The correct answer is c) low; medium.
By parking her cash in a savings account at her bank, your sister is assuming low liquidity risk because she can easily access her funds whenever she needs them. However, she will only see medium returns on her investment because savings accounts typically have low-interest rates, which means she won't earn much interest on her money.
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an example of is when employees are replaced by technology to produce a product more cheaply.
A common example of employees being replaced by technology to produce a product more cheaply is in manufacturing.
For instance, in the automotive industry, robots have been increasingly used to perform tasks that were once done by human workers. This allows for faster and more efficient production, ultimately resulting in cost savings for the company.
While some jobs are eliminated in this process, it also opens up opportunities for individuals to work in the development, programming, and maintenance of the technology. It is important for companies to consider the ethical implications of such changes and ensure that their employees are supported through the transition.
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1. You and your colleague, Michael, are debating how to best handle a large expenditure on a piece of machinery as a capital budgeting decision. Michael says that his accounting background suggests that because the benefits of this large piece of machinery will be realized over the project's ten-year life, so should its costs. Discuss why you disagree or disagree with Michael.
2. What are some potential problems in using internal rate of return (IRR) for mutually exclusive projects?
3. Should financing costs be included as an incremental cash flow in capital budgeting analysis? Please explain
I disagree with Michael's accounting approach to spreading the costs of the machinery over the ten-year life of the project. In capital budgeting, it is essential to consider the time value of money, which suggests that money today is worth more than money tomorrow.
Therefore, the cost of the machinery should be accounted for upfront in the present value calculation of the project's cash flows. Additionally, spreading the costs over ten years fails to consider the opportunity cost of not using the money elsewhere. Finally, the approach fails to account for the possibility that the machinery may become obsolete or require replacement before the ten-year period is up.
The IRR assumes that cash flows are reinvested at the same rate as the project's return, which may not be realistic. For mutually exclusive projects, where only one project can be accepted, the IRR can lead to misleading results, as it does not account for differences in project size or timing. For example, a smaller project with a higher IRR may be chosen over a larger project with a lower IRR, even if the latter has a higher net present value.
Financing costs should be included as an incremental cash flow in capital budgeting analysis, as they represent an additional cost incurred in obtaining the necessary capital to finance the project. These costs can include interest expenses on loans, issuance costs on bonds or stocks, and fees paid to financial intermediaries. Failing to account for financing costs in the analysis can lead to an overestimation of the project's profitability and can result in incorrect investment decisions.
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what is the main difference between a perfectly competitive industry and a monopolistically competitive firm?
In a perfectly competitive industry, there are many small firms producing homogenous products with no market power, whereas in a monopolistically competitive firm, there are many firms producing differentiated products with some market power.
Perfect competition is a theoretical market structure where there are many small firms producing homogenous products, and they have no market power to influence prices. All firms are price takers, meaning they have to accept the prevailing market price.
On the other hand, monopolistic competition is a market structure where there are many firms producing differentiated products, and they have some market power to influence prices. Each firm's product is slightly different, and as a result, they face a downward-sloping demand curve.
This allows them to charge a slightly higher price than their competitors. However, they still face competition, and their ability to set prices is limited by the availability of substitutes.
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which of the following defines an acceptable use agreement? answer an agreement that identifies the employees' rights to use company property, such as internet access and computer equipment, for personal use. a legal contract between the organization and the employee that specifies that the employee is not to disclose the organization's confidential information. an agreement that outlines the organization's monitoring activities. an agreement that prohibits an employee from working for a competing organization for a specified time after the employee leaves the organization.
An acceptable use agreement is a document that outlines the acceptable and prohibited uses of company resources such as internet access and computer equipment. It typically includes guidelines for employees on how they can use these resources for business purposes and any restrictions on personal use.
It may also outline consequences for violating the agreement. Therefore, the correct answer to the question would be the first option - an agreement that identifies the employees' rights to use company property, such as internet access and computer equipment, for personal use.
An acceptable use agreement is defined as an agreement that identifies the employees' rights to use company property, such as internet access and computer equipment, for personal use. This agreement helps to ensure that employees use company resources responsibly and ethically while protecting the organization's interests.
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Page < > of 2 Details Of Uber Harassment Settlement Released August 22, 20182:52 PM ET MERRIT KENNEDY Five months after Uber reached a settlement agreement in a class-action lawsuit filed by women and people of color who worked there as engineers, new details are emerging about the terms of the deal. The plaintiffs, both current and former employees, say they were subjected to harassment and discrimination at Uber. It's the latest development for a company that has come under fire for its workplace culture in recent years. Uber has seen the firing of at least 20 employees over sexual harassment allegations and the departure of its CEO. The details of the $10 million settlement have not yet received final approval from a federal judge - a session scheduled for Nov. 6. The deal was announced in March and granted preliminary approval by a judge in April, according to a court filing from the settlement administrator. Fifty-six people are set to receive an average payout of nearly $34,000 because they filed specific claims of "incidents of discrimination, harassment, and/or hostile work environment and connecting their experiences to their race, national origin or gender," court documents state. The amount will be determined using a scoring process, which takes into account the nature of the reported harassment, whom the offender is, whether there was a witness or other documentation and the impact of the harassment on the victim. A larger group of 483 people will be paid an average of nearly $11,000 because of other discrimination claims, according to the documents. The original lawsuit was filed by two Latina engineers, Roxana del Toro Lopez and Ana Medina, who say they were systematically discriminated against because of their gender and ethnic background. Court filings say 487 class members were contacted about participating in the case. Nobody objected, and two opted out. The terms of the deal were reported Tuesday by Bloomberg "We agree with the plaintiff's motion which states that 'the class has responded extremely favorably to the settlement' with amounts that are 'fair, reasonable, and adequate,'" Uber said in a statement to NPR. Uber has stressed that it is working to change. The company says it is taking actions on the issues highlighted by this lawsuit, including putting in place a new salary and equity structure and changing the performance review process. "Moving forward, it's time to move in a new direction," CEO Dara Khosrowshahi said in a recent TV commercial. "This begins with new leadership and a new culture.... One of our core values as a company is to always to the right thing. And if there are times when we fall short, we commit to being open, taking responsibility for the problem and fixing it." Last year, the company conducted an investigation into more than 200 complaints of sexual harassment and workplace misconduct, as NPR's Yuki Noguchi reported. The 20 employees it fired included senior executives. That investigation received attention, Noguchi said, "in part because Silicon Valley already has a reputation for attracting and catering to male tech talent, but not to women. So, in a way, Uber is a test case for how serious the tech industry is about fixing its gender-diversity problems." Months before the investigation concluded, a former Uber engineer named Susan Fowler published a blog post saying her new manager had propositioned her for sex the day she joined his team. When she went to report the situation to human resources, she we chectold that they would fol.comfortableciwn him and hing.other than
In August 2018, new details emerged about a $10 million settlement reached by Uber in a class-action lawsuit filed by women and people of color who worked as engineers at the company.
The settlement, which has yet to receive final approval from a federal judge, includes payments to 56 people who filed specific claims of discrimination, harassment, and/or hostile work environment and connecting their experiences to their race, national origin, or gender, and to a larger group of 483 people who filed other discrimination claims. The settlement is the latest development in a string of controversies around Uber's workplace culture, including the firing of at least 20 employees over sexual harassment allegations and the departure of its CEO. Uber has stated that it is committed to changing its culture and taking action on the issues highlighted by this lawsuit.
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consider a project with an initial investment and positive future cash flows. as the discount rate is decreased:
When the discount rate is decreased, the present value of a project with an initial investment and positive future cash flows increases, making the project appear more financially attractive.
When considering a project with an initial investment and positive future cash flows, as the discount rate is decreased, the present value of the future cash flows increases. To explain this, let's break down the question step by step:
1. Initial investment: This refers to the amount of money invested at the beginning of the project. It is usually a negative cash flow since it represents an expenditure.
2. Positive future cash flows: These are the revenues or returns that the project is expected to generate over time. They are usually positive values as they represent incoming cash.
3. Discount rate: This is the interest rate used to determine the present value of future cash flows. A higher discount rate indicates a higher perceived risk associated with the project and vice versa.
4. Present value: This is the value of the future cash flows discounted back to the present time. It is calculated using the following formula:
PV = CF / (1 + r)ⁿ
where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods.
Now, as the discount rate (r) is decreased, the denominator in the formula (1 + r)ⁿ becomes smaller.
This causes the overall present value (PV) to increase, meaning that the project appears more valuable or attractive from a financial standpoint. Lowering the discount rate makes future cash flows more valuable in today's terms, as it assumes less risk and a smaller time value of money.
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Line item-based systems requires you to create a different permutation for every bidding scenario, which limits the amount of time you can spend on optimizing.
Yes, that's correct. Line item-based systems can be very time-consuming and require a lot of effort to set up.
Line item-based systems require you to create a different permutation for every bidding scenario, which can be time-consuming and complex. This process ultimately limits the amount of time you can spend on optimizing your bids and strategizing for better results. In other words, the more permutations and combinations you have to manage, the less time you can allocate to analyzing performance data and making informed decisions to improve your bidding strategy. Because each bidding scenario is different, you have to create a unique permutation for each one, which can limit the amount of time you have to spend on optimizing. This can be a real challenge, especially if you're working with a large amount of content. However, there are strategies you can use to help streamline the process and make it more efficient, such as using automation tools or working with a team to divide up the workload. Ultimately, it's important to find a balance between creating effective permutations and optimizing your time and resources.
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compared to , an oligopoly will charge a price and produce less output. please choose the correct answer from the following choices, and then select the submit answer button. answer choices a monopoly; higher perfect competition; lower perfect competition; higher a monopolistic competitor; lower
Compared to lower perfect competition, an oligopoly will charge a higher price and produce less output.
In a perfect competition market structure, there are many small firms, and they all compete with each other for the same customers. Because there is so much competition, each firm has very little power to influence the price of the product, and they must produce at the lowest possible cost to remain profitable.
This means that in a perfect competition market structure, firms will charge a lower price and produce more output.
On the other hand, in an oligopoly market structure, there are only a few large firms, and they have significant market power. Because of this market power, they can charge a higher price and produce less output while still remaining profitable.
The reason for this is that in an oligopoly market structure, the firms can collude and work together to set prices and output levels, which is not possible in a perfect competition market structure.
Overall, the main difference between perfect competition and oligopoly is the level of market power that each firm has. In a perfect competition market structure, there is no market power, and firms must compete on price and quality. In an oligopoly market structure, there is significant market power, and firms can collude and work together to set prices and output levels.
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Bridge City Consulting bought a building and the land on which it is located for $180,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use.
Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year.
Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $10,000 estimated residual value.
At the end of one year, the straight-line depreciation on the building would be $5,400.
Let's first break down the purchase and renovation costs:
1. Bridge City Consulting bought the building and land for $180,000, with the land representing 70% of the purchase price. To find the cost of the land, we can calculate 70% of $180,000:
$180,000 * 0.7 = $126,000 (cost of land)
2. The remaining 30% of the purchase price is for the building:
$180,000 * 0.3 = $54,000 (cost of building)
3. The company paid $10,000 for building renovations before it was ready for use.
Now, let's prepare the journal entry for these expenditures:
Date Account Title Debit Credit
01/01 Land $126,000
01/01 Building $54,000
01/01 Building Improvements $10,000
01/01 Cash $180,000
01/01 Cash $10,000
Lastly, let's calculate the straight-line depreciation on the building:
1. Add the cost of the building and renovations: $54,000 + $10,000 = $64,000 (total building cost)
2. Subtract the estimated residual value: $64,000 - $10,000 = $54,000 (depreciable amount)
3. Divide the depreciable amount by the estimated 10-year useful life: $54,000 ÷ 10 = $5,400
At the end of one year, the straight-line depreciation on the building would be $5,400.
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d. economies of scale i. explain economies of scale, constant returns to scale, and dis-economies of scale. ii. explain how understanding each of these concepts might help a business manager improve their decision-making.
Economies of scale refer to the cost advantages a company enjoys when it produces more of a product. As output increases, the cost per unit decreases due to factors such as improved efficiency, better utilization of resources, and spreading fixed costs over a larger volume of production.
Constant returns to scale occur when increasing output results in proportional increases in costs, and dis-economies of scale refer to the point where increasing output results in higher per-unit costs due to factors such as managerial inefficiencies or capacity constraints.
Understanding each of these concepts can help a business manager make better decisions about production volumes, pricing strategies, and capital investments. By identifying the most efficient scale of production, managers can minimize costs and maximize profitability.
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true/false. simply having a good idea will not be enough to convince investors to risk their capital. a small business owner must also be able to show that he/she is a competent manager with previous business success.
True. While having a good idea is important, investors are looking for more than just an idea. They want to see that the person behind the idea is capable of managing a business and has a track record of success in previous ventures.
This is especially important when it comes to risking their own capital. Therefore, a small business owner must not only have a great idea but must also be able to show that they have the skills and experience to successfully manage a business.
simply having a good idea is not enough to convince investors to risk their capital. A small business owner must also demonstrate their competence as a manager with a track record of previous business success. Investors seek assurance that their investment will yield returns, which depends on the owner's ability to effectively manage the business and execute the idea. Presenting a solid business plan, financial projections, and showcasing relevant experience are essential components to convince investors of the potential success of the business.
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shein's is a fast-fashion e-commerce company that was founded in 2008 by chris xu. the company is based in china and has become one of the largest online fashion retailers in the world, with a presence in over 220 countries and regions. the company's initial focus was on selling women's clothing,
Shein is a Chinese-based e-commerce company that sells fast-fashion clothing and accessories worldwide.
Founded in 2008 by Chris Xu, Shein has grown rapidly in popularity due to its affordable prices, trendy styles, and ability to quickly adapt to new fashion trends.
While the company initially focused on women's clothing, it has since expanded to include men's and children's clothing, as well as accessories and home goods.
Shein's success can be attributed to its effective use of social media marketing and influencer collaborations, as well as its fast and efficient supply chain and logistics operations.
Despite some controversies over the years regarding labor practices and intellectual property infringement, Shein continues to be a major player in the fast-fashion industry.
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knowledge check 01 companies are allowed to depart from the requirement that a change in accounting principle be reported retrospectively when: (select all that apply.) check all that apply disclosure is made of the impact of the choice not to apply the change to the amounts reported in the financial statements. disclosure is made of the impact of the choice not to apply the change to the amounts reported in the financial statements. it is impracticable to determine some period-specific effects. it is impracticable to determine some period-specific effects. it is impracticable to determine the cumulative effect of prior years. it is impracticable to determine the cumulative effect of prior years. the prospective approach is mandated by authoritative accounting literature. the prospective approach is mandated by authoritative accounting literature.
The allowed departures from the requirement that a change in accounting principle be reported retrospectively are:
disclosure is made of the impact of the choice not to apply the change to the amounts reported in the financial statements, it is impracticable to determine some period-specific effects, and the prospective approach is mandated by authoritative accounting literature.
According to Generally Accepted Accounting Principles (GAAP), a change in accounting principle should be reported retrospectively by adjusting prior period financial statements.
However, there are situations where this is not practical or required. For example, if it is impracticable to determine the cumulative effect of prior years, or if authoritative accounting literature mandates a prospective approach.
In these cases, companies are allowed to depart from the requirement and report the change in accounting principle using a prospective approach while disclosing the impact of the choice not to apply the change retrospectively.
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Please give me answer
Apple's original decision not to enable Adobe Flash with their products is likely related most to which product quality dimension? Select one: O A. perceived quality O B. Serviceability O C. performan
Apple's original decision not to enable Adobe Flash with their products is likely related most to the product quality dimension of performance (option c).
Apple's decision was based on the performance concerns related to Adobe Flash. Flash was known for being a resource-intensive technology that could slow down devices and cause them to crash. Apple wanted to provide the best performance possible for their users and saw Flash as a potential obstacle to achieving that goal. As a result, they decided not to support Flash on their devices.
Performance is an important product quality dimension because it affects how well a product meets the needs of its users. Products that perform well are more likely to be perceived as high quality by users. In the case of Apple, their decision to prioritize performance over Flash support helped them to maintain their reputation for producing high-performance devices that provide a smooth user experience.
Option c is answer.
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define nominal exchange rate. define nominal exchange rate. the price of domestic goods relative to foreign goods. the reciprocal of the real exchange rate. the rate at which two currencies can be exchanged for each other in the market. the real exchange rate times the price level.
Nominal exchange rate: The rate at which one currency can be exchanged for another currency in the foreign exchange market.
It represents the value of one currency in terms of another currency, without taking into account the relative price levels or inflation rates between the two countries.
Real exchange rate: The rate at which the goods and services of one country can be exchanged for the goods and services of another country, after adjusting for differences in price levels between the two countries. It represents the purchasing power of one currency relative to another currency.
So, the options presented in the question would be:
The price of domestic goods relative to foreign goods: This definition does not match the nominal exchange rate, but rather refers to the terms of trade or relative price levels between two countries.
The reciprocal of the real exchange rate: This is not the definition of the nominal exchange rate, but rather the definition of the real exchange rate in terms of the reciprocal of its value.
The rate at which two currencies can be exchanged for each other in the market: This is the correct definition of the nominal exchange rate, as stated above.
The real exchange rate times the price level: This is not the definition of the nominal exchange rate, but rather the formula for calculating the nominal exchange rate using the real exchange rate and the price levels of the two countries.
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Morgan, inc. uses a perpetual inventory system and the net method of recording purchases. on may 12, a merchandise purchase of $17,800 was made on credit, 3/10, n/30. the journal entry to record this purchase is: ____________ account title debit credit accounts payable 17,800 merchandise inventory 17,800 account title debit credit purchases 17,800 accounts payable 17,800 account title debit credit purchases 17,266 accounts payable 17,266 account title debit credit merchandise inventory 17,266 accounts payable 17,266 account title debit credit merchandise inventory 17,800 accounts payable 17,800
Since Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases, the cost of merchandise purchased on credit is recorded directly in the Merchandise Inventory account. The credit portion of the transaction is recorded in the Accounts Payable account.
For the merchandise purchase made on May 12, the correct journal entry would be:
Account Title: Merchandise Inventory (Debit) - $17,266
Account Title: Accounts Payable (Credit) - $17,266
This is because the net method records the purchase at the discounted price, and the discount is calculated as follows:
Purchase amount: $17,800
Discount percentage: 3% (3/10)
Discount amount: $17,800 * 0.03 = $534
Net purchase amount: $17,800 - $534 = $17,266
So, the journal entry should record the merchandise inventory at the net purchase amount and the accounts payable at the same value.
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The following information relates to current production of bench seats for boats at Aquamarine Manufacturing:
Variable manufacturing costs per unit $102
Total fixed manufacturing costs $525,000
Variable marketing and administrative costs per unit $30
Total fixed marketing and administrative costs
$250,000
The regular selling price per bench seat is $200. The company has the capacity to produce 15,000 bench seats per year, but is currently producing and selling 10,000
bench seats per year.
Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,500 bench seats at a price of $155 per unit. Fixed costs would increase by
$10,000. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?
OA Decrease by $57,500
OB. Increase by $47,500
OC. Increase by $57,500
OD. Decrease by $47,500
The operating income would be affected by option B. Increase by $47,500.
To determine how the operating income would be affected by the special sales order, we will first calculate the additional contribution margin per unit for the special order and then determine the net impact on operating income.
Step 1: Calculate the contribution margin per unit for the special order.
Contribution margin per unit = Selling price per unit - Variable costs per unit
Special order contribution margin per unit = $155 (special selling price) - ($102 variable manufacturing costs + $30 variable marketing and administrative costs) = $155 - $132 = $23
Step 2: Calculate the total additional contribution margin for the special order.
Total additional contribution margin = 2,500 bench seats (special order) * $23 contribution margin per unit = $57,500
Step 3: Calculate the net impact on operating income.
Net impact on operating income = Total additional contribution margin - Increase in fixed costs = $57,500 - $10,000 = $47,500
Therefore, if the company were to accept this special order, the operating income would increase by $47,500 (Option B).
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T/F A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the interrelationships among functional areas and firm strategies
The given statement "A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the interrelationships among functional areas and firm strategies" is true because in order for a company to be successful, there must be communication and collaboration among different departments to ensure that the promises made to customers can be fulfilled.
A lack of understanding among functional areas can lead to inconsistencies in the company's strategy and negatively impact the customer experience. It is important for companies to establish clear communication channels and set realistic expectations to ensure all departments are working together towards common goals.
In a well-functioning organization, all departments should work together and align their strategies to ensure a cohesive approach to meeting customer expectations, maintaining operational efficiency, and achieving overall business objectives. Understanding these interrelationships is crucial for the success and growth of the company.
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the market condition in which firms do not face incentives to enter or exit the market and firms earn a normal profit is known as -run equilibrium. (remember enter only one word in the blank.)
The market condition in which firms do not face incentives to enter or exit the market and firms earn a normal profit is known as long-run equilibrium.
In long-run equilibrium, the market reaches a state where firms neither have incentives to enter nor exit the market. This occurs because firms are earning a normal profit, meaning their revenues are equal to their opportunity costs.
Since there are no excess profits or losses, new firms do not have incentives to enter the market, and existing firms do not have reasons to exit. This equilibrium results in an optimal allocation of resources, as firms produce at the minimum average total cost.
Additionally, long-run equilibrium reflects the perfect competition assumption, where firms are price takers and have no control over market prices. In this scenario, supply and demand determine the market price, ensuring that both consumers and producers are satisfied.
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T/F For large or complex projects, it may be difficult for one individual to determine all the work elements to include in the work breakdown structure.
The statement "For large or complex projects, it may be challenging for one individual to determine all the work elements to include in the work breakdown structure." is true.
This is because such projects typically involve various stakeholders, departments, and processes that require a collaborative effort to identify and break down the work into manageable components.
Moreover, the complexity of the project may require specialized knowledge or expertise that one individual may not possess, necessitating the involvement of different experts to ensure that all the work elements are captured accurately.
Therefore, it is advisable to engage a team of experts who can collaborate to develop a comprehensive work breakdown structure that captures all the necessary work elements and activities required for the successful execution of the project.
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What is the typical sequence of accounting for sales made on account using the allowance method?
The typical sequence of accounting for sales made on account using the allowance method involves several steps. These steps are necessary to ensure an accurate recording of revenue and to reflect the possibility of bad debts in the financial statements.
1. Record the sale transaction: Sales are recorded as accounts receivable, and the revenue is recognized in the income statement.
2. Estimate the uncollectible accounts: The company estimates the number of uncollectible accounts, usually based on past experience or industry averages.
3. Create the allowance for doubtful accounts: An adjusting entry is made to create or adjust the allowance for doubtful accounts, which is a contra-asset account that offsets accounts receivable.
4. Write off the uncollectible accounts: When it becomes evident that a specific account will not be collected, it is written off against the allowance for doubtful accounts.
5. Recover the previously written-off accounts (if applicable): If a previously written-off account is later collected, a reversing entry is made to reinstate the account, and the cash collection is recorded.
Overall, the allowance method ensures that the financial statements reflect a realistic estimate of the company's ability to collect its accounts receivable while still recognizing revenue when the sale is made.
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one of the popular methods of providing authentication, authorization, and accounting in this chapter is
One popular method of providing authentication, authorization, and accounting (AAA) discussed in this chapter is the use of RADIUS (Remote Authentication Dial-In User Service) protocol.
RADIUS is a widely-implemented networking protocol that manages access to network resources by centralizing user credentials, permissions, and accounting information.
The AAA process begins with authentication, which confirms a user's identity by verifying their credentials, such as a username and password. RADIUS stores this information in a central database, enabling secure access control across multiple devices.
Next is authorization, which determines the level of access a user has to specific network resources. RADIUS enables administrators to define policies that grant or restrict access based on the user's role or group membership. This helps maintain security by limiting user access to only the necessary resources.
Finally, accounting tracks and records user activity on the network, such as login and logout times, bandwidth usage, and other relevant information. This data is essential for monitoring network performance, billing, and auditing purposes. RADIUS can store this information centrally, allowing for easier management and analysis.
In summary, RADIUS is a popular method for providing AAA by centralizing and streamlining the management of authentication, authorization, and accounting in a network environment. This approach enhances security, simplifies administration, and enables more efficient resource allocation.
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Fill in the blank. Candace is the only manager in her company with a friend who works for the firm's main competitor. Because this friend tells Candace things that others do not know about their business rival, it gives her ______ power.
Candace is the only manager in her company with a friend who works for the firm's main competitor.
Because this friend tells Candace things that others do not know about their business rival, it gives her informational power.
In economics and business, a firm is an organization that produces goods or services with the aim of making a profit. It is also referred to as a company or enterprise.
Firms can be of various sizes and types, ranging from small businesses to large multinational corporations. They can be owned by individuals, partnerships, or publicly traded companies.
Firms are characterized by their production process, the goods and services they produce, and the markets they serve. They often have a specific legal structure that defines their ownership, management, and operational structure.
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T/F enterprise resource planning (erp) systems are data management systems that are used exclusively to determine efficient transportation routes.
The statement given "enterprise resource planning (erp) systems are data management systems that are used exclusively to determine efficient transportation routes." is false because ERP systems are not used exclusively for transportation route determination, but for managing and integrating business processes and data across various functional areas of an organization.
Enterprise resource planning (ERP) systems are not used exclusively to determine efficient transportation routes. ERP systems are integrated software applications that manage business processes and provide a centralized database for the organization's data. They are used for various purposes, such as managing financial information, supply chain and inventory management, customer relationship management, and human resources. While ERP systems can provide some functionality related to transportation and logistics management, their scope is much broader than that.
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T/Fa bargaining zone is the time period during which a third party is used to reach agreement on union disputes.
The statement " A bargaining zone is the time period during which a third party is used to reach agreement on union disputes." is false. A bargaining zone refers to the range of possible agreements that both parties in a negotiation are willing to accept before resorting to a less desirable alternative.
It is the overlap between the seller's and buyer's reservation prices - the highest or lowest price that each party is willing to pay or accept.In the context of union disputes, a bargaining zone can refer to the range of proposals and counter-proposals that are exchanged between the union and the employer during collective bargaining negotiations. The goal of the negotiations is to reach an agreement that falls within the bargaining zone and is acceptable to both parties.
A third party may be used in union disputes to facilitate negotiations, but the bargaining zone itself refers to the range of acceptable outcomes and is not tied to a specific time period.
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a firm maximizes its profits when responses a price equals marginal revenue.price equals marginal revenue. b price equals marginal cost.price equals marginal cost. c total revenue equals total cost.total revenue equals total cost. d marginal cost equals total cost.
A firm maximizes its profits when the price equals the marginal cost. The correct answer is B.
Marginal cost is the additional cost incurred by producing one more unit of a good or service. Marginal revenue, on the other hand, is the additional revenue earned by selling one more unit of a good or service.
When a firm sets its price equal to its marginal cost, it ensures that it is not losing money on each unit produced and sold.
At the same time, it is also maximizing its profits by producing and selling the quantity of goods that generates the highest possible revenue.
This is because any additional unit sold beyond this point would cost more to produce than the revenue it would generate, resulting in lower profits.
Conversely, if a firm sets its price above the marginal cost, it may earn a higher profit per unit sold, but it may not sell as many units, resulting in lower overall revenue and profits.
On the other hand, if a firm sets its price below the marginal cost, it may sell more units, but it will not be covering all its costs, leading to a loss.
Hence, B is the right answer.
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Vertical merger occurs when:__________
a) two firms merge where one had sold its output to the other as an input
b) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve.
c) two firms merge where each is about the same size.
d) two firms producing a similar product merge.
In a vertical merger, a company may acquire another company that is either its supplier or its customer, resulting in a more streamlined supply chain and cost-saving synergies. This can improve efficiency, increase control over the production process, and potentially reduce costs.
Vertical merger occurs when two firms that operate at different levels of the supply chain merge. For example, a company that produces raw materials may merge with a company that uses those materials to create finished products. This type of merger allows for better integration and coordination between the different stages of production, resulting in improved efficiency and cost savings. In contrast, a horizontal merger occurs when two firms that produce similar products merge, often leading to increased market power and potential antitrust concerns.
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which of the following is not an operating activity? group of answer choices cash collections from credit customers cash payments for operating expenses cash receipts for interest earned cash payments for dividends to stockholders
Cash payments for dividends to stockholders are not an operating activity. Operating activities refer to the day-to-day business operations that generate revenue and expenses.
Examples of operating activities include cash collections from credit customers, cash payments for operating expenses, and cash receipts for interest earned.
Dividends to stockholders, on the other hand, are not considered operating activities because they are a distribution of profits to investors.
Dividends are typically paid out of the company's retained earnings and are not directly related to the company's day-to-day operations. Instead, they are a way to reward shareholders for investing in the company.
While dividends are an important consideration for investors, they do not directly affect the company's ability to generate revenue or control expenses.
Therefore, they are classified as a financing activity in the cash flow statement, which tracks how cash moves in and out of the company.
In summary, cash payments for dividends to stockholders are not an operating activity, but a financing activity, because they represent a distribution of profits to investors and are not directly related to the company's day-to-day business operations.
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6 Exercise 10-9 (Algo) Find missing amounts for retained earnings (LO10-5) 0.2 points Consider each of the following independent situations: Required: For each situation, calculate the missing amount. Beginning
Retained
Earnings
a.$ 363,000
b.$ 555,000
c.$ 298,000
d.$ Net Income for the Year
a.$ 128,000 b.$ 244,000
c.$ d.$ 175,000 divindends for the year
a.$ 23,000
b.$
c.$ 52,000
d.$ 35,000
Ending
Retained
Earnings
a.$
b.$ 700,000
c.$ 321,000
d.$ 426,000
The missing amounts are Ending Retained Earnings: $468,000, Dividends: $99,000, Net Income: $75,000 and Beginning Retained Earnings: $286,000.
The formula to find the missing amounts is:
Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Situation a:
Ending Retained Earnings = $363,000 (Beginning Retained Earnings) + $128,000 (Net Income) - $23,000 (Dividends)
Ending Retained Earnings = $468,000
Situation b:
$700,000 (Ending Retained Earnings) = $555,000 (Beginning Retained Earnings) + $244,000 (Net Income) - Dividends
Dividends = $555,000 + $244,000 - $700,000
Dividends = $99,000
Situation c:
$321,000 (Ending Retained Earnings) = $298,000 (Beginning Retained Earnings) + Net Income - $52,000 (Dividends)
Net Income = $321,000 - $298,000 + $52,000
Net Income = $75,000
Situation d:
$426,000 (Ending Retained Earnings) = Beginning Retained Earnings + $175,000 (Net Income) - $35,000 (Dividends)
Beginning Retained Earnings = $426,000 - $175,000 + $35,000
Beginning Retained Earnings = $286,000
So the missing amounts are:
a. Ending Retained Earnings: $468,000
b. Dividends: $99,000
c. Net Income: $75,000
d. Beginning Retained Earnings: $286,000
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lannister manufacturing has a target debt-equity ratio of 0.63. its cost of equity is 19 percent, and its cost of debt is 11 percent. if the tax rate is 31 percent, what is the company's wacc?
The company's WACC is 11.70%.
To calculate the WACC (Weighted Average Cost of Capital) of Lannister Manufacturing, we need to use the following formula:
WACC = E/V × Re + D/V × Rd × (1 - T)
where:
E/V = the proportion of the company's financing that comes from equity
D/V = the proportion of the company's financing that comes from debt
Re = the cost of equity
Rd = the cost of debt
T = the corporate tax rate
Given:
Target debt-equity ratio = 0.63
Cost of equity (Re) = 19%
Cost of debt (Rd) = 11%
Tax rate (T) = 31%
First, we need to calculate the proportion of equity and debt in the company's financing structure. We can use the target debt-equity ratio to find these values:
D/V = 0.63/(1+0.63) = 0.3855
E/V = 1 - D/V = 1 - 0.3855 = 0.6145
Next, we can substitute the values into the WACC formula and solve:
WACC = 0.6145 × 0.19 + 0.3855 × 0.11 × (1 - 0.31)
= 0.1169665 = 11.70%
Therefore, the company's WACC is 11.70%.
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