Answer:
1.425 dollars of value added
Explanation:
The value of the painting added by Caroline is between the $75 dollar of raw materials and the $1,500 which is the amount at which she sold the canvas in the art gallery.
If, over the course of time the canvas market value increase this will not change the value added by Caroline.
1,500 - 75 = 1.425 dollars
Unit of account is the function of money: that provides a common measurement of the relative value of goods and services. that shows the acceptability of money in exchange for goods and services. that shows the portability of money. that shows the ability of money to hold value over time.
Answer:
a common measurement of the relative value of goods and services.
Explanation:
Money has three functions. they are :
1. Medium of exchange : this shows the acceptability of money in exchange for goods and services.
2. Store of value : that shows the ability of money to hold value over time.
3. Unit of account : a common measurement of the relative value of goods and services. money serves a means by which one can measure the value of goods and services. for example, if we are told the price of a shoe is $1,000 and the price of another shoe is $50. We know that the $1,000 is relatively more valuable when compared to the $50 shoes.
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
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.
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.
The current risk-free rate of return ( rRF ) is 4.67% while the market risk premium is 6.63%. The Burris Company has a beta of 0.78. Using the capital asset pricing model (CAPM) approach, Burris’s cost of equity is
Answer:
9.84%
Explanation:
The current risk free rate of return is 4.67%
The market risk premium is 6.63%
Burris company has a beta of 0.78
Therefore, using the capital assets pricing model the cost of equity can be calculated as follows
Cost of equity= Risk free rate+ Beta×Market risk premium
= 4.67%+0.78×6.63%
= 4.67%+5.171
= 9.84%
Hence Burris's cost of equity is 9.84%
In a long period of economic expansion, the tax revenue collected _____ and the amount spent on welfare programs _________, creating a budget ________. Group of answer choices increases, decreases, deficit decreases, increases, deficit increases, increases, surplus increases, decreases, surplus decreases, decreases, surplus
Answer:
increases, decreases, surplus
Explanation:
In a long period of economic expansion, the income earned by individuals would higher, so the amount of tax earned would increase also. Also, In a long period of economic expansion, unemployment would be reduced so the government would spend less on welfare programs
when government revenue exceeds expenditure, there is a surplus.
____ 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.
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
A workstation must produce 200 units an hour. It takes 45 minutes to receive the necessary material for production from the previous workstation. Output is moved between workstations in containers holding 30 units. If the process uses a safety factor of 20%, then the number of kanbans that should be circulating between this workstation and the previous workstation is: Group of answer choices
Answer:
The number of Kanbans circulating between this workstation and the previous workstation is 6 Containers
Explanation:
Given demand = 200 unit / hour
45 minutes between one workstation to another
Container size = 30
Safety factor = 20% = 0.2
Demand during lead time of 45 minutes = 45minute / 60minute * 200 units = 150 units
Number of Kanbans = Demand during lead time ( 1 + Safety factor) / Container size
= 150 (1 + 0.20) / 30
= 150 (1.20) / 30
= 180 / 30
= 6 Containers
ABC issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/2018 $8,640,967 6/30/2018 $300,000 $345,639 $45,639 8,686,606 12/31/2018 300,000 347,464 47,464 8,734,070 6/30/2019 300,000 349,363 49,363 8,783,433 12/31/2019 300,000 351,337 51,337 8,834,770 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate. (round to nearest whole percentage, just put in the number with no %)
Answer:
6%
Explanation:
Calculation of the stated annual rate of interest on the bonds
Using this formula
Annual rate of interest = (Cash paid /Bonds Amount)× 2 payments per year
Where,
Cash paid=$300,000
Bonds amount =$10,000,000
Let plug in the formula
Annual rate of interest=($300,000/$10,000,000) × 2 payments per year
Annual rate of interest= 0.03×2 payments per year =6%
Note the 2 payment per year is June 30 and December 31
Therefore stated annual rate of interest on the bonds will be 6%
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.
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.
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.
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.
Nash's Trading Post, LLC had an increase in inventory of $88800. The cost of goods sold was $414400. There was a $22200 decrease in accounts payable from the prior period. Using the direct method of reporting cash flows from operating activities, what were Nash's's cash payments to suppliers?
Answer: $525,400
Explanation:
From the question, we are informed that Nash's Trading Post, LLC had an increase in inventory of $88800, the cost of goods sold was $414400 and that there was a $22200 decrease in accounts payable from the prior period.
Using the direct method of reporting cash flows from operating activities, Nash's's cash payments to the suppliers will be:
= $88,800 + $414400 + $22200
= $525,400
When a security is being registered under coordination, all of the following are required EXCEPT A) filing with the Administrator of a statement of the maximum and minimum proposed offering price and maximum underwriting discounts or commissions concurrently with the filing of the registration statement with the SEC B) payment of the appropriate fee C) a description of the proposed use of the proceeds of the underwriting D) prompt filing with the Administrator of any amendments filed with the SEC
Answer:
C) a description of the proposed use of the proceeds of the underwriting
Explanation:
When registering security by coordination, it is required that the applicant pays the appropriate fees required by law before the process begins. He is also expected to make proper documentation and filing with the Administrator at the Securities Exchange Commission. Any amendments made in former agreements are to be filed. An undertaking is to be signed by the applicant to document any future amendments.
The applicant is also expected to provide a statement of the maximum and minimum price offering, underwriting discounts, or commissions. Price Amendments are to be filed with the Administrator too. He is not expected to provide a description of the proposed use of the proceeds of the underwriting.
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
Motonous Corporation has completed its fiscal year and reported the following information. The company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings does the firm have?
Answer:
The retained earning is $167918.
Explanation:
The current assets of the company = $153413
The net fixed assets = $412331
Other assets of the company = $7822
Current liabilities of the company = $65314
Long term debt = $178334
Common stock = $162000
Retained earnings = total assets - (total liabilities + common stock)
Retained earnings = 153413 + 412331 + 7822 - ( 65314+ 178334+162000)
Retained earnings = $167 ,918
Investments are different from savings accounts in that they A. Offer high profit potential B. Are FDIC-insured C. Guarantee to never lose money D. Can only be accessed online
Answer:
Option A, Offer high-profit potential, is the right answer.
Explanation:
Option A, “Offer high-profit potential” is the current answer because the savings account provides a fixed interest rate and this interest rate is sometimes unable to match the inflation. However, the investments give high profits. Moreover, there is zero risks associated with the savings accounts but there may be the risk involved in the investments. For example, investment in mutual funds given high profit but also involves the market risk.
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.
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.
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.
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.
Q 10.29: The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. If a large corporation in the food industry wants to sell $1,000, 10-year bonds with a 4.9% annual interest rate, what type of bond should they consider issuing
Answer:
Convertible bond
Explanation:
Convertible bond refers to the bond in which the investor has an option to convert its bond into another form
By converting the bonds you get the lower interest rate as compared to before.
Therefore as per the given situation, if the one bond contains 6.3% and other contains 4.9% so this represents the convertible bond
Scott Company sells merchandise with a one-year warranty. Sales consisted of 2,500 units in Year 1 and 2,000 units in Year 2. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2 for the Year 1 sales. Similarly, 30% of repairs will be made in Year 2 and 70% in Year 3 for the Year 2 sales. In the Year 3 income statement, how much of the warranty expense shown will be due to Year 1 sales?
Answer:
$0
Explanation:
Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:
Dr Warranty expense 25,000
Cr Warranty liability 25,000
During year 2, they will record the warranty expense for that year:
Dr Warranty expense 20,000
Cr Warranty liability 20,000
That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.
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.
n the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity? an increase in its brand equity an increase in its employee productivity an increase in its customers' disposable income an increase in its financial resources
The correct answer is C. An increase in its customers' disposable income
Explanation:
In businesses, the SWOT analysis helps a business grow and improve by considering its strengths which refer to advantages or qualities; weaknesses or areas to improve; opportunities or factors that can contribute positively; and threats or factors that might influence negatively.
In this context, external opportunities refer to factors beyond the control of the business that can make it grow. This includes an increase in the customers' disposable income, which refers to the money customers can spend as they wish because if customers have more money to spend the sales of the business can increase.
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.
Effective reading involves what four steps? Select one: a. Preparing, reading, capturing key ideas, and reviewing. b. Preparing, absorbing, capturing, reviewing c. Reading, note-taking, summarizing, reviewing d. Reading, capturing key ideas, summarizing, reviewing
Answer:
Preparing, reading, capturing key ideas, and reviewing.
Explanation:
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.