Answer:
d. Net realizable value approach.
Explanation:
An impairment usually arises when a company's asset (either intangible or fixed asset) overall future cash-flow ability (fair value) is lesser than its carrying value. This impairment of assets may be as a result of varying consumer demands, recession, damages, inflation or even a change in legal conditions.
For a long-lived asset, if its carrying value exceeds its fair value and isn't really recoverable, there's an impairment loss on the asset.
In the event that, a company performing its long-lived asset impairment testing is reviewing the fair value of equipment. Each of the following valuation techniques may be appropriate for measuring the fair value of the equipment;
1. Market approach: this measures and analyzes whether there's a decline in the market price of the asset.
2. Income approach: this determines if there were any operating or cash-flow losses on the asset.
3. Cost approach: this is an approach used to determine the level of cost associated with purchasing, maintaining and fabricating the asset.
Assume you are holding a business meeting with five people, each from a different continent (North America, South America, Europe, Africa and Asia), you being one of them. Which steps would you take to ensure that everyone is comfortable and that communication is good between everyone?
Explanation:
Holding a meeting with people from different cultures can be a big challenge, so it is necessary to organize the meeting to ensure that the different approaches and needs of each person are taken into account by the leader who will conduct the business meeting.
It is necessary to think of ideas, decisions and conduct that make all participants comfortable and are not a factor that interferes with the positive flow of the meeting. It is therefore important to develop cultural intelligence, which is an essential skill for leaders of large companies who wish to operate in the globalized market.
Cultural intelligence can be defined as the ability of a person to relate and work between different cultures, adapting and increasingly developing that intelligence (cultural quotient) in motivational, behavioral and metacognitive aspects. Through cultural intelligence it is possible for the individual to get involved efficiently in any environment, in business it is an essential skill for survival in the global market.
Which of the following generate the type of externality described? Check all that apply. Your roommate, Kate, has bought a puppy that barks all day while you are trying to study economics. A leading software company has decided to increase its research budget for inventing new open-source technologies. Clancy has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the autumn foliage season. The local airport has doubled the number of runways, causing additional noise pollution for the surrounding residents.
Answer:
A negative externality is a cost that a third party incurs from someone else's economic activity. When the third party experiences a beneficial effect, it is called a positive externality.
Requires the government to impose a tax.
EX:
Your roommate, Dmitri, has bought a bird that keeps you up at night with its chirping.
The local airport has doubled the number of runways, causing additional noise pollution for the surrounding residents.
Explanation:
Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a firm's performance over time.
a. True
b. False
Answer:
The answer is true.
Explanation:
It is true. Trend analysis can be used to examine changes in a firm's performance over time.
Trend analysis is a method adopted in technical analysis which tends to predict the future stock price movements based on recently observed trend data. Trend analysis is based on past occurrences. And traders or investors used this past experience to predict the future price
The Acme Aircraft Seat Company produces aircraft seats and is able to assemble 10 seats in 30 minutes using four workers. The single-factor productivity of the firm is ____ seats per labor hour.
Answer:
The productivity of the firm = 5
Explanation:
Total number of seats that is assembled in 30 min = 10 seats
Therefore total number of seats assembled in 1 hr = 10 x (60/30) = 20 seats
Total labor hours required for 20 seats = 4 workers x 1hr = 4hrs
The Single-factor productivity = output / labor hours
The Single-factor productivity = 20 seats / 4 hrs
The Single-factor productivity = 5 seats per labor hr
Based on the information provided, what rental rates would you include in your forecast/proforma model from the tenants?
Select the answer and briefly explain your rationale
Contract rental rates
Market rental rates
A blend of contract and market rental rates
Insufficient information to determine
Answer:
Insufficient information to determine
Explanation:
The question makes reference to information provided as a basis for making a decision. But, there is no information provided. This makes it impossible to select any rental rates, whether Contract rental rates, Market rental rates, or a blend of contract and market rental rates, to include in the forecast or proforma model from the tenants. So, the conclusion is that there is insufficient information to determine.
Ms. Jones, the CEO of First Bank, is hoping that her employees will buy into a new performance review system. Which of the following statements would be most likely to help Ms. Jones achieve buy-in?
1. I would like the new performance system im plemented by Monday. Please see that it is done.
2. The new performance system starts on Tuesday of next week. Be prepared to use it.
3. We are implementing a new performance system effective Monday.
4. We will have a meeting Friday with HR to learn how to use it We need to continue to work on the new performance system.
Answer:
The correct answer is the option 4: We will have a meeting Friday with HR to learn how to use it. We need to continue to work on the new performance system.
Explanation:
To begin with, if Ms. Jones is looking forward to get her employees to buy the new system then she must tell them that they are going to use and it is important for the company and even more for them to have it in order to use it later because that will bring more benefits for everyone. Therefore that when she tells them that there is a meeting soon that will focus in the fact of learning how to use it and that it will show the importance of using it, the employees will feel the necessity of acquiring it for that reason.
Parent Company holds 75 percent of Surrogate Company’s voting common shares. On December 31, 20X8, Parent recorded a loss of $20,000 on the sale of equipment to Surrogate. At the time of the sale, the equipment’s estimated remaining economic life was eight years. Required: a. Will consolidated net income be increased or decreased when consolidation entries associated with the sale of equipment are made at December 31, 20X8? By what amount?
Answer:
Net Increase in Net Income will be $18,125
Explanation:
In simple words, when we consolidate accounts we NEVER take account of inter-company transactions which leads to profits OR losses.
So now we will eliminate the effect of the loss recognized by the parent company and the entry would be as under:
Dr Depreciation for the year At Parent percentage XX
Dr Retained Earnings (Balancing figure) XX
Cr Loss from sale of Equipment XX
The debit balance of depreciation at the parent percentage shows that the equipment is still 75% owned by the parent company. Hence the 75% of the per year depreciation must be recognized for the year.
Increase as the loss is added back to Net Income = $20,000
Less Depreciation for the year At Parent percentage = $20,000/8 * 75%
= ($1,875)
Net Increase in Net Income = $20,000 - $1,875 = $18,125
And Double Entry is as under:
Dr Depreciation for the year At Parent percentage $1,875
Dr Retained Earnings (Balancing Earnings) $18,125
Cr Loss from sale of Equipment $20,000
The depreciation and the loss will be settle in the Cost of Goods Sold in the consolidated income statement.
Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the second element only occurs every other cycle.
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1 4.1 4.0 4.6 4.1 4.1 4.1
2 - 1.5 - 2.4 - 1.4
3 3.2 3.2 3.8 3.2 3.3 3.3
4 2.7 3.0 2.7 2.8 2.8 2.8
Answer:
Element 1 = 4.17 Observed time
Element 2 = 1.77 Observed time
Element 3 = 3.33 Observed time
Element 4 = 2.8 Observed time
Explanation:
Calculation to determine the observed time (OT) for each element
Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle
First step is sum up each element cycle i.e addition of cycle 1 to cycle 6
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8
Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.
OBSERVED TIME
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time
The question is about the observed time cycles of 4 given elements.
OT of each cycles will be added together for each element. and divided by total number of cycles for each element.
1 4.1+4.0+4.6+4.1+4.1+4.1 = 25 / 6 = 4.17
2 -1.5 -2.4 -1.4 = 5.3 / 3 = 1.77
3 3.2+3.2+3.8+3.2+3.3+3.3 = 20 / 6 = 3.33
4 2.7+3.0+2.7+2.8+2.8+2.8 = 16.8 / 6 = 2.8
Each elements total cycle OT is added and then it is divided with each elements relevant number of cycles and this as a result provides the answer to the question
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Q 7.39: In a small-town retail store, the sales clerk is responsible for counting the cash in the cash register and comparing it to the cash register tape. The clerk then takes the cash and tape to the accountant, who verifies the count, prepares the deposit slip for the bank, and records the entry in the journal. Which cash receipt control is the company most in violation of with their current system
Answer: b.segregation of duties
Explanation:
Segregation of duties as an internal control ensures that there are multiple people doing activities that if left to one person can leave the company at the risk of fraudulent activity. It also helps to reduce the incidence of errors in reporting because more than one person will be cross-checking transactions.
There should be more segregation of duties in this small-town retail store. For instance, the sales clerk should not be responsible for both the counting and comparison to the cash register tape because they could have omitted sales from the machine and then simply taken the money from the cash when counting. A different person should count the cash to see if it tallies with the cash register tape.
There is demand for and supply of dollars and a demand for and supply of pesos. Under a flexible exchange rate system, if income growth in the United States is greater than income growth in Mexico, then the
Answer:
There is demand for and supply of dollars and a demand for and supply of pesos. Under a flexible exchange rate system, if income growth in the United States is greater than income growth in Mexico, then the dollar would increase its value over the peso.
Explanation:
Given that in the situation in question the quantities supplied and demanded of both currencies remain stable, in principle there should be no valuation of one over the other for reasons of supply and demand.
Now, since the economic growth in the United States that sustains the value of the dollar is greater than that growth in Mexico that sustains the value of the peso, the greater the value of the dollar in international markets. This will necessarily imply a higher valuation of the American currency, which will widen the gap in the exchange rate with respect to the peso, which instead will remain stable in global markets.
In the multiple-step income statement, cost of merchandise sold is subtracted from a.selling expenses. b.sales. c.gross profit. d.operating expenses.
Answer:
b.sales
Explanation:
As we know that
Income statement refers to the statement in which the revenues and the expenses incurred should be recorded
While on the other hand the multiple-step income statement refer to the statement in which there are various level like gross profit, total operating expenses etc
Plus we also know that
Gross profit = Sales - cost of goods sold
Therefore the cost of merchandise should be deducted from sales so that we can find out the gross profit
Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
A. Identify aspects of the present culture that pose problems.
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.
D. Make a concerted effort to turn the company's core competencies into distinctive competencies.
E. Empower employees to adopt whatever new work practices they believe will be an improvement.
Answer:
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
Explanation:
Culture of a company are the accepted ways of doing things on a daily basis with a view of achieving organisational goals. It includes the way employees interact with one another and their customers, procedures carrying out tasks, and so on.
The management of the company are the drivers of company culture, so a substantiative culture-changing action that can be taken to solve a problem culture will include replacing senior executives who are resisting and obstructing needed organizational and cultural changes, and revising policies and procedures in a way that will drive culture change
Sheridan Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 550,500 units of product: sales $2,752,500, total costs and expenses $2,855,400, and net loss $102,900. Costs and expenses consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,590,000 $550,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,750,000 $850,000
Management is considering the following independent alternatives for 2018.
1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales.
Required:
a. Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
b. Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places.)
Answer and Explanation:
a. Here we will follow some steps to reach break-even point in dollars for 2017 is shown below:-
Step 1
Selling price per unit = Sales ÷ Number of units
= $2,752,500 ÷ $550,500
= $5
Step 2
Variable cost per unit = Total of variable ÷ Number of units
= $1,750,000 ÷ $550,500
= $3
Step 3
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - 3) ÷ $5
= 0.4
and finally
Break even point in dollars = Fixed cost ÷ Contribution margin ratio
= $850,000 ÷ 0.4
= $2,125,000
b. As per the situation the solution of contribution margin under each of the alternative courses of action is below:-
According to the 1 alternative
Selling price per unit = $5 × 1.20
= $6
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($6 - 3) ÷ $6
= 0.5
or
= 50%
According to the 2 alternative
Variable cost per unit = $3 + $5 × 5%
= $3.25
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - $3.25) ÷ $5
= 0.35
or
= 35%
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Company issues 9.00%, 15-year bonds with a par value of $400,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.00%, which implies a selling price of 115 3/4.
Answer:
Journal Entries for jan 1, 2017
Explanation:
Face value of bond = 400,000
Proceeds = 400,000 X 1.1575 = 463,000
Premium = 463,000 - 400,000 = 63,000
Jan 1, 2017
Debit Credit
Cash 463,000
Premium 63,000
Bond payable 400,000
Big Byte Inc. sold 15,000 computers to the government of India. Instead of receiving cash, the company received refined petroleum as payment. This is an example of
Answer:
This is an example of barter
Explanation:
Barter in trade, is a term used to describe a system of exchange where goods and services are exchanged for other goods or services directly. It is used most often in international trading, when there is a financial crisis, or when currency is unstable.
Barter is advantageous when money is in short supply, and when traders cannot afford to store a short supply of money, especially during hyperinflation.
However, there are some challenges with barter, which includes:
that both parties might not have what each other need in goods (double coincidence of wants), there is no common measure of value and indivisibility of certain goods when only half the worth is to be exchanged.
The Driftbuster Sno-Mobile repair company has a seasonal demand for its service, and there is a general shortage of skilled Sno-Mobile mechanics in it's region. Which one of the following aggregate planning choices is most suitable for this situation
A. Allow some backorder for short-term demand surges
B. Combination of allowing backorder for short-term demand surges and building anticipation inventories.
C. Combination of hiring/firing workers to match demand and building anticipation inventories.
D. Combination of allowing backorder for short-term demand surges and offering reduced prices during the slack season.
Answer: Combination of allowing backorder for short-term demand surges and building anticipation inventories.
Explanation:
From the question, we are informed that the Driftbuster Sno-Mobile repair company has a seasonal demand for its service, and there is a general shortage of skilled Sno-Mobile mechanics in its region.
Based on the situation above, the planning choice is to allow backorder for short-term demand surges and build anticipation inventories. Since demand is seasonal, it's vital for the company to build anticipation inventories. It's also important for the company to create orders for short term surges.
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 185,000 lbs. at $6.00 183,200 lbs. at $5.80 Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.10 $56,780 variable cost Fixed cost, $4.90 $94,619 fixed cost Each unit requires 0.25 hour of direct labor. Required:
Answer:
You are missing the requirements. I looked them up and found the following:
Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Standard Costs Actual Costs
Direct materials 185,000 lbs. at $6.00 183,200 lbs. at $5.80
Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90
Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.:
Variable cost, $3.10 $56,780
variable cost Fixed cost, $4.90 $94,619 fixed cost
Each unit requires 0.25 hours of direct labor
direct materials price variance = AQ x (AP - SP) = 183,200 x ($5.80 - $6) = -$36,640 favorable variance
direct materials quantity variance = SP x (AQ - SQ) = $6 x (183,200 - 185,000) = -$10,800 favorable variance
total direct materials cost variance = (AQ X AP) - (SQ X SP) = (183,200 X $5.80) - (185,000 X $6) = $1,062,560 - $1,110,000 = -$47,440 favorable variance
or
total direct materials cost variance = direct materials price variance + direct materials quantity variance = -$36,640 - $10,800 = -$47,440 favorable variance
On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $310,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Inventory Cost Index December 31 Year-End Costs (Relative to Base Year) 2021 $ 408,450 1.05 2022 420,740 1.09 2023 478,500 1.10 2024 513,585 1.13 Required: Calculate inventory amounts at the end of each year
Answer:
Avondale Lumber
Calculation of Inventory Amounts at the end of each year:
= Inventory cost divided by the Index:
2021: = $408,450/1.05 = $389,000
2022: = $420,740/1.09 = $386,000
2023: = $478,500/1.10 = $435,000
2024: = $513,585/1.13 = $454,500
Explanation:
a) Data and Calculations:
Year Ended Inventory Cost Index Year-End Costs
(Relative to Base Year)
2021 $ 408,450 1.05 $389,000 (408,450/1.05)
2022 420,740 1.09 $386,000 (420,740/1.09)
2023 478,500 1.10 $435,000 (478,500/1.10)
2024 513,585 1.13 $454,500 (513,585/1.13)
b) The conversion of the ending inventory cost to the base year with an index is obtained by dividing the inventory cost by the index. This gives a cost that is relative to the base year.
North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be:
D= 77 +0.43Q
where Q refers to the sequential quarter number and Q=1 for winter of year 1. In addition, the multiplicative seasonal factors are as follows:
Quarter Factor (index)
winter .8
spring 1.1
summer 1.4
fall .7
Find the forecast of for the four quarters of year of 17.
Answer:
The demand forecast for the four quarters of the year of 17 is
Demand for winter of year 17 = 83.96 million kWh
Demand for spring of year 17 = 115.92 million kWh
Demand for summer of year 17 = 148.13 million kWh
Demand for fall of year 17 = 74.37 million kWh
Explanation:
The North Dakota Electric Company estimates its demand trend line by the following equation.
[tex]D = 77 + 0.43Q[/tex]
Where Q is the sequential quarter number.
The multiplicative seasonal factors are as follows:
winter = 0.8
spring = 1.1
summer = 1.4
fall = 0.7
We are asked to find the forecast for the four quarters of the year of 17.
Since the quarter numbers are sequential,
Q = 1 + 16×4
Q = 65 for winter of year 17
Q = 66 for spring of year 17
Q = 67 for summer of year 17
Q = 68 for fall of year 17
Demand Winter year 17:
[tex]D = 77 + 0.43(65) = 104.95 \times 0.8 = 83.96[/tex]
Demand Spring year 17:
[tex]D = 77 + 0.43(66) = 105.38 \times 1.1 = 115.92[/tex]
Demand Summer year 17:
[tex]D = 77 + 0.43(67) = 105.81 \times 1.4 = 148.13[/tex]
Demand Fall year 17:
[tex]D = 77 + 0.43(68) = 106.24 \times 0.7 = 74.37[/tex]
Therefore, the demand forecast for the four quarters of the year of 17 is
Demand for winter of year 17 = 83.96 million kWh
Demand for spring of year 17 = 115.92 million kWh
Demand for summer of year 17 = 148.13 million kWh
Demand for fall of year 17 = 74.37 million kWh
You are the new manager in an Indian office. You ask one of your supervisors to move a desk and place it in another corner of the office. The next day you notice it has not yet been done. Why
Answer:
Explanation:
Since not much information has been provided, the two most likely reasons as to why this has not been done would be the following,
One would be that the supervisor did not understand your request due to language barriers that you are not accustomed to since this is your first time working in an Indian office.
The Second most likely reason is that it is not the supervisors job to move your office furniture around. The supervisor is a higher position than manager and his primary responsibility is to look over your performance and make sure that you are doing what you have been hired to do.
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour. The alleged sexual harassment included kissing, touching her breasts and leg, persistent requests to have a drink outside work hours despite an ongoing refusal, asking for cuddles, telephoning her at home and making repeated unsolicited sexual remarks. Based on any four ethical theories, explain how these acts constitute unethical behaviours at the workplace
Answer:
Sexual harassment is an unethical behavior both at or outside workplace and this can be explained using these ethical theories; DEONTOLOGY, UTILITARIANISM, INDIVIDUAL CHARACTER ETHICS, WORKPLACE INDIVIDUAL ETHICS
1. DEONTOLOGY: This ethical theory states that a person's actions are either bad or good depending on sets of rules, actions are morally right if it is in accordance with the rules, rights et cetera. in this case the behavior does not follow any rules and there is no right given to anybody to harass a woman. This theory shows that these acts were unethical.
2. UTILITARIANISM: this theory supports actions and behaviors that brings happiness and joy to others and frowns at actions that brings sadness and unhappiness to people around us. In this case the employee is harassed which makes her unhappy so this theory labels sexual harassment as an unethical behavior.
3. INDIVIDUAL CHARACTER ETHICS: It says that there are certain qualities of a person that determine their ethics, this includes; gratitude, benevolence, respect but in this case the individual has no such traits present in him because of his disrespect towards a woman, so this theory shows how unethical those acts were.
4. WORKPLACE INDIVIDUAL ETHICS: It says that the development or presence of certain traits show the work ethics of an individual and the traits are honor, work pride, trustworthiness but in this case he has proved that there is no such trait present in him so it constitute unethical behavior at workplace.
For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future Value $ 2,250 11 13 % $ 8,752 7 9 76,355 14 12 183,796 8 6
Answer:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
Explanation:
The formula for calculating future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
I hope my answer helps you
For each of the following, the future value can be computed as:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
The worth of a present asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors as well as financial planners, the future value is crucial because they use it to predict the amount an investment made now is going to be worth throughout the future. Investors may make wise investment choices based on their projected demands by knowing the future worth.
future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
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If the straight-line depreciation method is used, the annual average investment amount used in calculating the accounting rate of return is calculated as (beginning book value + ending book value)/2.
a. True
b. False
Answer:
The answer is true
Explanation:
Accounting Rate of Return is a financial ratio used in capital budgeting decision making. It is the ratio of estimated accounting profit(net income) of a project to the average investment made in the project.
And average investment is calculated as the sum of the beginning and ending book value of the project/investment divided by 2
Depreciation is termed as the phase of the value of the assets when they keep on decreasing year by year or monthly. It is caused due to the overutilization of the assets for the production function of the firm.
The correct answer is true
An Accounting Rate of Return (ARR) is a financial ratio that is used to make capital budgeting decisions. It is the ratio of a project's estimated retained earnings (retained earnings) to a project's average investment.
Investment is equal to the sum of the project/initial investments and ending book values divided by two.
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The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:
Answer:
The required adjusting entry at the end of year 3 will include a debit to:
Supplies Expenses Account of $43,500 ($8,000 + 50,000 - 14,500), and a credit to Supplies Account in the sum of $43,500.
Explanation:
Adjusting entries are made at the end of an accounting period to bring the accounts in line with the accrual concept, which requires that expenses and revenue should be recognized in the period they are incurred or earned.
This implies that transactions should not be based solely on when cash is received or payment made. Expenses incurred but not yet paid should be recognized in the accounts of the period. Revenue earned but not yet received in cash should be accounted for in the period when the revenue is earned. Expenses paid in advance should not be recognized in determining net income. Revenue collected but not yet earned should not be included in the period's accounts for determining net income. Finally, non-cash expenses (depreciation) should be recognized in the period they are incurred.
g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,060 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Effect on income= $2,500 increase
Explanation:
Giving the following information:
Contribution margin= $44
The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 200*44 - 6,300
Effect on income= $2,500 increase
Which of these countries has a command economy?
A. Cuba
B. France
C. United States
D. India
Answer:
A. Cuba
Explanation: Command economy , simply means planned economy
Some other countries with command economies are;
North KoreaThe former Soviet UnionAssume that taxes are constant. If the government borrows $17 billion in new funds and has a budget deficit of $35 billion, then the central bank has to:
Answer:
increase the money supply by $18 billion.
Explanation:
Data provided in the question
The Borrowed amount by the Government = $17 billion
Budget deficit = $35 million
Based on the above information
The central bank has to raise the money supply by $18 million i.e come form
= Budget deficit - the borrowed amount
= $35 million - $17 million
= $18 million
Hence, the supply is increased by $18 million
Mark writes a check to Sally, intending to use it to pay Sally for babysitting Mark's daughter next week. Sally arrives at Mark's house for a visit, and while Mark is in the bathroom, Sally discovers the check on Mark's desk and takes it. She endorses the check over to Bob in exchange for a used tennis racket. Mark ends up not hiring Sally to babysit. When he discovers the check is missing, he stops payment on it. Bob sues Mark to enforce payment of the check. Which of the following statements is true? a. Mark must pay Bob the amount of the check b. Mark could assert the defense of fraud in the inducement against Bob c. Mark can assert the defense of lack of delivery against Bob d. Mark can assert the defense of failure of consideration against Bob
Answer:
Bob sues Mark to enforce payment of the check
d. Mark can assert the defense of failure of consideration against Bob.
Explanation:
Failure of consideration means that there was no consideration since intended contract between Mark and Sally which would have established the consideration upon Sally's performance was frustrated. The contract did not take effect. It is an established point in contract law that there must be consideration for a contract to be valid and enforceable. Since the contract was not finalized and no performance of consideration was carried out by Sally, she had no legal right to collect Mark's check and endorse it to Bob.
Moreover, any potential contract would have been between Bob and Sally and not Mark. So, Mark can plead failure of consideration in the relationship between him and Sally, thus rendering the check's endorsement to a third party, null and void.
Sandpiper Inc. has a division that manufactures a component that sells for $ 160$160 and has a variable cost of $ 30$30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 20$20. What is the minimum transfer price if the division is operating at capacity?
Answer:
If the division is operating at full capacity and selling all the units that it produces, then it must treat the other division as a normal customer, so the selling price should be the same ($160 per unit). The company is currently making $110 in profits per unit sold (= $160 - $30 - $20 = $110).
If the division sold their products at a lower price, they would be losing money, and no division wants to lose money in order to benefit another division and make them earn higher profits.
If the division was operating below full capacity, then it could sell their products at a lower value.
Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals differential costs. d.cannot be calculated in cost-volume-profit analysis.
Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,