QUESTION ONE a) State any two (2) differences between Accounting Rate of Return and Profitability Index as Models used in Investment Appraisal (2 marks) b) State any three (3) reasons to justify the large amount of resources expended by businesses to ensure they get their Capital Budgeting decisions right (3 marks)

The benefits that a service provider receives from engaging in effective service recovery include:

1. Higher levels of customer satisfaction than prior to the service failure

2. Improved word of mouth

3. Increased purchase intention

Engaging in effective service recovery can help service providers retain customers, improve their reputation, and even attract new customers through positive word of mouth.

It can also help reduce the costs associated with losing customers and acquiring new ones.

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Cost-volume-profit (C-V-P) analysis is a useful tool for businesses to understand how changes in costs, volume, and pricing affect their profits. It is particularly relevant in absorption costing, which is a method of cost accounting that allocates all manufacturing costs to the units produced.

In C-V-P analysis, the contribution margin is calculated by subtracting the variable costs from the sales price. The contribution margin per unit can then be used to determine the break-even point, which is the point where the total revenue equals the total costs. This analysis can help businesses determine the sales volume needed to cover their fixed costs and achieve a target profit.

In absorption costing, C-V-P analysis can be applied by calculating the contribution margin per unit based on the full manufacturing cost, including both variable and fixed costs. This analysis can help businesses make informed decisions about pricing and volume levels to maximize profits.

For example, if a business has high fixed costs, they may need to sell a higher volume of units to break even or achieve a target profit. Alternatively, if they have a high contribution margin per unit, they may be able to charge a higher price and sell fewer units to achieve the same profit.

Overall, C-V-P analysis can provide valuable insights into the relationship between costs, volume, and profits in absorption costing and help businesses make informed decisions about pricing and volume levels.

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Kashi's testing of the Crunchy Wheat promotion is an example of a descriptive study. Descriptive studies are used to describe characteristics of a population or phenomenon being studied. In this case, Kashi is studying the effectiveness of the Crunchy Wheat promotion on their target market. By collecting data on sales, customer feedback, and other metrics, Kashi is able to describe how well the promotion is working and make informed decisions about whether to continue or modify it.

While Kashi may also be collecting secondary data (data that has already been collected by someone else), and using information feedback (analyzing data to inform decisions), these activities are not the primary focus of their study. Additionally, an exploratory study is typically used when the researcher has little knowledge of the phenomenon being studied, while Kashi likely has some knowledge about their target market and the effectiveness of different types of promotions. Finally, while defining and locating problems is an important step in the research process, Kashi's study is focused on describing the effectiveness of a specific promotion rather than identifying broader problems or trends.

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c. As a result, demand for loanable funds curve shifts rightward; rises.  When firms become more optimistic about the economy and adjust their expectations about expected profits, they may decide to invest more in new projects and expand their business.

This increases the demand for loanable funds, causing the demand for loanable funds curve to shift rightward. With an increase in demand for loanable funds, the real interest rate will rise to balance the supply and demand of loanable funds. Therefore, the correct answer is c. rightward; rises.

When firms become more optimistic about the economy's ability to avoid recession, they become more likely to invest in new projects, which increases their demand for loanable funds. This leads to a shift of the demand for loanable funds curve to the right. As the demand for loanable funds increases, lenders can charge higher interest rates to borrowers. Therefore, the real interest rate rises to equilibrate the demand for loanable funds with the supply of loanable funds.

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The answer is C) fixed costs. Fixed costs are expenses that do not vary with changes in the level of production or sales volume.

These costs are incurred regardless of whether a company produces or sells a single unit of a product or thousands of units. Examples of fixed costs include rent or lease payments, salaries, insurance premiums, and property taxes.

In contrast, variable costs are expenses that are directly related to the level of production or sales volume. These costs increase or decrease in proportion to the quantity of a product that is produced or sold.

Examples of variable costs include raw materials, labor costs, and packaging materials.

Marginal costs refer to the additional cost of producing one more unit of a product. Marginal costs can be calculated by taking the change in total cost divided by the change in quantity produced or sold.

Annual costs refer to the total cost of all expenses incurred by a company over a one-year period, regardless of whether those expenses are fixed or variable.

Market-adjusted costs are costs that have been adjusted to reflect changes in the market, such as changes in prices or demand for a product.

These costs may include costs associated with advertising or marketing campaigns, as well as costs associated with adjusting production levels in response to changes in demand.

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As a team leader, Herb Brooks demonstrated a strong and effective leadership style. He was highly focused on achieving the goal of winning the Olympic gold medal and was willing to take whatever actions were necessary to make that happen, including making difficult decisions and pushing his players to their limits.

While his methods were sometimes controversial, the results speak for themselves: the 1980 U.S. Olympic hockey team achieved a historic upset victory over the heavily favored Soviet team and went on to win the gold medal.

Each of the eight characteristics of team excellence applied to Brooks’s coaching in various ways. For example, he was highly focused on goal setting and structuring for results, pushing his players to work together to achieve the common goal of winning the gold medal. He also demonstrated strong coaching skills, working closely with each player to help them improve their performance and develop their skills.

Brooks was highly skilled in managing conflict and building commitment, working to resolve any issues that arose within the team and creating a strong sense of camaraderie and team spirit.

In terms of the Hill Model for Team Leadership, Brooks demonstrated a number of actions related to both the internal leadership aspects of the model. For example, he was highly focused on task-oriented leadership, setting clear goals and expectations for the team and pushing them to achieve those goals.

He also demonstrated strong relational leadership skills, working closely with each player to understand their needs and motivations and building strong relationships based on trust and respect.

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Jan. 1, 2020:

Debit: Cash $610,000

Credit: Bonds Payable $610,000

December 31, 2020

Debit: Interest Expense $42,700 ($610,000 * 7%)

Credit: Interest Payable $42,700

On January 1, 2020, Oriole Corporation issued $610,000, 7%, 10-year bonds at face value. The first journal entry records the receipt of cash from the bond issuance and the corresponding liability for the bond amount. The debit to Cash represents the cash inflow from the bond issuance, while the credit to Bonds Payable represents the liability for the bond amount that Oriole Corporation has to pay back to bondholders over the 10-year period.

Since the bonds were issued at face value, there is no premium or discount amortization required in the first year. Premium or discount amortization arises when bonds are issued at a price that is different from their face value. For example, if the bonds were issued at a price higher than their face value, there would be a premium, and the premium would be amortized over the life of the bond.

On December 31, 2020, Oriole Corporation would accrue interest expense for the period from January 1, 2020, to December 31, 2020. This is because interest is payable annually on January 1, and the financial statements need to reflect the interest expense that has accrued during the year.

The debit to Interest Expense represents the expense that Oriole Corporation incurred for borrowing the money through the bonds. The credit to Interest Payable represents the liability for the interest that Oriole Corporation owes to bondholders for the interest accrued during the year. No cash is involved in this entry as the interest payment is due on January 1, 2021.

It is important to note that since Oriole Corporation has a calendar year-end, the first interest payment will be made on January 1, 2021, and will be recorded in the 2021 financial statements.

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We can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.

If the price of tennis balls increases from $7.99 to $14.99, we can expect a change in the behavior of suppliers of tennis balls. To determine the impact on quantity supplied and supply, we need to understand the concepts more precisely:

Quantity supplied refers to the specific amount of a product that suppliers are willing and able to produce and offer for sale at a given price, holding other factors constant. It represents a movement along the supply curve.

Supply, on the other hand, refers to the entire relationship between the price of a product and the quantity supplied. It represents the entire supply curve and can shift due to various factors.

In this case, if the price of tennis balls increases, suppliers will likely respond in the following way:

There will be an increase in quantity supplied: As the price of tennis balls rises, suppliers will find it more profitable to produce and sell tennis balls. They can expect to earn higher revenues per unit, incentivizing them to increase their production and supply more tennis balls.

This movement along the supply curve would result in an increase in quantity supplied.

However, we cannot determine whether there will be an increase in supply based solely on the change in price. The concept of supply refers to the entire relationship between price and quantity supplied, taking into account various factors beyond just the price, such as production costs, input prices, technological advancements, and market conditions.

To determine if there will be an increase in supply, we need more information about these factors.

In summary, based on the given information, we can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.

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The statement that correctly explains the relationship between interest rates and future value is : Assuming other variables stay the same, if the interest rate increases, the present value of an investment decreases. option(a).

2. The description that best describes a bond is: b. A debt security that typically pays an investor a fixed rate of return for a specified period of time.

3. In calculating the yield of an investment, the relationship between APR and APY is: b. APR is always slightly lower than APY if an investment is earning compounding interest.

4. For Hans' 20-year corporate bond, the bond's maturity is: 1. 20

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The operating activities section of Fitz Company's statement of cash flows for the year ended December 31 shows net cash provided by operating activities of $605,300 using the indirect method.

Here is the step-by-step explanation:

1. Start with a net income of $385,000
2. Add back depreciation expense: + $46,000
3. Add back amortization expense: + $7,500
4. Subtract gain on sale of plant assets: - $6,900
5. Adjust for changes in working capital:
  a. Accounts receivable decrease: + $145,600
  b. Inventory decrease: + $42,500
  c. Prepaid expenses increase: - $5,700
  d. Accounts payable decrease: - $10,600
  e. Salaries payable increase: + $1,400

Now, calculate the net cash provided by operating activities:

$385,000 (net income)
+ $46,000 (depreciation expense)
+ $7,500 (amortization expense)
- $6,900 (gain on sale of plant assets)
+ $145,600 (accounts receivable decrease)
+ $42,500 (inventory decrease)
- $5,700 (prepaid expenses increase)
- $10,600 (accounts payable decrease)
+ $1,400 (salaries payable increase)
= $605,300 (net cash provided by operating activities)

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As an ISP owning a /22 IPv4 address block, you have a total of 1024 IP addresses available for allocation to your customers.

The CIDR allocations that cannot be used to allocate this address block to a customer are any that have a subnet mask greater than /22. This is because a subnet mask greater than /22 would result in a smaller number of available IP addresses for allocation, which would not be sufficient for a customer's needs.

For example, a CIDR allocation of /23 would only provide 512 IP addresses, which is not enough for a customer requiring a /22 block. Therefore, the CIDR allocations that can be used to allocate the address block to a customer are /22 or any smaller subnet mask such as /23, /24, /25, etc.

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Eclypso's cost of goods transferred to the molding department during October is $717,600.

Eclypso Inc manufactures a product that goes through two processes: mixing and molding. Manufacturing costs are added uniformly in the mixing department. The given information for the mixing department for October includes work in process, direct materials, direct labor, and overhead. Using the weighted average method, the cost of goods transferred to the molding department during October is calculated to be $717,600.

To calculate this, we first calculate the equivalent units of production, which includes the work in process units from the previous month, units completed and transferred to the molding department during October, and the remaining work in process units at the end of October.

Using this information, we calculate the total cost incurred in the mixing department and divide it by the equivalent units of production to arrive at the cost per equivalent unit. Multiplying the cost per equivalent unit with the number of equivalent units of production that were completed and transferred to the molding department during October, we get the cost of goods transferred to the molding department during October.

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This statement is false. While accountability is a crucial aspect of information security, it is not defined as the matching of an authenticated entity to a list of information assets and corresponding access levels.

In the context of information security, accountability refers to the concept of assigning responsibility for actions taken within a system or network.

It involves identifying who is responsible for accessing, modifying, or sharing information, as well as who is responsible for maintaining the security of the system.

Accountability is achieved through various mechanisms such as audit trails, log files, and access controls. These mechanisms enable the tracking of user activity within a system, which can help identify security breaches or other issues.

The concept of matching an authenticated entity to a list of information assets and corresponding access levels is better described as authorization.

Authorization is the process of determining what actions an authenticated entity is allowed to perform within a system, based on their identity and the permissions granted to them.

In summary, accountability and authorization are two distinct concepts within information security.

Accountability involves assigning responsibility for actions taken within a system, while authorization involves determining what actions an authenticated entity is allowed to perform within a system.

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The statement "It specifies a minimum leverage ratio for all banks" is true because this is to ensure that banks maintain a certain level of capital relative to their assets, promoting stability in the banking system.

When a new customer adds $100 to his account, this would increase the bank's deposits and its reserves by $100. So, the new deposits would be $1,300 ($1,200 + $100) and the new reserves would be $250 ($150 + $100).

When the owners of the bank use the $100 to make new loans, the loans account would increase by $100, making the total loans $700 ($600 + $100).

The initial leverage ratio of the bank is calculated as Total Assets / Capital (Owners' Equity), which is ($150 + $600 + $750) / $100 = 15. The new leverage ratio would be ($250 + $700 + $750) / $100 = 17.

Regarding the capital requirement, the following statements are true:

a. It specifies a minimum leverage ratio for all banks. This is to ensure that banks maintain a certain level of capital relative to their assets, promoting stability in the banking system.

b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement. This is because loans are riskier than other assets such as reserves and securities, and a higher capital requirement helps absorb potential losses from loans.

c. Its intended goal is to protect the interests of those who hold equity in the bank. By maintaining a certain capital requirement, the bank can provide a cushion against potential losses and protect shareholders' investments.

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Complete question:

Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose a new customer adds $100 to his account at Southwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply.

a. It specifies a minimum leverage ratio for all banks.

b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.

c. Its intended goal is to protect the interests of those who hold equity in the bank.

The assumption that the expenditure of physical and mental effort in work is as natural as play or rest is associated with the concept of Theory Y, which was first introduced by Douglas McGregor in his book "The Human Side of Enterprise" in 1960.

Theory Y is based on the idea that people are not inherently lazy or uninterested in work, but rather that they are motivated by a variety of intrinsic factors, such as a desire for personal fulfillment, self-actualization, and growth.

According to Theory Y, work can be just as enjoyable and fulfilling as play or rest if it is structured in a way that allows employees to use their creativity and problem-solving skills, and if they are given opportunities for personal and professional development.

This is in contrast to Theory X, which assumes that people are inherently lazy and need to be closely monitored and controlled in order to ensure that they perform their jobs properly.

Theory X assumes that employees are primarily motivated by external factors, such as money and rewards, and that they are not capable of taking responsibility for their own work or making decisions on their own.

Overall, the assumption that the expenditure of physical and mental effort in work is as natural as play or rest is an important part of Theory Y, which emphasizes the importance of empowering employees, providing them with opportunities for growth and development, and treating them as valuable members of the organization.

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The ROI, Return on Investment, formula typically uses either the average operating and non-operating assets for the year or the end-of-year operating and non-operating assets to calculate the ratio. The formula for ROI is as follows:

ROI = (Net Income / Average Operating and Non-Operating Assets) * 100

Alternatively, you can use the end-of-year operating and non-operating assets instead of the average. In that case, the formula becomes:

ROI = (Net Income / End-of-Year Operating and Non-Operating Assets) * 100

The choice between using average or end-of-year values depends on the context of the analysis and the purpose of the ROI calculation. Average values are useful when you want to assess the performance of an investment over a longer period of time, whereas end-of-year values are more appropriate when you want to evaluate the investment's performance at a specific point in time.

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The ROI formula, also known as return on investment, is used to measure the profitability of an investment or the efficiency of a business's use of assets.

There are two commonly used methods to calculate ROI: one uses average operating and non-operating assets for the year, while the other uses end-of-year operating and non-operating assets.

The first method involves adding up the average value of operating and non-operating assets for the year, which is calculated by adding the beginning and ending asset values and dividing by two. Then, divide the net income by the average asset value to obtain the ROI percentage.

The second method involves using the end-of-year values for operating and non-operating assets. Simply divide the net income by the end-of-year asset value to obtain the ROI percentage.

Both methods have their advantages and disadvantages, and the choice between them depends on the nature of the business and the investment being analyzed. However, the ROI formula is an important tool for businesses to evaluate the profitability and efficiency of their investments and assets.

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According to the research conducted by Dutton and Aron, interviewers approached men crossing bridges in a scenic state park and asked them to complete questionnaires while giving them their phone numbers in case they wanted to call them.

The results showed that participants were more likely to call the interviewer if they had been interviewed by an attractive female interviewer.

This phenomenon is known as the "misattribution of arousal," where individuals mistake their physiological arousal caused by the bridge crossing for romantic attraction towards the interviewer.

Therefore, they are more likely to contact the attractive interviewer because they associate their heightened arousal with the person they were interacting with during the bridge crossing. This study highlights the powerful influence of emotions on decision-making and how physiological responses can lead individuals to make irrational choices.

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The correct option  is (3)

To determine how many units Sheffield Plants should produce during April, we need to consider their sales and ending inventory requirements. Here are the steps to calculate the production needed:

1. Calculate May's ending inventory: 300 units (May sales) * 10% = 30 units
2. Calculate the total units needed in April: 340 units (April sales) + 30 units (May's ending inventory) = 370 units
3. Since there is no information about the beginning inventory for April, we assume that the entire demand for April will be produced during the month.
4. Therefore, Sheffield Plants should produce 370 units during April.

Your answer: 3) 370 units.

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There are several forms of business entities that can be chosen in the U.S. such as Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation, and S Corporation.

The restrictions and requirements for each form vary depending on the state and federal laws. A Sole Proprietorship is the simplest form, with no legal distinction between the owner and the business.

Partnerships are similar to Sole Proprietorship, but with two or more owners. LLCs and Corporations offer limited liability protection to the owners.

S Corporations are similar to corporations but are taxed differently. If I owned a business, I would prefer the LLC form as it provides liability protection while also allowing flexibility in management and taxation.

Additionally, LLCs have less regulatory requirements compared to corporations.

However, the choice of entity should be made after considering various factors such as the nature of the business, liability protection, tax implications, and management structure.

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The starting point and major responsibility for career development lies with the employee.

While the organization, human resource department, immediate supervisor or manager, and situation may play a role in career development, ultimately the responsibility falls on the employee to take ownership of their own career growth and development. The employee should actively seek out opportunities for learning and growth, set goals for themselves, and communicate their career aspirations to their supervisor or manager. However, the organization, human resource department, and immediate supervisor or manager should also provide support and resources to aid in the employee's career development.

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False.

A quota is a limit on the quantity of a particular imported good that can be brought into a country, not a quality standard. A quality standard for imported goods would be something like meeting certain safety regulations or passing certain inspections before being allowed into the country. It is important to note the distinction between quotas and quality standards, as they are different trade policies with different implications for international commerce.

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Social responsibility should indeed extend beyond the shareholders to include employees, suppliers, consumers, and the community. This is because businesses have a larger role to play in society beyond just generating profits for their shareholders.

Employees are a crucial part of any business, and companies have a responsibility to ensure their well-being by providing fair wages, safe working conditions, and opportunities for growth and development. This not only benefits the employees but also creates a more engaged and productive workforce, which ultimately benefits the company.
Suppliers also need to be treated fairly and ethically by companies. This means ensuring that they are paid fairly and on time, and that they operate under safe and ethical conditions. By doing so, companies can help to improve the conditions of their entire supply chain.
Consumers are a key stakeholder group as well. Companies need to be transparent and honest about their products and services, and ensure that they are safe and of high quality. They also have a responsibility to minimize any negative impacts of their products or services on the environment.
Finally, companies have a responsibility to give back to the communities in which they operate. This can be through supporting local initiatives, providing jobs and training, and minimizing any negative impacts on the environment or local communities.
In short, social responsibility should extend beyond the shareholders to include all stakeholders, as this ultimately creates a more sustainable and prosperous business in the long run.

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The required return on Farley Inc.'s perpetual preferred stock is 12.5%.

Based on the information provided, we need to calculate the required return on Farley Inc.'s perpetual preferred stock. The terms we need to focus on are:

- Stock price: $38
- Dividend: $4.75

To calculate the required return, use the following formula:

Required Return = (Dividend / Stock Price) x 100

Now, plug in the given values:

Required Return = ($4.75 / $38) x 100

Required Return = 0.125 x 100

Required Return = 12.5%

Therefore, the required return on Farley Inc.'s perpetual preferred stock is 12.5%.

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The effective annual interest rate of given statement is 4.5%. So, the answer is 4.5%.

The effective annual interest rate can be found using the formula:

PV = PMT x (1 - (1 + r)^-n) / r

where PV is the present value, PMT is the periodic payment (which is 10 in this case), r is the effective annual interest rate, and n is the number of periods (which is 14 in this case).

Substituting the given values, we get:

81.12 = 10 x (1 - (1 + r)^-14) / r

Multiplying both sides by r and rearranging, we get:

810 = 100r x (1 - (1 + r)^-14)

We can solve for r numerically using a financial calculator or by trying different values of r until we get a result that is closest to 81.12.

Using a financial calculator, we can enter the following values:

N = 14
PV = -81.12
PMT = 10
FV = 0
Solve for I/Y = 4.5%

Therefore, the effective annual interest rate is 4.5%.

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Accounting reconciliation involves comparing two sets of records to make sure the findings are correct and reliable. Book balance before reconciliation is $4,675.

Given,

Adjusted book balance =$4,525

Add: service charge =$20

Less: interest earned = $8

Add: NSF check = $120

Add: error = $18

Book balance before reconciliation = $4,675

The general ledger accounts are accurate, consistent, and comprehensive thanks to reconciliation. Reconciliation may be used for purposes other than business, though.

Consolidating your accounts is crucial since it aids in finding any errors, fraud, or anomalies in your accounting records that can have a negative influence on your company's financial stability. A successful firm can benefit from reconciliation as a smart business practise.

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Three psychological states are crucial for employee motivation, satisfaction, and performance, according to Hackman and Oldham's classic job characteristics model.

1. Experienced meaningfulness of the work: This refers to the extent to which an employee perceives their job as meaningful, valuable, and worthwhile.
2. Experienced responsibility for work outcomes: This refers to the degree to which an employee feels personally responsible and accountable for the results of their job model .
3. Knowledge of results: This refers to the extent to which an employee is aware of and understands the impact and effectiveness of their job performance.

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The journal entry for the sale of bonds depends on whether they are sold at a discount or premium. If sold at a discount, the company records a Discount on Bonds Payable account, and if sold at a premium, the company records a Premium on Bonds Payable account.

Journal entry for the sale of $1,000,000, 10-year, 10% bonds at 95 on January 1, 2020:

Date Account Titles and Explanation Debit Credit

Jan. 1 Cash 950,000

Discount on Bonds Payable 50,000

Bonds Payable 1,000,000

In this journal entry, the company records the sale of its bonds by debiting Cash for the proceeds received from the investors, which is $950,000 ($1,000,000 x 0.95). The company also credits Bonds Payable for the face value of the bonds, which is $1,000,000.

The difference between the face value and the proceeds received is recorded as Discount on Bonds Payable, which is a contra-liability account and reduces the carrying value of the bonds on the balance sheet.

If the bonds sold for 108, the journal entry to record the sale on January 1, 2020 would be:

Date Account Titles and Explanation Debit Credit

Jan. 1 Cash 1,080,000

Bonds Payable 1,000,000

Premium on Bonds Payable 80,000

In this case, the company receives more than the face value of the bonds, so it records a debit to Cash for $1,080,000 ($1,000,000 x 1.08). The company credits Bonds Payable for the face value of the bonds, and records a Premium on Bonds Payable account to reflect the excess amount received.

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Complete question is:

Blossom Company issues $1,000,000, 10-year, 10% bonds at 95, with interest payable each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Assuming instead that the above bonds sold for 108, prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1

Two advantages of brand extensions are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company.

1. New-product acceptance: When a company introduces a new product under an existing, well-known brand, consumers are more likely to accept and try the new product due to their familiarity with and trust in the parent brand. This reduces the risk associated with launching a new product and helps in gaining market share quickly.

2. Positive feedback to the parent brand and company: A successful brand extension can enhance the overall image and reputation of the parent brand and the company. When consumers have a positive experience with the new product, their trust in the parent brand increases, which can lead to increased customer loyalty and higher sales for other products under the same brand.

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The correct answer is c) observation. Recording biases occur when an observer's personal biases or beliefs influence how they record information during an observation.

This can result in inaccurate data collection and interpretation. Additionally, collecting only descriptive information during an observation means that researchers are only able to describe what they have observed without being able to draw any statistical conclusions or make predictions about future events. While mail surveys, personal interviews, and experimentation have their own potential drawbacks, they do not necessarily suffer from these specific issues. For example, mail surveys may have low response rates or be biased towards individuals who have strong opinions on the topic being studied, but they do not necessarily involve recording biases or limit researchers to collecting only descriptive information. Similarly, personal interviews and experimentation may have issues with interviewer or experimenter biases, but these are not the same as recording biases. Therefore, the best answer to this question is c) observation.

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When a company collects a customer's account within the discount period, it means that they receive payment for the product or service sold before the due date. This transaction would have no effect on the company's assets, stockholders' equity and revenues.

This is because the payment received is already accounted for in the accounts receivable when the sale was made. The company's assets and stockholders' equity remain the same as before the payment was received because the transaction does not involve the purchase or sale of any assets or equity.

The revenue generated from the sale is also already recorded when the sale was made, so receiving the payment within the discount period does not affect the revenue recorded.

In summary, collecting a customer's account within the discount period is a routine transaction that does not have any significant impact on the company's financial statements.

It is simply a matter of receiving payment for a product or service that was already accounted for in the company's records.

To know more about stockholders' equity refer here:

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