We can know there is going to be inflation when the price of commodities rises.
The cost of living in a nation or the general increase in prices are two examples of broad measures used to describe inflation. People can understand it as the progressive loss of purchasing power brought on by price increases. The effects of inflation, which raises the cost of necessities like food, can be detrimental to society and affect everyone directly.
Most of the commodities being produced can experience inflation, including necessities like housing, food, healthcare, and utilities as well as wants like jewellery, cars or other luxury items. Once inflation is pervasive throughout an economy, both consumers and businesses share a common concern about the possibility of future inflation.
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if the functional currency is the local currency of a foreign subsidiary, what exchange rates should be used to translate the items below, assuming the foreign subsidiary is in a country which has not experienced hyperinflation over three years?
Your question is incomplete, but in general the exchange rates used in financial translations are the current rate for assets and liabilities, the historical rate for equities, and the average rate for the income statement.
What items are included in the assets, liabilities, equities, and income statement?
Example items in assets is cash, accounts receivable, buildings, equipment, inventories, etc.
Example items in liabilities is bank debt, mortgage debt, accounts payable, wages payable, etc.
Example items in equities is common stock, preferred stock, treasury stock, retained earnings, etc.
Example items in income statement is revenue, sales, operating expenses, depreciation expenses, etc.
Thus, if the items asked in your question are equipment, inventories, and depreciation expenses then the exchange rate used is the current rate for equipment and inventories and the average rate for depreciation.
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a company issues $90,000 of 5%, 5-year bonds dated january 1 that pay interest semiannually on june 30 and december 31 each year. if the issuer accepts $95,000 for the bonds, the issuer will record the sale with a (debit/credit) to (discount/premium) on bonds payable in the amount of $5,000. multiple choice question.
Debit, $5,000 Justification;
The journal entry should read "Debit cash for $ 85,000," "Debit discount on bonds payable for $ 5000," and "Credit bonds payable for $ 90000." Here, the discount amount is $ 5000.
What is a fundamental journal entry?
An accounting entry that debits and credits only one account is called a simple journal entry.As a best practice, it is encouraged to use straightforward journal entries because they are simpler to comprehend.
What three entries are in the journal?
Journal entries fall into three main categories:compound, changing, and switching.
What are credit and debit?
A transfer of value into an account is referred to as a debit entry, while a transfer of value out of an account is referred to as a credit entry.Value is transferred from credited accounts to debited accounts with each transaction.
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the price of an interest rate swap is most accurately described as: a) zero at the initiation of the swap contract. b) decreasing when the reference rate increases. c) constant throughout the life of the swap contract.
The price of an interest rate swap is most accurately described as the price of an interest rate swap is the fixed interest rate specified in the contract.
The value of an interest rate swap is typically zero at initiation and may vary during the life of the contract as expected future interest rates change.
The value of a switch is its market fee at any point in time. remotepilot101.com At inception, the cost of an interest fee change is zero. The fee of the switch refers to the initial terms of the change at the start of the change's lifestyle.
At initiation, a change normally has a 0 price. however, during its life, a swap may have a zero, terrible, or high-quality fee, relying on adjustments in market values.
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sail-awsail-away corporation makes sailboards, which are distributed by tropical marketing company to uv sports stores inc., which sells them to consumers. wen is injured while using a sail-away board that he bought from uv sports. in a product liability suit based on strict liability, wen may recover from:
In a product liability suit based on strict liability, Wen may recover from Sail-Away, Tropic, or UV Sports.
What is liability?Responsibility usually means that you are responsible for something, and it can also mean that you owe product money or services. For example, a homeowner's tax liability could be an amount owed to the city in property taxes or income taxes owed to the federal government. You can calculate a company's liability using the following formula: Liabilities = Assets – Equity. To determine the total amount of liabilities, find the sum of assets and equity on the balance sheet. According to the Strict Liability Rule, the law requires people to pay damages even if they were not at fault. In other words, people have to pay compensation to victims even if they take all necessary precautions.To learn more about liability from the given link :
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Expenditures that add to the utility of fixed assets for more than one accounting period are.
Expenditures that add to the utility of fixed assets for more than one accounting period are capital expenditure.
What is capital expenditure?A capital expenditure can e described as the type of expenditure that is been used in funding a particular asset which is been expected by the owner of the business to provide utility to a business .
And this can be used for as many as reporting period which is a way to make the business to grow better, it should be noted that the capital expenditure is very important in the business sytem.
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What of the following is a way to help an individual pay lower interest rates on future loans?.
Inquire with your lender about any fees associated with making extra payments. Making additional payments now will also provide you with a buffer if interest rates increase in the future.
What are the three most important factors in obtaining a lower interest rate?
There are three factors that influence your interest rate.
Credit rating. Your credit score is a three-digit number that carries the most weight when determining your personal creditworthiness.Loan-to-value (LTV) ratio.Debt-to-incomeReal interest rates are fundamentally determined by the degree of saving and fixed investment in the economy. All else being equal, if saving increases as well as fixed investment decreases, the real interest rate falls; if saving decreases or fixed investment increases, the real interest rate rises.
Therefore, any extra money you put in during that time period will reduce the amount of interest you pay but also shorten the term of your loan.
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a company services office equipment. some customers bring their equipment to the company's service shop; other customers prefer to have the company's service personnel come to their offices to repair the equipment. the most appropriate costing method for the company is
The most appropriate costing method for the company is a job-order costing system. Systems for job-order costing accumulate costs for one-of-a-kind, one-time projects or tasks
The costs associated with each customer for each service call are of interest to a company that maintains office equipment.
A company, also known as co., is a legal designation for a group of people with a particular goal who are either naturally occurring, legally created, or a combination of both. Members of the company collaborate to accomplish clearly stated objectives.
Any system for allocating costs to a component of a business is referred to as costing. Costing is frequently used to establish costs for clients, suppliers, personnel, businesses as a whole, and subsidiaries. In Basic Costing, you'll learn how to recognise the organisational cost components and differentiate between the nature and behaviour of various costs.
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Travis is employed in a logistics company. How can he best avoid workplace hazards?
A.
by staying seated at his desk
B.
by avoiding hazardous work
C.
by wearing safety goggles
D.
by maintaining an uncluttered workplace
E.
by wearing comfortable clothes
By maintaining an uncluttered workplace is best avoid workplace hazards. Based on the unique needs of the customer, a logistics business manages and streamlines numerous procedures of moving goods from the place of origin to the site of company consumption.
Including warehousing and transportation. The evolution of logistics has been significantly aided by businesses like UPS and FedEx. These businesses are able to move products from their point of origin, store them, and package them. From the standpoint of a single company workplace, logistics deals with the movement of supplies and things that company receives and handles internally as well as the transportation of those materials and goods to a client.
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Why would an already-successful business owner conduct a marginal cost analysis for their product?
The main reason why an already-successful business owner might conduct a marginal cost analysis for their product is so that the already-successful business owner would be able to measure the additional benefits of one production activity versus its costs.
What is a marginal cost analysis?This refers to the term that is used to describe the effect of taking or having a marginal cost of a business analyzed, which would show products or activities that are already profitable and to make business decisions on this.
Hence, we can see that for a successful business, having a periodic marginal cost analysis for their product is to help them analyze the products and activities that they have that are more profitable than others.
With this in mind, one can easily see that the correct answer is that it would help measure the additional benefits of one production activity versus its costs.
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the amount that investors are willing to pay for each dollar of annual earnings is reflected in the: group of answer choices return on assets. return on equity. debt-equity ratio. price-earnings ratio. dupont identity.
The amount that investors are willing to pay for each dollar of annual earnings is reflected in the price earning ratio. The correct answer would be option B.
Price earning ratio is the ratio for valuing a firm that compares its current stock price to its earnings per share (EPS). The price multiple or earnings multiple are other names for the price earnings ratio.
Investors and analysts use P/E ratios to assess the comparative value of a company's equity in a comparison. It can also be used to contrast a company with its past performance or to compare broad markets over time or to one another. P/E estimates can be made either forward or on a trailing basis.
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1) what will be the effects of issuing $3 billion of new debt and using the proceeds to pay a dividend on: wrigley's outstanding shares? on the price per share of wrigley's stock? (12 pts)
The number of shares outstanding will decrease if $3 billion in fresh debt is issued to purchase shares; however, the number of shares outstanding will not change if dividends are paid with this borrowed money.
Total assets less intangible assets (patents, goodwill, etc.) and liabilities equals a company's net assets value. Due to the $3 billion rise on both sides of the balance sheet, the book value does not change when the company issues new debt. The dividend payment has no impact on the shares' book value.
The amount of dividend paid per share will be deducted from the share price. The share price won't be directly impacted by repurchasing shares of business stock.
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pierre martina is comparing the cost of credit to the cash price of an item. if pierre makes a $70 down payment and pays $34 a month for 24 months, how much more will that amount be than the cash price of $695?
With $70 down payment and $34 a month for 24 months as instalment there will be a difference of $191 between the credit and the cash price of $695 with credit price exceeding cash price.
Give a brief account on down payment.A down payment for a house is the cash up front provided by the buyer in real estate deals and other big acquisitions. Down payments, which are typically a proportion of the purchase price for a home used as a primary residence, can range from as little as 3% to as much as 20%. The down payment amount is typically determined by the type of mortgage you choose, your financial situation, and the type of property you're buying (such as whether it's a primary house or an investment property, for example).
To solve the question :
Given,
Down payment = $70
Instalment = $34 a month
Time = 24 months
Difference
= Credit purchase cost − Cash price
= ((down payment + ( time × instalment)) - cash price
= (($70 + (24 × $34)) − $695
= ($70 + 816) − $695
= $886 - $695
= $191
Hence the amount will be $191 more than cash price $695.
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you buy a pair of sunglasses from a manufacturer for $55. you would have been willing to pay $70 for them; it cost the manufacturer $30 to make them. what is the economic surplus created by this exchange?
The economic surplus created by this exchange is $40
Why is economic surplus important?Economic surplus is the collective benefit, commonly referred to as "total welfare," that a consumer or producer receives as a result of an economic activity. Other names for it include total surplus and communal surplus. This economic statistic is employed to assess market health.
For small firms to develop and expand, the economy must be in surplus. When a business has a sizable surplus, it indicates that money is coming in, and it can use that money to fund expansion by investing in new goods, services, tools, and personnel.
Producer surplus = Market price – Producer's Minimum Acceptable Price or
Producer surplus = Total Revenue – Production Cost.
= 55 - 30
= $25
consumer surplus = the price is willing to pay - the actual amount paid.
= 70 - 55
= 15
The economic surplus = Producer surplus + consumer surplus
= 25 + 15 = $40
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hailey corporation pays a constant $9.45 dividend on its stock. the company will maintain this dividend for the next 13 years and will then cease paying dividends forever. if the required return on this stock is 10.7 percent, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The current share price of Hailey Corporation is $64.76
Constant dividend on stock = $9.45
The required return on this stock = 10.7
Time period = 13 years
The market price for the exchange of one share of a company is known as the share price. A substantial portion of the company's ordinary shares is traded on the stock market, where investors can buy them.
Calculating the present value of the annuity
= Annuity × ( 1 - (1 + rate)^- time periods) / rate of return
= 9.45 × ( 1 - (1 + 10.7%)⁻¹³) / 10.7%
= 9.45 × 6.8529386295
= 64.76
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which type of distribution channel typically does not have a fixed location but instead reaches customers through the mail?
The type of distribution channel that reaches customers through the mail is selling through intermediaries. It is because between the seller and the buyer there's no direct meeting.
A distribution channel generally can be described as a path that a product or service could take on its way to market. A direct distribution channel generally can be described as one of the type distribution channel where a company sells directly to the consumer. Direct distribution channel usually through their retail store or website. There are several types of distribution channel, such as direct selling, reverse logistics channels, selling through intermediaries, and also dual distribution.
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Which economic measure is the percentage of people in the labor force who are willing to work, are looking for work, but are unable to find work?.
The labor force is the percentage of people in the labor force who are willing to work, are looking for work, but are unable to find work.
The labor force is made up of both employed people and unemployed people, and the unemployment rate is calculated by dividing the number of jobless people by the total labor force. If a person works for compensation or runs their own business for at least an hour any day of the week, including the twelfth of the month, they are regarded to be employed.
The percentage of the population that is of working age and either employed or actively seeking employment is known as the labor force participation rate. This rate is a crucial indicator of the state of the labor market since it shows the proportion of labor resources that are readily available for the creation of goods and services.
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gourmet donuts owns 800 shares of coffee express. coffee express, which issued 100,000 shares of stock, declares a cash divident of $0.50 per share to stockholders. which journal entry correctly records the cash dividend received by gourmet donuts?
Gourmet Donuts holds 800 shares in Coffee Express. Coffee Express, which issued 100,000 shares of stock, declares a cash dividend of $0.50 per share to owners. Cash 400 Dividend revenue 400.
Stock in finance refers to the shares of ownership in a corporation or company. A single share of stock represents fractional ownership of the firm in proportion to the total number of shares. This typically entitles the shareholder to that fraction of the company's earnings, proceeds from asset liquidation (after discharge of all senior claims such as secured and unsecured debt), or voting power, often divided in proportion to the amount of money each stockholder has invested.
Stock can be bought and sold privately or on stock exchanges, and such transactions are often carefully regulated by governments to prevent fraud, protect investors, and benefit the greater economy.
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carlos purchased an apartment building on november 16, 2017, for $3,000,000. determine the cost recovery for 2017.
The cost recovery is $13,650. In the cost recovery method of accounting, a company only records the revenue it makes from a transaction when the client has paid enough of the invoice to cover all of the transaction's costs.
Statement demonstrating calculations
Particulars Amount
Building costs were $3,000,000.00.
Deduction for cost recovery: 3,000,000 *.00455
$13,650.00 is the cost recovery for 2017.
An expense and cost recovery system (ECRS) is a focused subset of "extract, transform, load" (ETL) that serves as a strong and adaptable set of applications, including programs, scripts, and databases designed to enhance the cash flow of businesses and organizations by automating the movement of data between cost recovery systems, electronic billing from vendors, and accounting systems.
In the cost recovery method of accounting, a company only records the revenue it makes from a transaction when the client has paid enough of the invoice to cover all of the transaction's costs.
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a new project has an initial cost of $172,000. the equipment will be depreciated on a straight-line basis to a book value of $65,000 at the end of the four-year life of the project. the projected net income each year is $15,300, $18,100, $23,400, and $15,200, respectively. what is the average accounting return? multiple choice
The average Accounting return is 15.19%.
Data are given in the question
Initial cost=$172,000
Book Value=$172,000
Projected net income each year is $15,300, $18,100, $23,400, and $15,200
Average Accounting return can be calculated by dividing the Average Project Net Income by the Average Book Value Investment
AAR = Average Project Net Income / Average Book Value Investment
Average Project Net Income=Total Income/ No of years
=($15,300+ $18,100 +$23,400+15,200)/ 4
$72,000 / 4 years
= $18,000
Average book value of investment = $172,000 + ($65,000/2) = $118,500
AAR=$118,500/$18,000
AAR=15.19%
So Average Average Accounting return is 15.19%.
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the opening herman miller video described how the filing cabinet line was improved by creating assembly line improvements, painting improvements, and reducing many hours long setup times to less than 10 minutes. all of these changes resulted in reducing the overall lead time for filing cabinets from more than 60 hours to only:
The first Herman Miller movie detailed how the file cabinet line was enhanced by making assembly line improvements, painting improvements, and shortening several hours-long setup periods to less than 10 minutes. As a result of these modifications, the overall lead time for file cabinets was reduced from more than 60 hours to only 4 hours.
What are the purposes of a filing cabinet?A filing cabinet is a type of office furniture used to keep paper papers organized in file folders. In its most basic form, it is a container for drawers that hold objects. Vertical files and lateral files are the two most prevalent types of filing cabinets. A vertical file cabinet features drawers that extend from the cabinet's short side. A lateral file cabinet features drawers that extend from the cabinet's long side.
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on november 1, orange corp. sold goods on account to apple. orange agreed to accept a $40,000, 12%, 3-month interest-bearing note from apple in payment for the goods. the entry required on orange's books on december 31, at the end of the year includes a
the entry required on orange's books on December 31, at the end of the year includes a debit (DR.) to Notes Receivable, $40,000.
What are notes receivable?A bill receivable consists of the "payee" (usually a company, sometimes called a creditor) and the "creator" of the promissory note (usually a customer) in writing or an employee, sometimes also called a debtor). A bill receivable can exist between a company and another party (another company, a financial institution, or an individual). Most often it happens when a customer takes longer to pay for a sale than standard billing terms. Instead of agreeing to a later payment, the recipient charges interest and requires a signed promissory note for legal reasons. A cash advance to an employee, where the company requires the employee to sign a promissory note, is another way to obtain a promissory note. Bills receivable have a higher probability of payment than easy credit purchases called accounts receivable. This is by means of a signed promissory note, which can be presented as evidence in court proceedings. In addition, bills receivable may be sold to third parties. By reducing outstanding "bad debt", collecting interest income, and facilitating contract sales, bills receivable are a tool for improving cash flow.For accounting purposes, the payee records the bill receivable as an asset on its balance sheet and the related interest income on its income statement. The portion of the bills receivable that is repaid within one year is classified as current assets and the remainder is classified as non-current assets.To know more about notes receivable refer to:
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how does penetration pricing discourage rival companies from entering the market? (choose every correct answer.)
Competitors won't be able to enter the market if you sell your products at a low price because they can't afford to sell at that price. Lower costs.High sales can result from low prices.
Why is the pricing strategy known as market penetration effective for an aggressive new competitor?A new product or service can better penetrate the market and draw customers away from rivals thanks to the lower price. Market penetration pricing is based on promoting a new product to a large number of customers at low prices at first.
Is the strategy used when a company lowers the price of a new product to deter competitors from entering the market?A penetration pricing strategy, in contrast to a skimming approach, establishes a low initial price.Frequently, numerous competing goods are already on the market.The objective is to get however much of the market as could be expected to attempt the item.
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omar hires petra, a real estate broker, to act as his agent to sell his land for $150,000. oil is discovered beneath the land, causing its market value to increase considerably. the agency agreement is likely
Omar hires Petra, a real estate broker, as an agent to sell his land for $150,000. Oil was discovered underground, greatly increasing its market value. The agency contract may be automatically terminated.
A tacit agency terminates certain circumstances where there is good reason to believe that one or both parties do not wish to continue the relationship. An agency shall terminate rights when either party dies or becomes incompetent, or if the purpose of the agency becomes unlawful.
If the law changes before the offer is accepted, the law will terminate the offer as it will become a void contract. In case the object of the offer is destroyed before it is accepted, this also means the termination of the offer.
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the table below lists the marginal product per hour of workers in a lightbulb factory. lightbulbs sell for $2 each, and there are no costs to producing them other than labor costs. compute the value of the marginal product for each additional worker.
A company will always hire up to the point where the salary is equal to the marginal product's value. The difference between the value of the marginal product and the cost of recruiting extra labour is represented by the wage.
As you can see in the table, when the wage rate is $24, the firm should hire 7 workers since, at that wage rate, the marginal product is equal to $24.
The firm should hire 4 workers when the hourly rate is $36. As seen in the table, the marginal product is worth $36 when the firm hires 4 workers.
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fedex offers price incentives to companies for shipping a large number of packages at one time. this is an example of a
The correct answer is noncumulative quantity discount.
Quantity discounts are price reductions offered as a result of a customer purchasing a specific number of items. To encourage customers to make greater purchases, a noncumulative quantity discount is applied to each purchase.
This means that the seller's inventory costs may be reduced as the buyer keeps the extra goods until they are consumed. It also means that the customer is prevented from switching to a rival at least until the stock is consumed.
A cumulative quantity discount applies to the total bought items over a period of time. With each additional purchase, the buyer increases the potential discount.
A similar approach encourages recurring business. Price reductions for out-of-season goods are known as seasonal discounts; an example would be a summer sale on snowmobiles.
Such discounts aim to spread demand throughout the course of the year, which can enable better use of production facilities and year-round cash flow.
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following the completion of a difficult assignment, pamela's supervisor told her that he was very pleased with her performance and her help in completing the project. the praise pamela received is an example of
Positive reinforcement is demonstrated by the compliments Pamela received.
Pamela's boss expressed his appreciation for her performance and assistance in finishing a challenging assignment to her after the project was finished.
The introduction of a pleasing or desirable stimulus after a behaviour is referred to as positive reinforcement. Reinforcing the behaviour with the desired stimulus increases the likelihood that it will happen again.
As it capitalises on the positive behaviours that have already been demonstrated and rewards the person you are working to train's innate propensities for good behavior, it is a positive parenting approach that is used for a variety of purposes and in a wide range of contexts.
In reality, according to the model developed by renowned behaviourist B. F. Skinner, positive reinforcement is just one of four types of conditioning.
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the matterhorn corporation is trying to choose between the following two mutually exclusive design projects: a. if the required return is 11 percent and the company applies the profitability index decision rule, which project should the firm accept? b. if the company applies the npv decision rule, which project should it take? c. explain why your answers in parts (a) and (b) are different.
The Profitability index of Project I is 1.10
Calculation of Profitability Index for each project:
Required rate of return = 11%
The project I: Profitability Index:
PI=\frac{Present value of cash inflows}{Present value of cash outflows}
Present value of cash inflows = \frac{\$24,000}{\left (1+0.11 \right )^{1}}+\frac{\$29,000}{(1+0.11)^{2}}+\frac{\$36,000}{(1+0.11)^{3}}
Present value of cash inflows = \frac{\$24,000}{\left (1.11 \right )^{1}}+\frac{\$29,000}{(1.11)^{2}}+\frac{\$36,000}{(1.11)^{3}}
Present value of cash inflows=\frac{24,000}{1.11}+\frac{29,000}{1.2321}+\frac{36,000}{1.3676}
Present value of cash inflows=21,621.6+23,537.05+26,323.48
Present value of cash inflows=71,482.13
Present value of cash outflows= $65,000
PI=\frac{\$71,482.13}{\$65,000}> 1.10
Therefore, the Profitability index of Project I is 1.10
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much research and development are needed to create the next iphone. do companies capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred?
Companies capitalize and amortize research and development costs over the life of the product. R&D expenses are direct spending related to a company's efforts to create, design, and improve its goods, services, technology, or processes.
R&D expenditures are often highest in the industrial, technological, health care, and pharmaceutical sectors. Development The cost of purchasing and developing the sites, including engineering and legal fees, streets, roads, utilities, minimum essential administrative costs, necessary equipment, and estimated interest that the borrower cannot pay from other sources, is referred to as the goods, services. Discretionary fixed costs are typically the result of annual management decisions to spend on specific fixed cost categories.
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the three ways that government policy can solve an adverse selection problem do not include providing information directly to buyers. giving sellers an incentive to reveal truthful information. limiting the number of sellers. regulating quality.
The three ways that government policy can solve an adverse selection problem do not include giving sellers an incentive to reveal truthful information.
What is adverse selection?Аdverse selection refers generаlly to а situаtion in which sellers hаve informаtion thаt buyers do not hаve, or vice versа, аbout some аspect of product quаlity. In other words, it is а cаse where аsymmetric informаtion is exploited. Аsymmetric informаtion, аlso cаlled informаtion fаilure, hаppens when one pаrty to а trаnsаction hаs greаter mаteriаl knowledge thаn the other pаrty.
The problem fаced by pаrties to аn exchаnge in which the terms offered by one pаrty will cаuse some exchаnge pаrtners to drop out. Аn exаmple is the problem of аsymmetric informаtion in insurаnce: if the price is sufficiently high, the only people who will seek to purchаse medicаl insurаnce аre people who know they аre ill (but the insurer does not). This will leаd to further price increаses to cover costs.
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Which economic measure is the monthly measure of all sales of durable and nondurable goods bought by consumers?.
Retail sales refer to the economic measure of all sales of durable and nondurable goods purchased by consumers.
Retail sales are key macroeconomic metrics used to track consumer demand for finished goods. Consumer purchases of non-durable goods and durable goods are compiled in a report. The retail sales report aids investors and analysts to determine the health of the economy and any potential inflationary pressures that may exist.
Durable goods are consumer goods that have an average life span of over three years. the durable goods are used repeatedly over time. Refrigerators and bicycles are considered durable goods. Nondurable goods are those goods that are consumed in less than three years. The nondurable goods are commonly used one time. Packaged food and laundry detergent are examples of non durable goods.
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