Answer:
classified as a liability when provided by creditors and as stockholders' equity when provided by owners
Explanation:
Corporate finance can be explained as how the revenue, asset as well as is been taken care of in business. The financing could be by individual or institution.
It should be noted that Financing that individuals or institutions have provided to a corporation is classified as a liability when provided by creditors and as stockholders' equity when provided by owners
What are the determinants of supply? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Income unanswered Prices of other goods unanswered Technology unanswered Tastes and preferences unanswered Resource prices unanswered Number of producers
Answer:
Number of producers
Prices of other goods
Technology
Resource prices
Explanation:
Supply is the total amount of goods and services available to consumers in a market
The higher the number of producers, the higher the number of goods produced and the higher the supply all things being equal. The reverse would be the case if the number of producers fall.
If the price of other good increases, it would be more profitable to produce the other goods. As a result, the number of producers available to good would reduce.
Technological progress that reduces cost of production and makes production more efficient, would lead to an increase in supply.
If the price of inputs increases, it becomes more expensive to produce the good and as a result, supply would fall.
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environmental degradation and the Americanization of popular culture. B. It has created new threats for businesses accustomed to dominating their domestic markets. C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition. D. According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin.
Answer:
C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition.
Explanation:
Globalization is integration of world economies. it has created threat to the employment opportunities in the developed countries since the large number of jobs are being outsourced to other countries.
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Here is some basic data for Honey Dukes Corporation:
Beginning raw materials inventory
Beginning finished goods inventory
Cost of direct materials requisitioned
Actual manufacturing overhead
Cost of goods sold
$37,000 Beginning work in process inventory
59,000 Cost of materials purchased
87,000 Direct labor incurred
195,000 Completed goods
255,000 Manufacturing overhead rate (% of
direct labor)
68,000
188,000
195,000
287,000
125%
The journal entry to record the cost of jobs sold would include a
O credit to Finished Goods Inventory account for $255,000.
debit to Finished Goods Inventory account for $255,000.
O credit to Finished Goods Inventory account for $287,000.
debit to Cost of Goods Sold account for $287,000.
For Honey Dukes Corporation, a debit of $287,000 from the Cost of Goods Sold account and a credit of the same amount to the Finished Goods Inventory account would be the appropriate journal entry to reflect the cost of jobs sold.
Record the journal entry.For Honey Dukes Corporation, the correct journal entry to represent the cost of jobs sold would be a debit of $287,000 from the Cost of Goods Sold account and a credit of the same number to the Completed Products Inventory account. This is because the cost of products sold, which accounts for the price of all things sold during the time and includes the cost of direct material and direct, direct labour, and manufacturing overhead. The finished products inventory account reflects the cost of all produced goods available for sale but not yet purchased. The cost is thus transferred from the finished products inventories account to the cost of goods sold column when the goods are sold.
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Item 4Item 4 You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div) Div Yld % PE Ratio Close Price Net Chg Hi Lo 64.60 47.80 Abbott 1.12 1.9 235.6 62.91 −.05 145.94 70.28 Ralph Lauren 2.50 1.8 70.9 139.71 .62 171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19 91.80 71.96 Duke Energy 3.56 4.9 17.6 74.30 .84 113.19 96.20 Disney 1.68 1.7 15.5 ?.10 According to your research, the growth rate in dividends for IBM for the next 5 years is expected to be 5 percent. Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 3.5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock.
Answer:
P₀ = $106.96
Explanation:
the current dividend paid by IBM was $6.30 per stock
Div₀ = $6.30
Div₁ = $6.615
Div₂ = $6.94575
Div₃ = $7.2930375
Div₄ = $7.657689375
Div₅ = $8.040573844
Div₆ = $8.321993928
we must first determine the terminal value at year 5 = Div₆ / (rrr - g) = $8.321993928 / (10% - 3.5%) = $128.0306758
now we must discount the future values using the 10% discount rate:
P₀ = $6.615/1.1 + $6.94575/1.1² + $7.2930375/1.1³ + $7.657689375/1.1⁴ + $8.040573844/1.1⁵ + $128.0306758/1.1⁵ = $6.013 + $5.740 + $5.479 + $5.230 + $4.993 + $79.50 = $106.96
The National Income and Product Accounts identity states:__________A) Expenditure Production Income.B) Production Expenditure Income.C) Production Expenditure Income.D) Expenditure Production Income.E) Production Expenditure Income.
Answer:
I. National Income Accounting:
National income accounts are an accounting framework is useful in measuring economic activity.
A. Three approaches—all produce the same measurement of the production of the economy.
1. product approach: how much output is produced
2. income approach: how much income is created by production
3. Expenditure approach: how much purchasers spend
B. Why all three approaches are the same: Assumes no unsold goods (at this point) then the market values of goods and services produced must equal the amount buyers spend to purchase them (product approach=expenditure approach). What the seller receives (income) must equal what is spent (expenditure).
II. Gross Domestic Product (GDP)
A. GDP vs. GNP
GNP= output produced by domestically owned factors or production. (By our people)
GDP= includes production produced by foreign owed factors of production within the countries border and excludes domestically owned production in foreign countries. (On our soil)
1. GDP = GNP – net factor payment from abroad (NFP)
2. How big is the difference?
B. Product approach: The market value of all final goods and services produced within a nation during a fixed period of time.
1. Market value: allows comparison between different goods. Has some problems – ignores some goods. underground economy, and government services.
2. Final goods and service: Treatment of inventories; Capital goods; Avoids double counting; Value added.
3. New production: Ignores goods produced in previous periods
C. Expenditure approach: Total spending on final goods and services produced within a nation during a specified period of time.
1. Income expenditure identity and four categories of spending: Consumption (C), Investment (I), government purchases of goods and services (G) and net exports (NX)
Y = C + I + C + NX
2. Consumption(C): Spending by domestic households on final goods and services
a. Consumer durable goods: Long lasting goods
b. Nondurable goods used up quickly
c. Services
3. Investment (I): Spending on new capital goods by business
a. Business fixed investment
b. Residential fixed investment
c. Inventory investment: Changes in the amount of unsold goods, goods in progress and new materials
4. Government purchases of goods and services (G):
a. State and local vs. Federal spending
b. Transfers and interest payments on debt are not counted. They are counted in total government expenditure which is not the same as government purchases of goods and services.
5. Net exports (NX): exports minus imports
a. Need to subtract imports since they are counted in C. I and G can add goods produced within the country purchased by foreign interests (exports).
D. Income approach adds up income received by producers, including profits and taxes paid to the government
1. Income generated by production
a. National income =
compensation of employees
+ proprietors income
+ rental income of persons
+ corporate profits
+ net interest
+ taxes on production
+ business transfers
+ surplus of gov enterprises
b. National income + statistical discrepancy = Net National Product (NNP)
Note: This changed a couple years ago. If you have an old addition, you may see the indirect business tax. It is no long used in this equation!
c. NNP + depreciation = GNP
d. GNP – NFP = GDP
2. Income of private sector and government
a. Private disposable income = income of private sector = private sector income earned at home (Y or GDP) and abroad (NFP) + payments from the government sector (transfers TR and interest on debt INT) – taxes paid to government (T) = Y + NFP + TR + INT – T
b. Government net income = T- TR – INT
III. Saving and Wealth
A. Wealth Difference between assets and liabilities
B. Measures of aggregate savings
1. Saving = current income – current spending; saving rate = saving/current income
2. Private saving (Spvt) Spvt = Y + NFP – T + TR + INT – C
3. Government Saving (Sgovt) Sgovt = T – TR- INT – G
a. Government saving = Government budget surplus (deficit = -Sgovt)
4. National Saving= private saving + government saving
S = Spvt + Sgovt = Y + NFP - C – G = GNP - C – G
C. The uses of private saving
1. S = I + (NX + NFP) = I + CA
CA = NX + NFP = current account balance
2. The use of savings identity
Spvt = I – Sgovt + CA
If the budget deficit increases one or a combination of the following happen
1) private saving must rise
2) investment must fall
3) the current account balance must fall
IV. Prices Indexes, Inflation and Interest Rates
A. Nominal vs. Real variables
Nominal Variables – Measures the economic variable in terms of the current market value.
Real Variable—Measure the variable valued at the prices in a base year.
B. Real vs. Nominal: Calculation the differences
Examples Small country only produces base balls and baseball bats
Explanation:
Company AA and Company BB have identical Assets, Revenues and Ebit. They are in the same line of business. Company AA has a Debt/Capital ratio of 0, while Company BB's ratio is 75%. Company BB pays a low interest rate, and both company's pay the same income tax rate. During good, profitable years, which company probably has the highest Net Income and why
Answer: BB
Explanation:
Because the credit help the company BB to run over and to make monney.
why do you think wants is less important?
Answer:
Wants is less important because you don't need it/them to survive, you can live with only your needs, you should only get your wants only if you can afford it and still have enough money for needs.
Explanation:
I don't know if that made sense lol
What is meant by Sandel's use of the phrase "a common currency"?
A. Sandel meant that utilitarianism only thinks of moral values in terms of monetary currency
B. Sandel meant that utilitarianism tells us that we should never eat each other, no matter how hungry we are
C. Sandel meant that utilitarianism aims to level all values to equal standing so that they can be quantified and measured
D. Sandel meant that utilitarianism relies on a theory of human nature as composed of base and higher capacities
Answer:
C. Sandel meant that utilitarianism aims to level all values to equal standing so that they can be quantified and measured
Explanation:
The common currency is the currency that are shared by the different countries
Utilitarianism refers to a theory in which the goods things are to be rise and the bad things would be decline also it shows the outcome of an action that generated right and wrong concept
Therefore it provides a measure that should be common depend upon the values
Hence, the option c is correct
Which of the following is NOT true? A. The financial statement which reports information helpful in calculating the current ratio would be the balance sheet. B. A gain on the sale of land is included in net income from operations in a multi-step income statement. C. The governmental agency that has broad powers to prescribe accounting practices to public companies that trade on the major stock exchanges is the Securities Exchange Commission. D. Current assets will be typically be converted to cash or sold/consumed in one year or less. E. All of the above are true.
Answer:
B. A gain on the sale of land is included in net income from operations in a multi-step income statement.
Explanation:
A multi step income statement is a detailed for of an income statement that shows the revenues, expenses, and overall position of a business. Wether it is a profit or loss.
Operational revenues and expenses are shown separately from non operational expense.
The main aim of multi step income statement bus to calculate net income.
In this scenario gain on the sale of land is supposed to be included in non operational revenue. It is not an activity that generates income from everyday operations of the business.
Why is a facility location so important to manufacturers
What does Checks and Balances mean? And why do we have them?
Answer:
Hmm.
Explanation:
Checks and Balances mean the principle of government under which separate branches are empowered to prevent actions by other branches and are induced to share power.
We have them so the government can limit the powers of the other branches.
Define the internal environments in international business for finance, production and marketing
Answer:
International business can be defined as the trade of goods and services ( e.g technology, capital, consulting, transportation, events, hospitality) globally or across national borders.
Internal environment is composed of elements within the business that can easily be controlled by the company, this include employees, financial resources, productions, management, and marketing.
Explanation:
Internal environment determines the extent to which the business can excel in international market. Internal environment like financial resources will determine the quantity and quality of products the company markets or exports to other nations.
Internal environment are factors that can be easily controlled or altered in order to adjust to the external environment. The external environment cannot be easily controlled but the internal environment can be adjusted constantly to ensure the company is archiving it targets in the international business.
Identical products, as well as a large number of buyers and sellers, are characteristics of aperfectly competitive market. In such markets, sellers of goodscan influence the prevailing market price, giving them the role of pricemakers in the market. True or False: The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets.
Answer and Explanation:
Perfect competition is a competitive market where there is a very wide number of buyers and sellers who offer the same or similar goods with great product and service information. Furthermore, this sector has free entry and exit
So it is a perfectly competitive market, also it cannot influence the market price also there are price takers
Also the given statement is false as it represents the monopoly market not the perfect competition market
The greatest importance of standing committees is that they ______.
a) permit the leadership to control the legislative process
b) give the president more power in the legislative process than he or she would have otherwise
c) control the influence of lobbyists on the legislative process
d) result in legislators who become experts in their committee's policy domain
Answer:
none of the above
Explanation:
Standing Committee is a term to describe a type of committee that is a mainstay and have a continual role, which is not specific to a particular assignment or undertaking.
Therefore, the greatest importance of standing committees is that they "increase congressional power by allowing detailed analysis and modification of legislation"
Hence, from the available options, there is none that is correct.
Taggart Goods Corp. just reported a net income of $8,000,000, and its current stock price is $17.50 per share. Taggart is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,400,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,900,000 shares). If Taggart’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect its stock price to be one year from now? (Hint: If you choose to compute the firm’s price/earnings ratio, round its value to four decimal places.)
Answer:
$15.2279
Explanation:
Current P/E = Price per share * Share outstanding / Net Income
Current P/E = 17.5 * 5,500,000 / 8,000,000
Current P/E = 12.03
The Current P/E will remain the same next year
Next year P/E = Price * (New shares + Existing shares) / Next year earnings
12.03 = Price * (5,500,000 + 2,400,000) / 8,000,000 * 1.25
12.03 = Price * (7,900,000) / 10,000,000
12.03 * 10,000,000 = Price * (7,900,000)
Price = 120,300,000 / 7,900,000
Price = 15.22785
Hence, the price of shares next year will be $15.2279
How does a company's use of social media reflect audience-centered communication?
Answer:
There is an explanation of why the social media is so important today in the terms of communication regarding the marketing strategy in the companies below.
Explanation:
To begin with, nowadays the with the use of internet and more importantly the social media the companies have to adapt their strategy of communication according to the marketing theory in order to reach to the target audience who are the ones that will provide them with all of their primary profits when they sell. So that is why that social media has become one of the base aspects in which the company has to develop itself and try to to get better at it so that they could approach the consumers with that media of communication that is truly quite effective with the young consumers in the present time. Therefore that the social media reflects the most of the proper communication with the younger consumers nowadays, because it is a fundamental use of every day life for them.
Social media is important to industries to communicate wide to their target audience through advertisement.
Social media is an online platform that facilitates the exchange of information in terms of creation and sharing.
Social media is important to industries to communicate wide to their target audience through advertisement.
This advertisement serves as a form of marketing strategy for companies to engrave their product in the heart of the consumers.
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All of the following are functions of packaging EXCEPT:____________A) containing and protecting the product.B) guaranteeing product quality.C) facilitating recycling and reducing environmental damage.D) promoting the product.E) facilitating product storage, use, and convenience.
Answer: B) guaranteeing product quality.
Explanation: After products might have been manufacturing and processing might have been fully completed, finished goods will have to be concealed in an enclosed brand in other to afford the product a certain level of protection, easy handling and convenience to carry around. However, product packaging often goes beyond giving product protection, it is used by manufacturers to appeal and seduce customers to a certain degree in to buying their product over its rivals. Hence, good packaging adds value to a product. However, it is worthy of noting that product packaging does not determine the quality or effectiveness of the product being sold as this depends on the type of material and effort put in during production.
(A) What makes Blue Ocean strategy imperative in planning your business start-up?
(B) Identify a real company that has successfully created a Blue Ocean & explain your response
(C) Are Blue Oceans only relevant for start-ups? Why or why not?
Answer and Explanation:
Nowadays start-ups ate driven by innovation which is termed blue ocean strategy. With blue ocean strategy there is low competition and low prices and a sort of monopoly as the business is able to open a new market space through product differentiation, uniqueness and innovation
Airbnb is an example of a blue ocean strategy startup that has attained Unicorn level. They have been able to do this because of their innovative business model that connects people that wish to rent a home or space with people who are renting
Blue ocean strategies are not only relevant for start-ups as they could be applied to other businesses too since any business can create market space using innovation. However they are crucial for start-ups who wish to create market and survive
On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $52 million at par and classified the securities as available-for-sale. On December 31, 2021, these bonds were valued at $46 million. Nine months later, on October 3, 2022, Jefferson Corporation sold these bonds for $62 million. As part of the multistep approach to record the 2022 transaction, Jefferson Corporation should finally take the third step of recording a sales transaction with a gain of:
Answer:
Transaction gain = $16 million
Explanation:
Given:
Purchase amount = $52 million
December 31, 2021, bonds value = $46 million
October 3, 2022, bonds sold = $62 billion
Computation:
Using multi-step approach
Transaction gain = October 3, 2022, bonds sold - December 31, 2021, bonds value
Transaction gain = $62 million - $46 million
Transaction gain = $16 million
Give one advantage and one disadvantage for a Market Economy.
Answer:
Advantage: Variety
Disadvantage: Poor work conditions
Explanation:
Oriole’s Electronic Repair Shop started the year with total assets of $300000 and total liabilities of $208000. During the year, the business recorded $523000 in electronic repair revenues, $319000 in expenses, and Oriole withdrew $49300. Oriole's Owner’s Capital balance changed by what amount from the beginning of the year to the end of the year?
Answer:
$154,700
Explanation:
The computation of the change in amount is shown below
But before that first find out the ending capital balance which is
= (Total assets - total liabilities) + (revenues - expenses) - drawings
= ($300,000 - $208,000) + ($523,000 - $319,000) - $49,300
= $92,000 + $204,000 - $49,300
= $92,000 + $154,700
= $246,700
Now the change in capital balance is
= Closing balance - opening balance
= $246,700 - $92,000
= $154,700
The following standard costs pertain to a component part manufactured by Bor Company: An outside supplier has offered to supply all of the parts needed by Bor Company for $50 each. The 60% of the manufacturing overhead cost that is fixed would be unaffected by this decision. In the decision to "make or buy," what is the relevant unit cost to make the part internally?
Answer:
$30
Explanation:
The computation of relevant unit cost to make the part internally is shown below:-
Relevant cost of making part = Direct material + Direct labor + Manufacturing overhead
= $4 + $10 + ($40 - (100% - $60%)
= $4 + $10 + ($40 - 40%)
= $4 + $10 + $16
= $30
So, for computing the relevant unit cost to make the part internally we simply applied the above formula.
Perform ratio analysis, and discuss change in financial position and operating results
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
JERGAN CORPORATION
Balance Sheet
December 31
2017 2016 2015
Cash $30,000 $20,000 $18,000
Accounts receivable (net) 50,000 45,000 48,000
Other current assets 90,000 95,000 64,000
Investments 55,000 70,000 45,000
Plant and equipment (net) 500,000 370,000 358,000
$725,000 $600,000 $533,000
Current liabilities $85,000 $80,000 $70,000
Long-term debt 145,000 85,000 50,000
Common stock, $10 par 320,000 310,000 300,000
Retained Earnings 175,000 125,000 113,000
$725,000 $600,000 $533,000
JERGAN CORPORATION
Income Statement
For the Year Ended December 31
2017 2016
Sales revenue $740,000 $600,000
Less: Sales return and allowances 40,000 30,000
Net sales 700,000 570,000
Cost of goods sold 425,000 350,000
Gross profit 275,000 220,000
Operating expenses 180,000 150,000
Net income 95,000 70,000
Additional information:
1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2012,
2016, and 2017, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
(a) Compute the following ratios for 2016 and 2017.
(1) Profit margin. 5. Price-earnings ratio.
(2) Gross profit rate. 6. Payout ratio.
(3) Asset turnover. 7. Debt to assets ratio.
(4) Earnings per share.
Answer:
Please see below
Explanation:
1. Profit margin = Net profit / Net sales
2016 - Profit margin
= (70,000 / 570,000) * 100
= 12.28%
2017 - Profit margin
= (95,000 / 700,000) * 100
= 13.57
2. Gross profit rate = Gross profit / Net sales
2016 - Gross profit rate
= (220,000 / 570,000) * 100
= 38.60%
2017 - Gross profit rate
= (275,000 / 700,000) * 100
= 39.29%
3. Asset turnover = Net sales / Average total assets
2016 - Asset turnover
= (570,000 / [(600,000 + 533,000) / 2 ]
= 570,000 / 566,500
= 1.01 times
2017 - Asset turnover
= (700,000 / [(725,000 + 600,000) / 2 ]
= 700,000 / 662,500
= 1.06 times
4. Earnings per share = Net income / Outstanding shares
2016 - Earnings per share
= 70,000 / (310,000/10)
= 70,000 / 31,000
= $2.26 per share
2017 - Earnings per share
= 95,000/ (320,000/10)
= 95,000 / 32,000
= $2.97 per share.
5. Price earnings ratio = Market value per share / EPS
2016 - price earnings ratio
= 7.50 /2.26
= 3.32 times
2017 - price earnings ratio
= 8.50/2.97
= 2.86 times
6. Payout ratio = Dividend per share / Net income or earnings per share × 100
2016 - payout ratio
=
7. Debts to assets ratio = Total liabilities / Total assets
2016 - Debts to assets ratio
=
Which of the following statements is true of a target market? Question 8 options: Uncontrollable elements continually evolve and create changes in a target market. Managers can control the external environment that molds and reshapes a target market. Environmental scanning is performed by firms in order to prevent changes in a target market. Unlike uncontrollable variables, controllable variables do not affect a target market.
Answer:
The correct answer is the first option: Uncontrollable elements continually evolve and create changes in a target market.
Explanation:
To begin with, in the marketing field the term of target market refers to the audience that the company is looking for to capture in order to be the primary group of client to whom the product will be launched with the purpose of getting the most sales as possible and with that the major amount of profits from those customers. Moreover, that audience will be affected by controllable and uncontrollable variables that the company must be aware of. The second ones are the competition, the technology, the social environment (like culture), the economy and the regulations from the government. And those variables are the ones that affect the most to the target audience because are impossible to control from the company's point of view.
Marci is trying to determine the predetermined overhead rate for her company. She knows that the estimated annual overhead costs for the company are $255,000. The Work in Process inventory has amounted to $35,000 for March and April, and the overall estimated direct labor cost is $300,000. If overhead is applied based on direct labor cost, what is the predetermined overhead rate?
Answer:
Predetermined manufacturing overhead rate= $0.85 per direct labor dollar
Explanation:
Giving the following information:
She knows that the estimated annual overhead costs for the company are $255,000.
The estimated direct labor cost is $300,000.
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 255,000/300,000
Predetermined manufacturing overhead rate= $0.85 per direct labor dollar
In October 2014, Anheuser Busch InBev (AB InBev) acquired 100 percent of the common stock of SABMiller Group by paying $103,136 million in total consideration. On the acquisition date, the total fair value assigned to tangible and intangible assets acquired (excluding goodwill) was $61,896 million, while the total fair value assigned to liabilities assumed was $31,165 million. What is the value of goodwill recognized in AB InBev's consolidated financial statements as a result of the SABMiller Group acquisition?
Answer:
the value of goodwill recognized in AB InBev's consolidated financial statements is $70,405.
Explanation:
Goodwill is the excess of the Purchase consideration over the Fair Value of the Net assets taken over.
Calculation of Goodwill
Purchase Consideration $103,136
Less Fair Value of Net Assets taken over :
Fair Value of Assets $61,896
Fair Value of Liabilities ($31,165) ($30,731)
Goodwill $70,405
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. It will not change. It will increase. It will decrease. b. An excise tax of $3 is imposed on good X. It will increase. It will not change. It will decrease. c. An ad valorem tax of 7 percent is imposed on good X. It will increase. It will decrease. It will not change. d. A technological change reduces the cost of producing additional units of good X. It will increase. It will not change. It will decrease.
Answer:
a. It will increase.
b. It will decrease
c. It will decrease
d. it will increase.
Explanation:
If the price of an input needed for production of good X decreases, the cost of production of good X reduces. It becomes cheaper to produce good X and and as a result the supply of good X would increase.
An increase in tax increases the cost of production and makes production of good X more expensive. As a result, the supply of good X would fall.
technological change that reduces the cost of producing additional units of good X, would make the production of good X less expensive. As a result, the supply of good X would increase
As a part of internal accounting controls, the activity called
involves detecting and avoiding errors
Answer:
As a part of internal accounting controls, the activity called RECONCILIATION involves detecting and avoiding errors.
Explanation:
Reconciliation involves detecting and avoiding errors since it helps management to discover or detect any mistakes and errors, and can also help to understand why these errors occurred and how to prevent future mistakes.
Reconciliation is basically comparing two different accounting records and making sure that they match, e.g. reconciliation of bank account and cash balance. If you cannot reconcile the company's bank account with its cash balance, it means something is wrong. Is the mistake intentional? Why did it occur? How can you prevent it from happening again? Can it be solved?
Answer:
The answer you are looking for is risk assessment
Record the following process costing transactions in the general journal
a. Purchase of raw materials on account, $9,000
b. Requisition of direct materials to Assembly Department, $4,200 Finishing Department, $2,400
c. ncurrence and payment of direct labor, $10,800. (Assume all c labor is for the Assembly Department.)
d. Incurrence of manufacturing overhead costs: Property taxes ant, $1,700 Utilities-plant, $4,800 Insurance plant, $1,100 Depreciation plant, $3,900
e. Assignment of conversion costs to the Assembly Department: Direct labor, $4,700 Manufacturing overhead, $2,100
f. Assignment of conversion costs to the Finishing Department: Direct labor, $4,400 Manufacturing overhead, $6,300
g. Cost of goods completed and transferred out of the Assembly department to the finished goods depatment 10300
h. Cost of goods completed and transferred out of the finished goods depatment tp finished goods inventory 15100
Answer:
a.Dr Raw Materials Inventory 9,000
Accounts Payable 9,000
b. Dr Work in Process Inventory-Assembly 4,200
Cr Raw Materials Inventory 4,200
Dr Work in Process Inventory-Finishing2,400
Cr Raw Materials Inventory 2,400
c.Dr Work in Process Inventory-Assembly10,800
Cr Cash10,800
d.Dr Manufacturing Overhead 11,200
Cr Property Taxes Payable-Plant 1,700
Cr Utilities Payable 4,800
Cr Prepaid Insurance-Plant 1,100
Cr Accumulated Depreciation-Plant 3,600
e.Dr Work in Process Inventory-Assembly 6,800
Cr Wages Payable 4,700
Cr Manufacturing Overhead 2,100
f.Work in Process Inventory-Finishing 10,700
Cr Wages Payable 4,400
Cr Manufacturing Overhead 6,300
g.Dr Work in Process Inventory-Finishing 10,300
Cr Work in Process Inventory-Assembly10,300
h.Dr Finished Goods Inventory15,100
Cr Work in Process Inventory-Finishing15,100
Explanation:
To Record process costing transactions in the general journal
a. Based on the information given we were told that the Purchase of raw materials of the amount of $9,000 was made which means that the transaction will be recorded as:
Dr Raw Materials Inventory 9,000
Accounts Payable 9,000
b. Based on the information given we were told that the Requisition of direct materials to Assembly Department was the amount of $4,200 while the Finishing Department amount was $2,400 which means that the transaction will be recorded as:
Dr Work in Process Inventory-Assembly 4,200
Cr Raw Materials Inventory 4,200
Dr Work in Process Inventory-Finishing 2,400
Cr Raw Materials Inventory2,400
c. Based on the information given we were told that payment of direct labor was the amount of $10,800 which means that the Journal entry will be:
Dr Work in Process Inventory-Assembly 10,800
Cr Cash10,800
d. Journal entry to record the incurrence of manufacturing overhead costs
Dr Manufacturing Overhead 11,200
(1,700+4,800+1,100+3,600)
Cr Property Taxes Payable-Plant 1,700
Cr Utilities Payable 4,800
Cr Prepaid Insurance-Plant 1,100
Cr Accumulated Depreciation-Plant 3,600
e. Based on the information given we were told that the conversion costs to the Assembly Department include both Direct labor of the amount of $4,700 and Manufacturing overhead of the amount of $2,100 which means that the Journal entry will be:
Dr Work in Process Inventory-Assembly 6,800
(4,700+2,100)
Cr Wages Payable 4,700
Cr Manufacturing Overhead 2,100
f. Based on the information given we were told that conversion costs to the Finishing Department were: Direct labor, $4,400 Manufacturing overhead, $6,300, which means that the transaction will be recorded as:
Work in Process Inventory-Finishing10,700
(6,300+4,400)
Cr Wages Payable4,400
Cr Manufacturing Overhead6,300
g. Based on the information given we were told that the Cost of goods that was completed and transferred out of the Assembly department to the finished goods depatment was the amount of 10,300 which means that the transaction will be recorded as:
Dr Work in Process Inventory-Finishing 10,300
Cr Work in Process Inventory-Assembly10,300
h. Based on the information given we were told that the Cost of goods that was completed and transferred out of the finished goods depatment to finished goods inventory was the amount of 15,100 which means that the Journal entry will be:
Dr Finished Goods Inventory 15,100
Cr Work in Process Inventory-Finishing15,100
Corporation XYZ has taxable income of $70,000 for the current year. It will owe taxes of:__________
Answer:
Assuming that we are talking about this year, or the recent past, Corporation XYZ's tax expense = $70,000 x 21% = $14,700.
Explanation:
The Tax Cuts and Jobs Act (2017) set the corporate tax rate at 21%, and that applies to all corporations. Before the TC&JA the corporate tax rate was 35%.