Answer:
c. Payback is the amount of time to recover the initial investment. No discounting occurs and all cash flows after the payback period are not accounted for. The rule is intuitive and used by small business owners
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested. The NPV does account for all cash flows as well as time value of money.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested . The IRR does account for all cash flows.
The discounted payback period discounts cash flows
Hector Aguerra is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in Saudi Arabia! He is also a very hard worker, and is willing to work a lot of hours to make the kind of money he wants. Hector should most likely look for the kind of job that is paid:_________
A. on salary with overtime.
B. by commission.
C. with a high hourly rate.
D. in a situation with team-based compensation.
Answer:
B
Explanation:
Hector is best suited to work as as a sales or advertising agent due to his high selling skills. Sales agents are usually paid in commissions. He would also be able to earn the type of money he wants by choosing the number of hours he chooses to work
Select the balance sheet category where the items given would typically
Items Balance Sheet Category
1. Cash equivalents Current assets
2. Bond investment to be held through maturity in five years Long-term investments
3. Land not currently used in operations Plant assets
4. Equipment Plant assets
5. Trademarks Intangible assets
6. Wages Payable Current liabilities
7. Bonds payable Long-term liabilities
8. Short-term note payable Current liabilities
Answer and Explanation:
The balance category is shown below:-
Current assets are those assets that are converted into cash within one year for example inventory, accounts receivable, etc.
Fixed assets are those assets that are to be considered as to be long term that is 3 years, 5 years, etc. For example land, building, machinery, etc.
1. Cash equivalents Current assets
2. Bond Investment Investment
3. Land not currently used in operations Fixed assets
4. Equipment Plant assets
5. Trade marks ( Other assets) Intangible assets
6. Wages payable Current liabilities 7. Bonds payable Long term liabilities
Short - term note payable Current liabilities
How is single loss expectancy (SLE) calculated?This task contains the radio buttons and checkboxes for options. The shortcut keys to perform this task are A to H and alt+1 to alt+9. A Annualized rate of occurrence * asset value * exposure factor B Threat + vulnerability C Asset value ($) * exposure factor D Annualized rate of occurrence * vulnerability
Answer: C.) Asset value ($) * exposure factor
Explanation: The Single Loss Expectancy is used to evaluate the loss in monetary terms that will be incurred by an organization as a result of risk on it's asset. It is expressed mathematically as :
SLE = AV * EF
Where AV refers to the value of the organization's asset.
EF, the exposure factor ranges from 0 - 1 and it measures the fractional percentage of the asset which will be lost due to risk on such asset.
It is an important aspect of risk management or assessment in an organization and steps must be taken to lower the exposure factor of assets.
Wallace Motors measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Wallace Motors tries to cover that gap by imitating the best practices of these market leaders. This is known as
Answer:
Benchmarking
Explanation:
Benchmarking is defined as the activity where a company's processes and performance is compared with industry best practices. Qualities measured usually include time, cost, and quality.
In the given scenario Wallace Motors measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. This the use of be marching.
When the companies metrics don't meet up, the company adopts the practices of the benchmark or later in your dreams
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on:
Answer:
Adverse possession.
Explanation:
In this scenario, Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on adverse possession.
In Real estate law, Adverse possession is a legal principle which allows a non-owner individual to possess a piece of land and gain title with the exclusion of the real owner, after a certain period of time.
However, the non-owner occupant must proof to the court of law meets the following requirements;
1. Continuous.
2. Hostile.
3. Open.
4. Actual.
5. Exclusive.
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes
Answer:
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
Explanation:
Note: This question is not complete as it does not include the options. The complete question is therefore presented before answering the questions follows:
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes?
A) Gain of $12,000 taxed at 15% and a loss of $20,000 deductible against ordinary income
B) Net loss of $8,000 that is fully deductible against ordinary income in the current year
C) Net loss of $8,000 that results in no deduction in the current year, but can be carried forward to offset capital gains for the next year
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
The explanation to the answer is therefore presented as follows:
The first step is to compute the net capital gain (loss) is as follows:
Particulars $
Gain from the sale of stock in ABC Corporation 10,000
Gain from the sale of stock in XYZ Corporation 2,000
Loss from the sale of corporate bonds (20,000)
Net capital gain (loss) (8,000)
In the US, individuals are allowed to use up to $3,000 to reduce their taxable income in the first year of the loss, while the remaining capital losses will be carried over to the next years.
From the net capital gain computed above, the correct option is D. That is, the $8,000 loss will be treated for tax purposes as a $3,000 deduction against ordinary income in the current year with the remaining $5,000 capital loss carried forward to offset income for next year.
Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using:______
a. LIFO will have the highest ending inventory
b. FIFO will have the highest cost of good sold
c. FIFO will have the highest ending inventory
d. LIFO will have the lowest cost of goods sold
Answer:
c. FIFO will have the highest ending inventory
Explanation:
FIFO means first in, first out. it means it is the first purchased inventory that is the first to be sold.
LIFO means last in first out. it means that it is the last purchased inventory that is the first to be sold.
If FIFO inventory method is used, the first purchased inventory is the first to be sold and price increased during the period, the beginning inventory would be lower and the ending inventory would be higher when compared to a company using LIFO
Coronado Company sells merchandise on account for $4600 to Wildhorse Company with credit terms of 2/10, n/30. Wildhorse Company returns $1000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
Answer:
$3,528
Explanation:
The computation of the amount of the check after considering the discount period is shown below:
= Sale value fo merchandise - returned goods - discount paid
= $4,600 - $1,000 - $3,600 × 2%
= $3,600 - $72
= $3,528
By applying the above formula we can get the amount of the check and the same is to be considered
hence, the amount of the check is $3,528
An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.
Answer:
buying the entire bond or stock issue a company wants to sell at an agreed discount.
Explanation:
An investment-banking firm underwrites a new issue of stocks and bonds by buying the entire bond or stock issue a company wants to sell at an agreed discount.
Underwriting can be defined as the process through which an individual or organization assumes a financial risk at an appropriate and agreed fee.
In order to underwrite a new issue of securities such as bonds or stocks, the investment-banking firm buys the entire securities that the issuer is willing to sell at an agreed discount.
Beth is the assistant store manager at a trendy clothing store. The store hires lots of seasonal employees. Beth has little regard for the skill or ability of those she hires, and she is certain that few would come to work on time each day if it weren't for the fact that the store is known to fire any employee who fails to be on time. As a student of motivational theory, you would describe the management style of Beth as
Answer:
The correct answer will be "Theory X".
Explanation:
Through Theory X, alternatives to administration may range across a hard methodology to another soft one. The hard or challenging framework is focused on intimidation, overt threats, small compared oversight as well as tighter restrictions, which are control or perhaps management system.One such approach to management believes the average employee seems to have little motivation, lacks accountability, and therefore is structured to individual objectives.So you might well characterize Beth's leadership approach as Theory X as being a graduate of motivation factors.
Refer to Scenario 15-2. Which of the following statements is most likely to be true? (i) New entrants to the market know they will have a smaller market share than PPCo currently has. (ii) PPCo is most likely experiencing rising marginal cost. (iii) PPCo is a natural monopoly. (iv) PPCo is most likely experiencing declining average total cost.
Answer: (i), (iii) and (iv)
Explanation:
PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.
As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.
Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $250000, pay interest annually on January 1, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2020? $236500 $246700 $250000 $238000
Answer:
$238000
Explanation:
The computation of the carrying value of the bond is shown below:
Given that
Face Value of Bonds = $250,000
Proceeds from issuance of bonds = $235,000
Before that we need to compute the following things
Now
Discount on Bonds Payable = Face Value of Bonds - Proceeds from issuance of bonds
= $250,000 - $235,000
= $15,000
Life of Bonds = 10 years
Now
Discount on Bonds amortized annually = Discount on Bonds Payable ÷ Life of Bonds
= $15,000 ÷ 10
= $1,500
Now
Discount amortized is
= Discount on Bonds amortized annually × expired life
= $1,500 × 2
= $3,000
Finally
Carrying Value of Bonds = Issue Price + Discount amortized
= $235,000 + $3.000
= $238,000
Suppose that Prince Puckler's Ice Cream sells 100 cones each day. It sells each cone for $3, its average variable cost is $2.50, marginal cost is $3, and the average total cost is $3.10. From this, one knows the firm:
Answer:
The firm should continue operation
Explanation:
Under the production cost theory, the comparison of price (P) and average variable cost (AVC) is used to decide whether a firm should continue operation or shut down under the following two scenarios:
Scenario 1: If P > AVC, continue operation
Scenario 2: If P < AVC, shut down.
Under scenario 1, it is better for a firm to continue operation since P is greater than AVC. This implies that the firm can fully pay for its variable cost of production and partially pay for a part of the fixed cost but not fully. As result, loss will be minimized by the firm if it continues operation.
Under scenario 2, the better decision for the firm is to shut down operation. The reason is that the firm is unable to even fully pay for its variable cost. In order to minimize cost, the firm is advised to shut down operation.
From the question, the $3 price of Prince Puckler's Ice Cream is greater than its $2.50 average variable cost. This implies that Prince Puckler falls under Scenario 1 above. Therefore, Prince Puckler should continue operation despite that the $3 prie is lower than $3.10 average total cost. This is because the variable cost will be fully covered while a part of the fixed cost will also be covered but not fully. Doing this will minimize total cost for Prince Puckler.
Therefore, one knows from the information in the question that the firm the firm should continue operation.
In the contracting process, a licensee must be careful to:__________
a. avoid giving the principal any advice about the transaction.
b. describing the normal requirements of a contract to a client.
c. drafting a contract illegally.
d. pointing out to the principals the importance of meeting contingency deadlines.
Answer:
c. drafting a contract illegally.
Explanation:
In the contracting process, a licensee must be careful to drafting a contract illegally. The licensee can be defined as an individual or group of people holding a license given to them by an authority or authorized agencies, to engage legally in an activity.
Hence, it is required by law that whatever the licensee does after the acquisition of a license must be legal and not a violation of standard rules, and policies of the state or society. Licensee are to abide by the terms and conditions of the license.
Several controls are used to safeguard inventory except a.keeping high-priced inventory behind lock and key. b.hiring security guards. c.allowing all employees access to the materials warehouse. d.installing sensors at all exits.
Answer:
Option C, allowing all employees access to the materials warehouse, is the right answer.
Explanation:
Option C is the correct answer because option C recommends allowing access to all the employees. However, allowing access to all employees will reduce security and increase the risk level. While all given options are helpful in safeguarding the inventory except option C. Thus, in this case, it would be difficult to monitor every employee. So Option C is the right answer.
To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of revolutionary change. managed change. structural change. cultural change. evolutionary change.
Answer:
evolutionary change.
Explanation:
To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of evolutionary change.
In Business management, leaders are usually saddled with the responsibility of effecting positive changes or innovative solutions, this can be achieved through the application of an evolutionary change.
Evolutionary change are usually slow and irreversible when employed in an organization. For instance, the introduction of digital platform used for taking attendance of employees in an organization.
J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity that is quoted at 107 % of face value. The issue makes semi-annual payments and has a coupon rate of 9 % annually.
A. What is the company's pretax cost of debt?
B. If the tax rate is 35 %, what is the aftertax cost of debt?
Answer:
a) 8.36%
b) 5.43%
Explanation:
to find the pretax cost of debt we must find the yield to maturity:
YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]
YTM = {45 + [(1,000 - 1,070) / 40]} / [(1,000 + 1,070) / 2] = 43.25 / 1,035 = 0.04178 x 2 = 0.08357 = 8.36%
after tax cost of debt = 8.36% x (1 - 35%) = 8.36% x 0.65 = 5.43%
A monopolistically competitive industry is characterized by a. many firms selling products that are similar but not identical. b. many firms selling identical products. c. a few firms selling products that are similar but not identical. d. a few firms selling highly different products.
Answer:
A monopolistically competitive industry is characterized by
a. many firms selling products that are similar but not identical.
Explanation:
A monopolistic competition is a form of imperfect competition with many firms operating in the industry. For such an industry, the goods or services are differentiated, such that one firm's goods or services can easily be associated with the producer. This is mostly achieved through branding and the use of trademarks. Each firm, therefore, competes with many other competitors, but they limit their competition by differentiating their products so that consumers would have preference for one against the other, depending on their perceived value.
Paul attends the London Book Fair every year to represent his company and show its products to publishers from other countries. He also meets with individual publishers to discuss distributing their books in the U.S. The London Book Fair is Group of answer choices
Answer:dhehe
Explanation:
On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, sends a written copy of the agreement to Thalia to be signed. Typically, businesspersons put their contracts in writing to
Answer: ensure proof of the contracts' existence
Explanation:
From the question, we are informed that on behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, and then sends a written copy of the agreement to Thalia which was to be signed.
The main reason why businesspersons put their contracts in writing is in order to make sure that there is a proof regarding the existence of a contract. Without duly signing a contract, it means there is no proof and this can cause a lot of havoc in the future. The signature on contracts make it legitimate.
Farmers in developing countries claim that the U.S. government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.
Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?
(A) Wheat that is not processed for consumption is often used for certain industrial applications.
(B) Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
(C) The U.S. government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
(D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
(E) The price of sorghum, a crop for which the U.S. government offers no subsidies, is lower than that of wheat.
Answer:
Correct Answer:
(D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
Explanation:
The farmers narrative on the reason on why the price of wheat on the global market is low is justified due to their reason. Unfortunately, that logic would greatly be weaken if the farmers in United States reduces their output while farmers in other countries such as Canada and Russia increases their own output due to incentives from their governments.
This action would still lead to the global price of wheat continually being low.
At December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377; beginning inventory $119,035; cost of goods sold $349,114; and sales revenue $761,865
Calculate the inventory turnover ratio for Oakley, Inc. (Round answers to 2 decimal places, e.g. 5.12.)
Inventory turnover ratio times
Answer:
143.444 days
Explanation:
For the computation of inventory turnover ratio first we need to find out the average inventory and inventory turnover which is shown below:-
Average inventory
= (Ending inventory + Beginning inventory) ÷ 2
= ($155,377 + $119,035) ÷ 2
= $137,206
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
= $349,114 ÷ $137,206
= 2.5444 times
Days in Inventory = 365 ÷ Inventory Turnover
= 365 ÷ 2.5444
= 143.444 days
Polly Corporation purchases land for $200,000. Polly incurs the following costs associated with the land acquisition: Property taxes for current year $4,000 Delinquent property taxes 8,000 Commission to broker 14,000 Cost of grading 2,000 Cost of land improvements 12,000 What is the amount that Polly should capitalize in the land account
Answer:
$224,000
Explanation:
The solution of the amount that Polly should capitalize in the land account is given below:-
Amount capitalize in the land account = Purchase of land + Delinquent property taxes + Commission to broker + Cost of grading
= $200,000 + $8,000 + $14,000 + $2,000
= $224,000
Hence, for determining the amount capitalize in the land account we simply used the above formula.
Gelb Company currently manufactures 49,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $89,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 49,000 units and buying 49,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer:
If the company buys the component, income will increase by $223,750.
Explanation:
Giving the following information:
Units= 49,000
Variable costs are $6.25 per unit
Fixed costs= $89,000 per year
The company is considering buying this component from a supplier for $3.50 per unit.
We will take into account only the differential costs.
Make:
Total cost= 49,000*6.25 + 89,000= $395,250
Buy:
Total cost= 49,000*3.5= $171,500
From the beginning, we knew that the cost of buying was cheaper than the unitary variable cost of making the part.
If the company buys the component, income will increase by $223,750.
Trident Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow
Answer: customer
Explanation:
From the question, we are informed that Trident Sports Inc. produces and then distributes athletic wear, sporting equipment, and protective sports gear worldwide and that they are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams.
This shows that the approach to departmentalization that the company follow is the customer approach. This can be seen in the way that the company is departmentalized.
Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
a) true
b) false
Answer:
True.
Explanation:
Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
In Business management, Just-in-time (JIT) is an inventory management method used by a company wherein goods, products, components, and labor are made available exactly when needed or just few hours before they are needed in the production process.
Basically, It is an inventory management system that companies use to reduce wastage to the barest minimum, thereby, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
Hence, just-in-time when used judiciously can help a company reduce the amount of working capital it needs to finance inventory management.
Flapjack Corporation had 7,824 actual direct labor hours at an actual rate of $12.03 per hour. Original production had been budgeted for 1,100 units, but only 978 units were actually produced. Labor standards were 7.1 hours per completed unit at a standard rate of $12.75 per hour. Round your answer to the nearest cent. The direct labor time variance is a.$5,625.46 unfavorable b.$5,625.46 favorable c.$11,222.55 unfavorable d.$11,222.55 favorable
Answer:
$11,220 Unfavorable
Explanation:
As we know that:
Labor Time Variance = Standard rate per hour * (Standard time for actual output - Actual time worked)
Here,
Standard rate per hour= 12.75$
Standard time for actual units = 978 units * 7.1 hour per unit = 6,944 Hours
Actual hours worked are 7,824 hours
By putting the above values, we have:
Labour time variance = $12.75 * (6,944 - 7,824) = $11,220 Unfavorable
The Beach Shack Company produced 5,500 cakes that require 3 standard pounds per unit at $3. 00 standard price per pound. The company actually used 16,650 pounds in production. Journalize the entry to record the standard direct materials used in production.
Answer:
Explanation:
Standard pounds per cake = 3 pounds
Standard unit price = $3
Standard pounds 5500 cakes = 16,500 pounds
Actual pounds per 5500 cakes = 16,650
Variance = (16,650 - 16,500)=150
Cost of actual materials used = actual materials * standard price
=16,650*3 =49,950
Cost of work in progress = Standard materials * standard price = 16,500*3= 49.500
Direct material quantity variance = Quantity variance * 3
150*3 = 450
Journal entry
Debit work in progress = 49,500
Debit material quantity variance = 450
Credit Material = 49,950
____________ tend to focus on the logical soundness and preciseness of ideas, rather than the ideas’ practical values; they tend to work in research and planning units.
A. Convergers
B. Divergers
C. Assimilators
D. Accomodators
Answer:Assimilitors
Explanation:
The assimilators are the individuals who depend on the reflective observation and conceptualization on abstracts.
These are the set of individuals who seems to more concerned about the abstract ideas and concepts rather than concerned about about other people. The assimilators also focus on how precise and logically sound an idea is, rather than focusing on the practical values of the ideas. .
Who is most likely to have claimed that "As the client becomes more self-aware, more self-acceptant, less defensive and more open, she finds at last some of the freedom to grow and change in directions natural to the human organism.?"
Answer:
- Carl Rogers
Explanation:
Carl Rogers, the American psychologist, proposed his humanistic approach often known as the 'client-centered approach' to understand psychology. He put the individuals at the center in the continuously evolving world of experience. He claimed that 'as the client evaluate and actualize their behavior due to interaction with others, they become more self-aware as well as more self-acceptant, and perceive other people as distinct and separate individuals. They also become less protective, and more agape.' This allows them to have the liberty to grow and advance their present value system.