Answer: b. This action is a violation of the Uniform Securities Act
Explanation:
Most terms people carry out in doing business is a breach on the policies of the other party and which is not healthy for the business society, clients should get to understand when they are crossing the line in carrying out task and do the right thing, violations can lead to law enforcement which would not be pleasurable for the party involved.
On December 31, Jacoby Company received a $385 bill for the purchase of supplies in December that it will not pay for until January 15. Jacoby follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry needed on December 31 to accrue this cost is:
Answer:
Supplies $385 (debit)
Accounts Payable $385 (credit)
Explanation:
Recognize the Assets of Supplies and also recognize the Liability : Accounts Payable fort the amount owing that will be paid in the coming financial year.
The management of Arnold Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, 0.621, respectively. In addition to this information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 90,000 The net present value for this investment is a.negative $25,200. b.negative $124,800. c.positive $152,000. d.positive $25,200.
Answer:
d.positive $25,200.
Explanation:
The computation of net present value for this investment is shown below:-
Year Income From Net Cash Flow Present value
Operations
1 $100,000 180,000 163620
2 40,000 120,000 99120
3 20,000 100,000 75100
4 10,000 90,000 61470
5 10,000 90,000 55890
Total Cash inflow present value 455,200
Initial cash outflow $430,000
Net present value $25,200
As we can see that the total cash inflow i.e $455,200 is greater than the initial investment is $430,000 that reflects the positive net present value i.e difference of $25,200 so the project should be accepted
How does price war affect businesses?
Price wars can come at a high cost since it decreases a company's profit margins in the short-term. However, price wars can help companies gain a sizable increase in market share and lead to more profitability in the long-term.
Cliff Company traded in an old truck for a new one. The old truck had a cost of $75,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $125,000. Huffington was given a $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck
Answer: $125,000
Explanation:
If the above transaction in the question has commercial substance, the recorded value of the new truck will be the trade in allowance of $12,000 on the old truck in addition to the $113,000 that was paid to get the new truck.
Mathematically expressed, this will be:
= $113,000 + $12,000
= $125,000
Assets Liabilities and Net Worth
Reserves $40,000 Checkable Deposits $130,000
Loans 25,000 Stock Shares 45,000
Securities 110,000
Assume the Continental National Bank's balance statement is as shown in the accompanying table. Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it?
a. $16,000.
b. $3,000.
c. $6,000.
d. $24,000.
Answer: c. $6,000.
Explanation:
Given: Checkable Deposits = $130,000
Amount Withdrawal = $10,000
Then, the new checkable deposit = (Checkable Deposits) - (Amount Withdrawal)
= $130,000-$10,000= $120,000
Reserves = 20% × (new checkable deposit)
=20% × $120,000 = $24,000
New reserve = (Reserve)-(Amount Withdrawal)
=$40,000 - $10,000 = $30,000
Excess Reserve = (New reserve) - (Reserves )
= $30,000 – $24,000 = $6,000
i.e. Excess reserve in bank is $6,000.
Hence, the correct answer is c. $6,000.
Ashley is an attorney and also an excellent typist. She can type 120 words per minute, but she charges attorney fees at $100 per hour. Benjamin would like some typing work but can only type 60 words per minute. According to the law of comparative advantage, Ashley should hire Benjamin to do her typing if and only if his wage rate is less than:__________
Answer:
$50 / hr
Explanation:
The law of comparative advantage states that an entity should be able to produce its goods and services at a lower opportunity cost compared others in the same line of business so as to have an edge in the market.
Looking at the scenario ,if Ashley can type 120 words in a minute and also earn $100 / hr as an attorney , the opportunity cost of settling for the attorney work is the income earned through typing.
The law states that goods and services should be produced at a cost lower to the opportunity cost. To Ashley , the cost of hiring Benjamin should not be more than half of her hourly income as Benjamin production rate is half of hers.
Belinda uses online banking everyday for her small business transactions. One day, as she opens the browser and clicks on the bookmark link for her bank's website, she notices that some very slight changes have been made to the site. She wonders if they are sprucing it up a bit, because it hasn't changed in a while. A few days later, her company ledger is in total disarray. Which of the following has most likely caused this disarray?
a. She is a victim of radio frequency identification.
b. She probably visited a pharming site and didn't know it.
c. She must have segregated her spam mails without opening them.
d. She is probably the victim of spyware.
Answer: She probably visited a pharming site and didn't know it.
Explanation:
Based on the scenario that has been explained in the question, we can say that Belinda probably visited a pharming site and didn't know it.
Pharming is an online fraud which involves the use of fraudulent websites and malicious code by fraudsters. The cybercriminals put the malicious code on ones and with the code, one will be redirected to a bogus websites without the person even knowing or being aware.
If the Administrator were examining the actions of a particular agent to determine whether the agent engaged in churning a client's account, focus would be placed upon A) the number of complaints received relating to that agent B) the amount of profits generated in the client's account C) the client's objectives, financial resources, and the character of the account D) the length of time the account had been opened
Answer:
C) the client's objectives, financial resources, and the character of the account
Explanation:
While at the time of examining the actions of a specific agent by the administrator with respect to the commission earned would be depended upon the objective of the client, his financial resources,and the character of the account.
The character of the account represents the type of account in which the client is interest as different accounts have different commissions
So these three above objectives should be required
Hence, the option c is correct
A Nash equilibrium occurs when: each player receives the same final payoff. each player believes it is doing the best it can given the behavior of rivals. there is no dominant strategy for any player. payoffs are independent of the actions taken by rivals.
Answer:
Option B, “Each player believes it is doing the best it can given the behavior of rivals” , is the right answer.
Explanation:
Option B is correct because Nash equilibrium is the situation where each player is earning the highest payoff and there is no intention to change their optimum strategy. However, if any player changes their strategy then they will get the lower payoff. Therefore, in the Nash equilibrium, each player knows his best moves and also knows the behavior of their competitor.
At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:
Answer: $7,740
Explanation:
Given, At December 31, Accounts receivable = $238,000
Allowance for uncollectible accounts = 3% of (accounts receivable)
∴ Allowance for uncollectible accounts = 3% of ($238,000 )
=$(0.03 ×238,000) [3% = 0.03]
= $ (7140)
= $7,140
Allowance for uncollectible accounts (credit) before any adjustments= $600
The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts + $600
= $7,140 + $600
= $7,740
Hence, The amount of the adjustment for uncollectible accounts would be: $7,740.
After a couple orally agrees to purchase an appliance at a special price, the salesman tells them he misquoted the price, indicating it was only available for an out-of-stock model with fewer options. The couple then agrees to purchase the appliance at a higher price. It appears that the salesman has effectively used the _____ technique.
Answer:
low-ball technique
Explanation:
Low-ball technique is a method used to persuade buyers make a purchase by offering a product at low price to get the customer to commit. The price is then increased.
This is a method commonly used by sales people.
In the given scenario this was used by the salesman when a couple orally agrees to purchase an appliance at a special price, he tells them he misquoted the price, indicating it was only available for an out-of-stock model with fewer options.
Since the couple had made a commitment to buy the particular appliance, they still buy at the higher price.
Selling short-term treasury bills and buying longer-term treasury bonds without creating more new money is called: Multiple Choice standard monetary policy. precommitment policy. quantitative easing. operation twist.
Answer:
operation twist.
Explanation:
The operation twist refers to the transactions in which it includes the buying and sale of government securities to raise up the economy so that the long term rate of interest could be fall
Therefore in the situation, it is mentioned that by selling off the short term treasury bills and in exchange long term bond are purchased so this represents the operation twist
Hence, the last option is correct
In general, warehousing security can be enhanced by focusing on people, ____, and ____. Group of answer choices Buildings, cost Cost, processes Buildings, equipment Facilities, processes
Answer: equipment Facilities, processes
Explanation:
Warehousing is a job done by a company in a building, garage or basement known as a warehouse for storing and handling goods that will be sold or distributed later. Warehouse security is an important act to protect valuable goods or aspects to prevent financial loss.Warehousing security can be enhanced by focusing on people, equipment facilities and processes (it includes Security officers ,Surveillance system , Alarm systems , Access controls )Network security system).So, the correct answer is equipment Facilities, processes.
Items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30,2016
Answer:
Financial Statements are the reports of a company which provide detailed information about company financial position. The Income statement reports the company revenues and expense for the period whereas Balance sheet reports the company assets and liabilities position.
Explanation:
The Maple Park Theaters Corp. has reported the net of $133,562 in its income statement. The company has planned for reinvesting the 80% of net income into the extension of park. The reinvestment decision is taken by the company management for the purpose of increase revenue. The decision seems to be correct as extension of park and its services will attract more people to the park and ultimately revenue will increase and so profit too.
If the Fed increases the discount rate, which of the following accurately describes the system, finally leading to a decline in money supply?
A. Excess reserves j: Reserves: Coans J: Deposits : Money supply
B. Reserves J: Excess reserves J: Loans J: Deposits ;Money supply
C LoansJ:DepositsJ:Reserves J:Excess reserves |: Money supply
D. Deposits J: ReservesJ:Excess reservesI:Loans J:Money'supply
Answer:
B
Explanation:
Reserves J: Excess reserves J: Loans J: Deposits ;Money supply
"A 65-year old retired teacher living on a pension has $200,000 invested in 2 year certificates of deposit that are yielding 4%. $20,000 of the CDs are maturing and the customer wants to diversify into an investment that gives a higher return and a moderate level of risk. The BEST recommendation would be:"
Answer:
Equity REIT's
Explanation:
In this scenario, it can be said that the best recommendation would be Equity REIT's. These are Real Estate Investment Trusts. REIT's tend to pay a higher dividend yield than most other types of stocks since they have been structured to generate net rental income. While maintaining the risk level moderate due to the underlying diversification of the trust itself. Therefore since the yield is higher and the risk level moderate this is the best next investment for the teacher to get into.
Wilson Corp. purchased its own par value stock on January 1, 2015 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from
Answer: additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
Explanation:
The options are:
additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
b. additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein.
c. retained earnings.
d. net income.
From the question, we are informed that Wilson Corp. purchased its own par value stock on January 1, 2015 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000.
Therefore, the $8,000 difference between the cost and sales price should be recorded as a deduction from the additional from the paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein otherwise, from the retained earnings.
Herb Kelleher, founder and long-time chief executive officer of Southwest Airlines, was known for inspiring and motivating his employees. He related well to people within and outside the Southwest Airlines organization. Herb Kelleher had good ____ skills.
Answer:
Interpersonal Skills
Explanation:
Interpersonal skill is the skill that connects one person with other due to the employee's behavior which helps him to get along with others. In other words, when we talk about interpersonal skills we are actually talking about the excellent way of interacting with people that results in better relation, respect, better job environment, motivation of employees, etc.
In this case, Herb Kelleher, the CEO has better relations with his company employees as he interact with the people well which is interpersonal skills.
An investor set up his own IRA several years ago and has now decided to get professional advice from an investment adviser. When the investor meets with the investment adviser, he tells the adviser that he has positions in common stock, an index fund, TIPs bonds, a municipal bond fund, and a small amount of cash. Which of these investments should the investment adviser immediately be most concerned about
Answer:
Municipal bond fund
Explanation:
He should be most concerned about this fund because these investments are in the investors IRA, the investment aadviser should be immediately concerned about the municipal bond fund investment.
We have seen that this is a tax deferred account, so a tax free investment is not going to be suitable.
Black Oil Company considered building a service station in a new location. The owners and their accountants decided that this was the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the station changed. In which case do these changes both make it less likely that they will now build the station?
A. Interest rates rise and the cost of building the station rises.
B. Interest rates rise and the cost of building the station fills.
C. Interest rates fall and the cost of building the station rises.
D. Interest rates fall and the cost of building the station falls.
Answer:
A. Interest rates rise and the cost of building the station rises.
Explanation:
An increase in interest rate means that the amount of money that will be paid back on a loan borrowed for a given period of time will increase. A risen interest rate discourages borrowing, and spending, as people do not want to pay a lot of money on loans collected. If interest rate increases, the company best postpone the project to a later time when interest rate falls. If the cost of building the new station increases, it means more capital than normal is now needed to build this service station, which will discourage investing in the project at that time period. So an increase in interest rate and cost of building the station, makes it less likely that the company builds the station in this time period.
All of the following are benefits of debt financing except: Group of answer choices Interest on debt financing is tax deductible Debt is typically cheaper than equity Debt does not have predefined payment terms Debt can motivate managers to reduce wasteful spending
Answer:
Debt does not have predefined payment terms
Explanation:
Carlton Company uses the percent of sales method to estimate its bad debt expense. Based on past experience, the company estimates 2 percent of credit sales to be uncollectible. At the end of the current year, the company's unadjusted trial balance shows Accounts Receivable of $245,000 and Credit Sales of $900,000. Prepare the necessary December 31 adjusting entry by selecting the account names and dollar amounts from the drop-down menus.
Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $18,000 ($900,000 × 2%)
To Allowance for doubtful accounts $18,000
(Being bad debt expense for the year is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the allowance for doubtful accounts as it decrease the value of the assets
A market demand curve shows Group of answer choices the sum of all prices that the individual buyers are willing and able to pay for each possible quantity of the good. the relationship between price and the number of buyers in a market.
Answer:
the sum of all prices that the individual buyers are willing and able to pay for each possible quantity of the good.
Explanation:
Market demand refers to the sum of the individual demand for a commodity from all buyers in a given market.
A market demand curve is therefore a graph that shows the the sum of the individual demand for a commodity from all buyers in the market.
Therefore, the correction option is "the sum of all prices that the individual buyers are willing and able to pay for each possible quantity of the good".
Note that the market demand curve is a downward sloping curve due to the fact that there is a negative relationship between price and quantity demanded. That is, as price increases, the quantity demanded decreases. On the other hand, as price decreases, the quantity demanded increases.
Also note that an example of a market demand curve is given in the attached graph. From the graph, it can be seen that when price is [tex]p_{0}[/tex], quantity demanded is [tex]q_{0}[/tex]. But when price falls to [tex]p_{1}[/tex], quantity demanded increased to [tex]q_{1}[/tex]. This shows the negative relationship between price and quantity demanded as explained above.
what is one of the effects that the internet has had on bussiness?
Kirkaid Company recorded the following transactions for the just completed month: a. $84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. b. Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. c. Additional actual manufacturing overhead costs of $197,000 were incurred. d. A total of $218,000 in manufacturing overhead was applied to jobs.
Answer:
$6,000 underapplied
Explanation:
The computation of the amount overapplied or under applied is shown below:-
Amount applied = Applied manufacturing overhead - (Indirect materials + Indirect labor + other OH costs incurred )
= $218,000 - {($84,000 - $72,000) + ($108,000 - $105,000) + $197,000 }
= $218,000 $12,000 + $3,000 + $197,000
= $218,000 - $212,000
= $6,000
Therefore for computing the amount under applied we simply applied the above formula.
Machinery was purchased on January 1 for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar):
Answer:
$10,408
Explanation:
The computation of the depreciation expense for the second year using the double-declining balance depreciation method is shown below:
First we have to determine the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 7
= 14.28%
Now the rate is double So, 28.57%
In year 1, the original cost is $51,000, so the depreciation is $14,571 after applying the 28.57% depreciation rate
And, in year 2, the ($51,000 - $14,571) × 28.57% = $10,408
What term refers to the fit between a person’s abilities and the demands of the job and the fit between a person’s desires and motivations and the attributes and rewards of a job? A. manager-employee fit B. occupation-group fit C. person-job fit D. employee-environment fit
Answer:
person-job fit
Explanation:
This fit is called the person-job fit. This is a concept which details how well an a person or an employee is suitable for the position who which he or she is applying for or employed. employees who are the best fit for their positions should be hired because they help a firm to reduce turnover rate. Person job fit, increases organizational commitment, and also employee would experience more job satisfaction.
A project's incremental cash flow is the difference between the firm's cash flow if it accepts the project versus if it rejects the project. Thus, if a project has an initial cost of $1 million in Year 1 and no other costs or revenues, then the incremental cash flow in that year will be -$1 million. True or false?
Answer:
false
Explanation:
Incremental cash flow is the additional cash flow from a project after the initial investment.
if a project has an initial cost of $1 million in Year 1 and no other costs or revenues, then the incremental cash flow in that year will be 0
____ is the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.
Answer: knowledge management
Explanation:
Knowledge management has to do
with the efficient handling of the resources and the information that is within an organization. Organizational objectives and goals can be easily achievable when there is an efficient use of the available knowledge.
Therefore, knowledge management is the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.
GW Corp. has two shareholders; Devana owns 40 shares and another corporation, Alpine, Inc., owns another 60 shares. Devana is also a 40% shareholder in Alpine, Inc. Under the attribution rules for the change in stock ownership tests in a redemption, how many shares of GW Corp. does Devana own
Answer:
40%
Explanation:
Devana owns 40% of GW Corp. despite having another 40% shares in Alpine Inc. This is as a result of Devana not having up to 50% shares in Alpine Inc.
Without up to 50% shares in Alpine Inc, the shares of Alpine Inc. in GW Corp. cannot be attributed to Devana.
This means that for Devana to own Alpine Inc shares in GW Corp. it has to acquire 10% more in addition to the 40% it already has.
Cheers.