Excerpts from colter organization's latest balance sheet is the present day Ratio for the yr 2 is closest to = current property/present-day Liab.
= $449/$348 = 1.29
A stability sheet is a financial statement that reports an organization's property, liabilities, and shareholder equity. The stability sheet is one of the three middle financial statements which are used to assess a commercial enterprise. It offers a picture of an organization's finances (what it owns and owes) as of the date of the guide.
In economic accounting, a balance sheet is a summary of the financial balances of a character or corporation, whether or not it's a sole proprietorship, an enterprise partnership, a business enterprise, a privately constrained organization, or another employer which includes authorities or not-for-earnings entity.
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on january 1, year 1, mahoney company borrowed $164,000 cash from sun bank by issuing a 5-year, 8% term note. the principal and interest are repaid by making annual payments beginning on december 31, year 1. the annual payment on the loan equals $41,075. what is the amount of principal repayment included in the payment made on december 31, year 1?
164,000*8% = 13,120
41,075 - 13,120 = 27,955
The principal is the sum of money you initially promised to repay. The cost of borrowing the principal is interest.
How are principal payback amounts determined?
Each payment's principle balance is the same for even principal payments. It is easily calculated by dividing the initial loan amount by the number of installments. When a bond matures, the principal—the sum of money the bond's issuer borrowed—will be fully repaid to the bondholder.
Which is preferable, principle or payment?As shown above, you can lower your overall interest costs by making additional principal payments. Making more principal-only payments can help you develop equity in your house faster because every payment that goes toward principle increases your property's value.
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suppose southeast mutual bank, walls fergo bank, and pjmorton bank all have zero excess reserves. the required reserve ratio is presently set at 20%. hubert, a southeast mutual bank customer, deposits $1,500,000 into his checking account at the local branch.
The southeast mutual bank's asset reserve T-account will be debited by $1,500,000 and the liability T-account to be credited by $1,500,000.
What are reserves?Bank reserves are the cash minimums required by financial institutions to meet central bank requirements. This is real paper money that the bank must keep in an on-site vault or in its account at the central bank.
The required journal entry for the transaction is :
Dr. Assets Reserves $1,500,000
Cr Liabilities Deposits $1,500,000
The bank increased its cash reserves and liability by the same amount when it borrowed $1.5 million. The assets side of the T-account increased by $1,500,000, increasing bank reserves, and the liabilities side of the T-account increased by $1,500,000, increasing demand deposits.
Therefore, with the addition of reserves, the bank can make loans to borrowers and earn interest on them. Similarly, because the bank is the borrower, Hubert can withdraw the amount from the demand deposit.
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Your question is incomplete, but most probably your full question was,
Suppose southeast mutual bank, walls fergo bank, and pjmorton bank all have zero excess reserves. The required reserve ratio is 20%. Hubert, a client of southeast mutual bank, , deposits $1,500,000 into his checking account at the local branch.
Complete the following table to reflect any changes in southeast mutual bank's T-account (before the bank makes any new loans).
which organization publishes guidelines for writing technical procedures that are usually acceptable to agencies governing laboratory operations and accreditation?
OSHA organization publishes guidelines for writing technical procedures that are usually acceptable to agencies governing laboratory operations and accreditation
The Occupational Safety and Health Administration of the United States Department of Labor is a significant regulatory agency with long-standing federal visitorial jurisdiction to examine workplaces. 12, 16 Congress was given the go-ahead to establish the agency by the Occupational Safety and Health Act OSH Act, which President Richard .OSHA's mission statement reads: "To ensure safe and healthy working conditions for working men and women by developing and enforcing standards and by providing outreach, training, information, and assistance." Additionally, the organisation is responsible for upholding several whistleblower laws and regulations. OSHA's workplace safety inspections have been shown to lower injury rates and injury costs without having a negative effect on employment, sales, credit ratings, or any other factor.
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11. which of the following messages is best suited to an informational presentation? a. persuade homeowners to have a personal evacuation plan. b. sell the board of supervisors on the importance of investing in mitigation. c. lead staff in a review of the incident command system. d. convince residents to become involved in volunteer agencies.
The following messages are best suited to an informational presentation: a. persuade homeowners to have a personal evacuation plan.
The Cambridge Dictionaries on line became the best well-known dictionary we determined with entries for each “informational” and “informative.” In American English, the dictionary says, “informational” means relating to proving iding data, at the same time as the “informative” approach supplying useful information.
There are 4 fundamental informational textual content types: literary nonfiction, expository writing, argumentative writing (additionally called persuasive writing), and procedural writing. One crucial cause for informative speakme is to provide listeners with statistics so they can make up their very own minds approximately a problem. Informative speeches have to be correct, clear, and exciting for the listener.
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flat surfaces pro sells photography backdrops. it communicates products and information as well as the opportunity to purchase via its website. this is an example of multiple choice direct a. marketing. b. intermediary selling. c. wholesaling. d. indirect marketing. e. direct selling.
The strategy that is used by flat surfaces where it has to communicates products and information as well as the opportunity to purchase via its website is called marketing. Option A.
What is marketing?The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing.
In a nutshell, it is an action made to draw attention to a company's offerings, which may include both tangible products for sale and services provided. Television ads, billboards at the side of the road, and magazine ads are typical instances of marketing at work.
Getting consumers interested in a company's goods or services is marketing's primary goal. This is accomplished by conducting market research, analyzing the interests of a company's ideal clients, and considering how to draw them in with messaging that would be instructive and beneficial to the target audience.
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An asset fitting into the 7-year MACRS category was purchased two years ago for $80,000. The book value of this asset is now________. (Do not round intermediate calculations.)
For $80,000, an asset falling under the 7-year MACRS category was bought two years ago. Currently, this asset's book value is $48,976.
What does the balance sheet's "accumulated depreciation" refer to?Accumulated depreciation refers to depreciation that has been calculated against the value of an asset over time and as a whole. Fixed assets are recorded as a negative on the statement even while accumulated depreciation is shown as a credit on the balance sheet, offsetting the asset.
How depreciation accrual amounts are determined.Contrary to depreciation expenditure, which is the sum recognized each period, cumulative depreciation refers to the amount of depreciation since the date of purchase. The accumulated depreciation account is viewed as a counter asset because it has a credit balance.
An asset falling under the MACRS 7-year class will decline at a rate of 14.28% and 24.29% over the first two years, under the Modified Accelerated Cost Recovery System (MACRS) Tables. Consequently, we have:
Accumulated depreciation rate = 14.29% + 24.29% = 38.78%
Accumulated depreciation = Cost of the asset X Accumulated depreciation rate = $80,000 * 38.78% = $31,024
Asset's Net book value = Asset's cost - Accumulated depreciation = $80,000 - $31,024 = $48976
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acquired goodwill is considered to be a section 197 asset amortized over 15 years for tax purposes. group of answer choices true false
Acquired goodwill is considered to be a section 197 asset amortized over 15 years for tax purposes.-----True
What is acquired goodwill?
Goodwill purchased:When a company acquires another company as a going concern and pays the value of the latter including all of its assets and excluding outstanding liabilities, it is declared as acquired goodwill.
What kind of journal entry is acquired goodwill?Goodwill is a balance sheet adjusting item that explains why the cash spent to acquire the business is greater than the assets received in return. First, subtract liabilities from identifiable assets such as inventory and real estate to determine the value of identifiable net worth.
Is acquired goodwill an asset?When a company is acquired, goodwill is recognized as an intangible asset with an indefinite useful life and tested for impairment.
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Which of the following is included in the cost of land?
A) The cost of fencing
B) The cost of paving
C) The cost of clearing the land
D) The cost of outdoor lighting
E) Brokerage commission is included in the cost of land.
A broker is a person who connects the buyer of a land or property to the seller of a property or land.
When a deal is finalized between a buyer and a seller through a broker then a broker receives a commission for the deal. The bigger the deal, the more will be the commission of the broker.
Hence, when you are interested to buy a piece of land, the price of the brokerage commission is included in the cost at which you will buy the land. However, the commission of the broker can be changed upon request.
The question will correctly be written as:
Which of the following is included in the cost of land?
A) The cost of fencing
B) The cost of paving
C) The cost of clearing the land
D) The cost of outdoor lighting
E) Brokerage commission
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a cement company received more than $2,000 in federal money. the company hired employees belonging to the age group of 25 to 40. soon after, the company was charged for violation of law under the davis-bacon act of 1931 and the walsh-healy public contracts act of 1936. what would most likely explain the reason for the company being sued?
The company's employees are not receiving salaries that are at least equal to the usual price for the area.
A federal law passed in the United States in 1931 called the Davis-Bacon Act mandates that laborers and mechanics working on public works projects be paid the local prevailing rate. It is applicable to "contractors and subcontractors executing on federally sponsored or assisted contracts over $2,000 for the construction, alteration, or repair of public structures or public works."
A labor law adopted in the United States as part of the New Deal is the Walsh-Healey Public Contracts Act of 1936. It outlines fundamental worker rights for work done on U.S. government projects. It was done in an effort to raise labor standards.
The company's employees are not receiving salaries that are at least equal to the usual price for the area. This would most likely explain the reason for the company being sued.
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what should you include in the closing of a direct claim message? a statement that promotes goodwill and a summary of your request a clear statement of the problem a series of open-ended questions
A statement that promotes goodwill and includes an end date and action request needed to be included in the closing of a direct claim message.
A coverage claim letter is an important part of any insurance claim method. It helps the permitted insurance adjuster understand how lots money you're soliciting for to cover the harm. At minimal the letter must encompass records about the coincidence, the policy variety, the date of loss, and the amount claimed.
A claim letter is a persuasive letter despatched with the aid of a client to a enterprise or corporation to pick out a trouble with a services or products and can also be referred to as a letter of grievance.
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need help pls 70 POINTSIf you are using your factors of production at 100% efficiency, it is guaranteed that you will be
A. no where on the curve
B. inside the curve
C. somewhere on the curve
D. at the bottom of the curve
according to classical macroeconomic theory, changes in the money supply change real gdp but not the price level. a. true b. false
According to classical macroeconomic theory, changes in the money supply change real GDP but not the price level True.
The overarching dreams of macroeconomics are to maximize the standard of residing and attain stable financial increases. The dreams are supported by using objectives such as minimizing unemployment, growing productivity, controlling inflation, and extra.
Microeconomics issues selection-making through individuals and small corporations, together with households, clubs, corporations, and governmental agencies. as the well-known quote from Lord Robbins at the beginning of the chapter says, microeconomics is the have a look at ways scarce resources are allocated among competing ends.
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after helen, a realtor, closes a sale on a house, she usually calls her customers the following week to find out if they are pleased with their new home. this is an example of transaction selling.
This is not an example of transaction selling. The statement is false.
A negotiation tactic known as transactional selling places all of its attention on closing a deal. It emphasizes social evidence, competitive pricing, and the urgency of the purchase. The objective is to generate the most individual sales feasible.
Customer lifetime value is often minimal and sales cycles for transactional selling are quite short. In this sales tactic, making an emotional connection is less crucial than making a sale.
It's not always the goal of sales representatives to build enduring connections with their clients. People therefore move quickly through the sales pipeline.
In transactional selling, the representative often gets in touch with the client before employing pressure-selling techniques to close the deal on a good or service. This tactic is frequently employed during sales calls, but it can also be useful while conducting in-person or online transactions.
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"Kitchens Unlimited has an inventory decision rule which states that when the inventory position goes down to 20 cabinets, an order for 50 cabinets will be placed. Which of the following statements best describes their inventory management policy?
a. They are pursuing a reorder point policy
b. They monitor their inventory continuously c. All of these statements are true d. "Twenty is the inventory position when the ROP is struck, and 50 is the order quantity"
Option c is correct. All these statements are true. An inventory management policy's primary goal is to maintain the stock so that it is neither overstocked nor understocked.
An organization's framework for making educated decisions about whether to manufacture or purchase inventory is provided by an established set of rules and limitations known as an inventory management policy. Understanding how well your supply chain can meet consumer demand is essential for developing an inventory management strategy.
ERP systems should be continually updated to accommodate demand and supply variations. These criteria include lead-time, safety stock, and MOQ. Businesses will be able to use the proper planning parameter settings to control inventory investment by measuring the variability.
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onion company, whose fiscal year ends on december 31st, purchased a vehicle for $41,000 on march 12, 2022. the vehicle’s estimated useful life is five years, and it is expected to be driven 150,000 miles (20,000 miles in the first year and 32,500 for each of the remaining four years). onion estimates the salvage value at $3,500. using the units-of-activity method, what amount of depreciation expense will onion company record in year 3? $8,125
Using the units-of-activity method, $8125 amount of depreciation expense will onion company record in year 3.
Explain Units of Activity.The cost of the asset (minus any salvage value) is assigned to the accounting periods based on the asset's utilisation (units produced, activity, etc.) throughout each accounting period under the units-of-activity method of depreciation. Depreciation Expense = Unit Production Rate x Units Produced is the calculation for depreciation of units of production. The depreciable cost for the units-of-activity technique is computed by removing the projected salvage value from the initial cost ($41,000 - 3,500 = $37,500). This figure is then divided by the total number of projected units to calculate the depreciation per unit ($37,500 150,000 miles = $0.25 every mile). The vehicle is predicted to travel 32,500 miles in year three. Increasing the dep.
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according to the text, characteristics of minority or non-dominant groups often include....... identifiability, differential income, discrimination and group awareness identifiability, visibility, discrimination and group awareness identifiability, differential power, discrimination and group awareness visibility, differential income, discrimination and group awareness
According to the text, characteristics of minority or non-dominant groups often include identifiability, differential power, discrimination, and group awareness.
Depending on the situation, the word "minority group" can be used in a variety of ways. A minority group may be easily understood in terms of demographic numbers within a population, that is, a group in society with the least number of members is the "minority," according to standard use.
However, a group that makes up the smallest percentage of the population is not always considered to be a "minority" in sociology, economics, or politics. The phrases "minority" and "majority" are better understood in the academic setting in terms of hierarchical power relations. Whenever civil rights and collective rights are discussed, the phrase "minority group" is frequently used.
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tells managers how much of the total variance is due to using a greater or lesser amount of time being worked than anticipated c. tells managers how much of the total variance is due to paying a different price than expected for direct materials d. tells managers how much of the total variable moh variance is due to using more or less hours of the allocation base than anticipated for the actual volume of output e. measures the difference between the budgeted fixed moh costs and the standard allocated fixed moh costs f. tells managers how much of the total variance is due to paying a different hourly wage rate than anticipated g. also known as attainable standards h. also called the variable overhead spending variance i. tells managers how much of the total variance is due to using a different quantity of direct materials than expected j. standards based on conditions that do not allow for any waste in the production process k. the budgeted cost for a single unit of product
Variable fluctuation in overhead efficiency.
The direct labour variable is made up of which two variances?Direct labour variance analysis takes into account two distinct variances: the labour rate variance and the labour efficiency variance.
Which costing approach makes use of analysis of variations as a common means of cost management?By comparing the expenditures that were incurred and the costs that should have been incurred for the production of the goods, a technique known as standard costing is used by the company. In essence, it is a comparison of actual expenses to average costs. Variations account for the two-way differences.
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select all that apply merchandise inventory . (select all that apply.) multiple select question. consists of products acquired in a finished condition that are available for sale is reported on the income statement above gross profit becomes work in process inventory once it enters the production process is reported as a current asset on the balance sheet
Merchandisers hold merchandise inventory, which consists of products acquired in a finished condition that are available for sale.
The cost of completed products (COGS) that a retailer or wholesaler has on hand to sell to its clients during a specific accounting period is referred to as merchandise inventory. The price of the books or periodicals a bookshop has for sale would be considered part of its goods inventory.
Put the amount of the ending inventory for merchandise inventory in the Balance Sheet Debit column. When recording unearned revenue, place the revenue account in the Income Statement Credit column and the unearned revenue account in the Balance Sheet Credit column.
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On January 1, 2018, Steve Smith and Harry Chewbacca start a partnership. Steve invests a building worth $100,000 and equipment valued at $12,000 as well as $15,000 in cash. Although Harry makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. The journal entry on January 1 to record the transaction using the bonus method would include
The transaction using the bonus method would include credit to Steve Smith Capital for $63,500.
Building $100,000
Equipment $12,000
Cash $15,000
Harry Capital $63,500
Steve Capital $63,500
A business is defined as an employer or enterprising entity engaged in business, commercial, or expert activities. businesses may be for-income entities or non-earnings companies.
Business plays an important position in our lives. First, they devise goods and offerings to satisfy our needs and wants. Then, they also recruit families as exertions and provide them with reimbursement, consisting of wages, salaries, and advantages. for this reason, it turns into a supply in their profits, which can be used to preserve their existence.
The maximum common types of business are sole proprietorship, partnership, company, and S corporation.
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A systems approach to managing the flow of information, materials, and services from tiers of suppliers through the buying organization to tiers of customers is:
strategic sourcing.
materials management.
supply chain management.
procurement management.
inventory management.
The answer of given statement is supply chain management.
What does supply chain management mean?
Supply chain management is, at its most basic level, the control of the flow of materials, information, and money involved in the production of a good or service, from the from the purchase of raw materials to the delivery of the product to its destination.
Despite the fact that many people mistakenly think the supply chain and logistics are the same thing, logistics is only one part of the supply chain.
Purchasing, product life-cycle management, supply chain planning (which includes inventory planning and the upkeep of company assets and production lines), logistics (which includes transportation and fleet management), and order management are all part of the supply chain. SCM can be applied to activities related to international trade, such as managing multinational production processes and global suppliers.
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healthy and hearty soups: healthy and hearty soups produces a variety of soups. there is considerable competition in the soup market. however, healthy and hearty soups has spent several million dollars on an advertising campaign to convince consumers that their soups are healthier than all other soups. because of this advertising, healthy and hearty soups charges a higher price than other soups on the market.
According to the claim, monopolistic competition makes others believe that its product is superior.
Why do you use the word "market"?Market: A mechanism whereby buyers and sellers come into touch with one another, both directly and through intermediary agents or organizations, and supply goods and services.
What does a company' market entail?A market is just a place where sellers and buyers join together and to transactions. Markets might be real-world, like a physical store, or digital, like an online merchant. The black market, the auctions market, as well as the financial market are more examples.
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suppose your firm adopts a technology that allows you to increase your output by 15%. if the elasticity of demand is 3.0, how should you adjust price if you want to sell all of your output?
Suppose a firm adopts new technoogy that allows it to incrase its output by 15%. To maintain the elasticity of demand in 3.0, a firm has to adjust its product price by 5% if a firm want to sell all its output.
Price elasticity of demand demonstrates how the change in demand for a produt in relation of any fluctuation in its price. Price elastivity of demand could be calcuated from comparing percentage change in quantity demanded with percentage change in price, or wirtten as:
Price elastivity of demand = % change in quantity demanded
% change in price
From the case, we know that:
price elasticity of demand = 3.0
% change in quantity demanded = % change in output produced (sold out)
% change in quantity demanded = 15%
% change in price?
We use the price elasticity of demand formula to find the appropriate price change:
Price elastivity of demand = % change in quantity demanded
% change in price
3.0 = 15%
% change in price
% change in price = 5%
To be able to sell all the output produced, a firm has to decline its product price upto 5% to maintain the price elasticity of demand.
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miscavage corporation has two divisions: the beta division and the alpha division. the beta division has sales of $245,000, variable expenses of $135,600, and traceable fixed expenses of $64,800. the alpha division has sales of $555,000, variable expenses of $313,800, and traceable fixed expenses of $123,100. the total amount of common fixed expenses not traceable to the individual divisions is $122,200. what is the company's net operating income?
The Company's net Operating Income is $40500.
What do you know about Operating income?
Operating income is generated by a company's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS). Operating income, is calculated by deducting all operating expenses from a company's gross income, which is equal to total revenue minus COGS. Operating expenses are costs incurred from normal business operations and include items such as office supplies and utilities.
Computation of Company's net Operating Inccome
Beta Division Alpha Divison Total
Sales Revenue $245,000.00 $555,000.00 $800,000.00
Variable Expense $135,600.00 $313,800.00 $449,400.00
Contribution Margin $109,400.00 $241,200.00 $350,600.00
Direct Fixed costs
Directly Attributable $64,800.00 $123,100.00 $187,900.00
Segment Margin $44,600.00 $118,100.00 $162,700.00
Less: Common Fixed costs $122,200.00
Net Income $40,500.00
So, The required answer is $40500
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Give an example of an economic activity included in gdp, and explain why it is included. Also give an example of an economic activity not included in gdp, and explain why it is not included.
Clothing, food, and health care are examples.The sum of expenditures for structures, inventories, and capital equipment is called investment I.Machinery, unsold goods, and housing are examples.
The total amount spent on goods and services by all government agencies is referred to as "government spending," or G.
What are five examples of commercial endeavors?
Five distinct examples of economic activities can be broadly categorized.The production, supply, purchase, and consumption of goods and services are all examples of these activities.
What are the three categories of economic endeavors?
There are three further categories of economic activities:namely, business, profession, and employment. For instance, a person running a garment business, a doctor working in his clinic, and a teacher working in a school are all engaged in an economic because they are all doing so for a living.
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cupola fan corporation issued 10%, $580,000, 10-year bonds for $547,000 on june 30, 2021. debt issue costs were $3,300. interest is paid semiannually on december 31 and june 30. one year from the issue date (july 1, 2022), the corporation exercised its call privilege and retired the bonds for $557,000. the corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Required: Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2016 and June 30, 2017 according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the issuance of the bonds.
2. Record the payment of interest.
3. Record the amortization of debt issue costs.
4. Record the payment of interest.
Under IFRS corporation issued by company = $3,444 Issue price = $547,000
Bond issue discount = Bond face value - Issue price = $580,000 - $547,000 = $3,
Direct insurance against possible future risks Reinsurance services that provide financial protection.
Eligible Group, as defined in paragraph (d)(5)(iv) of this section, is a chain of one or more entities linked to an issuer Only if the body directly owns shares that: At least one other company meets the requirements of Section 368(c), and each company (other than the issuing company) has shares that meet the requirements of Section 368(c) directly owned by one of the other companies. (iv) Issuer.
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Under IFRS corporation issued by company = $3,444 Issue price = $547,000
Bond issue discount = Bond face value - Issue price = $580,000 - $547,000 = $3,
Direct insurance against possible future risks Reinsurance services that provide financial protection. Eligible Group, as defined in paragraph (d)(5)(iv) of this section, is a chain of one or more entities linked to an issuer Only if the body directly owns shares that: At least one other corporation meets the requirements of Section 368(c), and each company (other than the issuing company) has shares that meet the requirements of Section 368(c) directly owned by one of the other companies. (iv) Issuer.
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Say whether each of the following situations involves screening or signaling.Auto shops and motels advertise that they are AAA-approved:a. signalingb. screening
In the following question Option A and D involves signaling and in option B and C it involves screening.
In medicine, screening is a method for searching for risk factors or undiagnosed diseases. Both individuals and the entire population can be tested using this method. The individuals evaluated might not show any symptoms at all, or they might just show one or two symptoms, which by themselves do not necessarily suggest a diagnosis.
In order to enable early intervention and care in the goal of reducing mortality and suffering from a disease, screening interventions are created to identify problems that may eventually develop into diseases. Not all screening tests have been proved to help the individual being checked, even though screening may result in an earlier diagnosis.
The above question is incomplete, the complete question is-
Say whether each of the following situations involves screening or signaling.
a. Auto shops and motels advertise that they are AAA-approved
b. Employers check interviewees' Fa-cebook or My Space profiles before hiring one of them.
.c. Applicants must pass an exam before becoming eligible for a civil-service position.
d. People wear expensive clothing with large brand names or log
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what is a characteristic of long-term disability insurance? group of answer choices it pays about 50 to 70 percent of the employee's salary in case of disability. most employers offer long-term disability plans. it benefits the disabled employee only for the first year of disability. it offers coverage when the employee's dependent is disabled. payments under short-term plans are less than that of long-term plans.
The characteristic of long-term disability insurance is that it pays about 50 to 70 percent of the employee's salary in case of disability.
Long-term disability insurance is basically constant as permanent disability insurance. It's thus as a result of the insured individual will receive advantages for a amount spanning from many years to their entire life. During this state of affairs, the waiting amount will last something from weeks to months. semipermanent social insurance has an elimination amount of a minimum of ninety days.
A disability is any condition of the body or mind (impairment) that creates it harder for the person with the condition to try and do sure activities (activity limitation) and move with the planet around them (participation restrictions).
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ray buys a new tractor for $118,000. he receives consumer surplus of $13,000 on his purchase. ray's willingness to pay is
Ray buys a new tractor for $118,000. He receives consumer surplus of $13,000 on his purchase. Ray's willingness to pay is $131,000.
Willingness to pay = $118,000 + $13,000 = $131,000.
How do we determine willingness to pay?
Rather than being expressed as a single dollar amount, willingness to pay is typically shown as a price range. The highest price a consumer is willing to pay is divided by the cost of the good to determine WTP.
What does willingness to pay mean?
The highest price a client is willing to pay for a good or service is known as the customer's "willingness to pay" (or "WTP"). It is typically expressed as a range to reflect the diversity of perspectives as well as changes throughout time.
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suppose that rent controls are imposed. if the government wants a rent control ceiling to be effective immediately, what is one possible price it could set?
Rent 0, 1 or Rent control results in shortages, a decline in product quality, and lines, like other price ceiling do.
An auction price ceiling is what?When a price ceiling is established just under the market equilibrium price, a binding price ceiling results. Because there is a scarcity at the price ceiling, a legally binding price controls will cause one.
Why are price caps employed?Price caps are implemented in an effort to maintain affordable costs for people who need the product. However, when the sale price is prevented from increasing toward the market equilibrium, quantity sought outpaces supply, leading to a shortage.
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which of the following is correct? question 6 options: current income is more equally distributed than permanent income. incomes tend to peak at around age 50. incomes tend to rise sharply at retirement. incomes tend to be high for young workers.
The average salary for young workers is high. The correct response is option (4).
What is permanent income?In the realm of economics, the Permanent income hypothesis (PIH) is a model to explain how spending patterns emerge. It implies that consumption habits are created by smoothing and future expectations. [α] In 1957, Milton Friedman released his A Theory of Consumption Function, which contained the theory. Robert Hall later formalized it in a rational expectations model. Future expectations, which were initially applied to consumption and income, are believed to have an impact on other occurrences. The theory can be expressed simply as the idea that changes in permanent income (human capital, property, and assets) rather than transient revenue (unexpected income) influences consumption.
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