Answer:
Fictitious revenues
Explanation:
The fictitious revenue is a revenue that do not belong to the organization but it would be added to the revenue section intentionally.
Therefore as per the given situation, in the case when the fraud is involved in the financial statement so this is a type of fictitious revnenues
hence, the same is to be considered
True or False: Under the average-cost pricing policy, the cable company has no incentive to cut costs.
Answer:
True.
Explanation:
The cable company will not have any incentive to cut costs. This is because it knows that its costs will be averaged to determine the average cost to which a certain percentage is then added to arrive at the selling price. Having the cost averaged in this way will not motivate the cable company to seek cost minimization strategies that it could use to increase its income.
Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations.The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent.The debt-equity ratio is .46 and the tax rate is 34 percent.What is the cost of capital for this project?A) 11.97 percentB) 12.40 percentC) 11.02 percentD) 11.62 percentE) 12.38 percent
Answer:
Cost of capital = 12.40% (Approx)
Explanation:
Given:
Cost of equity = 15.4%
Pretax cost of debt = 8.9%
Debt-equity ratio = 0.46
Tax rate = 34%
Computation:
Equity multiplier = 1 + Debt-equity ratio
Equity multiplier = 1 + 0.46
Equity multiplier = 1.46
Weight of equity = 1 / Equity multiplier
Weight of equity = 1 / 1.46
Weight of equity = 0.685
Weight of Debt = 1 - Weight of equity
Weight of Debt = 1 - 0.685
Weight of Debt = 0.315
Cost of capital = [Weight of Debt x Pretax cost of debt] x (1-tax rate) + [Cost of equity x Weight of Debt ]
Cost of capital = [0.315 x 8.9% x (1-0.34)] + [15.4% x 0.6849]
Cost of capital = 12.40% (Approx)
You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you have received total dividend income of $255. What is the dividend yield
Answer: 2.8%
Explanation:
Dividend yield is calculated as dividend per share divided by the price per share.
Dividend per share = 255/240 = $1.0625
Dividend yield = 1.0625/ 37.92
= 2.8%
On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $7,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.
Answer:
the amount of the fire loss is $16,000
Explanation:
The computation of the amount of the fire loss is shown below
January 1 inventory $48,000
Add purchases $46,000
Goods Available $94,000
Less Cost of Goods Sold ($90,000 × 100 ÷ 125) $72,000
Less Cost of undamaged goods ($7,500 × 100 ÷ 125) $6,000
Goods Lost by Fire $16,000
hence, the amount of the fire loss is $16,000
Inflation makes certain things less valuable in real terms, including: Group of answer choices your full college scholarship. real estate and precious metals. anything expressed in dollars. a fixed monthly pension payment.
Answer:
anything expressed in dollars
Explanation:
In the case when there is an inflation that makes specific things less valuable in the real terms is the thing that expressed in dollars
As per the given options, the full scholarship of college, real estate and the fixed month pension payment represent the more valuable
But the remaining option i.e. anything expressed in dollars show the less valuable
So, the same is to be considered
At the most recent staff meeting of Hyperactive Media Sales, the general manager gave you instructions to make the laptops used by the salespeople as secure as possible. You have decided to implement a new advanced sign-in process for the users. How will you explain to the general manager how using new authentication methods makes the laptops more secure
Answer:
New authentication methods such as the picture password, 2 factor authentication method, biometric identification, etc ensure that authentication credentials are safe and cannot be stolen and used from another laptop.
New authentication methods gives tougher walls of security which cannot be easily broken into thereby leaving the system protected and secure.
Due to increasing activities of cyber criminals, new and more sophisticated authentication processes are being developed giving laptops and computer systems better security as attackers are unable to exploit passwords.
The objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions. provide incentive for firms to maintain regulation emission levels. provide adequate incentive for firms to reduce their emissions by more. ensure firms must pay the pollution charge for all reduced emissions.
Answer:
provide adequate incentive for firms to reduce their emissions by more.
Explanation:
Pollution charge can be regarded as a tax imposed on firms based on the quantity of pollution emmitted to atmosphere by the firm. With imposition of pollution tax, profit-maximizing firm would have the incentive to look out for ways to reduce the firm's emissions provided the marginal cost required to reduce the emissions is not equal or more than the tax. It should be noted that the objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions provide adequate incentive for firms to reduce their emissions by more.
The objective of imposing a higher pollution tax is to ensure firms provide adequate incentives for firms to reduce their emissions by more.
A levy called a pollution tax is imposed on people who pollute or harm the environment. This tax's primary goal is to lessen harm to the environment. A component of the economic system intended to lessen pollution and its damaging effects on the environment is the pollution tax. Polluters are taxed for the harm their actions do to the environment and other people.
Pollution taxes include the carbon tax. Based on the amount of carbon that is released during combustion, it imposes a tax on the production, distribution, or use of fossil fuels.
Learn more about the Pollution Taxes here:
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Journalize the following transactions for Combs Company.
(a) Purchased 6,000 units of raw materials on account for $11,500. The standard cost was $12,000.
(b) Issued 5,600 units of raw materials for production. The standard units were 5,800.
Answer: See explanation
Explanation:
a. Debit: Raw material $12000
Credit: Account payable $11500
Credit: Material price variance $500
(To record material purchase)
b. Debit: Work in process 11600
Credit: Raw material 11200
Credit: Material price variance 400
(To record material issued)
Note:
Material price variance for (a)= 12000 - 11500 = 500
Work in progress = 5800 × 2 = 11600
Material price variance for (b) = 11600 - 11200 = 400
The current market value of the assets of ABCD is $86.28 million. The call option value on the firm's assets is $53.09 million. What is the market value of the firm's debt
Answer: $33.19 million
Explanation:
From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.
The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:
= $86.28m - $53.09m
= $33.19 million
Waterway Industries factors $3000000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 7% of the accounts receivable for possible adjustments. Waterway estimates the fair value of the recourse liability at $310000. What would be the debit to Cash in the journal entry to record this transaction?
Answer: $2,700,000
Explanation:
The debit to Cash in the journal entry to record this transaction will be calculated as:
= $3,000,000 - [($3,000,000 × 3%) + ($3000000 ×7%)]
= $3,000,000 - ($3,000,000 × 0.03) + ($3000000 × 0.07)
= $3,000,000 - [$90,000 + $210,000]
= $3,000,000 - $300,000
= $2,700,000
Therefore, the debit to cash will be $2,700,000.
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
Question 4 options:
Every month
Every 6 months
Every 12 months
Every 18 months
Answer:
12 months
Explanation:
The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that 12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.
After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.
Answer:
Every 12 months is incorrect on the test
Explanation:
so Every 6 months should be the correct answer
Carefully set sales territories A) can reduce travel time but increase costs. B) can reduce confusion about who has responsibility for a set of sales tasks. C) always include at least one metropolitan area. D) always reduce the cost of sales calls. E) can increase travel time while reducing costs.
Answer:
B) can reduce confusion about who has responsibility for a set of sales tasks.
Explanation:
The carefully set sales territories reduce the confusion with respect to the responsibility for setting out the selling task
Therefore as per the given situation, the option B is correct as it fits to the situation
Thus, all the other options are incorrect
Hence, the option B is correct
Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2036000. The equipment is expected to be used in operations in the future. What amount (if any) should Sheffield report as an impairment to its equipment?
Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
What are some of your strengths areas? Think about the top 2/3 skills you would advertise about yourself, consider what others come to you for advice about.
Answer:
Some of my strength areas are trustworthiness, creativity and solving problems, leadership and organization, analytical skills, determination, and empathy.
Explanation:
Every person's core strengths or skills should fall into these three main areas: personal, play, and work. Personal skills deal with the fundamental skills that give the background to every activity that a person undertakes. Play skills define the human interaction and relationship with others. Work skills specify one's attitude to work and how a person achieves her goals in the work environment.
Webster Corporation's monthly projected general and administrative expenses include $4,100 administrative salaries, $1,500 of other cash administrative expenses, $2,300 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $29,000. Compute the total budgeted general and administrative expenses budget per month.
Answer:
$7,900
Explanation:
Computation for the total budgeted general and administrative expenses budget per month.
Monthly projected general and administrative expenses :
Arministrative salaries $4,100
Other cash administrative expenses $1,500
Depreciation expense on the administrative Equipment $2,300
Total budgeted general and administrative expenses budget per month $7,900
($4,100+$1,500+$2,300)
Therefore the total budgeted general and administrative expenses budget per month will be $7,900
It costs Crane Company $28 of variable costs and $15 of allocated fixed costs to produce an industrial trash can that sells for $76. A buyer in Mexico offers to purchase 3000 units at $30 each. Crane Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income
Answer:
Effect on income= $6,000 increase
Explanation:
Giving the following information:
Unitary variable cost= $28
Selling price= $30
Number of units= 3,000
Because it is a special offer and there is unused capacity, we will not take into account the allocated fixed costs.
Effect on income= 3,000*(30 - 28)
Effect on income= $6,000 increase
10. How is net profit computed?
Net profit is computed by adding all sales income.
Net profit is computed by producing goods.
Net profit is computed by subtracting expenses from sales income.
Net profit is computed by adding all expenses.
Answer:
2 doe sure have a good day
Assume the supply of bananas decreases due to rising costs of
production, while demand increases due to consumer preferences. What
will happen to the new equilibrium price and quantity?
A) price increases; quantity increases
B) price increases; quantity is unknown
C)price decreases; quantity decreases
D)price decreases; quantity increases
E)price is unknown; quantity increases
Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data:
Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
a. $23
b. $10
c. $8
d. $15
Answer:
c. $8
Explanation:
Calculation to determine the selling price
First step is to calculate the Markup percent
Markup percent= (90,000 + 150,000) / (30,000 x 15)
Markup percent = .533
Now let calculate the selling price
Selling price=533 x $15 per unit
Selling price= $8
Therefore the Selling price will be $8
Southern Home Cooking just paid its annual dividend of $0.74 a share. The stock has a market price of $14 per share and a beta of 1.16. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 6.8 percent. What is the firm’s cost of equity?
Answer:
10.39%
Explanation:
Calculation for What is the firm’s cost of equity
Using this formula
Cost of equity=Treasury bills+(Beta*Market risk premium)
Let plug in the formula
Cost of equity=0.025 + (1.16 x 0.068)
Cost of equity=0.025 + 0.0789
Cost of equity=0.1039*100
Cost of equity=10.39%
Therefore the firm’s cost of equity will be 10.39%
The Domingos family bought a new refrigerator. How much more or less is the amount they spent than the amount they budgeted?Budgeted: $1,345.60 Spent: $1,354.66
Comparing perfect first degree price discrimination to perfect competition one can conclude that: (i) Total social surplus is the same in either case (ii) Consumer surplus is higher under perfect
A. Only (1) is true
B. Only (ii) is true
C. Both (i) and (ii) are true
D. Neither (i) nor (i) is true
Answer:
C. Both (i) and (ii) are true
Explanation:
Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.
Under perfect competition, both supplier and consumer surplus exist.
Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.
Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list.
Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list:
Business Rewards
A deep sense of satisfaction
Being the one in control
Providing sustainable jobs and income for others
The opportunity to give back / community responsibility
The satisfaction of excellent customer feedback
Financial Rewards
After conducting additional research, what other business rewards can you add here?
Answer:
1. Independence and Flexibility
2. Learning opportunities
Explanation:
The rewards of having a business are tremendous and cannot be overemphasized. Hence, asides from the listed business rewards, here are two additional business rewards
1. Independence and Flexibility: One of the rewards of doing business is the independence that comes with it. As the business grows, a business owner gets to have the independence to work whenever he wishes, and have the flexibility of time to be active in business life and other events outside the business.
2. Learning Opportunities: business activities allows business owners to see and learn how certain aspects of the business is getting done. Even when there are employees to perform those functions, business owners still have the opportunity to see, learn, and understand how those activities are being carried out.
technical school provide formal.......?
Answer:
Sin la escuela técnica proporciona formalmente recurso muy importantes para los estudiantes debido a su exigencia académica y de rendimiento para lo cual los estudiantes deben estar preparados para así poder lograr los objetivos de la escuela técnica y otras metas.
Explanation:
Gracias.
#cuidemonosdesdecasa.
List three pieces of information listed in a credit card agreement that you believe are important to review before
Explanation:
Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don’t pay the whole balance off each month. You can compare the APR for different cards which will help you to choose the cheapest. You should also compare other things about the cards, for example, fees, charges and incentives
Minimum repayment. If you don’t pay off the balance each month, you will be asked to repay a minimum amount. This is typically around 3% of the balance due.
Annual fee. Some cards charge a fee each year for use of the card. The fee is added to the amount due and you will have to pay interest on the fee as well as on your spending, unless you pay it in full.
If the covariance of returns between a stock and the market equals zero, then what does the beta of the stock equal
Answer:
a) Zero
Explanation:
As we know that
beta = Covariance (Stock return , Market return) ÷ market return variance
Now in the case when the covariance of return that lies between the stock and the market equivalent to zero so the beta of the stock would be zero
As if you divide by zero so the result would be zero
Therefore as per the given option, the option A is correct
True or False:
The US tax system subsidizes married couples compared to single individ-uals. Explain.
Answer:
False
Explanation:
Some married couples pay higher taxes because they file their taxes together. This is called a marriage penalty, and generally occurs when both spouses earn similar amounts of money. If each spouse was to file separately, their income taxes would generally be lower. But if one spouse earns significantly more than the other, then filing their taxes together lowers their total income taxes.
Due to Christian values, American laws generally favor established families. That rule applies to almost all countries with similar values since Western cultures consider the family as the foundation of society (husband, wife and children). But even single parents benefit from differential tax rates, since they can file as head of households. Same sex marriages are legal, so they can also file as married even if they are not conventional families.
Mikan Company’s standard predetermined overhead rate is $9 per direct labor hour. For the month of June, 26,000 actual hours were worked, and 27,000 standard hours were allowed. How much overhead was applied? Overhead applied
Answer:
Allocated MOH= $234,000
Explanation:
Giving the following information:
Predetermined overhead rate= $9 per direct labor hour.
Actual direct labor hours= 26,000
To allocate manufacturing overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*26,000
Allocated MOH= $234,000
Where a producer chooses the intensity level of its market coverage, which level is chosen to utilize the “shotgun” approach?
Answer:
The level that utilizes the "shotgun" approach to market coverage is:
Intensive Distribution (mass coverage).
Explanation:
This marketing approach aims to reach many consumers through as many sales channels as possible. In this situation, consumers have easy access to the goods or services. The other approaches include Selective Distribution (where few outlets in specific locations are selected for the distribution of the goods and services) and Exclusive Distribution (where limited outlets are chosen because of the target market).
Food King gathered the following information for the fourth quarter of 20X9: Budgeted sales for October $25,000 Monthly Expenses: Salary expense $1,500 Rent expense $1,000 Depreciation expense $400 Sales commissions 10% of sales Advertising expense 8% of sales Miscellaneous expense 5% of sales Monthly sales are expected to increase by 5% each month. Prepare an operating expense budget for the fourth quarter (for three separate months) of 20X9.
Answer and Explanation:
The presentation of the operating expense budget is presented below:
Particulars October November December
Budgeted sales $25,000 $26,250 $27,562.5
($25,000 × 1.05) ($26,250× 1.05)
Salary Expense $1,500 $1,500 $1,500
Rent expense $1,000 $1,000 $1,000
Depreciation
expense $400 $400 $400
Sales Commission $2,500 $2,625 $2,756
($25,000 ×10%) ($26,250 × 10%) ($27,562.50 × 10%)
Advertising expense $2,000 $2,100 $2,205
($25,000 ×8%) ($26,250 × 8%) ($27,562.50 × 8%)
Miscellaneous expense $1,250 $1,312.5 $1,378
($25,000 ×5%) ($26,250 × 5%) ($27,562.50 × 5%)
Total Monthly expenses $8,650 $8,937.5 $9,239