Answer:
C. Purchase of a trademark.
Explanation:
Counter balancing error is when an error made cancel out another error. For instance, if an expense was charged to year A instead of year B. It means that there would be an over statement of expense and understatement of profit in year A whereas year B would have an understated expense and overstated profit. The retained earning say for year C would be correct due to the fact that the two previous errors cancelled out each other. Although the two errors were correct over two year period, yet the annual net figures for both years have always been mistated.
With regards to the above, all the options except purchase of trade mark are counter balancing errors which automatically offset each other in the next accounting periods.
Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $18 at the end of each month from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his monthly payments if he is earning 6% (APR), 8 % (APR), or 14 % (APR)? What will be the value of Matt's account in 6 years with his monthly payments if he is earning 6% (APR)?
Answer:
$1,555.36
$1656.48
$2013.57
Explanation:
The formula for calculating future value = A (B / r)
B = [(1 + r)^ nm] - 1
FV = Future value
P = Present value
R =Monthly interest rate interest rate
N = number of years
1. 6% APR
$18[ (1 + 0.005)^72 - 1] / 0.005 = $1,555.36
2. 8% APR
$18[ (1 + 0,006667)^72 - 1] / 0.00667 = $1656.48
3. 14% APR
$18[ (1 + 0.011667)^72 - 1] / 0.011667= $2013.57
Characteristics of competitive markets The model of competitive markets relies on these three core assumptions:
1. There must be many buyers and sellersâa few players can't dominate the market.
2. Firms must produce an identical productâbuyers must regard all sellers' products as equivalent
. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers.
While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario Competitive?
The government has granted the U.S. Postal Service the exclusive right to deliver mail.
There are hundreds of high school students in need of algebra private teachers services in Dallas. Dozens of companies offer private teaching services, and the parents who seek out private teachers view the quality of the at the different companies to be largely the same.
There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match their needs.
A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.
Answer:
The correct answers are:
First Scenario: It is not a perfect competitive market
Second Scenario: It is a perfect competitive market
Third Scenario: It is not a perfect competitive market
Foruth Scenario: It is not a perfect competitive market
Explanation:
First Scenario: The fact that the government has interfere with the market and make it impossible for other companies to operate in there then that market refers to a monopoly where the only seller is the U.S. Postal Service and therefore there can not be another companies selling in the market and that is why it is not a perfect competitive market.
Second Scenario: The fact that there are a lot of buyers and sellers and that the product is perceived as the same and therefore that this one is homogeneous to every consumer makes this market a perfect competitive one.
Third Scenario: The fact that the colleges vary on many variables such as location, size and educational quality makes it impossible to be a competitive market because there is not a homogenoues product but instead the buyers can choose among those colleges due to their differences and needs.
Fourth Scenario: The fact that there are only a few airlines and not many makes it impossible for the market to a be a perfect competitive one and therefore that this market is actually an oligopoly preferently because the buyers will choose mostly by price.
Gelb Company currently manufactures 41,000 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $83,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 41,000 units and buying 41,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer and Explanation:
1. The computation of total incremental is shown below:-
Incremental Costs to Make
Relevant Amount Relevant Fixed Total Relevant
Per Unit Costs Costs
Variable Cost
Per Unit $4.05 $166,050
(41,000 × $4.05)
Fixed manufacturing
cost $83,000 $83,000
Total incremental
cost to make $249,050
Incremental Costs to Buy
Purchase Price Relevant Fixed Total Relevant
Per Unit Costs Costs
Purchase Price
Per Unit $143,500
($3.50 × 41,000)
Total Incremental Cost to Buy $143,500
2. The company should buy from the outside supplier as its a lower and the total incremental cost is $143,500
At the level of output at which a single-price monopolist maximizes profit, price is Group of answer choices
Answer:
Greater than marginal cost.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. It is also known as oligopoly, wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Also, a single-price monopolist is an individual or seller that sells each unit of its products to all its customer at the same price. Hence, a single-price monopolist doesn't engage in price discrimination among its customers (buyers).
At the level of output at which a single-price monopolist maximizes profit, price is greater than marginal cost because the marginal revenue would be below the demand curve.
However, if the marginal cost is greater than the price, the monopolist will not make any profit.
In a nutshell, profit maximization for the single-price monopolist occurs at the point where marginal cost is equal to marginal revenue (MC = MR) on the graph of price (P) against quantity (Q) of goods.
Milano Gallery purchases the copyright on an oil painting for $300,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Answer and Explanation:
According to the situation, the solution of journal entries are as follows
1. Copyright Dr $300,000
To Cash $300,000
(being the purchase of copyright is recorded)
Here, we debited the copyright as it increased the assets and credited the cash as it decreased the assets
2. Amortization expense Dr ($300,000 ÷ 12 years) $25,000
To Accumulated amortization $25,000
(being the annual amortization is recorded)
Here we debited the amortization expense as it increased the expenses and credited the accumulated amortization as it decreased the assets
Repbulic LLC exchanged land used in its business for some new land to be used in the business. Republic LLC originally purchased the land it exchanged for $37,500. The new land had a fair market value of $39,750. Arlington also received $11,500 of cash in the transaction. What is Republic LLC's recognized gain or loss on the exchange
Answer:
Republic LLC's recognized gain on the exchange is $11,500
Explanation:
In order to calculate Republic LLC's recognized gain or loss on the exchange we would have to calculate first the Realized gain and then compare it with the amount received by cash and value with less amount would be the recognized gain or loss on the exchange.
Therefore, Realized gain=Fair Market value of property received + Cash received - Adjusted basis of the property transferred
Realized gain=$39,750+$11,500-$37,500
Realized gain=$13,759
The cash in the transaction was $11,500.
Therefore, Republic LLC's recognized gain on the exchange is $11,500
what could occur if grease trap is not maintained
A company has net income of $7.10 million. Stockholders' equity at the beginning of the year is $35.05 million and, at the end of the year, it is $43.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:
Answer:
Return on equity ratio 18.16%
Explanation:
Calculation for the return on equity ratio
This first step is to find the Average stock holder equity.
Using this formula
Average stock holder equity =Beginning stock holder equity + ending stock holder /2
Let plug in the formula
Average stock holder equity=$35.02+$43.15/2
Average stock holder equity =$78.17/2
Average stock holder equity =$39.085
Second step is to calculate for the return on equity ratio
Using this formula
Return on equity ratio=NET INCOME/STOCKHOLDERS EQUITY
let plug in the formula
Return on equity ratio=$7.10/$39.085
Return on equity ratio=0.18165 ×100
Return on equity ratio=18.16%
Therefore The return on equity ratio is approximately 18.16%
Suppose that the adult population is 210 million, and there are 130 million who are employed and 5 million who are unemployed. Calculate the unemployment rate and the labor force participation rate.
Answer:
Unemployment rate= 3.7%
Labor force participation rate= 64.3%
Explanation:
The adult population is 210 million
The number of unemployed adults is 130 million
The number of unemployed adults is 5 million
(a) Unemployment rate= Number of unemployed/(Number of unemployed+Number of employed)×100
= 5 million/(5 million+130 million) × 100
= 5 million/135 million×100
= 0.037×100
= 3.7%
(b) Labor force participation rate= (Number of employed+Number of unemployed)/Adult population
= (5 million+ 130 million)/210 million
= 135 million/210 million
= 0.643×100
= 64.3%
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $287,000, has an estimated useful life of 8 years and an estimated residual value of $37,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Purchasing cost= $287,000
Useful life= 8 years
Estimated residual value= $37,400
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (287,000 - 37,400) / 8
Annual depreciation= $31,200
Depreciation remains constant during the useful life of the asset.
We can calculate exactly the annual depreciation for the first year.
Year 1= (31,200/365)*360= $30,772.60
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Project Y Project Z
Sales $ 360,000 $ 288,000
Expenses
Direct materials 50,400 36,000
Direct labor 72,000 43,200
Overhead including depreciation 129,600 129,600
Selling and administrative expenses 26,000 26,000
Total expenses 278,000 234,800
Pretax income 82,000 53,200
Income taxes (38%) 31,160 20,216
Net income $ 50,840 $ 32,984
Compute each projectâs annual expected net cash flows.
Project Y Project Z
Determine each projectâs payback period.
Payback Period
Choose Numerator: / Choose Denominator: = Payback Period
/ = Payback period
Project Y =
Project Z =
Compute each projectâs accounting rate of return.
Accounting Rate of Return
Choose Numerator: / Choose Denominator: = Accounting Rate of Return
/ = Accounting rate of return
Project Y
Project Z
Determine each projectâs net present value using 6% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.)
Project Y
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Project Z
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Answer:
Project Y Project Z
(6 years) (5 years)
investment: -$345,000 -$345,000
cash flows:
net income after taxes $50,840 $32,984
+ depreciation expense $57,500 $69,000
net cash flow per year = $108,340 $101,984
payback period:
investment / NCF = 3.18 years 3.38 years
accounting rate or return:
net income / investment = 14.74% 9.56%
net present value:
NCFs discounted at 6% = $187,743 $84,594
Project Y lasts for 6 years, while project Z lasts for only 5 years, that is the reason why there NPVs are so different.
Skolnick Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.00 Direct labor $ 4.50 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 112,000 Sales commissions $ 1.20 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 35,200 Required: a. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.) b. If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
Answer:
Results are below.
Explanation:
Giving the following information:
Direct materials $5.00
Direct labor $4.50
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $112,000
First, we need to calculate the direct production costs if 8,000 units are produced:
Direct costs= direct material + direct labor
Direct costs= (5+4.5)*8,000= $76,000
Now, the indirect costs of production for 8,000 units.
Indirect costs= total variable costs total fixed costs
Indirect costs= 1.6*8,000 + 112,000
Indirect costs= $124,800
Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity
Answer:
Complementary goods are those goods that, as the word implies, are often used together. For example: milk and cereals, or gasoline and cars.
If the price of a complementary good increases, then, the price of the other complementary good will likely increase as well. The quantity demanded for both will fall, will the supply will increase.
This is exactly what would happen in the case, the price of the good that is complementary to lamps will increase, and its quantity demanded will fall.
what is the difference between buy or sell
Answer:
I hope this helps you
Explanation:
Buying also called purchasing isobtain in exchange for payment.
Selling is the act of giving or handing over something in exchange for money
MARK ME AS BRAINLIEST
Answer:
Buy is when you get a thing in exchange of money and sell is when you get money in exchange of a thing. In selling you gain money and in buying you lose money.
Explanation:
Carlota Company estimates that the marginal cost of manufacturing its Professional Series guitars is given by the following in dollars/month when the level of production is x guitars/month.
C '(x) = 0.008x + 90
The fixed costs incurred by Carlota are $8500/month. Find the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month.
Answer:
C(x) = 0.004x^2 + 90x + $8,500
Explanation:
In order to find the to monthly cost C(x) incurred, the marginal cost C '(x) = 0.008x + 90 will have to be integrated using integral calculus as follows:
[tex]\int\limits {0.008x +90} \, dx = C(x) = \frac{0.008}{2}x^{2} +90 +C[/tex]
Where C is the constant or fixed costs
The equation above can be further solved as follows:
[tex]C(x) =0.004x^{2} +90x+C[/tex]
Since fixed costs is $8500/month, we substitute for C to obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month as follows:
C(x) = 0.004x^2 + 90x + $8,500
Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $211,000 for January. On February 7, a customer received warranty repairs requiring $170 of parts and $70 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.
Answer:
a.
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
b.
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)
Explanation:
Entry to record the warranty estimate for the year :
Hint : Recognize an Expense : Warranty Expenses and a Liability : Provision of Warranty Expense
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
Warranty Expenses Calculation = $211,000 × 3% = $6,330
When customer received warranty cost
Hint : Utilize the Provision that had been previously recognized.
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)
Susan can brew 5 gallons of root beer in an hour or she can make 4 pizzas in an hour. Becky can brew 7 gallons of root beer in an hour or she can make 5 pizzas in an hour. Susan's opportunity cost of making a pizza is 4 gallons of root beer. Becky's opportunity cost of making a pizza is 7 gallons of root beer.
Requried:
Who has an absolute advantage in making pizza?
Answer:
Becky
Explanation:
A person has absolute advantage in the production of a good if she produces more quantities of the good compared to the other person.
Susan produces 4 pizzas in an hour while Becky produces 5 pizzas in an hour. So, Becky has an absolute advantage in the production of pizzas.
I hope my answer helps you
FindFriend is an instant messaging application for smartphones. New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications. Hence, it has the largest user base in the industry. Thus, FindFriend app's value has increased primarily due to its _____.
Answer:
Network Effects
Explanation:
Network Effects is an effect in which the higher number of people that use a product or service increases the value of it and this makes new users to want to use the product to get the benefits from the network. According to this, the answer is that FindFriend app's value has increased primarily due to its network effects because people uses FindFriend to connect easily with their friends and family and it has the largest user base which shows the network effect as the higher number of people generates more value as they are able to communicate with everyone.
An example of a political force of concern in market screening is a(n) Group of answer choices change in voter registration numbers. entry barrier established by the host government. local blue law prohibiting sales on Sunday. change in the general platform of the ruling democratic party.
Answer:
entry barrier established by the host government
Explanation:
Market screening is a term in business or economics which describes a process of markets analysis in accordance to the total competencies and business objectives of the company. In other words, it is the company's evaluation of a tradable asset for the purpose of determining a fair deal for the asset.
Hence, an example of a political force of concern in market screening is entry barrier established by the host government.
The gift from Rebecca Smith (see previous question) earned $50,000 this year. The city council decides that these resources should be used to construct new sand volleyball courts for public use. Which fund should be used to account for the construction of the courts
Answer: a. Capital Projects Fund
Explanation:
This is a fund that is used by the Government in it's accounting records to record the various transactions related to embarking on a capital project.
It includes how the funds were sourced and how they will be disbursed.
Once the project is finished this fund is usually terminated.
May 23 Cash 22,000 Common Stock 22,000 This journal entry will
Answer:
The Journal entry will Increase cash and as well Increase Common stock
Explanation:
Based on the information given where we have Cash of the amount of $22,000 and Common Stock of the amount $22,000 on May 23 this means that the journal entry will Increase cash and as well Increase Common stock. And since cash is an asset this mean that it will increased by debit While Common stock will increased by Credit becauee Common stock is a Capital .
Sheffield Corp. manufactures customized desks. The following pertains to Job No. 953: Direct materials used $26800 Direct labor hours worked 400 Direct labor rate per hour $16.00 Machine hours used 300 Applied factory overhead rate per machine hour $30.00 What is the total manufacturing cost for Job No. 953?
Answer:
The answer is $42,200
Explanation:
Direct materials used by Sheffield Corp = $26,800
Direct labor hours used Sheffield Corp = 400 x $16.00
= $6,400
Factory overhead cost Sheffield Corp = 300 x $30.00
= $9,000
The total manufacturing cost for Job No. 953 incurred by Sheffield Corp is therefore,
$26,800 + $6,400 + $9,000
= $42,200
The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a balance sheet and which is based on an estimate of bad debts, is an application of the
Answer:
The answer is: application of matching principle and contra-asset
Explanation:
The allowance for doubtful accounts is a management estimate of bad debts (amount owed by the customers that is deemed uncollectible). In order to demonstrate the recoverable amount of the accounts receivable, it is usually applied as a reduction in the asset (accounts receivable) by applying contra asset (that is, a way of netting the two accounts).
The estimate of bad debt is in conformity with the matching principle of accounting. The principle states that the revenue generated in a particular accounting period must be matched against the expense for that particular period. In this instance, the the bad debt expense is the expense.
Wayman Corporation reports the following amounts in its December 31, 2021, income statement.
Sales revenue $ 425,000
Income tax expense $ 55,000
Interest expense 25,000
Cost of goods sold 135,000
Salaries expense 45,000
Advertising expense 35,000
Utilities expense 55,000
Required:
Prepare a multiple-step income statement.
Answer:
Wayman Corporation
Multiple-step income statement
Sales $425,000
Less: Cost of goods sold $135,000
Gross Profit $290,000
Operating Expenses
Salary Expenses $45,000
Utility Expenses $55,000
Advertising Expenses $35,000
Total Operating Expenses ($135,000)
Net Operating Income $155,000
Other Income and Expenses
Interest expense $25,000
Net Income before Tax $130,000
Income tax expense $55,000
Net Income $75,000
The Fridge-Air Company's preferred stock pays a dividend of $4.50 per share annually. If the required rate of return on comparable quality preferred stocks is 14 percent, calculate the value of Fridge-Air's preferred stock.
Answer:
Present value = $32.1428 rounded off to $32.14
Explanation:
The preferred stock is a stock that pays a constant dividend and after equal interval of time for an indefinite period. Thus, it is like a perpetuity. The formula for the present value of perpetuity is,
Present value = Cash flow / r
Where,
r is the required rate of returnIn case pf preferred stock, the cash flow is the dividend paid by the preferred stock.
So, the value of the preferred stock is,
Present Value = 4.5 / 0.14
Present value = $32.1428 rounded off to $32.14
If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.1. True2. False
Answer:
2. False
Explanation:
The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.
In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.
zippy had cash inflows from operations $66,500; cash outflows from investing activities of $51,000; and cash inflows from financing of $29,000. The net change in cash was:
Answer:
i wouldchoosetheanswer to 687 or9849
Explanation:
Jing and Tim have parking spaces next to each other at the apartment complex where they live. Tim claims that Jing dented his car when she was driving out of her space. They are negotiating with each other, trying to resolve this dispute. This type of negotiation tends to (select one):________
be adversarial.
look to the past.
be interest-based.
all of the above.
two of the above.
none of the
Answer:
be interest-based
Explanation:
An interest based negotiation is the one that that parties involved seek a win-win resolution to their dispute. In this type of negotiation, the position of both parties are carefully explored so that a mutually beneficial agreement will be reached.
The disputants in this type of negotiation focus on settling their dispute amicably, such that no one losses. The interest of each party is protected here.
With regard to the above, Jing and Tim is trying to resolve their dispute through an interest based negotiation.
Suppose the entire banking system has $50 million in excess reserves and a required reserve ratio of 10 percent. The deposit-creation potential of the banking system is:
Answer: $500 million
Explanation:
The required reserve ratio is the fraction of the total deposit that a bank recieves which is mandated by the central bank to be kept and should not be given out.
If the entire banking system has $50 million in excess reserves and a required reserve ratio of 10 percent. The deposit-creation potential of the banking system will be:
= $50million/10%
= $50million/0.1
= $500 million
QUICK ONE! $565 is invested in an account which pays 8% compound interest, calculated annually ii)How much interest will be earned in 6 years?
Answer:
Explanation
565(1+0,08)^(6) = 896,58