A contingency was evaluated at year-end. management felt it was probable that this would become an actual liability and the amount could be reasonably estimated. if this was not reported on the balance sheet or in the notes to the financial statements, what is the effect on the financial reporting of the company? the information about the transaction would be inadequately disclosed in the notes. there would be no effect. the liabilities on the balance sheet would be understated. the net income of the company would be understated.
The net income earned by the cooper, cross, and crane partnership is $18,000. their respective average capital balances are $20,000, $20,000, and $40,000. what is the closing entry to allocate the net income if no agreement was made for division of income?
In the absence of an agreement on how income should be divided among the owners, the sharing of income will be based on their average capital balances (as what is given in the problem). Therefore, we need to determine the proportionate shares of the owners based on their contribution.
Here is the table showing the allocation of income:
Cooper $20,000/$80,000 X $18,000 = $4,500
Cross $20,000/$80,000 X $18,000 = $4,500
Crane $40,000/$80,000 X $18,000 = $9,000
Total $80,000 $18,000
The answer to your question is:
Debit Income Summary $18,000; credit Cooper's Capital $6,000; credit Cross's Capital $6,000; credit Crane's Capital $6,000.
Sally tends to procrastinate in the initial stages of a project, but she always comes through when the pressure is on. for sally, this pressure is a form of __________.
Everyone likes to have lydia working on their committees because she seems to have the unique ability to consider a variety of options and quickly narrow the list of options down to the one or two best alternatives. in other words, lydia is skilled inâ
Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to grow at a 4% rate for the foreseeable future. shamas’ common stock is selling for $18.50 per share and issuance costs are $3.50 per share. what is shamas cost of external equity?
The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds by purchasing new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:
Ke = (DIV 1 / Po) + g
Ke = cost of external equity
DIV 1 = dividend to be paid next year
Po = market price of share
g = growth rate
In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.
Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.
Reinforcement, contact, honesty, and fair expectations are
ways of maintaining relationships.
How many crates of apples will be sold after the price floor has been imposed?
Final answer:
A price floor's impact on the sale of apple crates is complex and depends on the market dynamics, potentially leading to a surplus, increased consumer costs, and resource wastage.
Explanation:
We can discuss the concept of a price floor and its general effects on a market. A price floor is a government- or body-imposed minimum price that can be charged for a product or service. When a price floor is set above the market equilibrium, it can lead to potential unintended consequences in the market for that commodity.
Surplus: A price higher than the equilibrium price may reduce the quantity of apples purchased by consumers, leading to a surplus where the supply exceeds demand.Increased costs for consumers: With the enforcement of a price floor, consumers have to pay more for apples than they would in an unregulated market, effectively decreasing their purchasing power for apples.Wastage of resources: Surplus produce may lead to wastage if it is not sold, has a limited shelf life, or lacks alternative markets.The net cost to society from the imposition of a tax is also known as:
Which of the following is the correct minimum coverage that you must have for Property Damage Liability?
Olivera corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $31,178 and that the spending variance for indirect materials cost was $2,261 unfavorable. during that month, the company worked 11,900 machine-hours. budgeted activity for the month had been 12,200 machine-hours. the cost formula per machine-hour for indirect materials cost must have been closest to:
To solve this problem, we should recall the spending variance is expressed as:
Spending variance = Actual results - Flexible budget
Where,
Spending variance = $ 2,261 Unfavorable
Actual results = $ 31,178
Flexible budget = 11,900 X
X represents the cost formula per machine-hour for indirect materials. Substituting the values to the equation:
2,261 = 31,178 - 11,900 X
- 11,900 X = - 28,917
X = $ 2.43 (ANSWER)
You deposit $3000 into an account which earns 5.1% interest per year, compounded annually. your friend simultaneously deposits $2000 into an account which earns a yearly interest rate of 7.5% compounded continuously. after how many years will both accounts have the same amount of money?
Jay discounts a 100-day note for 25000 at 13%. The effective rate of interest to the nearest hundredth percent is?
Answer:
13.49%
Explanation:
Please see attachment .
_____ is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase.
Final answer:
Consumer behavior is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase.
Explanation:
Consumer behavior is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase. Cognitive dissonance refers to the mental discomfort experienced when a person holds conflicting beliefs or experiences tension between their beliefs and actions.
This occurs when a person feels regret or doubts about a purchase they have made. Consumer behavior helps consumers resolve this dissonance by providing information and tools to make informed product choices and alleviate regret.
In an enterprise-class database system, reports are created by ________.
Discuss the effects of cultural continuity and change on organizational succession planning. provide two examples.
Succession planning is wherein is the process of developing individuals for key positions as well as leadership training for the future. This is usually wherein employees are being assessed to have a specific position that they would in someday.
Examples would be:
1. To retain the talents of the employees and to create an attraction for the company for future job seekers.
2. The continuity of leadership through development for future achievements.
What does the credit balance in the accumulated depreciation account represent?
Ryder and sergei are partners in timberline gear, which sells mountain- and rock-climbing equipment. ryder manages the business. unless the partnership agreement states otherwise, ryder is?
Describe how cost information relates to the three key activities of management: planning, budgeting, and control.
Cunningham, inc. sells mp3 players for $60 each. variable costs are $40 per unit, and fixed costs total $120,000. what sales are needed by cunningham to break even?
Cunningham, Inc. needs to sell 6,000 units of MP3 players to break even.
To calculate the sales needed for Cunningham, Inc. to break even, we use the break-even point formula:
Break-even point = Fixed costs / (Selling price per unit - Variable cost per unit)
Given:
Selling price per unit = $60
Variable cost per unit = $40
Fixed costs = $120,000
Substitute these values into the formula:
Break-even point = 120,000 / (60 - 40)
Break-even point = 120,000 / 20
Break-even point = 6,000 units
Therefore, Cunningham, Inc. needs to sell 6,000 units of MP3 players to break even.
Swot analysis is a technique to analyze the internal and external environment of a firm. what are its advantages and disadvantages?
_____ is a technique in which computers are designed with many microprocessors that work together, simultaneously, to solve problems.
If the U.S. dollar depreciates, _____.
What are hourly wages? Select the best answer from the choices provided. income that is based on a yearly rate income that is based on the number of hours worked a benefit that is received once a year a benefit that is based on the number of hours worked
Answer:
The correct answer is letter "C": a benefit that is based on the number of hours worked.
Explanation:
Hourly wages refer to the amount of money an employer agrees to pay an employee per hour according to the type of job that person will perform. The total wage will be the result of multiplying the hourly rate agreed by the total number of hours the employee worked.
The io paradigm has been qualified by the potential for ________ to lead to a company's sustained competitive advantage.
In an interview with lise saari, former director of global workforce research at ibm, she notes that hr must be a true partner of the business, with a deep and up-to-date understanding of business realities and objectives, and must ensure hr initiatives fully support them at all points of the value chain. this is an example of
Bureaucratic rules designed to make it difficult for imports to enter a country are called local content requirements.
a. True
b. False
Esteban, a manager, performs a cost benefit analysis of the various alternatives to determine which one will have the best net financial payoff. this manager is focusing on which criterion for decision-making?
If a building was 750 feet tall how many stories would it have
A company sold merchandise with a cost of $238 for $440 on account. the seller uses the perpetual inventory system. the entry to record the cost of merchandise sold would include ________.
Under the perpetual inventory system, when merchandise is sold, the cost of goods sold is debited (increased), and the inventory is credited (decreased) by the cost of the goods (in this case, $238). This entry reflects the cost of the merchandise sold.
Explanation:When the company sells merchandise using a perpetual inventory system, the cost of the goods sold is transferred from the inventory account into the cost of goods sold (COGS) account. In this case, where the merchandise was sold for $440 but had an original cost of $238, the accounting entry would see a decrease in inventory by $238 and an increase in the COGS by the same amount.
Therefore, the entry to record the cost of merchandise sold would include a debit to Cost of Goods Sold (COGS) for $238 and a credit to Inventory for $238. Debits represent an increase in expense accounts such as COGS, and credits represent a decrease in asset accounts such as Inventory. This reflects the $238 cost of the merchandise that has been sold.
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When the interest rate in an economy increases it is likely the result of either?