Answer: (B) Missing the opportunity to create a relationship with the customer.
The danger of relying too heavily on a technical presentation is missing the opportunity to create a relationship with the customer. While impressing the customer with technical savvy skills and conveying product knowledge are crucial, it is equally important to establish a personal connection with the customer.
Bringing along heavy equipment or using unnecessarily expensive devices can also be a potential drawback, but they are not necessarily directly related to the danger of neglecting the human aspect of the presentation. But focusing too much on the technical aspects can be dangerous as you may not engage with the customer on a personal level, which is important for building trust and rapport.
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An increase in government spending that is financed by an equal increase in taxes results in which of the following changes in aggregate demand (AD) and short-run aggregate supply (SRAS) curves?
ADAD Curve- Shifts to the right
SRAS Curve- No change
Shifts to the right
No change
An increase in government spending that is financed by an equal increase in taxes results in a shift to the right in the AD curve and no change in the SRAS curve.
An increase in government spending that is financed by an equal increase in taxes will result in the following changes in aggregate demand (AD) and short-run aggregate supply (SRAS) curves:
AD Curve - Shifts to the right
SRAS Curve - No change
The SRAS or Short run aggregate supply is the curve that shows the profit that companies are making from producing and selling services and products, if firms start to merge then that would initally create a shift to the left, meaning that the profit of the firms will decrease, but as they stabilize the curve will begin to shift towards the right and into balance.
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g when contracts for services to be provided to customers include more than one separate performance obligation:
When a company enters into a contract with a customer to provide services, it is possible for the contract to include more than one separate performance obligation.
A performance obligation is a promise to transfer a distinct good or service to the customer, and it is considered separate if the customer can benefit from it on its own or if it is separately identifiable from other promises in the contract.
In these cases, it is important for the company to carefully evaluate each performance obligation and determine whether they should be accounted for separately or together.
This is because accounting for multiple performance obligations can be complex and requires careful consideration of factors such as the nature of the promises, the timing of the services, and the price allocation.
One common example of a contract with multiple performance obligations is a software subscription service that also includes technical support. In this case, the company would need to determine whether the two promises are separate or whether the support is simply a part of the overall software service.
Overall, when contracts for services include more than one separate performance obligation, it is important for companies to carefully evaluate each obligation and ensure that they are properly accounted for to accurately reflect the financial impact of the contract.
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ship company produces storage crates that require 49.0 meters of material at $0.10 per meter and 0.20 direct labor hours at $10.00 per hour. overhead is applied at the rate of $12 per direct labor hour. what is the total standard cost for one unit of product that would appear on a standard cost card?
The total standard cost for one unit of the ship company's storage crates is $22.90.
Based on the information provided, the total standard cost for one unit of the ship company's storage crates would be $22.90. This is calculated by adding the cost of materials ($4.90, calculated as 49.0 meters of material x $0.10 per meter), direct labor ($2.00, calculated as 0.20 direct labor hours x $10.00 per hour), and overhead ($16.00, calculated as 0.20 direct labor hours x $12 per direct labor hour).
A standard cost card is a tool used in cost accounting to establish standard costs for products. These costs are used to compare actual costs and to analyze variances. By including all relevant costs such as materials, direct labor, and overhead, the standard cost card provides a comprehensive overview of the total cost of production.
In summary, the total standard cost for one unit of the ship company's storage crates is $22.90. This includes the cost of materials, direct labor, and overhead.
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When a sales job is being filled by an untrained individual, the job specifications list will most likely include ________ as a way to predict which candidate will perform the job well.A) age and gender B) past job performanceC) relevant certificationD) personality traits
(D) Personality traits are often listed in job specifications for sales roles as they can be good indicators of how well an individual will perform in a customer-facing role.
Traits such as assertiveness, empathy, and extroversion are often sought after in sales roles, as they can help an individual to build relationships with customers, close deals, and handle objections effectively.
While past job performance and relevant certifications can also be important factors, personality traits are often given greater emphasis in the selection process for sales roles.
When a sales job is being filled by an untrained individual, the job specifications list will most likely include personality traits as a way to predict which candidate will perform the job well.
Personality traits are often considered important in sales roles because they can help determine a candidate's ability to connect with customers, communicate effectively, and handle potential challenges in the sales process.
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suppose that over the term of a malpractice insurance policy, average claims cost $2,000 for a careful doctor but $22,000 for a reckless doctor. if doctors are risk-neutral and know whether they are careful or reckless, while the insurance company knows only that 20% of doctors are reckless, to break even insurance companies must charge a premium of group of answer choices $2,000. $22,000. $6,000. $12,000.
The insurance company must charge a premium of $6,000 per doctor to break even in this scenario.
In this scenario, we know that there are two types of doctors - careful and reckless - and that reckless doctors have significantly higher claims costs than careful doctors.
We also know that the insurance company is only aware of the percentage of doctors who are reckless (20%), but individual doctors know whether they are careful or reckless.
To break even, the insurance company must charge a premium that covers the expected claims costs for both careful and reckless doctors.
This means that they need to take into account the fact that 20% of doctors are reckless and will have significantly higher claims costs than the other 80% of doctors.
Using the information provided, we can calculate the expected claims cost for each group of doctors:
- Careful doctors: $2,000
- Reckless doctors: $22,000
To calculate the overall expected claims cost, we can take the weighted average of these two costs, based on the percentage of doctors in each group:
Expected claims cost = (0.8 x $2,000) + (0.2 x $22,000) = $4,800
This means that the insurance company needs to charge a premium of at least $4,800 per doctor to cover their expected claims costs and break even.
However, this is just the minimum premium they need to charge - they may choose to charge a higher premium to make a profit or cover other expenses.
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further from center has 12,400 shares of common stock outstanding at a price of $58 per share. it also has 325 shares of preferred stock outstanding at a price of $88 per share. there are 400 bonds outstanding that have a coupon rate of 7.7 percent paid semiannually. the bonds mature in 39 years, have a face value of $2,000, and sell at 113 percent of par. what is the capital structure weight of the preferred stock?
The capital structure weight of the preferred stock is approximately 1.73%.
How to determine the capital structure weightTo calculate the capital structure weight of the preferred stock, we first need to determine the market value of each type of security in the company's capital structure.
1. Common stock: 12,400 shares * $58 per share = $719,200
2. Preferred stock: 325 shares * $88 per share = $28,600
3. Bonds: 400 bonds * $2,000 face value * 113% = $904,000
Next, find the total market value of the company's capital structure by adding the market values of common stock, preferred stock, and bonds:
Total market value = $719,200 + $28,600 + $904,000 = $1,651,800
Now, we can calculate the capital structure weight of the preferred stock:
Preferred stock weight = Preferred stock market value / Total market value
Preferred stock weight = $28,600 / $1,651,800 ≈ 0.0173 or 1.73%
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tidy limited purchased a new van on january 1, 2021. the van cost $44,000. it has an estimated life of five years and the estimated residual value is $5,000. tidy uses the double-declining-balance method to compute depreciation. what is the depreciation expense for 2021?
The depreciation expense for 2021 using the double-declining-balance method is $15,600.
Cost of van = $44,000
Time period = 5 years
estimated residual value = $5,000
To calculate the depreciation expense for 2021 using the double-declining-balance method,
Depreciation rate = 2 / Useful life in years
Depreciation rate = 2 / 5
Depreciation rate = 40%
The first-year depreciation expense is calculated as:
Depreciation expense = Depreciation rate x (Cost - Salvage value)
Depreciation expense for 2021 = 0.4 x ($44,000 - $5,000)
Depreciation expense for 2021 = 0.4 x $39,000
Depreciation expense for 2021 = $15,600
Therefore, we can conclude that the depreciation expense for 2021 using the double-declining-balance method is $15,600.
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WAREN SPORTS SUPPLY YEAR-END WORKSHEET December 31, 2022 ACCT NO. ACCOUNT TITLE 12/31/2021 POST CLOSING TRIAL BALANCE DEBIT CREDIT 12/31/2022 UNADJUSTED TRIAL BALANCE DEBIT CREDIT 11.025.10 11,086.00 0.00 10100 10200 10210 10300 10400 10500 10600 ASSETS Cash Accounts recelvable Accounts receivable from employees Allowance for doubtful accounts Inventory Prepaid expenses Marketable securities Fixed assets Accumulated depreciation 3,260.81 101,681.00 0,00 113,336.04 45,877.00 275.00 149.19 101,681.00 3,000.00 23,905.00 320,363,101 10800 320,600.00 10900 81,669.50 80,034.50 20100 20300 20400 20500 20800 20700 20800 20900 21000 21100 21200 LIABILITIES Accounts payable Federal Income taxes withhold State Incomo taxes withheld Steta unemployment Laxes payable Federal unemployment taxes payablo F.I.C.A. laxos payablo Federal Incomes taxes payable Dividends payable Interest payable Noles payable Unearned revenue 11,270,35 878.81 447.00 201.17 03.31 1,593.30 29,797.00) 5,736.35 1.161.00 672.20 117.89 19.93 2 280.78 9,000.00 0.001 75,000.00 6,600.00 26000 29000 STOCKHOLDERS' EQUITY Common stock Retained earnings Dividends declared 225,000.00 90 264.99 225,000.00 90,264.99 29010 9,000.00 1,601,730.50 82,181.00 15,647.11 REVENUE AND GROSS PROFIT Sales Salas returns and allowances Sales discounts takon Cost of goods sold Purchases Purchases roturns and allowancos Purchases discounts laken Freight-in G/L on sale of fixed assets G/L on sale of marketable securities Interest/dividend Income Miscellaneous revenue 30100 30200 30300 30400 30500 30600 30700 30800 30900 31000 31100 31200 1.137 130.00 19,445.00 16.733.90 24,897,84 275.00 550.00 1,500.00 826.00 57,600.00 22,395.00 5,892,65 40100 40200 40300 40400 40500 40600 40700 40600 40900 41000 EXPENSES Rent expense Advertising expense Office supplies expense Depreciation expense Wages and salarles expense Payroll tax expense Federal Income tax expense Inlerest expense Bad debt expense Other operating expense 140,371,63 12,020.83 33,626.75 Sub-totals Not Income (Loss) TOTALS 444,436.191 444,436.19 2.137,547.04 2.137.547.046 FIXED ASSET SUBSIDIARY LEDGER Item Office Furniture Purch.From Chicago Office Supply Est Life 5 years Depreciation Method Where Located Est. Salvage Value $ Straight-line Office 0 Asset Record Debit Credit 50,750.00 Depreciation Record Debit Credit Balance Balance 50,750.00 Date Sept. 30 16 Dec. 3116 Dec. 31 17 Dec. 31 18 Dec. 31 | 19 Dec. 31 | 20 Dec. 31 21 Dec. 2922 5,075.00 10,150.00 10,150.00 10,150.00 10,150.00 5,075.00 5,075.00 15,225.00 25,375.00 35,525.00 45,675.00 50,750.00 49,825.00 Asset NBV 50,750.00 45,675.00 35,525.00 25,375.00 15,225.00 5,075.00 0.00 0.00 925.00 49,825.00 925.00 Item Delivery Trucks Purch.From Dyckstra Ford Est Life 5 years Depreciation Method Where Located Est. Salvage Value $ Straight-line Loading Dock 0 Asset Record Debit Credit 69,255.00 Balance 69,255.00 Depreciation Record Debit Credit Balance Date Apr. 2120 Dec. 31 | 20 Dec. 3121 Dec. 31 22 6,925.50 13,851.00 13,851.00 6,925.50 20,776.50 34,627.50 Asset NBV 69.255.00 62,329.50 48,478.50 34,627.50 Item Inv. Handling System Purch.From Conveyor Systems, Inc. Est Life 10 years Depreciation Method Where Located Est. Salvage Value $ Straight-line Warehouse 0 Asset Record Debit Credit 200,660.00 Date Jul. 521 Dec. 31 21 Dec. 31 | 22 Balance 200,660.00 Depreciation Record Asset Debit Credit Balance NBV 200,660.00 10,033.00 10,033.00 190,627.00 20,066.00 30,099.00 170,561.00 Item 146 GB rack server Purch.From Chicago Office Supply Est Life Depreciation Method Where Located Est. Salvage Value $ Straight-line Office 0 5 years Asset Record Debit Credit 7,367.00 Depreciation Record Debit Credit Balance Date Dec. 12 22 Dec. 31 22 Balance 7,367.00 Asset NBV 7,367.00 6,630.30 736.70 736.70 Item Standing Workstations Depreciation Method Purch.From Chicago Office Supply_Where Located Est Life Est. Salvage Value $ Straight-line Office 0 5 years Asset Record Debit Credit 1,256.10 Depreciation Record Debit Credit Balance Date Dec. 2922 Dec. 31 22 Balance 1,256.10 Asset NBV 1,256.10 1,130.49 125.61 125.61
The year-end worksheet for Waren Sports Supply includes accounts, trial balance adjustments, equity, assets, liabilities, revenue and expenses.
Here, I'll provide you with a brief explanation of the key elements in the worksheet:
1. Account title: This column lists the names of the different accounts used in the company's accounting system.
2. Post-closing trial balance: These columns show the balances of each account after the closing process is completed for the previous accounting period (December 31, 2021).
3. Unadjusted trial balance: These columns show the balances of each account before any adjusting entries have been made for the current accounting period (December 31, 2022).
4. Assets: These accounts represent what the company owns, such as cash, accounts receivable, inventory, and fixed assets.
5. Liabilities: These accounts represent what the company owes to others, such as accounts payable, taxes payable, and notes payable.
6. Stockholders' equity: These accounts represent the owners' interest in the company, including common stock and retained earnings.
7. Revenue and gross profit: These accounts show the company's income, including sales, sales returns, and allowances, as well as costs related to generating that income, such as the cost of goods sold and various discounts.
8. Expenses: These accounts represent the costs incurred in operating the business, such as rent, advertising, and wages.
9. Net income (loss): This figure represents the difference between the company's revenues and expenses for the accounting period.
10. Fixed asset subsidiary ledger: This section provides detailed information about the company's fixed assets, including the purchase date, estimated life, depreciation method, location, and net book value (NBV) for each asset.
In summary, the year-end worksheet for Waren Sports Supply provides an overview of the company's financial position as of December 31, 2022. It shows the balances of various accounts in the company's accounting system, both before and after adjusting entries are made. The worksheet also provides a detailed breakdown of the company's fixed assets and their respective depreciation.
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Solve perfectly1. What do you understand by 'people as a resource?
People as a resource refers to the idea that human beings are a valuable asset for a society or organization.
Rather than viewing people solely as a cost, the concept recognizes that people possess skills, knowledge, creativity, and talents that can contribute to the growth and success of a group or community.
This perspective emphasizes the importance of investing in education, training, and development to unlock the full potential of individuals and enable them to make meaningful contributions to society. Ultimately, treating people as a resource is about recognizing the intrinsic value and potential of every human being and providing opportunities for them to thrive and reach their full potential.People as a resource refers to the idea that the human population can be considered an asset in terms of their skills, knowledge, and abilities, which contribute to a nation's or organization's economic and social development.By investing in education, healthcare, and skill development, the potential of the human resource can be enhanced, leading to improved productivity and overall growth.In summary, people as a resource emphasizes the importance of human capital in driving progress and prosperity.
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How is the selling price of a long-term bond computed? What
would cause the bond to sell for more than face or maturity
value?
The selling price of a long-term bond is based on present value and interest rates, affecting whether it sells for more or less than face value.
How does the creditworthiness of the issuer impact the selling price of a long-term bond?The selling price of a long-term bond is determined by the present value of the future cash flows that the bond will generate. These cash flows include the interest payments that the bond will make over its life and the principal repayment at maturity. The present value of these cash flows is calculated using the prevailing interest rates in the market and the term of the bond.
If the prevailing interest rates in the market are lower than the coupon rate on the bond, then the bond will sell for more than its face or maturity value. This is because investors are willing to pay a premium to receive a higher fixed rate of interest compared to the prevailing market rates. Conversely, if the prevailing interest rates are higher than the coupon rate on the bond, then the bond will sell for less than its face or maturity value. This is because investors will require a discount to accept a lower fixed rate of interest compared to the prevailing market rates.
Additionally, factors such as the creditworthiness of the issuer, the supply and demand for the bond, and the overall economic conditions can also affect the selling price of a long-term bond.
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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April 82,000 May 90,000
June 122,000 July 96,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month's unit sales. The inventory at the end of March was 12,300 units. Required Prepare a production budget by month and in total, for the second quarter Down Under Products, Ltd., Production Budget Budgreted
To summarize the monthly production budget:
April: 83,200 units
May: 94,800 units
June: 118,100 units
July: 96,000 units
And the total production budget for the second quarter is: 392,100 units.
To prepare a production budget for the second quarter, we need to determine the required production for each month based on the budgeted sales and the inventory level requirement. We also need to take into account the inventory level at the end of March, which is given as 12,300 units.
Here's how to calculate the production budget for each month:
April:
Budgeted sales: 82,000
Add: Required ending inventory (15% of May sales): 13,500
Total units required: 95,500
Less: Beginning inventory (end of March): 12,300
Required production: 83,200 units
May:
Budgeted sales: 90,000
Add: Required ending inventory (15% of June sales): 18,300
Total units required: 108,300
Less: Beginning inventory (end of April): 13,500
Required production: 94,800 units
June:
Budgeted sales: 122,000
Add: Required ending inventory (15% of July sales): 14,400
Total units required: 136,400
Less: Beginning inventory (end of May): 18,300
Required production: 118,100 units
July:
Budgeted sales: 96,000
Add: Required ending inventory (15% of August sales): 14,400
Total units required: 110,400
Less: Beginning inventory (end of June): 14,400
Required production: 96,000 units
To summarize the monthly production budget:
April: 83,200 units
May: 94,800 units
June: 118,100 units
July: 96,000 units
And the total production budget for the second quarter is:
Total units required: 83,200 + 94,800 + 118,100 + 96,000 = 392,100 units.
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morgan company issues 9%, 20-year bonds with a par value of $730,000 that pay interest semiannually. the amount paid to the bondholders for each semiannual interest payment is.
The amount paid to the bondholders for each semiannual interest payment is $32,850 .The semiannual interest payment for the Morgan Company's 9%, 20-year bonds with a par value of $730,000 would be calculated by multiplying the par value by the annual interest rate and then dividing by two (since interest is paid semiannually).
So, the annual interest payment would be: $730,000 x 0.09 = $65,700 .And the semiannual interest payment would be: $65,700 / 2 = $32,850
Therefore, the amount paid to bondholders for each semiannual interest payment would be $32,850. This payment would be made twice a year for the 20-year life of the bond, resulting in a total of 40 interest payments over the bond's lifespan.
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if a car salesman is trying to manipulate you by starting the negotiations with an arbitrarily high price, which heuristic or bias is he relying on to try to get you to overpay for the car? question 9 options: representativeness heuristic availability heuristic base rate fallacy/base rate neglect anchoring effect
The car salesman is relying on the anchoring effect to try and manipulate you into overpaying for the car.
The anchoring effect is a cognitive bias where people tend to rely heavily on the first piece of information they receive when making decisions. In this case, the salesman is presenting an arbitrarily high price as the initial anchor, which can skew your perception of what the car is actually worth. This can cause you to accept a higher price than you may have otherwise negotiated for.
To counteract the anchoring effect, it is important to do your own research and have a clear idea of what the car is worth before entering negotiations. This will help you establish your own anchor and potentially avoid falling into the trap of accepting the salesman's initial offer without question.
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an organization gains competitive advantage when it: lowers costs and decreases differentiation.
"an organization gains a competitive advantage when it lowers costs and decreases differentiation" is actually incorrect. In order to gain a competitive advantage, an organization must either lower costs OR increase differentiation, not both simultaneously.
Lowering costs can give an organization a cost advantage over its competitors, meaning it can offer products or services at a lower price while maintaining similar quality, which may attract price-sensitive customers. However, this can lead to a race to the bottom in terms of pricing and profit margins.
On the other hand, increasing differentiation can give an organization a differentiation advantage, meaning they offer a unique product or service that sets them apart from their competitors. This can allow an organization to charge a higher price and appeal to customers who value unique features or experiences.
So, to summarize, an organization gains a competitive advantage when it either lowers costs OR increases differentiation, but not when it does both simultaneously.
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when the latest marvel movie was introduced, tickets cost about $8 each. after a few months, that same movie could be watched at the discount theater for $4 per ticket. a year later, the movie could be streamed over amazon for $2. what pricing policy was marvel using in its initial price strategy?
The pricing policy that Marvel was using in its initial price strategy for the latest movie was "skimming pricing".
Skimming pricing is a strategy in which a company sets a high initial price for a new product, with the intention of gradually lowering the price over time as the product becomes more widely adopted or as competition increases.
This strategy is often used for products that are unique or innovative and appeal to early adopters who are willing to pay a premium price.
In the case of the latest Marvel movie, tickets were initially priced at $8 each, which is a relatively high price compared to other movies. This indicates that Marvel was targeting early adopters who were eager to see the latest installment in the Marvel franchise.
After a few months, the movie could be watched at a discount theater for $4 per ticket. This is an example of a price reduction, which is often a part of a skimming pricing strategy. The price reduction makes the movie more affordable for a wider range of consumers.
Finally, a year later, the movie could be streamed over Amazon for $2. This is another example of a price reduction, which is typical of a skimming pricing strategy.
The gradual lowering of the price over time allows the company to maximize its profits by targeting different segments of consumers at different price points.
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according to empirical studies on stock price returns, which group of stocks typically have the highest historical returns? g
According to empirical studies on stock price returns, small-cap stocks have typically had the highest historical returns.
Small-cap stocks are stocks of companies with a small market capitalization, typically under $2 billion. These companies are often newer or less established, and they may operate in niche markets or have limited resources compared to larger companies.
Historically, small-cap stocks have outperformed large-cap stocks (stocks of companies with a market capitalization over $10 billion) over the long term. This is known as the small-cap premium.
The small-cap premium is a result of several factors, including the higher risk associated with smaller companies, which requires investors to demand higher returns, and the potential for greater growth opportunities compared to larger, more established companies.
However, it is important to note that past performance is not necessarily indicative of future results, and investing always involves risk. It is important to carefully consider one's investment goals, risk tolerance, and diversification strategies before making investment decisions.
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According to the service-profit chain model, which ONE variable has the greatest impact on customer loyalty, revenue growth, and profitability?a. Consistent service quality.b. Employee pay equity.c. Employee satisfaction and loyalty.d. Reducing customer waiting time.
According to the service-profit chain model, the variable that has the greatest impact on customer loyalty, revenue growth, and profitability is consistent service quality.
While employee pay equity, employee satisfaction and loyalty, and reducing customer waiting time are all important factors, consistent service quality is the key driver of customer loyalty and overall business success. Customers are more likely to return and recommend a business that consistently provides high-quality service.
The service-profit chain model, the variable with the greatest impact on customer loyalty, revenue growth, and profitability is "c. Employee satisfaction and loyalty." This is because satisfied and loyal employees tend to provide better service quality, which in turn positively affects customer loyalty and business outcomes.
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when you compare the value of the good you will get to the value of what you must give up to acquire that good you are evaluating the
You are evaluating the opportunity cost.
Opportunity cost is the value of the next best alternative forgone in order to pursue a certain action or decision.
It is a crucial concept in economics as it helps individuals and businesses make rational decisions by comparing the benefits and costs of different choices.
By evaluating the opportunity cost, one can determine if the benefits of pursuing a certain option outweigh the costs and if it is the best course of action.
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In 2022. Windsor Ltd. received a grant for #208 million to defray the cost of purchasing research equipment for its manufacturing facility. total cost of the equipment is v10.4 million Prepare the journal entry to record this transaction If Windsor uses (a) the deferred revenue approach, and (b) the reduction of asset approach
(a) Deferred revenue approach: ,Dr. Cash 208 million , Cr. Deferred Revenue 208 million
(b) Reduction of asset approach ,Dr. Research Equipment 10.4 million ,Cr. Cash 10.4 million
The reduction of asset approach is used when the grant is specifically given to purchase a fixed asset. The deferred revenue approach is used when the grant is not specifically given for a fixed asset, but rather for a specific purpose or project.
about Windsor Ltd.'s journal entries for the grant received in 2022.
(a) If Windsor uses the deferred revenue approach, the journal entry to record the transaction would be:
1. Debit: Cash (#208 million)
Credit: Deferred Revenue (#208 million)
This entry records the cash received from the grant and sets it up as deferred revenue, which will be recognized over time.
2. Debit: Deferred Revenue (v10.4 million)
Credit: Research Equipment (v10.4 million)
This entry recognizes the amount used to purchase research equipment from the deferred revenue account and records the equipment's cost.
(b) If Windsor uses the reduction of asset approach, the journal entry to record the transaction would be:
1. Debit: Cash (#208 million)
Credit: Grant Revenue (#208 million)
This entry records the cash received from the grant and recognizes it as grant revenue.
2. Debit: Research Equipment (v10.4 million)
Credit: Grant Revenue (v10.4 million)
This entry reduces the grant revenue by the amount used to purchase research equipment and records the equipment's cost.
In both cases, the transactions have been recorded accurately, using the deferred revenue approach and the reduction of asset approach, as requested.
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hiral is considering the following aa rated bonds. which of these has the most interest rate risk? a 10-year bond with a 4% coupon. a 10-year bond with a 3% coupon. a 15-year bond with a 3% coupon. a 20-year bond with a 3% coupon.
Hiral is considering the following aa-rated bonds. The one with the most interest rate risk is the 20-year bond with a 3% coupon. The longest maturity 20-year bond with 3% coupon is most vulnerable to interest rate changes.
Interest rate risk refers to the potential for a bond's value to fluctuate due to changes in interest rates.
When interest rates rise, the value of existing bonds with lower coupon rates becomes less attractive to investors because they can earn higher returns elsewhere. As a result, the market value of the bond decreases.
The 20-year bond with a 3% coupon has the longest maturity among the given options, making it more vulnerable to interest rate changes. The longer the maturity, the more sensitive the bond's price will be to interest rate fluctuations.
Additionally, the lower coupon rate of 3% means that the bond will have less cash flow to offset any price declines.
Comparatively, the 10-year bond with a 4% coupon will have higher cash flows and will mature sooner, making it less sensitive to interest rate changes than the 20-year bond.
Similarly, the 10-year bond with a 3% coupon and the 15-year bond with a 3% coupon have intermediate levels of interest rate risk, as they have a longer maturity than the 10-year 4% coupon bond, but a higher coupon rate than the 20-year 3% coupon bond.
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Assurance engagement means an engagement in which an assurance...
Assurance engagement means an engagement in which an assurance practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. Required: a) Explain any FIVE (5) needs of audit for a big company. b) Explain with example the FIVE (5) elements of assurance engagement. c) Explain in details the FOUR (4) characteristics of audit committee.
ABC received $9,949,000 in payments from its customers over the course of the year.
To calculate the payments received by ABC from its customers, we need to use the formula:
Payments Received = Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable
Substituting the values given in the problem, we get:
Payments Received = $93,300 + $9,881,000 - $12,300
= $9,949,000
Therefore, ABC received $9,949,000 in payments from its customers over the course of the year.
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Goodwill impairment Bruceton Farm Equipment Company had goodwill 72 million on its balance sheet at year and review of the wil by the company indicated that the goodwill and walow only worth 45 million What is the financial statement effect of the prodotter the amount of the change, using negove numbers when appropriate
The financial statement effect of the goodwill impairment for Bruceton Farm Equipment Company would be a decrease in the value of their assets and a decrease in their net income. The amount of the change would be a decrease of $27 million ($72 million - $45 million), which would be reflected as a loss on the income statement
The financial statement effect of the goodwill impairment for Bruceton Farm Equipment Company would be a decrease in the value of their assets and a decrease in their net income. The amount of the change would be a decrease of $27 million ($72 million - $45 million), which would be reflected as a loss on the income statement and a reduction in the goodwill asset on the balance sheet. This would result in a decrease in the company's overall financial position and may have an impact on their ability to obtain financing or attract investors.
regarding goodwill impairment for Bruceton Farm Equipment Company.
To restate your question: Bruceton Farm Equipment Company had goodwill of 72 million on its balance sheet at the year-end. A review by the company indicated that the goodwill is now only worth 45 million. What is the financial statement effect of this change?
Step 1: Determine the goodwill impairment amount
To find the amount of goodwill impairment, you need to subtract the new value of goodwill (45 million) from the original value on the balance sheet (72 million).
Goodwill Impairment = 72 million - 45 million = 27 million
Step 2: Record the goodwill impairment on the financial statement
The financial statement effect of this goodwill impairment is a decrease in the goodwill account by 27 million, which should be reported as an impairment expense on the income statement.
So, the effect on the financial statement for Bruceton Farm Equipment Company is a goodwill impairment expense of 27 million, which reduces the goodwill account on the balance sheet to the new value of 45 million.
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During the last 20 years of operations. Lum and Young Farms have achieved an average contribution margin ratio of 35%. This year, sales revenue is estimated to be $600,000, yielding a profit of $55.000. How much are fixed costs for the farms? a. S155.000 c. $160,000 b. S204.500. d. $545,000
During the last 20 years of operations, Lum and Young Farms have maintained an average contribution margin ratio of 35%. This year, their estimated sales revenue is $600,000, and they expect to earn a profit of $55,000.
To find the fixed costs, we need to first calculate the total contribution margin. The contribution margin ratio is the percentage of sales revenue that contributes to covering the fixed costs and generating profit. We can find the total contribution margin by multiplying the sales revenue by the contribution margin ratio:
Total contribution margin = Sales revenue * Contribution margin ratio
Total contribution margin = $600,000 * 0.35
Total contribution margin = $210,000
Now that we have the total contribution margin, we can find the fixed costs by subtracting the profit from the total contribution margin:
Fixed costs = Total contribution margin - Profit
Fixed costs = $210,000 - $55,000
Fixed costs = $155,000
So, the fixed costs for Lum and Young Farms are $155,000 (option a).
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English Petroleum (EP) has to decide whether or not to drill for oil in a particular place. After its recent disaster in gulf, it has decided to conduct a thorough analysis before venturing into any new exploration projects. An in-house analysis revealed the following information: There are three possible results of drilling: a high yield with NPV $100 million, a moderate yield with NPV $50 million, or no oil. The drilling operation costs $50 million. At similar places, 50%, 30%, and 20% of previous drillings have given high, moderate, or no yield respectively.1. Should EP drill for oil? What is the expected value associated with the decision. Now suppose a seismic test is available which would indicate a favorable, neutral, or discouraging prospects for the drilling.• There is a 52% chance the test will give favorable results; if it does, the respective probabilities of High, Moderate, or No yield become 35/52, 15/52, and 2/52.
EP should conduct a decision analysis to determine whether or not to drill for oil. The expected value associated with the decision can be calculated by multiplying the probability of each outcome by its respective NPV and adding the results together.
The probabilities of high, moderate, and no yield are 50%, 30%, and 20%, respectively, so the expected value of drilling is: (0.5 * $100 million) + (0.3 * $50 million) + (0.2 * $0) - $50 million = $5 million.
This indicates that drilling is not a profitable venture on its own.
However, if a seismic test is available, the decision becomes more complex. With a 52% chance of a favorable result, EP should consider the impact of the seismic test on the expected value of drilling. If the test is favorable, the probabilities of high, moderate, and no yield become 35/52, 15/52, and 2/52, respectively.
The new expected value can be calculated as follows: (0.35 * $100 million) + (0.15 * $50 million) + (0.02 * $0) - $50 million = $18.5 million
This indicates that drilling is a profitable venture if the seismic test is favorable. However, EP should also consider the cost of the seismic test and any potential environmental or reputational risks associated with drilling.
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kai chang made a $4,200 deposit in her savings account on her 21st birthday, and she has made another $4,200 deposit on every birthday since then. her account earns 10 percent compounded annually. how much will she have in the account after she makes the deposit on her 32nd birthday?
Kai Chang has been diligently saving since her 21st birthday by making a $4,200 deposit into her savings account on that day every year.
Her account also earns an annual interest rate of 10 percent compounded annually. Now, we need to calculate how much she will have in the account after she makes the deposit on her 32nd birthday.
To solve this problem, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
Where:
- A is the amount of money in the account after t years
- P is the principal or initial deposit
- r is the annual interest rate (as a decimal)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the initial deposit (P) is $4,200 and the annual interest rate (r) is 10 percent or 0.10. Since the interest is compounded annually, n = 1. Kai Chang has been making the same deposit for 11 years (32 - 21 = 11), so t = 11.
Using the formula, we can calculate:
A = $4,200 (1 + 0.10/1)^(1*11)
A = $4,200 (1.10)^11
A = $4,200 (2.5937424601)
A = $10,885.59
Therefore, after Kai Chang makes the deposit on her 32nd birthday, she will have $10,885.59 in her savings account.
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Alfred Chandler found that firms grow in a predictable pattern and that the firm's growth patterns determine its structural form. Which form corresponds to the FINAL stage in Chandler's theory?
a. functional
b. simple
c. vertically integrated
d. multidivisional
d)
According to Alfred Chandler's theory, firms grow in a predictable pattern, and their growth patterns determine their structural forms. The final stage in Chandler's theory corresponds to the multidivisional structural form.
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father owns land which he purchased several years ago for $80,000. it has a current fair market value of $90,000. father leases the land on a ten-year lease and is paid $6,000 of rent each year, semi-annually april 1st and october 1st (i.e., $3,000 each payment). what tax consequences to father and daughter in the following alternative situations?
Assuming the father is in the 20% tax bracket for capital gains, he would owe $2,000
This rental income will be taxable and subject to income tax. The daughter will not have any tax consequences in this situation.
However, if the father decides to sell the land, he will have to pay capital gains tax on the difference between the sale price and the original purchase price.
In this case, the capital gains tax would be calculated as follows:
Sale price - Original purchase price = Capital gain
$90,000 - $80,000 = $10,000
We assumed that the father is taxed at 20% on capital gains, would be obliged to pay $2,000 in capital gains tax ($10,000 x 20%).
The daughter would not have any tax consequences in this situation unless she inherits the land and decides to sell it in the future.
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FILL IN THE BLANK the federal reserve board is the chief _____ policy arm of the united states.
The Federal Reserve Board is the chief monetary policy arm of the United States.
It was established by the Federal Reserve Act of 1913 and is composed of seven members appointed by the President of the United States and confirmed by the Senate. The Board of Governors is responsible for overseeing the Federal Reserve System and formulating the nation's monetary policy.
It exercises its authority primarily through the Federal Open Market Committee (FOMC), which is responsible for setting the federal funds rate, or the rate at which banks lend to one another. The Board of Governors also sets reserve requirements for banks, regulates the supply of currency, and oversees the operations of the 12 regional Federal Reserve Banks.
The Board of Governors also supervises financial institutions, administers the Federal Reserve's discount window, and regulates the U.S. payments system.
The Federal Reserve Board has significant influence over the U.S. economy, and its actions can have major impacts on interest rates, employment, prices, and the stock market.
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53Q. What is the policy regarding promotional materials from outside organizations or vendors, including pamphlets, business cards, and solicitation?
The policy regarding promotional materials from outside organizations or vendors may vary depending on the specific organization. However, in general, most companies have guidelines or restrictions in place to regulate the distribution of such materials in the workplace.
Some organizations may prohibit the distribution of promotional materials altogether, while others may allow it under certain conditions, such as requiring prior approval from management. In some cases, companies may also charge a fee for vendors to distribute promotional materials in their workplace.
The policy may also extend to employee solicitation on behalf of outside organizations, with restrictions on the use of company resources or time for such activities.
The purpose of such policies is to ensure that the workplace remains professional and focused on company objectives, without undue influence from outside parties. It also helps to maintain a level of control over the types of materials and messages that are being shared with employees, ensuring that they align with the company's values and mission.
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the concept of the time value of money is based on the notion that a dollar today is worth (more/less) than a dollar a year from now.
The concept of the time value of money is based on the notion that a dollar today is worth more than a dollar a year from now.
This is because of inflation and the opportunity cost of not having that money available to invest or earn interest. Money has a time value because of the potential to earn interest or other returns over time. Therefore, the earlier you receive money, the more valuable it is to you.
This concept is important in financial decision-making as it helps individuals and businesses calculate the present value of future cash flows and make informed investment decisions. By understanding the time value of money, people can make more effective choices about saving, investing, and borrowing money.
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