Answer:
The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.
False.
Explanation:
This accounting assumption is based on the use of money as a unit of measurement. The monetary unit principle assumes that all transactions or economic events recorded in the accounts of an entity can be expressed and measured in monetary terms or currency, like the dollar. The principle ascribes some stability and trust in the monetary units. What is actually described above is the periodicity concept.
Banks are financial intermediaries that: A. have customer deposits as its primary asset and loans to borrowers as their primary liability.
Answer:
False
Explanation:
Exactly the opposite is true: banks are financial intermediaries that have customer deposits as their primary liability, and customer loans as their primary asset.
The reason is that customer deposits can be withdrawn at any time (at least in theory), and the bank is obliged to give back the deposited money to the customer.
Loans, on the other hand, are assets, because they provide the bank with interset, and an asset is simply an economic resource that provides further economic gain to its owner.
Which of the following is not correct? Group of answer choices Natural monopolies are often subject to regulation. Public ownership is the most common and effective public policy toward monopolies in the United States. Sometimes the best public policy toward a monopoly is to do nothing. Antitrust laws may prevent mergers that would actually raise social welfare.
Answer: Public ownership is the most common and effective public policy toward monopolies in the United States
Explanation:
A natural monopoly is a monopoly that occurs as a result of the company having an economies of scale and also due to the huge amount of money required for its investment. These monopolies are subject to regulation.
Also, sometimes the best public policy toward a monopoly is to do nothing. Lastly, antitrust laws may prevent mergers that would actually raise social welfare.
Therefore, based on the question asked, the answer is option B.
Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is excited to contribute to the company and to track the value of her shares on the New York Stock Exchange. GlenMack must be:
Answer:
Public Company
Explanation:
In the given case, since it is mentioned that Gloria working for GlenMack now as a part of the signing bonus she received twenty shares from the stock of GlenMack now she is excited to contribute to the company and also wants to track the shares value on the new york stock exchange so here the Glenmust must be public company as the stock are listed on the stock exchange
So the same is to be relevant
The definition of ethics provided in the book focuses on _______. Group of answer choices a) organization b) culture c) business d) conduct
Answer:
d) conduct
Explanation:
Ethics can be defined as a code of conduct that serves as a parameter to guide the behaviors and moral values present in a society.
Therefore, in business, it is essential that the code of ethics represents a conduct of positive behavior that helps to preserve values such as justice, integrity and equality of employees. Ethics assists in maintaining positive organizational values, in building a work environment focused on cooperation, respect and development of individual and general skills.
How is efficiency related to the number of firms in an industry characterized by strong economies of scale
Answer: C. In industries with a strong economies of scale, efficiency tend to increase as the number of firms decrease. As each firm increases its output, it's cost per unit fall. This means that fewer firms each producing higher output leads to greater efficiency than more firms each producing lower output.
Explanation:
Economies of scale refers to the cost savings made as a result of more production occurring. In other words, efficiency leads to costs decreasing as production increases.
In an industry with strong economies of scale therefore, efficiency will increase as the number of firms decreases because this will allow the remaining firms to increase their production and enjoy economies of scale.
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product
Answer:
The correct option is d. Increase by $19,500.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Pluto Incorporated provided the following information regarding its single product:
Direct materials used = $240,000
Direct labor incurred = $420,000
Variable manufacturing overhead = $160,000
Fixed manufacturing overhead = $100,000
Variable selling and administrative expenses = $60,000
Fixed selling and administrative expenses = $20,000
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.
What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product? Note: The special order units would not require any variable selling and administrative expenses.
a. Decrease by $19,500
b. Decrease by $18,000
c. Increase by $18,000
d. Increase by $19,500
The explanation of the answer is now provided as follows:
We first calculate the expected total relevant cost of the special order as follows:
Direct materials cost per unit = Direct materials used / Annual units = $240,000 / 40,000 = $6.00
Direct labor cost per unit = Direct labor incurred / Annual units = $420,000 / 40,000 = $10.50
Variable manufacturing overhead per unit = Variable manufacturing overhead / Annual units = $160,000 / 40,000 = $4.00
Expected special order total relevant cost = (Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit) * Special order units = ($6.00 + $10.50 + $4.00) * 1,000 = $20.50 * 1,000 = $20,500
Expected revenue from the special order = Special order units * Special order selling price per unit = 1,000 * $40 = $40,000
Expected profit from the special order = Expected revenue from the special order - Expected special order total relevant cost = $40,000 - $20,500 = $19,500
Since the expected profit from the special order is $19,500, it therefore implies that accepting it would increase operating income by $19,500.
Therefore, the correct option is d. Increase by $19,500.
) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.
Answer:
d
Explanation:
A change in price leads to two effects :
The income effect The substitution effectThe income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.
A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest
The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.
starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe
Why Is It Important To Evaluate Trade Offs And Opportunity Cost When Making Choices? Please Help Porfas
The price of hotdog buns increases sharply. Indicate what will happen to the demand for DECADOGS, a nadonally-recognized brand of hotdog.
Answer:
The demand for DECADOGS in this scenario will decrease sharply
Explanation:
The demand for DECADOGS in this scenario will decrease sharply. This is because as the price of hotdog buns increases less and fewer individuals will purchase hotdog buns because they simply cannot afford to pay those prices or believe they are not worth the price. Since hotdog buns and hotdog demand are correlated with one another (since they are foods that depend on one another), people will not need to buy DECADOGS hotdogs since they are not buying the hotdog buns.
If the Bank of Uchenna is not meeting its reserve requirement, what action can it take to meet the reserve requirement without calling in loans or selling property
Answer:
In this situation, the Bank of Uchenna has two options:
It can borrow extra funds to meet the reserve requirements in the interbank market. These funds would be borrowed at the federal funds rate if the bank is the U.S., or at the specific interbank rate applying to the area where the bank is located.
Or it can borrow those extra funds from the central monetary authority, in other words, the central bank (the fed in the case of the U.S.), since one of the main functions of a central bank is acting as lender of last result for financial institutions when these institutions are in need.
In this situation, Uchenna Bank has two options that can be done by the bank without calling in loans or selling property :
Additional funds can be borrowed to meet the reserve requirement requirements of the interbank market.These funds are borrowed at the federal funds rate if the bank is based in the United States, or at a specific interbank rate applicable to the area in which the bank is located.
They can borrow these additional funds from Central bank.The central bank's main functions is to act as a lender to the central bank, you can borrow these additional funds from the central bank, the central bank (FRB in the United States).
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(True) or (False)? The total amount of depreciation accumulated for an asset over its entire life will differ depending on the method of depreciation used.
Answer:
True
Explanation:
Let us illustrate this using the below hypothetical case:
Asset acquired-motor vehicle
useful life is 3 years
salvage value $20,000
cost of the asset=$100,000
depreciation methods:
straight-line method
double-declining balance method
depreciation under straight-line method=(cost-salvage value)/useful life
depreciation under straight-line method=($100,000-$20,000)/3=$26,666.67
accumulated depreciation for 3 years=$26,666.67 *3=$80,000
double declining balance method:
double-declining rate=100%/useful life *2=100%/3*2=67%
2 means double
year 1 depreciation=$100,000*67%=$67,000
year 2 depreciation=($100,000-$67000)*67%=$22,110
year 3 depreciation=($100,000-$67000-$22110)*67%=$7,296
accumulated depreciation for 3 years=$67,000+$22,110+$7,296=$96,406
$80,000 not equal to $96,406
Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.
Answer: This is a bad idea to set up a automatic minimum payment on the 18 of this month because it can be fraud risk, pricing disparities, minimum payment that is terrible. And in a cause to that, she has to pay extra, has to silly small fees, and picking the same day every month but will change due dates.
I will convince Caitlyn that this is a bad idea because the automatic minimum payment might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,
The automatic minimum payment in this context means the automatic (standard) repayment plan of the loan borrowed.
Majority of borrowers are placed on the standard repayment plan because it is automatic.
However, the standard repayment plan might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,
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Precision Aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE
Answer: 16.88%
Explanation:
Going by the Dupont 3 step method to calculate Return on Equity, the formula for ROE is:
ROE = Net Profit Margin * Assets turnover * Equity Multiplier
= 6.25% * 1.5 * 1.8
= 0.16875
= 16.88%
McAlister Company is operating at capacity and desires to add a new service to its rapidly expanding business. The service should be added as long as service revenues exceed: the sum of variable costs and any related opportunity costs. variable costs. the sum of variable costs, fixed costs, and any related opportunity costs. the sum of variable costs and fixed costs. fixed costs.
Answer:
the sum of variable costs and any related opportunity costs
Explanation:
They can add this new service given that this condition is met. As long as service revenue is greater than the sum of variable cost and any related opportunity cost. This is because it covers variable expenses.
If the situation is that a new service/division has been added, then the deciding factor would be if the new product or this division can cover for the various variable expenses that was incurred.
Copy Center sells laser printers and supplies. Assume Copy Center started the year with containers of ink (average cost of each, FIFO cost of each, LIFO cost of each). During the year, Copy Center purchased containers of ink at and sold units for each. Copy Center paid operating expenses throughout the year, a total of . Ignore income taxes for this exercise. Prepare Copy Center's income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.
Answer:
The question is incomplete, so I looked for a similar one:
Copy Center sells laser printers and supplies. Watson Copy Center started the year with 90 containers of ink (average cost of $ 8.50 each, FIFO cost of $ 8.90 each, LIFO cost of $ 7.80each). During the year, Watson Copy Center purchased 720 containers of ink at $ 10.30 and sold 600 units for $ 19.75 each. Watson Copy Center paid operating expenses throughout the year, a total of $ 5000. Watson Copy Center's income statement-excluding the effects of income tax under each of theaverage-cost, FIFO, and LIFO inventory costing methods--is given.
Total sales revenue = 600 x $19.75 = $11,850
COGS under weighted average = {[(90 x $8.50) + (720 x $10.30)] / 810} x 600 = $6,060
COGS under FIFO = (90 x $8.90) + (510 x $10.30) = $6,054
COGS under LIFO = 600 x $10.30 = $6,180
Copy Center
Income Statement for the year 202x
(using weighted average)
Sales revenue $11,850
COGS ($6,060)
Gross profit $5,790
Operating expenses ($5,000)
Net income $790
Copy Center
Income Statement for the year 202x
(using FIFO)
Sales revenue $11,850
COGS ($6,054)
Gross profit $5,796
Operating expenses ($5,000)
Net income $796
Copy Center
Income Statement for the year 202x
(using LIFO)
Sales revenue $11,850
COGS ($6,180)
Gross profit $5,670
Operating expenses ($5,000)
Net income $670
The flowtime of the last job in a single work center’s schedule is 7 days. What is the makespan of this schedule?
Answer:
7 days
Explanation:
Makes-pan means the time it takes to complete a schedule. Last job took 7 days to complete and it was a single job, which means its makes-pan was 7 days as well.
While consumers can use ________ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.
Answer:
While consumers can use __shopping list__ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.
Explanation:
Customers usually prepare shopping lists to help them with their shopping activities. A shopping list is a prepared list of items that a consumer uses to purchase goods and services. The list improves the quality of the shopper's experience by making it easier, faster, and most importantly, smarter for the customer to pick out the required items or services. It is also a means of controlling one's expenses.
ou owe your credit company $25,000 and plan to make no payments on your credit card for 1.0 year. Due to your current credit score, your credit card company charges you an APR of 30.0%. If, however, you took immediate measures to improve your credit score by 100points, your credit card company agrees to improve your APR by 5.0%. Assuming you are then unable to make any payments for 12 months, how much money would you save by taking immediate actions to improve your credit score
Answer: $1,603.93
Explanation:
APR is monthly so figures have to be adjusted to monthly figures for a year.
If you fail to improve your credit score, the interest you will pay is:
= 25,000 * [(1 + 30%/12)¹² - 1]
= $8,622.22
If you improve your credit score, your APR will decrease to 25.0% from 30%.
Interest paid would be:
= 25,000 * [(1 + 25%/12)¹² - 1]
= $7,018.29
Savings = 8,622.22 - 7,018.29
= $1,603.93
Answer:
1,603.93
Explanation:
On August 1, 2021, Dambro Company acquired 1,200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Dambro's available-for-sale portfolio. The preferred entry to record the purchase of the bonds on
Answer:
Dr Debt Investments 1,164,000
Dr Interest Revenue 27,000
Cr Cash 1,191,000
Explanation:
Preparation of The preferred entry to record the purchase of the bonds
Based on the information given the preferred journal entry to record the purchase of the bonds will be :
Dr Debt Investments 1,164,000
(1,200 × $1,000 × .97)
Dr Interest Revenue 27,000
($1,200,000 × .09 × 3/12)
(04/31 – 08/01)
Cr Cash 1,191,000
($1,164,000 + $27,000)
Suppose the demand for apples becomes more elastic. All else equal, this means that the same change in price will result in
Answer:
a greater change in quantity demanded
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
When Tyree Elliott was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Rae Rogers, a senior manager. Rogers was able to show Elliott the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?
a. Elliott was given no training at all.
b. Elliott was assuming the role of an apprentice.
c. Rogers was using off-the-job training techniques.
d. Rogers was assuming the role of a mentor.
Answer:
d. Rogers was assuming the role of a mentor.
Explanation:
Remember, the term mentor is usually assigned to someone who is more experienced, and who provides valuable and trusted advice to someone with lesser experience.
Based on this description, and the fact that we are told that "Rogers was able to show Elliott the places where trouble was likely to occur," makes Roger fit the role of a mentor.
how do you decide whether the company should employ aggressive capital investments in global business areas
Answer:
One key managerial tool that can help decide whether or not a company should employ aggressive capital investments in global business areas is capital budgeting.
Capital budgeting is a quantitative evaluation of the opportunities within a business space and helps management to decide based on the most acceptable trade-off between returns on investment and risk, which opportunity is worth taking a shot at.
Explanation:
Availability of Capital: Capital budgeting assumes that there is enough capital in the first place.
Payback Period: This is a budgeting technique that measures the time taken to recover the initial capital outlay into a business. Some investment have long payback periods other short payback time frame. A short payback period is generally more acceptable than a medium-term or longer-term payback. However, none of the payback period frames are in themselves good or bad. They become acceptable or not when compared to other factors. For example, in a business space or industry where there is a very high barrier to entry such as a patent protecting competition from replicating a similar product, a long-term payback becomes acceptable as long as it fall within the patent period.
There are so many other capital budgeting related factors that help the investor company decide how aggressive it should go. They are:
Internal Rate of ReturnProfitability IndexNet Present Value etcRisks: Given that the company is playing in the global business arena, knowledge about global risks and in-country specific risks are very strong determinants about whether or not the company can go aggressive.
If the financial feasibility is high and the risk is very high, the company may excercise restraint.
If the risks are very low, the company may go aggressive.
Detailed Business Plan: It is a very good practice to have a detailed business plan for investing in certain areas.
One key component of the business plan other than those already discussed is the Human Capital component.
If the risk of the investment if admissible and the financial feasibility checks out, there has to be adequate availability of human capital to manage the investments.
Regardless of how big the company is, I would thread carefully if we don't have tested and trusted hands at the executive level to oversee capital investments.
Cheers
37.Ralph is known throughout the company as being an old curmudgeon. But, he is without a doubt the most knowledgeable person in the fraud analysis department. The system project you are working on has to have an interface to various fraud applications. How should you prepare for an interview with Ralph
Answer:
Make Ralph understand WHY he needs to be interviewed. Make sure he understands the business value of the proposed system and why his input is vital. Send him questions in advance; talk to somebody who knows him so you can understand him more.
Explanation:
In the given scenario Ralph was described as an old curmudgeon. This means he is an ill tempered person that generally expresses no joy.
However he is without a doubt the most knowledgeable person in the fraud analysis department.
In preparation to interview him there is a need to make him understand why there needs to be an interview. When he sees the need for the interview he will be more engaged.
This can be done by explaining business value of the proposed system and why his input is vital.
Also questions can be sent to him ahead of the interview songs can better prepare
A loss has a Debit balance and is shown on the balance sheet. A gain has a Credit balance and is shown on the balance sheet. B. A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Balance Sheet. D. A loss has a Credit balance and is shown on the Income Statement. A gain has a Debit balance and is shown on the Income Statement.
Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
A gain or a loss is the excess or deficit in the difference of the costs or the base value and the selling price of the goods or services. The gain or loss incurred by a business becomes part of the Income Statement.
The accurate statement for the recording of the gain or loss is:
Option B. A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
As per the dual entry bookkeeping system, all the revenues and gains have a general credit balance while the normal balance of the expenses and losses is a debit balance.
The income statement is the financial statement that records the incomes, gains, expenses, and costs occurred in the particular financial year.
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Explain how current economic indicators, such as inflation and unemployment, affect you personally. Explain how they may affect you as a manager
Answer is given below :
Explanation:
In an economy, inflation raises the price level of the basket of goods and services, thus reducing the demand for this affected good and services. This decrease will increase the listings in companies as sales of these goods and services will decrease. Production is the work of labor and capital, NRSE inflation is reduced and there is no need for more production at the company level to reduce the inventory sold, which allows firms to reduce costs in the form of labor cost and other variable costCompanies tend to sell their untold innovations due to declining sales and top-downs that reduce profit margin. Therefore managers are concerned about the profitability of the company and their bonus.Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called
Answer:
Non - Current or Long term liabilities
Explanation:
According to the Conceptual Framework, Liabilities are present obligation of an entity that arise as a result of past events from which cash outflows are expected.
Liabilities of a long term nature usually exceeding period of 12 months are called Non- Current or Long term Liabilities
Thus, Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called Long term liabilities
An employer is concerned that her workplace has only a few African-Americans, Hispanics, and women in upper-level management and skilled labor jobs. Most unskilled-labor and clerical positions are held by women and minorities. The employer decides to institute a program that will increase the numbers of minorities and women in management and skilled-labor positions. Is this permissible
Answer:
This is not permissible
Explanation:
This is not permissible because giving them any forms of special treatments is going to be considered to be discriminatory to other people.
Discrimination on the basis of gender, age, color, religion is illegal in the united states and considered a criminal offense.
So even though management has good intentions they have to consider;
1. If these group of people have the required qualifications
2. If there are openings to accommodate these groups given that they are qualified.
3. Filling up every job with this group is going to be regarded as reverse discrimination.
Suppose you have $1,000 today and the risk-free rate of interest (rf) is 3.5%. The equivalent value in one year is closest to:
Answer:
$1,035
Explanation:
One dollar today is worth more than one dollar tomorrow. This is one of the basic pillars of finance, if not the most important one. It refers to time value of money. It is easier to understand if we work the other way around. How much would you be willing to pay if you were to receive $1,000 in one year if the risk free interest rate was 3.5%? The present value = $1,000 / 1.035 = $966.18. Inversely, today I have $1,000, so how much should it be worth in one year = $1,000 x 1.035 = $1,035.
Creditors' claims on assets are called: Multiple Choice Net losses. Expenses. Revenues. Equity. Liabilities.
Answer:
Equity Liabilities The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets Liabilities Equity, is known as the: Multiple Choice Income statement equation Accounting equation.