False. All of the money invested in a properly diversified mutual fund portfolio will be invested in just one of four distinct financial asset classes.
How many mutual funds are in a portfolio that is diversified?The ideal number of funds for your MF portfolio is six to eight. You can invest in a maximum of ten funds as the portfolio grows in size to avoid becoming overly dependent on any one fund or fund house. The funds you are investing in, on the other hand, fall into the hybrid, debt, and equity categories.
Is a mutual fund a portfolio that is diversified?Every investor in a mutual fund owns shares of the fund, which they can either buy or sell at any time. Professionally managed mutual funds are typically more diversified, cost-effective, and convenient than investing in individual securities.
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rick deposited $2,700 into an account 9 years ago for an emergency fund. today, that account is worth $4,025. what annual rate of return did rick earn on this account assuming no other deposits and no withdrawals?
The annual rate of return did rick earn on this account assuming no other deposits and no withdrawals 4.54 percent
What is withdrawals?Owner withdrawals, often known as withdrawals, are payments made from an owner's stock in a business. In other words, it's money that the proprietor withdrew from the business for personal use. Instead of being a cost to the company, the withdrawal lowers equity. Due to the fact that cash is being taken out of the company, a withdrawal may have a negative effect on the liquidity of the organization. Cash transfers from a firm to its owner are known as withdrawals by owner. These monetary transfers lower the amount of stock in a company but have no effect on its profitability.Cash transfers from a firm to its owner are known as withdrawals by owner. These monetary transfers lower the amount of stock in a company but have no effect on its profitability.To learn more about withdrawals refer to:
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while conducting business with a customer from italy, zoe was careful to speak slowly and clearly, using short sentences and familiar words. however, she noticed that the customer had a glazed expression and did not understand her. zoe should
The action that should taken by Zoe in the business communicating is b. graciously accept the blame for not making her meaning clear. This must be done so as not to hurt or give a bad impression to the other person as a partner.
In economic and business, Business communication generally can be defined as the communication that is intended to help a business achieve a fundamental goal, Business communication can happen through information sharing between employees as well as people outside the company, or also through the business partner when communicate about busines project.
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Brief Exercise 3-09 The adjusted trial balance of Miller Company at December 31, 2020, includes the following accounts: Owner's Capital $16,400, Owner's Drawings $7,000, Service Revenue $39,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500, and Depreciation Expense $1,300. Prepare an income statement for the year
Revenue from services 39,000 Expenses $16,000 spent on salaries and wages; $2,000 spent on insurance. Rent costs 4,000; supply costs 1,500. Depreciation costs 1,300. 24,800 total expenses 14,200 in net income.
What are gross and net income?The amount of an employee's income that remains after payroll deductions for expenses like taxes, benefits, and other charges is known as gross pay.
What does salary net income mean?The total pay received after all required deductions, such as taxes, from the total gross pay, is known as the net salary. This is the total amount, after any deductions, that is credited to the employee's bank account.
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which stakeholder group(s) benefit(s) the most from shake shack's commitment to high wages and salaries?
Employees, customers, and the proprietors are all present. While increased pay and salaries help employees directly, owners profit from reduced turnover rates and more motivated personnel, while consumers benefit from a greater level of customer care and attention to detail.
Who are the top three stakeholders?A typical corporation’s key stakeholders are its investors, workers, customers, and suppliers. However, as corporate social responsibility has gained prominence, the notion has been expanded to encompass communities, governments, and trade groups.
Because they are immediately affected by the project’s outcome, primary stakeholders (also known as key stakeholders) have the most stake in its success. They actively participate in a project. Feb 8, 2021. Internal stakeholders and external stakeholders are the two categories of stakeholders. It is critical to analyze how an organization’s decisions affect stakeholders since they frequently have the capacity to shift the priorities of how a business operates.
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what was her percent of profit based on selling price? follow the problem-solving process and round your answer to the nearest hundredth if necessary.
The formula for calculating profit % is profit percentage = (profit/cost price) x 100.
Why it is called profit?Prefects, a Latin noun that means "progress," and profiler, a Latin verb that means "to advance," are the roots of the word "profit."A transaction's or set of transactions' excess returns above costs especially: the premium that commodities command over their marginal cost. 3.: Typically, net income for a specific time frame. Middle English profit, Old French profit (Modern French profit), Latin prefects ("advance, progress, growth, increase, profit"), and proficient ("to go forward, advance, make progress, be profitable or beneficial") are the sources of this word. The total income a firm receives from the sale of products or services that are connected to its core business operations is referred to as revenue.To learn more about profit refer to:
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5. question 5 in what three ways does a small closing process at the end of each milestone differ from a formal, more comprehensive closing phase at the end of the project?
The final action before a team disbands is a formal closure at the conclusion of a project. An impact reporting meeting is a part of the project's formal closure.
Stakeholders offer comments on any future modifications that need to be made once a milestone is closed during the project. An endeavour to produce or alter a particular good or service is referred to as a project. Projects are transitory work initiatives having a defined start and finish. Projects may involve other businesses and providers or may be contained entirely inside a single division or unit. A project is described as a series of activities that must be finished in order to achieve a certain result. The Project Management Institute (PMI) defines a project as "any temporary undertaking having a clear beginning and finish."
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A(n) ______ is a detailed examination of the events that occurred from first detection to final recovery. Group of answer choices After Action Review (AAR) Incident Response (IR) Incident Planning (IP) Incident Damage Assessment (IDA) Business Impact Analysis (BIA)
A(n) After Action Review (AAR) is a detailed examination of the events that occurred from first detection to final recovery.
What is After Action Review (AAR)?An after-action review (AAR) is a method for improving process and execution by comparing the intended and actual outcomes of an action, determining which practices to maintain, which practices improving, or which practices to initiate, and then putting those changes into practice at the next iteration of the action. Formal AARs were first developed by the U.S. Army. Formal AARs are used by all US military services and many non-US organizations.Their use has extended to business as The intent of an AAR is at odds with the practice of assigning blame or issuing warnings. In contrast to a post-mortem, an AAR places a strong emphasis on individual participant actions. The participants apply what they learned from the review but no recommendations for other people are made. Formal AAR meetings are typically led by a facilitator or trained "AAR Conductor," and they can be chronological reviews or tightly focused on a few key issues selected by the team leader. Short-cycle informal AARs are typically led by a team leader or assistant and are very quick.Cascaded AARs can be used to keep each level of the organization focused on its own performance within a particular event or project.learn more about After Action Review (AAR)
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the value of a company to its owners equals total resources of the company. group startstrue or false
The value of the company "owners does not equal the total resources of the company. present value of all the future cash flows that the company is expected to generate in the future. " is false because.
These cash overflows are deduced from the coffers of the company, similar as its people, products, services, and capital. still, the value of a company to its possessors isn't just the sum of the value of all its coffers. The value of a company to its possessors is determined by the capability of the company to induce unborn cash overflows that are advanced than the cost of its coffers.
thus, the value of a company to its possessors is the net present value of all anticipated unborn cash overflows, and not the sum of all its coffers.
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Rottweiler Obedience School’s December 31, 2018, balance sheet showed net fixed assets of $1,945,000, and the December 31, 2019, balance sheet showed net fixed assets of $2,137,000. The company’s 2019 income statement showed a depreciation expense of $335,000. What was the company’s net capital spending for 2019? (Do not round intermediate calculations and round your answer to the nearest whole number, e. G. , 32. )
Net capital expenditures for the business in 2019 were $143,000.
Net capital is what?The total written-down value of all of the fixed assets remaining in use is referred to as the net share capital; it can also be referred to as the discrepancy between of gross invested capital and fixed capital consumption.
Are net capital and equity the same thing?The sum of money that a shareholder or business owner would earn if they sold all of their holdings and settled the business's debt is known as equity. The term "capital" solely refers to a company's liquid financial resources.
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diane initially deposited $11,500 into a money market account and made no additional deposits or withdrawals. when she closed the account in exactly one year, its value had grown to $12,500. calculate the annual growth rate for the money market account. round your answer to two places after the decimal.
The annual growth rate is 8%
Initial deposit by Diane = $11,500
The grown value = $12,500
The average annual growth rate is the average rise or fall in the value of a portfolio, cash flow, or investment asset over a given time frame. It is calculated by averaging the stated year-over-year growth rates. By deducting the old value from the new value and dividing it by the original value, the growth rate is determined.
Calculating the annual growth -
Grown value - Initial Value / Grown Value
= 12,500 - 11,500 / 12,500
= 1000/12,500
= 0.08
= 8%
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what would be the equivalent taxable yield of this bond to a taxpayer in a 35% combined tax bracket
The original taxable yield of a bond to a taxpayer in a 35 combined duty type is the yield after taking into account the levies the taxpayer must pay.
To calculate it, the investor must first abate the borderline duty rate from 1. In the case of a 35 combined duty type, the investor would abate0.35 from 1 and get0.65. This number is also multiplied by the bond's yield to get the original taxable yield. For illustration, if the bond has a yield of 6, the original taxable yield for a taxpayer in a 35 combined duty type would be3.9.
Taxable Equivalent yield is important for investors to consider when making investments. It helps them to understand how important of the returns they will actually get to keep after levies. Knowing the original taxable yield can help investors make informed opinions when investing in bonds.
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almost always the only first chance to impress a potential employer or hiring manager is through what?
A resume is almost always the only opportunity to impress a potential employer or hiring manager. It is critical to constantly plan for a career.
How to Make a Good First Impression on a Potential Employer?In the application process, making a good first impression is critical. You might only have a few minutes with a potential employer before they decide whether or not you're a good fit for the job. Unqualified candidates' applications are quickly rejected by employers. If you are only applying because it appears to be interesting work but you have no actual experience in the field, your time may be better spent on education or internships. When known, address the targeted cover letter to the person conducting the candidate search, which introduces your key qualifications and highlights your fit with the position.
The available position for which you are applying must be specifically mentioned in the cover letter. Spelling and grammar are important. The spacing of words on the page, the overall appearance, and the feel of the paper all play a role (in a paper resume). Prior work experience is typically listed in chronological order, but some applicants may structure the flow of their resume around skills. Combining these two strategies is also common.
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the purpose of a form letter or template in business writing is to
An example of a template that harmonizes the letter-writing process is the form letter. This eliminates the need to create separate documents for each individual recipient. A template letter can be used as many instances as need.
What does a business letter need to accomplish?A business writing is an official letter that is issued from one firm to another in a professional manner. These emails can be used for formal correspondence between individuals and business clients, employees, and stakeholders.
What is a template or form letter?An example of a template that harmonizes the letter-writing process is the form letter. This eliminates the need to create separate documents for each individual recipient. A template letter can be used as numerous times as needed.
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last year, kaylor equipment had $15,900 of sales, dividend payments of $75, an addition to retained earnings of $418, depreciation of $680, and $511 of interest expense. what are the earnings before interest and taxes at a tax rate of 21 percent?
$1,269.46 is the profits before interest and taxes at a tax rate of 21%.
Earnings Before Interest and Tax (EBIT) is the term used to describe net income, which is the difference between an organization's revenue and its related costs. The Income Statement section of an organization's financial statement is where the EBIT calculation is often located for a certain year.
Therefore, the Tax and Interest must be Added Back to the Net Income After Tax in order to Calculate the EBIT (usually added to retained earnings)
Thus, Net Income is calculated as Dividends Paid + Net Income (added to retained earnings)
= $75 plus $418 equals $493, which is a portion of net income.
The process for determining taxable income is as follows:
The tax rate is 35%, and the net income is $493.
Taxable Income is $493 divided by 1.083 to get $758.46.
Therefore, earnings before interest and tax =
combined with taxable income
= $511 + $758.46 = $1,269.46
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suppose you have just finished your third year of college and expect to graduate with a bachelor’s degree in accounting after completing two more semesters of coursework. the salary for entry-level positions with an accounting degree is approximately $48,000 in your area. shelton industries has just offered you a position in its northwest regional office. the position has an annual salary of $40,000 and would not require you to complete your undergraduate degree. if you accept the position, you would have to move to seattle.
Tuition and books for years 1-3 of college - Irrelevant YES
Food and entertainment expense which are expected to be the same in Seattle as where you currently live - Irrelevant YES, Rest Relevant YES
What is Relevant cost?Relevant cost is a managerial accounting term that refers to avoidable costs that occur only when specific business decisions are made. The concept of relevant cost is used to eliminate extraneous data that may complicate decision-making. Relevant cost, for example, is used to determine whether to sell or keep a business unit.
A sunk cost is the inverse of a relevant cost because it has already been incurred regardless of the outcome of the current decision. A big decision for a manager is whether to close a business unit or keep it open, and the decision is based on relevant costs. Assume a retail sporting goods store chain is considering closing a group of stores catering to the outdoor sports market. The relevant costs are those that can be avoided as a result of the closure, as well as the revenue lost when the stores close. If the costs of closure outweigh the revenue lost, the outdoor stores should be closed.
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what is the standard deduction for 2022 married filing jointly
From the previous year, the standard deduction for married couples filing jointly in 2022 would be $25,900.
How does a standard deduction work?A predetermined amount that reduces the amount of income that is subject to taxation is known as the standard deduction.
Your standard deduction is the sum of the basic standard deduction and any additional standard deductions for old age or blindness.
In general, your filing status, age, blindness, and whether or not another taxpayer can claim you as a dependent all affect your standard deduction. Inflation is also taken into account every year.
The standard deduction is not available to all taxpayers. Additional Standard Deduction: You are eligible for an additional deduction if you are 65 years old or older at the end of the tax year.
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on aug. 30, a newly-formed company pays $600 for a 6-month insurance policy with coverage beginning on sept. 1. which of the following statements is correct? a. the company has acquired a prepaid insurance asset. b. the company's total assets have decreased. c. the company has insurance expense for the month ended august 31. d. the company's total assets have increased.
until a business has engaged in a certain type of insurance, or until an official of the insurer. (c) A written statement is referred to as a "certificate of readability."
How do you use certain?
When you are confident in something, you have no doubts about it and strongly believe it to be true. You do not have firm knowledge of anything if you are unsure of it. She is adamant that she will succeed in the world. Whether or not the appendix had already burst is uncertain. Make sure that everyone is following the directions, please. The cops appear to be confident that they will catch the attackers. [+ word for question] How much it will cost is unknown. He was fairly convinced who his assailant was.
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which of the five major promotion tools include building up a positive corporate image and handling unfavorable stories
The correct response is A) public relations. Building positive relationships with the company's numerous publics through securing favourable publicity is known as public relations.
For the purpose of influencing the public's perception, public relations (PR) is the activity of organizing and distributing information from a person or an organization to the general public. Publicity is not regulated and is generated by outside sources, whereas public relations (PR) is internally managed. Using news stories and issues of general interest without expecting to be paid directly, public relations might involve a company or individual getting visibility to their target consumers. Mostly media-based, the exposure. It differs from advertising because of this when used as a marketing communication tool. Earned media, often known as public relations, tries to generate or receive free coverage for customers.
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Which of the five major promotion tools includes building up a positive corporate image and handling unfavorable stories and events?
A) public relations
B) sales promotion
C) personal selling
D) advertising
E) direct marketing
Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business
He utilizes his own money to start a bakery using money through his savings and a small loan from his family.
How do business angels and venture capital funds differ from one another?Investments made from angel investors in setup and small firms with remarkable development potential are known as venture capital. The fact that venture capital firms often invest later in a company's life than angel investors does is a clear distinction between the two groups of investors.
Which of following is the main justification for starting a firm for an entrepreneur?The primary motive is not money but rather freedom and enthusiasm.
According to a study by Cox Business, more than half all small business entrepreneurs open their own operations in order to work for themselves. They were inspired to build an item from the roots up as well.
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explain how some of the ancient civilizations described in this module conduct business in order to make a profit. give examples. what was the purpose of business in cases where it was not to make a profit?
In ancient civilizations, business was conducted in a variety of ways to make a profit.
In the Indus Valley civilization, merchants traded goods with other civilizations in order to make a profit. For example, they would buy and sell jewelry, pottery, and other items. In Ancient Greece, merchants used bartering as a way to make a profit. They would trade goods such as olive oil, grains, and animals for other goods such as spices and cloth. In some cases, the purpose of business was not to make a profit. In Ancient Egypt, business was used to support the state’s economy. Merchants would purchase and sell goods to provide resources to the government, as well as to support the military and religious institutions. In Ancient China, merchants were also used to support the government by providing resources and services. They would also contribute to the state by paying taxes. The term "ancient civilization" refers to the first established and stable settlements that served as the foundation for succeeding governments, countries, and empires.
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if consumer incomes rise and this leads to an increase in the demand for chocolate, then chocolate is a(n) if consumer incomes rise and this leads to an increase in the demand for chocolate, then chocolate is a(n) normal good inferior good neutral good necessity complement
If consumer incomes rise and this leads to an increase in the demand for chocolate, then chocolate is a(n) normal good.
A normal good is a good for which the demand increases as consumers' income rises.
So, chocolate is a normal good because as people have more disposable income, they are more likely to buy more chocolate and enjoy its taste.
This is the opposite of an inferior good for which demand decreases as income increases.
On the other hand, a neutral good is a good for which the demand remains unchanged as income changes and a necessity is a good that people need to survive regardless of their income, like food, shelter, and clothing.
A complement good is a good that is typically consumed with another good, for example, chocolate is often consumed with coffee.
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you save bank has a unique account. if you deposit $7,000 today, the bank will pay you an annual interest rate of 3 percent for 4 years, 3.6 percent for 3 years, and 4.3 percent for 7 years. how much will you have in your account in 14 years?
The amount that will you have in your account in 14 years would be $10,703. You can keep adding the interest earned each year to the principle to calculate the final amount after 14 years.
The interest earned on the deposit in the future will also be calculated based on the principle and the interest rate of that period. To calculate the future interest earned in each year, you can use the formula:
Future Interest Earned = Principle x Interest Rate
To calculate the total amount you will have in your account in 14 years, we need to calculate the interest earned for each of the different periods of time separately and then add them together.
For the first 4 years, you will earn an annual interest rate of 3 percent on $7,000, which is $210 per year or $840 total.
For the next 3 years, you will earn an annual interest rate of 3.6 percent on $7,000, which is $252 per year or $756 total.
For the final 7 years, you will earn an annual interest rate of 4.3 percent on $7,000, which is $301 per year or $2,107 total.
So in total, after 14 years, you will have:
$7,000 + $840 + $756 + $2,107 = $10,703
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carlos and connie own a farm as tenancy by the entirety (tbe). the farm is currently valued at $2 million. all of the following statements are correct except a) carlos and connie are spouses. b) if carlos dies, connie becomes full owner of the farm by right of survivorship. c) if carlos dies, connie receives a stepped-up basis in 100% of the farm. d) if connie dies, $1 million is included in her gross estate for estate tax purposes.
The statement, if Connie dies, $1 million is included in her gross estate for estate tax purposes is not correct.
What is estate tax?Estate and inheritance taxes are levied on property transfers at death. An estate tax is levied on the deceased's estate, whereas an inheritance tax is levied on the deceased's heirs.The Estate Tax is a tax levied on the right to transfer property at death. It includes a lot of an accounting of everything you own or have certain interests in at the time of death. Federal and state estate taxes are paid from your estate's assets before the remaining assets are distributed to your heirs. A qualified grantor trust's executor or trustee is responsible for filing the applicable federal and state estate tax returns and ensuring that all taxes are paid from the estate.To learn more about estate tax refer to :
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D) When one spouse passes away, the remaining spouse inherits the entire estate, which is known as tenancy by the totality. Therefore, $1,000,000 will not be considered for tax purposes; ideally, it should be $2,000,000.
Tenancy by the Entirety: What Is It?A type of joint property ownership known as tenancy by the entirety is exclusively available to married couples. Spouses are able to jointly own property under the terms of a tenancy by the entirety. This indicates that the interests in the property are equal and undivided for each spouse.
Due to the right of survivorship created by this type of legal ownership, the surviving spouse will automatically acquire full title to the property in the event that one spouse passes away.
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who has the responsibility to apply accounting standards when communicating with investors and creditors? multiple choice question. the sec the fasb auditors management
Firms auditors has the responsibility to apply accounting standards when communicating with investors and creditors.
What is an accounting standard?
An accounting standard is an uniform set of instructions that forms the basis for financial accounting principles and procedures.
Accounting rules broaden the transparency of financial reporting. The term "generally accepted accounting principles" refers to the collection of accounting rules that are frequently utilized in the US to produce financial statements (GAAP).
International enterprises that report financial accounts but are not subject to U.S. GAAP utilize the International Financial Reporting Standards (IFRS), which were developed by the International Accounting Standards Board (IASB).
Both public and commercial organisations regularly use generally recognized accounting principles in the United States. The vast majority of the remainder of the world uses IFRS. Multinational organizations need to use these standards.
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which is an example of an intangible benefit? question 15 options: an online package tracking system that improves service and decreases the need for clerical staff a new scheduling system that reduces overtime a sophisticated inventory control system that cuts excess inventory a user-friendly system that improves employee job satisfaction
A user-friendly system that improves employee job satisfaction is an example of an intangible benefit.
A user-friendly system that improves employee job satisfaction is an example of an intangible benefit. Intangible benefits are those which cannot be easily measured or quantified, but which provide a benefit to an organization.
Step 1: Define intangible benefits. Intangible benefits are those that are not easily measured or quantified, but provide a benefit to an organization.
Step 2: Identify an example of an intangible benefit. A user-friendly system that improves employee job satisfaction is an example of an intangible benefit.
Step 3: Explain how the example provides a benefit. A user-friendly system improves employee job satisfaction by making it easier for employees to complete their tasks, which in turn makes them more productive, efficient, and motivated.
Step 4: Explain why the example is an intangible benefit. The benefit is intangible because it cannot be easily measured or quantified.
Step 5: Summarize the example of an intangible benefit. A user-friendly system that improves employee job satisfaction is an example of an intangible benefit, which cannot be easily measured or quantified, but provides a benefit to an organization.
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how long after your federal taxes are accepted to get refund
You are on the IRS's refund schedule as soon as your return is accepted. After your e-filing return is accepted by the IRS, refunds are normally issued in even less than 21 days.
What is an E-file?You can send the IRS your tax information immediately from your computer by using e-filing. The benefits of electronic filing include: In contrast to mailed paper returns, yours is received by the IRS practically immediately. E-filed tax returns have fewer mistakes. Your financial information does not need to be entered again by the IRS.
What follows an e - filing?It normally takes the IRS 24 to 48 hrs to certify your return when you submit electronically. You are on the IRS's refund schedule as soon as your return is accepted. After your electronically filed report is accepted by the IRS, refunds are normally issued in even less than 21 days.
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reading the newspaper this morning, you found an article that mentions a woman named simone who used to live down the street from you. simone was recently hired by the first state bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank. in which area of finance does simone work?
If Simone was recently hired by the first state bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank, Then she is working in the financial market and institution domain .
Any location or system that gives buyers and sellers the ability to trade financial assets, such as bonds, shares, the various international currencies, and derivatives, is referred to as a financial market. The connection between people with capital to invest and those who need capital is facilitated by financial markets. Financial markets enable participants to transfer risk (often through derivatives) and advance trade in addition to making it feasible to raise funds. Investors and financial institutions each have a segment of the financial market. The phrase "financial institution" refers broadly to businesses that serve as brokers, agents, and intermediates in financial transactions. Financial market transactions are subject to risk even while regulations and best practices serve as a guidance.
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An essential element of communicating with marketing employees is _____________.
a. the marketing mix
b. strategy.
c. objectives.
d. the target market.
e. training.
According to the question, training is a critical part of interacting with marketing personnel.
What does an employee do for a livelihood?A individual who works for an institution in exchange for pay or a salary is called an employee. To make the team, employees discuss conditions and formally engage into arrangements with their employers by executing tender documents or employment contracts.
What kind of person is that?What does "Employee Type" mean? Employment category refers to the many categories of workers that an organisation may employ directly or through third parties. There are several types of employees, such as comprehensive, part-time, and temporary workers, there are laws and rules that are applicable with each.
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true or false economists believe that all people except for the very very wealthy have limited resources
Answer:
False.
Explanation:
I lookee it up.
if a company initially recorded prepaid rent as an asset, which is the correct adjusting entry to record the amount of rent that has expired?
To record the amount of rent that has expired, the company would make the following adjusting entry: Debit Rent Expense and Credit Prepaid Rent.
When a company initially records prepaid rent as an asset, it is recognizing that it has paid for rent in advance and that the benefit of that rent will be received in the future. However, as time goes on, some of that prepaid rent will have expired and can no longer be considered an asset.
To correct this, the company will make an adjusting entry at the end of the accounting period to recognize the portion of the prepaid rent that has expired.
The adjusting entry will include a debit to Rent Expense, which increases the expense account and reflects the use of the rent, and a credit to Prepaid Rent, which decreases the asset account and reflects the expired portion of the prepaid rent.
This will ensure that the company's financial statements accurately reflect the rent expense for the current period and the remaining prepaid rent that will be used in future periods.
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