest return after 10 years.
The formula for compound interest is A = P(1 + r/n)^(nt), where:
A is the amount of money accumulated after n years, including interest.P is the principal amount (the initial amount of money).r is the annual interest rate (in decimal).n is the number of times interest is compounded per year.t is the time the money is invested or borrowed for, in years.We can plug in the given values for each opportunity and compare the results:
For the first opportunity: A = 50000(1 + 0.09/4)^(4*10)For the second opportunity: A = 50000(1 + 0.089/8760)^(8760*10)For the third opportunity: A = 50000(1 + 0.0895/12)^(12*10)After calculating, we'll find that the second opportunity provides the highest return, thus is the best choice for Linda.
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The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and going concern. Consider the four independent situations below.
1. Jumbo's is a local restaurant. Due to a bad shipment of potatoes, several of the company's customers become ill, and the company receives considerable bad publicity. Revenues are way down, several of its bills are past due, and the company is making plans to close the restaurant at the end of the month. The company continues to report its assets in the balance sheet at historical (original) cost.
2. Gorloks Tax Services is owned and operated by Sam Martin. The company has the usual business assets: land, building, cash, equipment, and supplies. In addition, Sam decides to buy a boat for him and his family to enjoy on the weekends. Sam includes the boat as an asset on the balance sheet of Gorloks Tax Services.
3. Claim Jumpers International, a U.S.-based company, has operations in the United States and in Europe. For the current year, the company purchased two trucks in the United States for $10,000 and three trucks in Europe for €20,000 (euros). Because of the differences in currencies, the company reported "Five Trucks" with no corresponding amount in the balance sheet.
4. Cobbers Etc. sells specialty music equipment ranging from African bongo drums to grand pianos. Because of the fluctuating nature of the business, management decides to publish financial statements only when a substantial amount of activity has taken place. Its last set of financial statements covered a period of 14 months, and the set of financial statements before that covered a period of 18 months.
Required:
For each situation, select which of the underlying assumptions of GAAP is violated.
Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.
The four situations highlight violations of GAAP assumptions including going concern, economic entity, monetary unit, and periodicity.
Explanation:Situation 1: The violation of GAAP assumption is going concern. The company is making plans to close the restaurant, indicating uncertainty about its ability to continue operating.
Situation 2: The violation of GAAP assumption is economic entity. Sam has included his personal asset (the boat) on the balance sheet of Gorloks Tax Services, which should only include business assets.
Situation 3: The violation of GAAP assumption is monetary unit. The company reported five trucks without providing the corresponding amounts in the balance sheet, creating a discrepancy due to the use of different currencies.
Situation 4: The violation of GAAP assumption is periodicity. Cobbers Etc. publishes financial statements irregularly, covering periods of 14 months and 18 months, instead of following the regular time intervals.
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A coupon bond with a face value of $1400 that pays an annual coupon of $100 has a coupon rate equal to nothing%. (Round your response to the nearest whole number) What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $1000, pays an annual coupon of $75, and whose price today is $1004.50?A. 6% B. 5% С. 7% D, 4% E, 8%
Answer:
Coupon rate = 7.14 %
yield to maturity = 7 %
correct answer is С. 7%
Explanation:
given data
face value = $1400
annual coupon = $100
par value of $1000
annual coupon = $75
today price = $1004.50
solution
we get here first coupon rate that is
Coupon rate = [tex]\frac{annual\ coupon}{face\ value}[/tex] ...........1
Coupon rate = [tex]\frac{100}{1400}[/tex]
Coupon rate = 7.14 %
and
we get here yield to maturity that is
yield to maturity = [ annual coupon + ( par value - today price ) ] ÷ today price ...................2
put here value
yield to maturity = [tex]\frac{75 + (1000-1004.50)}{1004.50}[/tex]
yield to maturity = 0.070184 = 7 %
so correct answer is С. 7%
Which leadership style did the CEO of the healthcare system demonstrate in the EHR selection process?
The leadership style that the CEO of the health care system demonstrates in the EHR selection process is the autocratic style.
What is the autocratic style?Autocratic leadership style is defined as the type of leadership style in which the decision can be taken without the input of the particular team.
In an autocratic leadership style, the manager assembles all the judgments without any conference or information from the leftovers of the team.
Some fundamental characteristics of the autocratic leadership style are:
It allows little input from the group of members.It requires the leaders to make all the necessary decisions.It does not require any group feelings or work.It tends to make the highly structured environments.Therefore, the CEO of the healthcare system alone demonstrates the EHR selection process by using the autocratic style of leadership.
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The CEO of the healthcare system demonstrated a participative leadership style in the EHR selection process by involving employees in decision-making processes and valuing their input.
Explanation:The CEO of the healthcare system demonstrated a participative leadership style in the EHR selection process.
In a participative leadership style, leaders involve employees in decision-making processes and value their input. This style fosters collaboration, creativity, and innovation among team members.
During the EHR selection process, the CEO likely sought the opinions and feedback of various stakeholders, such as healthcare professionals, IT staff, and administrators, before making a final decision. By involving multiple functions and considering different perspectives, the CEO demonstrated a participative leadership style.
If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the payment is:
Answer:
$100
Explanation:
The present value of a cash flow can be found by discounting the cash flow at the annual interest rate.
The formula for finding present value can be found in the attached image.
The present value can be calculated using a financial calculator.
Cash flow in year one = 0
Cash flow in year two = $121
Discount rate = 10%
Present value = $100
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On January 3, 2013, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2013, Thomas reported income of $300,000 and paid dividends of $100,000. On January 4, 2014, Roberts sold 15,000 shares for $800,000. What is the appropriate journal entry to record the sale of the 15,000 shares?
Answer:
The appropriate journal entry to record the sale of the 15,000 shares:
Dr Cash 800,000
Cr Investment - Thomas Corp 780,000
Cr Gain on investment disposal 20,000
(to record the investment disposal of 15,000 Thomas Corp's shares)
Explanation:
Before the disposal of the investment on Thomas, Roberts Co. should use the equity method to account for this investment because 30% of Thomas' shares which is 30,000 ( 100,000 x 30%) is possessed by Robert Co. and Robert Co. has significant influence over Thomas.
So, by the end of 2013, Robert's treatment to this investment should be:
Opening balance as of 2013: $1,500,000
Plus: Share of net profit : $90,000 (calculated as 300,000 x 30%)
Minus: Dividend received : $(30,000) (calculated as 100,000 x 30%)
Closing balance as of 2013: $1,560,000
=> Value per share = 1,560,000 / 30,000 = $52.
So, as at January 4 2014, because 15,000 shares is sold, the Investment account is Credited ( decreased) by $780,000 ( 52 x 15,000) and the total sales's receipt of $800,000 will generate the profit of $20,000 ( calculated as $800,000 - $780,000).
Organizations set procedures for making decisions to achieve those objectives through strategic planning. a. True b. False
Answer:
The correct answer is letter "A": True.
Explanation:
Strategic planning is the systematic process of development and implementation of plans to reach a company's purposes or objectives in the long run. During this process, the core values, strengths and weaknesses, and the firm's main goals are identified.
A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $54,000. Another month he had total costs of $20,800 on a sales volume of 400 items. He also finds that the break-even point is 20 items.
(a) Find the revenue function. (I solved this part of the question).
(b) Find the cost function. (I need help with this question).
Answer:
Revenue Function = 90x
cost function = 50x + 800
Explanation:
given data
sales volume = 600 items
revenues = $54,000
total costs = $20,800
sales volume = 400 items
break-even point = 20 items
solution
first we get here Price per unit for Revenue Function that is express as
Price per unit = [tex]\frac{total\ sale}{no\ of unit}[/tex]
Price per unit = [tex]\frac{54000}{600}[/tex]
Price per unit = $90
so here Revenue Function will be
Revenue Function = 90x .......................1
here x is sale volume
and
cost function will be
cost function = ax +b .........................2
here
a is Variable cost per unit and b is fixed cost and x is sale function
so when cost at 400 units will be
$20800 = 400a + b .......................3
and
Cost at break even point will be
$90 × 20 = 20a + b ..........................4
as here total cost = total revenue
so from equation 3 and 4 we get a and b
380a = $19000
a = $50
and
b = $20800 - 400 × 50
b = $800
so here Cost Function will be from equation 2
cost function = 50x + 800
Final answer:
Finding the cost function requires separating fixed and variable costs from the total costs. However, the provided info includes a fixed cost of $40,000 and a variable cost of $0.3 per item, which doesn't align directly with the given data of $20,800 for 400 items. Additional context may be necessary for an accurate calculation.
Explanation:
The cost function for a business based on given information about sales volume, revenue, and costs. To find the cost function, we need to understand that it typically consists of fixed costs and variable costs. Given that the total costs for 400 items sold were $20,800, we can use this information to determine the variable cost per item and the fixed cost. However, the provided information hints at a fixed cost of $40,000 and a variable cost of $0.3 per item for an ice cream bar venture, which is not directly related to the figure provided. This discrepancy suggests that more specific details or context might be needed to accurately calculate the cost function based on the given data.
Because they can move assets and jobs from country to country, MNCs typically __________ over the economies, politics, and culture of the countries in which they do business. a. Have influence b. Lack influence c. Have to run d. None of the above
Answer:
a. Have influence
Calvin has difficulty seeing, but uses voice recognition software allowing him to dictate articles. His computer is also specially designed for visually impaired individuals. The Daily Times interviews Calvin but offers the job to a sighted person instead. The Daily Times may have violated the ADAThe ADA Defines a Disability as Including Any of the Following:1. a physical or mental impairment that substantially limits one or more of the major life activities of the affected individuals2. a record of having such an impairment3. being regarded as having such an impairment
Answer:
The correct answer are numbers (1), (2), and (3).
Explanation:
The Americans with Disabilities Act (ADA) of 1990 is a law passed by United States Congress that forbids any type of discrimination to impaired employees or applicants with disabilities to walk, see, read, see, and talk, those who have been regarded with those disabilities and who have a history regarding the impairment. Besides, the ADA covers those individuals from any kind of obstacles in front of job payments, promotions, and firing.
Management accountants are MOST likely to feel outside pressure to influence the numbers favorably when the information is used for:
A) budgeting.
B) compensation and promotions.
C) continuous improvement.
D) product costing.
Answer:
The correct answer is letter "B": compensation and promotions.
Explanation:
It is unethical to influence or distort accounting information to benefit an employee over another in front of promotions or at the moment of providing benefits to workers. Sometimes and against the law, manager accountants are pushed to do so for the company to obtain extra income or when the decision of providing a better job position to an employee over another is biased.
Management accountants are most likely to face pressure to favorably influence numbers for compensation and promotions as these directly affect managers' performance evaluations, pay, and career opportunities.
Explanation:Management accountants might experience outside pressure to influence the numbers favorably when the accounting information they provide is directly tied to outcomes that can significantly affect the company's financial status and the well-being of individual managers. Among the options provided, the most likely scenario where such pressure could occur is: Option B) Compensation and Promotions
In the context of compensation and promotions, accounting numbers directly impact the performance evaluation of managers, which could consequently influence their pay and career advancement. The desire to appear successful and to maximize personal gain might motivate some managers to apply pressure on accountants to adjust figures to create a more favorable impression. Meanwhile, the information used for budgeting, continuous improvement, and product costing is more about planning and operational efficiency, which is generally not as directly tied to individual compensation and promotions, hence less likely to elicit pressure on accountants to skew the numbers in a particular direction.
As firms grow and their financial data becomes more transparent to external investors like bondholders and shareholders, the company's revenues, costs, and profits are scrutinized. This increased scrutiny can lead to additional pressure on management accountants, especially when considering that these financial stakeholders rely on accurate reports to make investment decisions. Since explicit and implicit costs play into determining economic profit, accurate accounting is imperative for portraying a true representation of a firm's financial health.
You do not need to see proof of insurance coverage for a taxpayer if you feel that this information is not unusual or questionable.
O True O False
Answer:
The statement is False
Explanation:
Under the due diligence, IRS certified volunteer prepare or made in order to exercise the due diligence, which means, as a volunteer, the person is required to do the part when making or performing quality reviewing a tax return so that could ensure the information on the return is complete as well as correct.
So, it is not true that the person does not require to see the proof or evidence of the insurance coverage for the taxpayer if the person feels that the information is not questionable or unusual as it is an important or vital process and the person should always check the information if it is not questionable or unusual.
Suppose a city facing a shortage of rental apartments eliminates rent controls. Which of the following is most likely to occur?
A. a decrease in rents and a decrease in the number of apartment units supplied.
B. an increase in rents and an increase in the number of apartment units supplied.
C. a decrease in the demand for apartments and an increase in the number of apartment units supplied.
D. an increase in the demand for apartments and a decrease in the number of apartment units supplied.
Answer:
The correct answer is (B)
Explanation:
A shortage of rental apartments will lead to an increase in the rents. There is a shortage of apartments that has eliminated the rent control. Overall, the owners will increase the rents of the apartments and as a result the demand will decrease. A decrease in demand will lead to an increase in the supply of apartments.
Eliminating rent control in a city faced with a shortage of rental apartments would likely lead to an increase in both rents and the supply of apartment units. This is due to landlords being able to charge more, which could incentivize more rental housing investment.
Explanation:If a city facing a shortage of rental apartments eliminates rent controls, the most likely occurrence will be B. an increase in rents and an increase in the number of apartment units supplied.
Rent control laws are implemented to keep housing affordable, but they might also discourage investment in new rental housing because of potentially lower returns. If those controls are removed, landlords would likely raise rents to market prices, which could encourage more landlords to supply apartments as they could potentially earn more income.
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The major disadvantage of a multichannel system is that it is harder to control and it can generate ________.
a. declining employee morale
b. greater conflict
c. less net profit
d. inefficiency
Answer:
The correct answer is letter "B": greater conflict.
Explanation:
A typical problem of multichannel systems is the channel conflict. This inconvenience arises when components of a supply chain such as manufacturers, retailers or distributors compete among them for the sales of the same product. The situation generates a greater conflict since the business operations of one can be stopped because of the reluctance of the other for cooperating.
Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the company's total resources are:
Answer:
total resources = $45,000
Explanation:
given data
contributes = $20,000
borrows = $25,000
purchase supplies = $5,000
equipment computer system = $10,000
solution
$45,000 [cash 30,000(20,000+25,000-5,000-10,000) equipment 10,000; supplies 5,000]
we get here company's total resources are as
total resources = cash + purchase supplies + equipment computer system ............1
here cash = $20,000 + $25,000 - $5,000 - $10,000
cash = $30,000
so from equation 1
total resources = $30,000 + $5,000 + $10,000
total resources = $45,000
Margot's total resources after her initial cash contribution, bank borrowing, and subsequent expenses comes to $30,000.
Explanation:The company's total resources would be calculated by totalling initial contributions and borrowings and then subtracting any expenses or investments made. So, if Margot begins with $20,000 in cash and also borrows $25,000 from the bank, her total initial resources are $45,000. She then buys supplies for $5,000, and a computer system for $10,000 reducing her resources by $15,000. The remaining resources then are the initial $45,000 minus the $15,000 spent, ending with a total of $30,000 in resources for the company.
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Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive to advertisers. Sites conducting monetizing campaigns are unconcerned about visitor backlash.
Answer:
Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive to advertisers. TRUE
Sites conducting monetizing campaigns are unconcerned about visitor backlash. FALSE
Explanation:
The first statement is true, as portals provide a great pace for advertisers to place their ads and marketing messages. Portals are places where people come with a specific purpose (usually loosely related to the marketing niche of the advertiser), so marketing messages can be subtly placed on portal sites.
The second statement is false, because if the dissatisfied visitors stop visiting the site, it would lose its audience. If that happened, they would not be able to conduct those campaigns in the first place, as no advertiser would get the incentive to communicate marketing messages to a smaller, decreased audience.