Answer: c. Flexible resource
Explanation:
In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of a flexible resource.
A flexible manager helps the employees achieve their potential as he or she tailors them in the right direction. They also help the workers to work productively which will be vital in the accomplishment of the goals of the organization.
Answer:
c. a flexible resource
Explanation:
A flexible resource use is the process by which businesses make changes to adapt to different circumstances in order to maintain competitive edge in the industry.
This method emphasises efficiency by use of available resources.
Resources employed include working tools and human resources.
This creates an environment where employees can achieve their potential as they move the organization towards its goals.
As new changes are made new roles are created that will lead to staff growth
The inability to physically possess artificial intelligence as it delivers service represents which fundamental difference of marketing services?
Answer:
The fundamental difference in marketing services referred to here is the tangibility of product vs the intangiblity of service.
Explanation:
There are two broad categories of marketing:
Product MarketingService MarketingThe big difference between the two is that the former is tangible whilst the latter is not.
The intangibility of service makes it harder (but not impossible) for the marketer to find a tangible element to which the consumer can connect to the brand.
Intangibility also means that (unlike a tangible product) it will be difficult for a consumer to return a service like that which has been rendered by AI. What any businesses do when a customer is not satisfied with a service is to do a refund. However, in a product scenario, the loss for a product returned is less than that of a refund for service because a defective product can always be fixed.
Cheers
In the Monroe Company, the following Job cards were totaled at the end of the month: Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods. What is the cost of goods manufactured for the month
Answer:
$10,850
Explanation:
Calculation for the cost of goods manufactured for the month
Based on the information given we were told that At the end of the month both Jobs 243 and 247 were sent to customers which means that the cost of goods manufactured for the month will be calculated as :
Cost of Job 243 $5,750
Cost of Job 247 $5,100
Cost of goods sold for the month $10,850
($5,750+5,100)
Therefore the the cost of goods manufactured for the month will be $10,850
Cullumber Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000 on March 1, $1,200,000 on June 1, and $3,072,650 on December 31. Compute Cullumber weighted-average accumulated expenditures for interest capitalization purposes.
Answer: $2,410,000
Explanation:
Date: March 1st
Expenditure: $2,052,000
Capitalization period: 10/12 months
Weighted Average Accumulated Expenditure: $1,710,000
Date: June 1st
Expenditure: $1,200,000
Capitalization period: 7/12 months
Weighted Average Accumulated Expenditure: $700,000
Date: December 31st
Expenditure: $3,072,650
Capitalization period: 0
Weighted Average Accumulated Expenditure: $0
The Weighted Average Accumulated Expenditure will now be:
= $1,710,000 + $700,000 + $0
= $2,410,000
Note that Weighted Average Accumulated Expenditure for each date was gotten as:
= Expenditure × Capitalization period
The cost of common equity is based on the rate of return that investors require on the company's common stock. New common equity is raised in two ways: (1) by retaining some of the current year's earnings and (2) by issuing new common stock. Equity raised by issuing stock has a(n) ____________ cost, re, than equity raised from retained earnings, rs, due to flotation costs required to sell new common stock. Some argue that retained earnings should be "free" because they represent money that is left over after dividends are paid. While it is true that no direct costs are associated with retained earnings, this capital still has a cost, a(n) ______________ cost. The firm's after-tax earnings belong to its stockholders, and these earnings serve to compensate them for the use of their capital. The earnings can either be paid out in the form of dividends to stockholders who could have invested this money in alternative investments or retained for reinvestment in the firm. Therefore, the firm needs to earn at least as much on any earnings retained as the stockholders could earn on alternative investments of comparable risk. If the firm cannot invest retained earnings to earn at least rs, it should pay those funds to its stockholders and let them invest directly in stocks or other assets that will provide that return. There are three procedures that can be used to estimate the cost of retained earnings: the Capital Asset Pricing Model (CAPM), the Bond-Yield-Plus-Risk-Premium approach, and the Discounted Cash Flow (DCF) approach.
Answer:
Equity raised by issuing stock has a(n) HIGHER cost,
When a corporation issues new equity, they will always incur in underwriting costs and other legal expenses, e.g. the underwriter always charges a fee which can be fixed or a percentage, and the actual process of registering new stocks and issuing them costs money.While it is true that no direct costs are associated with retained earnings, this capital still has a cost, a(n) OPPORTUNITY cost.
Opportunity costs are extra costs or benefits lost resulting from choosing one activity or investment from another alternative. In this case, the owners could invest the company's earnings somewhere else and they could earn money by doing so, e.g. buy corporate bonds or other stocks.
If a company buys televisions from a manufacturer and then sells them to department stores, it is most probably a _____. A. retailerB. producerC. consumerD.wholesalerE. marketer
Answer:
a retailer
Explanation:
sorry if this is wrong.
Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax incidence perspective?
Answer:
The description is outlined in the clarification segment below, as per the case provided.
Explanation:
The prevalence of either a lifetime tax on some kind of fixed income has been known to be a long-term perspective including its broader economic impact of taxation since they complement instead of just replace. The existing income taxes would raise the quarterly funds to meet, but perhaps the cumulative occurrence of tax would enhance the power to charge for existence.Cynthia Ogago is planning to make investment in a scheme
earning 10% interest rate and expects to receive ksh. 50,000
after 3 years. Advise her on how much she needs to invest now
in order to achieve these
O a. Ksh. 50,000
O b. Ksh. 66,550
O c. Ksh. 35,656
O d. Ksh. 37,566
Answer:
d. Ksh. 37,566
Explanation:
The $50,000 represent the future amount expected after 3 years.
the interest rate is 10%.
Implementing the formula A = P x ( 1+ r) ^n
A= $50,000
P= amount to invest
R=10% or 0.10
n=3 years
Ksh.50,000 = P x (1 + 0.10) ^ 3
Kshs.50,000 = P x (1.1) ^3
Kshs.50,000 = P x 1.331
P= Kshs50,000 / 1.331
P=Kshs.37,565.74
= Kshs. 37,566
Describe how each of these accounts would appear after the following:______a) A cash dividend of $1 per shareb)10 percent stock dividend (fair market value of stock is $13 per share)c) A 3-for-1 stock splitd) A 1-for-2 reverse stock split
Answer:
the stock will spilt
Explanation:
How does this article give you a better understanding of the changing perception of Irish immigrants in America?What forces allowed the Irish to be assimilated into U.S. culture despite initial resistance?
Much of the anti-Catholic bias that confronted Irish-American immigrants focused on the figure of the Pope. To many nativist Americans, the idea that Catholic immigrants professed allegiance to a foreign-born religious leader raised serious doubts about whether they could ever be "truly" American. The advent of the War Between the States created an opportunity for the Irish immigrant community to "prove" its Americanism—to demonstrate loyalty to its adopted country, and by so doing, put the lie to the assertions of Know-Nothings and other nativists, who saw the Irish as unfit to be called American.
Answer:
The article first begins by explaining how and why the Irish-Americans were initially viewed by some Americans as being unfit to be called Americans because the Irish as Catholics, followed the Pope who was not American.
It then continues on to show how the Irish were given an opportunity to change this perception that some Americans had during the War between the States otherwise known as the American Civil War where they could show that they were loyal to the United States and therefore as American as the rest.
The American Civil War while deadly, gave the Irish a change to shine because they joined the war effort in their tens of thousands in both the Union and the Confederacy with the Union getting most of them. This forced Americans to see that the Irish-Americans were Americans and afterwards the process of assimilation began.
Leilei operates a sole proprietorship, using the accrual basis of tax accounting. Last year, she claimed a $30,525 bad debt deduction for a receivable from Jackie. But this year, Jackie sent her a check for $21,368, which Leilei accepted in full satisfaction of the receivable. How much gross income does Leilei record for the item this year?
Answer:
She will include $21,368 in her gross income
Explanation:
Under the tax benefit rule, any amount claimed as a deduction in prior years and recovered in subsequent periods must be recognized as income in the year in which such amount is recovered. So Leilei must record the subsequent recovery of bad debts $21,368 as gross income.
Each year, Sunshine Motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to Global Associates, who have offered to conduct the survey and summarize results for $30,300.Craig Sunshine, the president of Sunshine Motors, believes that Global will do a higher-quality job than his company has been doing, but is unwilling to spend more than $10,000 above the current costs. The head of bookkeeping for Sunshine has prepared the following summary of costs related to the survey in the prior year.
Mailing $16,600
Printing (done by Lester Print Shop) $4,500
Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (100 hours X $15) $1,500
Share of depreciation of computer and software used to track survey responses and summarized results. $1,100
Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company. $500
Required:
What is the incremental cost of going outside versus conducting the survey as in the past?
Answer:
incremental cost analysis
survey is done outsource survey differential
by the company to Global amount
Mailing costs $16,600 $0 ($16,600)
Printing costs $4,500 $0 ($4,500)
Labor costs $1,500 $0 ($1,500)
Outsourcing $0 $30,300 $30,300
costs
totals $22,600 $30,300 $7,700
The incremental cost of outsourcing the surveys is $7,700. Some of the current costs are unavoidable, e.g. depreciation expense and utilities, so they should not be considered in this analysis. But other costs, e.g. direct labor, are avoidable.
I know that Pat using the computer will increase the company's electric bill by a few dollars, but it would never be $500 (maybe $5). Maybe he even calls a few customers to check some answers, but again this might add $10 to the phone bill. Also, Pat using the computer's mouse or any other equipment might result in it breaking down, but that is not worth $1,500. Since the cost analysis is not specific, it is safer not to include depreciation or utilities.
calling sweden what is not a factor contributing to the rise of export activity in the word economy g
Answer: a. United Nations
Explanation:
The United Nations was established primarily to keep the peace in the world through the use of dialogue amongst nations to lay aside their grievances as well as cooperate in moving the planet forward. It also does a lot of humanitarian work to care for the most vulnerable groups in the world.
This means that even though there are organizations created by the UN to improve trade such as the United Nations Conference on Trade and Development (UNCTAD), the mandate of the UN in general is such that it cannot be said to have contributed to the rise of export activity in the world economy.
The two biggest drawbacks or disadvantages of unrelated diversification are:___________.
a. the difficulties of passing the cost-of-entry test and the ease with which top managers can make the mistake of diversifying into businesses where competition is too intense.
b. the difficulties of capturing financial fit and having insufficient financial resources to spread business risk across many different lines of business.
c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
d. ending up with too many cash hog businesses and too much diversity among the competitive strategies of the businesses it has diversified into.
e. the difficulties of achieving economies of scope and conflicts/incompatibility among the competitive strategies of the company's different businesses.
Answer:
c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Explanation:
An unrelated diversification can be defined as a situation in which an existing business or company enters or invest in an entirely new business or industry that do not have any similarity whatsoever with its original business or product line. For example, an automobile manufacturing company that decides to acquire or invest in a clothing or shoe business.
Hence, the two biggest drawbacks or disadvantages of unrelated diversification are demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Also, the difficulties in successfully managing a collection of unrelated different business and having minimal competitive advantage potential over its rivals in the industry that cross-business strategic fit provides is another disadvantage of unrelated diversification
Jam J Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the company's net operating income in a month when sales are $103,000?
Answer:
the net operating income is $23,740
Explanation:
The computation of the company net operating income is shown below:
As we know that
Sales $103,000
Less: Variable cost -$43,260 ($103,000 × 0.58)
Contribution margin $59,740 ($103,000 × 0.58)
Less: Fixed cost -$36,000
Net operating income $23,740
hence, the net operating income is $23,740
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:
Vulcan Flyovers Operating Data For the Month Ended July 31
Actual Results Flexible Budget Planning Budget
Flights (q) 57 57 55
Revenue ($340.00q) $16,400 $19,380 $18,700
Expenses:
Wages and salaries ($3,600 + $87.00q) 8,525 8,559 8,385
Fuel ($34.00q) 2,100 1,938 1,870
Airport fees ($870 + $34.00q) 2,693 2,808 2,740
Aircraft depreciation ($9.00q) 513 513 495
Office expenses ($230 + $1.00q) 455 287 285
Total expense 14,286 14,105 13,775
Net operating income $2,114 $5,275 $4,925
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.
Required:
Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances.
Answer:
1. Revenue and Spending Variance
Revenue = (19,380 - 16,400) = 2980 U
Expenses
Wages & Salaries = 8,559 - 8,525 = 34 U
Fuel = 1,870 - 1,938 = 68 F
Airport Fees = 2,808 - 2,693 = 115 U
Aircraft Depreciation = 0 None
Office Expenses = 287 - 455 = 168 F
Total Expenses = 87 F
Net Operating Income = 5,275 - 2,114 = 3161 U
2. Activity Variances
Activity Variances are used to compare revenue and cost item between the planning budget and flexible budget of the company.
Revenue = 18,700 - 19,380 = 680 U
Expenses
Wages and salaries = 8,385 - 8,559 = 174 U
Fuel = 1,870 - 1,938 = 68 U
Airport fees = 2,740 - 2,808 = 68 U
Aircraft depreciation = 495 - 513 = 18 U
Office expenses = 285 - 287 = 2 U
Total expense = 330 U
Net operating income = 4,925 - 5,275 = 350 U
First Bank has $12 million in deposits, $5 million in loans, $6 million in bonds and $1 million in reserves. What is the bank's net worth?
Answer: 0
Explanation:
The net worth of the bank will be calculated as the total liabilities deducted from the total assets. This will be:
= (Loans + Bonds + Reserves) - Deposit
= ($5 + $6 + $1) - $12
= $12 - $12
= 0
The bank's net worth will be 0 million
Net worth is the value of the assets a person or company owns, minus the liabilities they owe.
The net worth of the bank will be calculated as the total liabilities deducted from the total assets. This will be:
= (Loans + Bonds + Reserves) - Deposit
= ($5 + $6 + $1) - $12
= $12 - $12
= 0
The bank's net worth will be 0 million
To know more about net worth, refer to the link:
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The Greenback Store’s cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $40,000. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.75 and fixed costs of $440,000. Every dollar of sales contributes 75 cents toward fixed costs and profit. Both companies have sales of $800,000 for the month. Required: a. Compare the two companies’ cost structures. b. Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company’s profits increase?
Answer:
Greenback Store One-Mart
Amount % Amount %
a. Sales $800,000 100% $800,000 100%
Variable cost $600,000 75% $200,000 25%
Contribution margin $200,000 25% $600,000 75%
Fixed cost $40,000 5% $440,000 55%
Operating profit $160,000 20% $160,000 20%
Break even point $160,000 $586,666.67
Workings
Greenback Store Break even point = Fixed cost / Contribution margin ratio = 40,000 / 0.25 = 160,000
One-Mart Break even point = Fixed cost / Contribution margin ratio = 440,000 / 0.75 = 586,666.67
b. Greenback Store
Increase in sales = $800,000*15% = $120,000
Company profit Increase by + (Increase in sales * Contribution margin ratio = 120,000 * 25% = $30,000
Thus, with the increase in 15% of sales of Greenback Store, the profit of the company increase by $30,000
One-Mart
Increase in sales = $800,000*15% = $120,000
Company profit Increase by + (Increase in sales * Contribution margin ratio = 120,000 * 75% = $90,000
Thus, with the increase in 15% of sales of One-Mart , the profit of the company increase by $90,000.
A formal document detailing the process to be followed when a firm recruits for an open position is a ________.a) recruiting guide.
b) staffing plan.
c) external recruiting analysis.
d) realistic job preview.
Answer:
a) recruiting guide.
Explanation:
Recruitment can be defined as an organizational process used by human resources managers to fill vacant positions existing within an organization through the acceptance of job applications from qualified candidates or applicants.
Generally, the main purpose and goal of a recruitment process is to give each and every candidate a fair opportunity, hearing and positive feelings about the recruiting organization.
A formal document detailing the process to be followed when a firm recruits for an open position is a recruiting guide. The recruitment guide is used as a laid down plan or guideline that typically identifies or highlights the goals, requirements and descriptions for each job position that is available within the organization.
Taylor, Inc., stock has a beta of 1.2 and an expected return of 9.3%. The risk-free rate is 4.1% and the market risk premium is 6.8%. This stock is _____ because the CAPM return for the stock is _____%.a. overvalued; 11.87.
b. undervalued; 12.09.
c. undervalued; 12.26.
d. overvalued; 12.26.
e. undervalued; 11.87.
Answer:
The stock is overvalued because the CAPM return for the stock is 12.26%
Option d is the correct answer.
Explanation:
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate. If the expected return on a stock is less than the required rate of return, a stock is said to be overvalued and vice versa.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
rRF is the risk free rate
rpM is the market return
r = 0.041 + 1.2 * 0.068
r = 0.1226 or 12.26%
The stock is overvalued because the CAPM return for the stock is 12.26%
Sheridan Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $371,700. The estimated fair values of the assets are land $70,800, building $259,600, and equipment $94,400. At what amounts should each of the three assets be recorded?
Answer:
Land = $61,950
Building = $227,150
Equipment = $82,600
Explanation:
Total Asset Fair Value = $70,800+$259,600+$94,400
Total Asset Fair Value = $424,800
Recorder Amount
Land = [$70,800/$424,800]$371,700
Land = $61,950
Building = [$259,600/$424,800]$371,700
Building = $227,150
Equipment = [$94,400/$424,800]$371,700
Equipment = $82,600
If assets total 45,000, expenses total 10,000, revenues total 35000, and stockholders' equity equals 30,000 what is the amount of net income?
Answer:
$25,000
Explanation:
Calculation for the what is the amount of net income
Using this formula
Net income= Total Revenues-Total expenses
Let plug in the formula
Net income= 35,000+10,000
Net income=$25,000
Therefore the amount of net income will be $25,000
Liang Company began operations on January 1, 2017. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.2017a. Sold $1,347,100 of merchandise (that had cost $983,600) on credit, terms n/30.b. Wrote off $21,100 of uncollectible accounts receivable.c. Received $667,400 cash in payment of accounts receivable.d. In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible.2018e. Sold $1,501,200 of merchandise on credit (that had cost $1,291,000), terms n/30.f. Wrote off $28,100 of uncollectible accounts receivable.g. Received $1,282,100 cash in payment of accounts receivable.h. In adjusting the accounts on December 31, the company estimated that 2.50% of accounts receivable will be uncollectible.Required:1. Prepare Journal entries to record Liang's 2017 and 2018 summarized transactions and its year-end adjustments to record bad debts expense.2. Prepare Journal entries to record Liang's 2017 summarized transaction and its year-end adjustment to record bad debts expenses.3. Prepare Journal entries to record Liang's 2018 summarized transactions and its year-end adjustments to record bad debts expense.
Answer:
journal entries for 2017:
Dr Accounts receivable 1,347,100
Cr Sales revenue 1,347,100
Dr Cost of goods sold 983,600
Cr Merchandise inventory 983,600
Dr Bad debt expense 21,100
Cr Accounts receivable 21,100
Dr Cash 667,400
Cr Accounts receivable 667,400
Dr Bad debt expense 16,465
Cr Allowance for doubtful accounts 16,465
Ending balance of accounts receivable = $658,600
Ending balance of allowance for doubtful accounts = $16,465
Bad debt expense for the year = $37,565
journal entries for 2018:
Dr Accounts receivable 1,501,200
Cr Sales revenue 1,501,200
Dr Cost of goods sold 1,291,000
Cr Merchandise inventory 1,291,000
Dr Allowance for doubtful accounts 28,100
Cr Accounts receivable 28,100
Dr Cash 1,282,100
Cr Accounts receivable 1,282,100
Dr Bad debt expense (= 21,240 + 11,635) 32,875
Cr Allowance for doubtful accounts 32,875
Ending balance of accounts receivable = $849,600
Ending balance of allowance for doubtful accounts = $21,240
Bad debt expense for the year = $32,875
Bishop has a capital balance of $120,000 in a local partnership, and Cotton has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Bishop and 40 percent to Cotton. Lovett invests $60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Cotton's capital balance after this new investment?
a) $99,600
b) $102,000
c) $112,000
d) $126,000
Answer:
b) $102,000
Explanation:
Calculation of goodwill
Lovett investment $60,000
Actual value of partnership = $60,000/20% = 300,000
Partnership capital = $120,000 + $90,000 + $60,000 = $270,000
Goodwill = $300,000 - $270,000 = $30,000
Distribution of Goodwill
Bishop = $30,000 * 60% = $18,000
Cotton = $30,000 * 40% = $12,000
Cotton's Capital = $90,000 + $12,000 = $102,000. Thus, Cotton's capital balance after this new investment is $102,000
On January 1, 2019, Chin Corporation issued $3,400,000, 16%, 5−year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $3,619,600. The market rate of interest for these bonds was 14%. Under the effective−interest method, what is the interest expense for the six months ending July 1, 2019?
Answer:
$253,372
Explanation:
Face Value = 3,400,000
Issue Price = 3,619,600
Bond Premium = 219,600
Jan 01, 2019
Balance in Bond Payable = 3,400,000
Book Value of Bonds = 3,619,600
Balance in Bond Premium = 3,619,600 - 3,400,000 = $219,600
30 June, 2019
Interest Payment = Balance in Bond Payable Jan 1 * 16%/2 = 3,400,000 * 14%/2 = $272,000
Interest expenses = Book Value of Bonds Jan 1 * 14%/2 = 3,619,600 * 14%/2 = $253,372.
Thus, the interest expense for the six months ending July 1, 2019 is $253,372
The optimal method of production is the one that:
A.
maximizes output regardless of cost.
B.
minimizes the normal rate of return
C.
maximizes inputs.
D.
minimizes cost.
Answer:
D minimizes the cost
Explanation:
the production method that minimizes cost for a given level of output.
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $7,000 cash earned. The company completed commission work for a client and sent a bill for $5,500 to be received within 30 days. The company paid an assistant $2,150 cash as wages for the period. The company collected $2,750 cash as a partial payment for the amount owed by the client in transaction b. The company paid $1,000 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The Company
The Impact of Each Transaction on the Accounting Equation:
1. Assets (Cash + $7,000) = Liabilities + Equity (Retained Earnings + $7,000)
2. Assets (Accounts Receivable + $5,500) = Liabilities + Equity (Retained Earnings + $5,500)
3. Assets (Cash -$2,150) = Liabilities + Equity (Retained Earnings -$2,150)
4. Assets (Cash +$2,750 Accounts Receivable -$2,750) = Liabilities + Equity
5. Assets (Cash -$1,000) = Liabilities + Equity (Retained Earnings -$1,000)
Explanation:
The Company applies the accounting equation, which states that Assets = Liabilities + Equity. With each transaction, the accounting equation is demonstrated as shown above. This means that each transaction that is properly recorded affects the accounting equation in two ways. Note that the accounting equation is the basis for the double-entry system of financial accounting.
On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at $520,000. The entry to record the issuance of the bonds would include a:___________
a) credit of $20,000 to Premium on Bonds Payable
b) credit of $520,000 to Bonds Payable
c) debit of $20,000 to Discount on Bonds Payable
d) credit of $480,000 to Bonds Payable
Answer:
b) credit of $520,000 to Bonds Payable
Explanation:
Date Accounts titles and explanation Debit Credit
Oct. 1 Cash $520,000
Premium on bonds payable $20,000
Bonds payable $500,000
(To record the issuance of bond at premium)
When a liquidity trap situationâ exists, we knowâ that:_____.a. fiscal policy will have no effect on the demand for goods.b. an open market operation will have no effect on the interest rate.
c. expansionary monetary policy will be deflationary.
d. fiscal policy will have no effect on the demand for goods.
e. an open market operation will have no effect on the monetary base.
Answer:
b. an open market operation will have no effect on the interest rate
Explanation:
In any situation of of liquidity trap, money demand curve is always almost flat. As a result of this, a shift in the money supply curve (resulting from an open market operation) does not cause much or any change in the market interest rate. An open market operation can affect the money supply even during liquidity trap. The monetary base in affected, without exception, when an open market operation takes place. An expansionary monetary policy increases price levels and is therefore never deflationary. It is the monetary policy, not the fiscal policy, that is rendered ineffective in the case of liquidity trap.
An architecture firm earned earned $2320 for architecture services provided with the fee to be paid in the future. No entry was made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:________.A) revenues to be understated B) revenues to be overstated C) liabilities to be understated. D) net income to be overstated.
Answer:
A) revenues to be understated
Explanation:
In this scenario, this would cause revenues to be understated. This is mainly because the financial report of profit would state an amount that is less than the amount that was actually earned by the Architecture Firm. This is due to the profit of $2320 that was already fully earned by the Firm not being included in the financial report, therefore missing a piece of the profits in the report (understated).
Sprinkle Co. sells its product for $20 per unit. During 2013, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labor $3, and variable overhead $1. Fixed costs are: $240,000 manufacturing overhead, and $30,000 selling and administrative expenses. Under absorption costing, what amount of fixed overhead is deferred to a future period?