dion company reports the absorption costing income statement below for may. the company began the month with no finished goods inventory. dion produced 23,800 units, and 3,900 units remain in ending finished goods inventory for may. fixed overhead was $47,600. variable selling and administration expenses were $49,000 and fixed selling and administrative expenses were $29,400. sales (19,900 units) $ 597,000 cost of goods sold 496,000 gross profit 101,000 selling and administrative expenses 78,400 income $ 22,600 prepare an income statement using variable costing.

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Answer 1

An income statement using variable costing is Income is $19,700.

Variable costing is a technique that handiest assigns variable fees to inventory. This technique manner that all overhead prices are charged to rate within the length incurred, even as direct materials and variable overhead costs are assigned to stock.

Variable costing is a managerial accounting value idea. under this approach, manufacturing overhead is incurred in the length that a product is produced. This addresses the problem of absorption costing that permits profits to upward push as manufacturing rises.

A variable cost is a corporate price that adjustments in share to how a great deal a company produces or sells. Variable expenses growth or lower depending on a organization's production or sales quantity—they rise as manufacturing increases and fall as manufacturing decreases.

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Related Questions

One of the main criticisms of the theory of contestable markets is that the assumption of extremely free entry into (and costless exit from) the industry is unlikely to hold in the real world.
True

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This statement is True. One of the main criticisms of the theory of contestable markets is that the assumption of extremely free entry into (and costless exit from) the industry is unlikely to hold in the real world.

Criticism is the development of a judgment about the negative characteristics of someone or something. criticism can variety from impromptu feedback to a detailed written reaction. grievance falls into several overlapping sorts together with "theoretical, practical, impressionistic, affective, prescriptive, or descriptive".

criticism may also talk over with an expression of disapproval. while complaint of this nature is positive it may make a person aware of gaps in their know-how and offer incredible routes for development. research supports the perception that user comments and constructive criticism inside the studying manner are very influential.

The two phrases both translate as critique, Kritik, and critica, respectively. within the English language, philosopher Gianni Vattimo indicates that criticism is used more regularly to denote literary complaints or artwork complaints at the same time as critique refers to a different standard and profound writing as Kant's Critique of a pure motive. some other distinction this is from time to time made is that the review is neither personalized nor advert hominem and is offered in a manner that encourages rebuttal or enlargement of the expressed ideas. though, the differences are diffused and ambiguous in quality.

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Because services are __________, it is often difficult for marketers to convey the benefits to consumers.

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Because the services are intangible, it is often difficult for the marketers to convey benefits to consumers.

What is a service?

The term "services" refers to any intangible tasks or functions that a client, company, or government is ready to pay for. Consider the work done by professionals like barbers, doctors, lawyers, mechanics, banks, insurance companies, and others as examples. The funding of public services is the responsibility of the entire community (a nation-state, fiscal union, or region). Service users profit from the use of resources, knowledge, creativity, and experience by service providers. The service must be provided at the precise moment when the service is consumed. A physical thing that is separate from the provider does not represent the service. The consumer of a service and service delivery are inextricably linked.

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A marketing channel relies on logistics to make products available to consumers and industrial users. Logistics involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. The performance of these activities is logistics management—the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished products, and related information from point of origin to point of consumption to satisfy customer requirements. A supply chain is a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users. It differs from a marketing channel in terms of membership. A supply chain includes suppliers that provide raw material inputs to a manufacturer as well as the wholesalers and retailers that deliver products. The management process is also different. Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers.

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In order to make items accessible to consumers and industrial users, a marketing channel depends on logistics.

In order to make items accessible to consumers and industrial users, a marketing channel depends on logistics. Logistics refers to the actions that are focused on delivering the proper quantity of the proper products to the proper location at the proper time for the least amount of money.

The execution of these tasks is known as logistics management, which is the process of planning the reasonably priced movement of raw materials, inventory of goods still being manufactured, finished goods, and related information from the point of production to the point of consumption to meet customer requirements.

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in march, before most consumers begin shopping for summer products, a shoe factory offers retailers a seasonal discount on sandals. what are the purposes of this pricing tactic? (choose every correct answer.)

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This pricing strategy is intended to make it easier to plan the factory's production schedule and to move inventory out of the factory as soon as possible.

Price is a major factor influencing consumer purchases. As a result, businesses use a variety of pricing tactics, also known as pricing strategies, to increase sales, profits, and market share. When a company creates a unique product, it is priced accordingly.

Pricing is one of the more strategic decisions a business can make, but it is frequently treated as a tactic. Consider how frequently pricing is used to entice buyers.

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Which of the following are contract rights may be assigned? The right to receive future worker's compensation benefits The right to receive house cleaning services The right to insure a property Payment of$500

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The right to receive house cleaning services are contract rights that can be assigned.

A legally binding agreement between two or more parties is called a contract that establishes, clarifies and stipulates the respective rights and obligations of the parties. The subsequent delivery of goods, services, money, or the promise to deliver any of these are common elements of a contract.

The aggrieved party may seek legal remedies such as damages or contract termination for breach of contract. Agreements must be respected, which is the foundation of contract law, a branch of contract law that deals with contracts. Like other aspects of private law, contract law varies from country to country.

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true or false: firms that pursue either related or unrelated diversification generally employ a multidivisional structure.

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The following Statement "firms that pursue either related or unrelated diversification generally employ a multidivisional structure" is True.

A firm is a legal designation for a group of individuals with a particular goal who are either naturally occurring, legally created, or a combination of both. Employees of the organisation cooperate to accomplish explicitly stated objectives. There are several types of companies.

A business can be established as a legal entity with limited liability as long as its members fulfil or fail to fulfil their obligations in accordance with the publicly proclaimed incorporation or published policy. If a business shuts, it might need to be liquidated in order to discharge any outstanding debts.

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which stakeholder group is most likely to view higher profits as a key objective? a. employees b. shareholders c. suppliers d. customers

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Shareholders are more inclined to consider higher profits as their main objective. Because shareholders are entitled to a return on their investment in the company, they will aim to maximise profits.

What does the term "shareholder" mean?

Investors are more likely to view increased profits as their primary goal. They will want to maximise profits since shareholders have a right to a return on their investment in the business.

Anyone who holds at least one share of a company's stock or mutual fund unit is referred to as a shareholder. Additionally, shareholders, who own the majority of the company's ownership, are subject to certain duties. They can gain from a company's success with this ownership structure. Each shareholder's information is recorded in both the Companies Register and the company's own share register.

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the miller company earned $99,000 of revenue on account during year 1. there was no beginning balance in the accounts receivable and allowance accounts. during year 1, miller collected $70,000 of cash from its receivables accounts. the company estimates that it will be unable to collect 3% of its sales on account. what is the amount of uncollectible accounts expense that will be recognized on the year 1 income statement?

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The miller company earned $99,000 of revenue on account during year 1. there was no beginning balance in the accounts receivable and allowance accounts. during year 1, miller collected $70,000 of cash from its receivables accounts. the company estimates that it will be unable to collect 3% of its sales on account. The company has 3 % of bad debts.

What are the Bad Debts?

Bad debt, also known as uncollectible account holders expense, is a sum of money owed to such a creditor that is likely to go unpaid and for which the debt collector is unwilling to take activity to collect for a variety of reasons, frequently because the debtor lacks the funds to do so, for instance, because a company is going bankrupt or into liquidation.

Bad debts are those that are never longer collectible and are written off as losses or expenses. For instance, bank loans as well as purchases made on credit fall underneath the heading of bad debt.

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Members of which major political party are more likely to support increasing taxes on the wealthy to reduce budget deficits?.

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Members of major political party which more likely to support increasing taxes on the wealthy to reduce budget deficits are the Democrats, members of the Democratic Party.

What are the beliefs of the Democratic Party?

In general, the Democratic Party (whose logo is a donkey) represents left-leaning, liberal and progressive ideological values, so advocating for a strong government to control business and support for the citizens of the United States. Hence, one of the key values focused by Democrats is social responsibility.

Democrats follow an economic agenda which helps American businesses generate good-paying jobs and ensure that workers have the tools not only to get by but also to get ahead in our global economy.

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The​ ________ of an asset or liability is its cost carried on the balance sheet.

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The ​ ​ book​​ value  of an asset or liability is its cost carried on the balance sheet.

The book value of a company is the net distinction between that company's total resources and total liabilities, where book value mirrors the total value of a company's resources that investors of that company would get assuming the company were to be sold.

A resource's book value is identical to its conveying value on the balance sheet.

Book value is much of the time lower than a company's or alternately resource's fairly estimated worth.

Book value per share (BVPS) and the price-to-book (P/B) proportion are used in essential examination.

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As far as this safety spanish program is concerned, what is the only day you should be shopping at wal-mart?

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Answer: Tuesday.

Explanation: "Wal-Mart Tuesdays . . . Wal-MARTES, get it?"

Answer:

Explanation:

tuesday?

a marketer is scheduling creatives for their upcoming campaign in campaign manager 360. what is one thing they need to do to ensure an ad will run every time?

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One thing they need to do to make sure an ad runs every time is for your account to exclusively serve across mobile devices.

Account - What Does That Mean?

A record in such an accounting system known as an account keeps track of the financial transactions involving a particular asset, liability, capital, revenue, or expense As the company events take place throughout the course of the accounting period, these records grow and shrink.

Why are accounts crucial?

Accounting is crucial to running a business because it makes it simpler to keep track pf income and expenses, guarantees legal compliance, and provides access to terms of quantitative data that can be utilized by investors, management, and indeed the government to make choices.

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assume a simplified banking system subject to a 10 percent required reserve ratio. if there is an initial increase in excess reserves of $90,000 and all possible loans are made, the money supply:

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Assume a simplified banking system subject to a 10 percent required reserve ratio. if there is an initial increase in excess reserves of $90,000 and all possible loans are made, the money supply increased 900000.

In macroeconomics, the term "money supply" refers to the total amount of currency that the general population owned at a particular period. Although there are numerous ways to define "money," the money in circulation and demand deposits are frequently used as conventional metrics. A country's central bank is permitted to define what counts as legal tender on its own terms. Data on the nation's money supply are normally gathered and released by a government agency or the central bank. Both governmental and private sector specialists monitor changes in the money supply because they think that changes in the money supply have an effect on exchange rates, the business cycle, inflation, and security prices.

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parker (i.e., the principal) orally asks austin (i.e., the agent) to sell a ranch that parker owns. austin finds a buyer and signs a sales contract on behalf of parker to sell the ranch. which rule applies here?

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As soon as Austin finds a buyer and executes a sales contract on Parker's behalf to sell the ranch, the power of attorney rule is in effect.

What is power of attorney?

A power of attorney (POA), sometimes known as a letter of attorney, is a document that grants someone the right to represent or handle another person's interests in business, legal, or other private matters (including financial and health-related matters).

The principal, grantor, or donor is the party giving the other permission to act (of the power). The agent, attorney, or, in some common law countries, the attorney-in-fact, is the one who has the power to act.

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calculate the wacc for optimus. as a reminder, optimus is funded with 40% debt and 60% common stock; there is no preferred stock in the capital structure. the debt has an after-tax cost of 4%. use the optimus required rate of return on equity that you calculated using the capm. explain why it is appropriate for optimus to value the electrobicycle project using its wacc. compare using the wacc to using solely the cost of equity in valuing the electrobicycle project.

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The wacc to using solely the cost of equity in valuing the electrobicycle project is 7.96%. Required rate of return on equity using the capital asset pricing model (CAPM)

required return on equity = risk-free rate + (beta of of stock*Market risk premium)

required return on equity = 4% + (1.10*6%) = 4% + 6.6% = 10.6%

Optimus' required rate of return on equity using the capital asset pricing model (CAPM) is 10.6%.

WACC (weighted average cost of capital) = weight of debt*after-tax cost of debt + weight of equity*Cost of equity

weight of debt and equity are given as: 40% debt and 60% equity.

Cost of equity is the required return on equity of 10.6% an after-tax cost of debt is given as 4%.

WACC = 0.40*4% + 0.60*10.6% = 1.6% + 6.36% = 7.96%

the WACC for Optimus is 7.96%.

Optimus should use WACC to value its Electro bicycle project because its capital structure includes more than one source of capital i.e. it includes both debt and equity.

If optimus uses solely the cost of equity in valuing the Electro bicycle project instead of WACC then there will be mismatch between cash flows from the project and discount rate. WACC is the required return for all the investors/capital providers of the project.

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a bank statement provided by a bank includes all of the following except: group of answer choices a list of deposits recorded by the bank. the beginning and the ending balance of the bank account. a list of bank fees. a list of outstanding checks. g

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Such as processed deductions and deposits, our average daily balance, and any interest earned.

A deposit is an act of setting coins with a few entities, most commonly with a monetary institution, inclusive of a financial institution. traditionally, there are 4 varieties of bank deposits in India, which are - cutting-edge Accounts, habitual Deposits, financial savings money owed, and Fixed Deposit accounts.

A deposit is an amount of money stored in a bank account. the two styles of deposits are demand deposits and time deposits. call for deposit money owed include checking bills, financial savings accounts, and money marketplace money owed. Time deposit accounts encompass certificates of deposit money owed and character retirement money owed.

Deposits are savings products that clients can use to preserve a sum of money at a bank for a particular length of time. In go back, the economic group pays the consumer the applicable amount of interest, based on how a lot they choose to deposit and for how long.

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at the point where the benefit of another hour of work exactly equals the opportunity cost, the worker becomes indifferent between spending the next hour on

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When there is a shortage of resources, there must be unavoidable trade-offs; achieving one goal more often implies achieving other goals less.

What is a resource?

When we talk about resources, we're talking about all the things that are available to us that are environmentally friendly, economically viable, and culturally sustainable and that help us meet our needs and desires. Resources can be broadly categorized based on their availability into renewable and non-renewable resources. With time and evolving technology, an object might become a resource. Increased wealth, the smooth operation of a system, or improved wellbeing are only a few advantages of resource use. Resources have been produced in a variety of well-established fields of study, including economics, biology and ecology, computer science, management, and human resources, for example. These concepts are linked to those of competition, sustainability, conservation, and stewardship. Commercial or non-commercial elements that are applied within human civilization necessitate resource management and resource allocation.

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the main reason auditors investigate property, plant, and equipment that has been replaced, sold, dismantled, or abandoned during the year is to

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This is the text of the Auditing and Assurance Standards Board's (AASB) Guidance Note on Audit of Property, Plant, and Equipment (PPE).

which deals with real estate, machinery, and equipment?

According to this recognized concept, an organization examines all of its costs for property, plant, and equipment as they are incurred. These expenses cover both the original expenditures of purchasing or building a piece of property, plant, or equipment as well as the ongoing costs of maintaining, repairing, or adding to it.

What are the goals of an audit of property, plant, and machinery?

Determine whether the listed property, plant, and equipment are complete. Check the clerical accuracy of the property, plant, and equipment schedules. Identify whether the cost of the valuation or allocation of General accepted accounting principles are followed with regard to property, plant,

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The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

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Employment-Population Ratio, Unemployment, Active Job Search Techniques, Unemployment Rate, Not in the Labor Force.

The employment-population ratio shows the proportion of the civilian noninstitutional population that is employed. It is, in other words, the proportion of the population that is employed at the moment.

(Employed Civilian Noninstitutionalized Population) x 100 is the formula for calculating the employment-population ratio.

The percentage of the labor force that is employed that is unemployed is known as the unemployment rate (the labor force is the sum of the employed and unemployed).

(Unemployed Labor Force) x 100 equals the unemployment rate.

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the unemployment rate is currently 6% higher than the natural rate of unemployment. the current quantity of output is greater than potential output. the natural level of output is $3 trillion.

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unemployment rate is currently=[tex]-30303030296.969[/tex]

If unemployment rate =x

then unemployment rate is currently=x+6

output =  $3 trillion

The unemployment rate is calculated = (Unemployed ÷  output ) x 100.

x+6=x/3 trillion *100

x-100x=[tex]3 000,000,000,000 -6[/tex]

x=[tex]-30303030302.969[/tex]

unemployment rate is currently=x+6

[tex]=-30303030302.969+6=-30303030296.969[/tex]

There are several factors that affect both the supply side, or the workers, and the demand side, or the employers, that contribute to unemployment. High interest rates, a global economy that is in a recession, and the financial crisis can all have an impact on demand. Frictional unemployment and structural employment are two significant supply-side contributions.

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henry ford's business model required a much more efficient and cheaper system for building cars and the assembly line method facilitated this. however, workers became bored with the same repetitive tasks and quit, so ford had the expense of constantly hiring and training new workers. how did ford solve this problem?

Answers

Answer:

He increased worker pay.

Ford paid his workers more to make up for the monotonous work.

Explanation:

One of the most well-known businessmen in history is Henry Ford. He improved transportation while also fundamentally altering the American auto industry. His inventive manufacturing technique resulted in affordable, dependable vehicles while also keeping his employees happy and devoted.

Ford makes money by licencing the use of its brand name and badge on a variety of products, including toys, video games, and dealerships. It was broken down into four simple goals in the memo distributed to all employees: assemble the whole Ford workforce as one global team. Utilise Ford's distinctive automotive expertise and resources. Build trucks and cars that people will appreciate and want.

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the earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a

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The earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a wage subsidy.

A refundable tax credit for qualified (low-income) taxpayers with earned income is known as the Earned Income Credit (EIC). Wages, self-employment earnings, and legally reimbursable disability benefits are all considered earned income. To be eligible for EIC, a person must follow seven requirements.

Low- to moderate-income individuals, families, and employees can benefit from tax breaks thanks to the Earned Income Tax Credit (EITC). If you meet the requirements, you can use the credit to lower the amount of taxes you owe and possibly boost your refund.

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Oil prices are denominated in terms of _____ in international commodities markets.

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Oil prices are denominated in terms of greenbacks in global commodities markets.

What are the major commodity markets?

The fundamental U.S. commodity exchanges are ICE Futures U.S. and the CME Group, which holds four principal exchanges: the Chicago Board of Trade, the Chicago Mercantile Exchange, the New York Mercantile Exchange, and the Commodity Exchange.

What are 5 examples of commodities?

Some common examples of commodities consist of grains, gold, beef, oil, and herbal gas. More recently, the definition has elevated to consist of financial products, such as overseas currencies and indexes. Technological advances have additionally led to new kinds of commodities being exchanged in the marketplace.

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on january 1, year 1, poultry processing company purchased a freezer and related installation equipment for $62,100. the equipment had a three-year estimated life with a $3,600 salvage value. straight-line depreciation was used. at the beginning of year 3, poultry processing revised the expected life of the asset to four years rather than three years. the salvage value was revised to $2,600.'Required Compute the depreciation expense for each of the four years, Year 1-Year 4
Depreciation Expense
Year 1
Year 2
Year 3
Year 4

Answers

Depreciation Expense

Year 1 = $21,700

Year 2 = $21,700

Year 3 = $11,350

Year 4 = $11,350

Explanation:

depreciation expense for years 1 and 2 = ($69,600 - $4,500) / 3 = $21,700

book value at the end of year 2 = $26,200

depreciation expense for years 3 and 4 = ($26,200 - $3,500) / 3 = $11,350

Depreciation: What is it?

Depreciation is a term used in accounting to describe two related concepts: first, the actual decline in an asset's fair value over time, such as the value of factory equipment declining annually as it is used and wears out; and second, the allocation in accounting statements of the asset's initial cost to the periods during which the asset is used (depreciation with the matching principle).

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Ellis company issues 6. 5%, five-year bonds dated january 1, 2021, with a $250,000 par value. The bonds pay interest on june 30 and december 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date.

Answers

The total bond interest expense over bonds’ life is $77,500.

What is interest expense?

The expense of paying interest is a cost associated with borrowing money. In exchange for using its cash, a lender charges a borrower a fee. The cost of borrowing funds from banks like banks and bond investors can be displayed on the income statement as interest expense. Because it pertains to the capital structure of a firm and is typically tax deductible, interest expense differs from operational expense and CAPEX. Interest revenue and interest expense are often combined under the heading "interest income - net," but are usually shown separately on the income statement. After it has been determined how much interest will be paid, the borrower would typically record the amount as accrued liabilities. Credit would be given to accrued liabilities and debit would be given to interest expense.

Interest expense=250000*0.31=77500.

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in order to succeed in being creative and agile, innovative firm teams must have a hands-off manager. t/f

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In order to succeed in being creative and agile, innovative firm teams must have a hands-off manager. TRUE

A manager is a expert who takes a management position in an business enterprise and manages a team of personnel. regularly, managers are liable for managing a particular department of their agency. there are numerous forms of managers, however they usually have responsibilities like conducting performance evaluations and making selections.

The role of managers is setting up and overseeing a particular organization, assignment or area inside a commercial enterprise. The quantity and scope of a supervisor's responsibilities can vary relying on their function in the business enterprise. The job identify of supervisor can suggest that any individual is handling a group or handling a sure feature.

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use the equation for the line of best fit to predict the salary for an employee with 6 years of experience? (round your answer to the nearest dollar.) $61,150 $58,587 $59,672 $57,990

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The wage for a worker with six years of experience is predicted by the equation for the line of best fit, which is $58,587.

What does slope refer to?

Although it was originally used in English by O'Brien in 1844 when he expressed the equation for a straight line as "y = mx + b," and by Todhunter in 1888 when he wrote it as "y = mx + c," it is unknown why the letter m is usually used to denote slope.

The slope can be calculated by comparing the "vertical change" to "horizontal change" between any two distinct points on a line. The outcome is the same for each ratio when expressed as a quotient ("rise over run").

Any two spots in the specified grid must be taken.

Let the two points are (0, 52000), (1, 53,150)

m=(53150-52000)/(1-0)

m=1150

Therefore, slope=1150

Now, the equation of the line is y=mx+b

52000=1150(0)+c

c=52000

Therefore, y=1150x+52000

For 6 years experience,

Take x=6 then,

y=1150(6)+52000

y=6900+5200

y=58,900

y=$58,900≈58,587

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when vince was interviewed for a new position, the interviewer described the company as fostering an involvement culture. which characteristic can vince expect to see at the company if he is hired?

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When Vince was interviewed for a new position, the interviewer described the company as fostering an involvement culture. The characteristic is cooperation.

Cooperation

a scenario in which individuals collaborate to accomplish something: the activities of someone who is helpful by accomplishing what is desired or requested The entire meaning of collaboration may be found in the English Language Learners Dictionary.

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adams inc. began the year with $495,000 in the equipment account. during the year they sold equipment that had originally cost $50,000 for $20,000. the ending balance in the equipment account was $650,000. which of the following statements are true?

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Adams Inc. began the year with $495,000 in the equipment account. During the ear they sold equipment that had originally cost $50,000 for $20,000. The ending balance in the Equipment accounts was $650,000. Which of the following statements are true? B. Adams will report a cash inflow from investing activities of $20,000

a. Adams will reports a cash inflow from investment activities of $50,000

b. Adams will report a cash inflow from investing activities of $20,000

c. Adams cash outflow for the purchase of equipment is $205,000

d. Adams cash outflow for the purchase of equipment is $155,000

The ending balance is the net residual balance in an account. additionally it is measured on the cease of a reporting period, as part of the final procedure. An finishing stability is derived by including up the transaction totals in an account and then including this total to the start stability.

An investment entails placing capital to apply these days for you to boom its price over time. An investment requires setting capital to paintings, inside the form of time, money, effort, and so on., in hopes of a extra payoff within the future than what turned into at the start put in

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Adams will file a coins influx from making investment activities of $20,000.

Balanced dwelling approaches consider all elements of our existing relationships, work, health and health, and emotional well-being. We all get slowed down with paintings and circle of relatives duties once in a while, but making time for ourselves is important so that we will hold up with all our duties.

An investment entails setting capital to use these days as a way to boom its price over the years. Funding requires placing capital into paintings, in the form of time, money, attempt, and many others in hopes of a more payoff in the future than what was originally installed.

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dante co. allows employees to take two weeks vacation during each year. to account for the two weeks off each year, dante will accrue the vacation benefits with a credit to the account.

Answers

The entry that Dante Co. will make to account for the vacation benefits would be a credit to the Vacation Benefits Payable .

How are vacations accounted for ?

When a company makes a benefit available to its employees , these benefits will be taken out of the companies revenues because the employees will either get monetary compensation, or get time off which means less production for the company . The company would therefore debit these benefits to the relevant expense account to show that they are indeed, expenses .

There will then be a credit to a liability account to show that the company owes its employees these benefits . The credit in this case would be the Vacation Benefits Payable which is the liability account for the vacation benefits promised by Dante Co . to its employees .

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