Answer:
$14,500
Explanation:
For the computation of the amount of Carlson's accounts receivable at the end of the year first we need to follow some steps which is shown below:-
Days sales collected = Total number of days in a year ÷ Account receivable turnover ratio
30 days = 360 days ÷ Account receivable turnover ratio
Account receivable turnover ratio = 12 times
Now as we know that
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
12 = $150,000 ÷ Average accounts receivable
Average accounts receivable = $12,500
And, the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
$12,500 = ($10,500 + Accounts receivable, end of year) ÷ 2
So, Accounts receivable, end of year = $14,500
is (R$), has been trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reais-equivalent of $200 each. A rumor exists that the reais will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the deva
Answer:
Some information was missing, so I looked it up:
Should the devaluation take place, the reais is expected to remain unchanged for another decade.
Accepting this forecast as given, DP faces a pricing decision which must be made before any actual devaluation: DP may either 1) maintain the same reais price and in effect sell for fewer dollars, in which case Brazilian volume will not change or 2) maintain the same dollar price, raise the reais price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
What would be the short-run (one-year) implication of each pricing strategy? Which do you recommend?
In the short run:
if you decide to keep the current price in reais, then your contribution margin per unit will decrease from $80 to $50. Total contribution from sales to Brazil will reduce from $4,000,000 to $2,500,000.
If you decide to increase the price in reais, then your contribution margin per unit will remain at $80, but your total sales will fall to 40,000. Total contribution margin from sales to Brazil will reduce from $4,000,000 to $3,200,000
Personally, I would recommend increasing the price since operating profits will reduce in a smaller proportion.
rawford Trucking plans to dispose of two trucks in 2022. They sell the first truck on January 2 and the second truck on July 9. If the end of their fiscal year is December 31, how will the calculation of book value differ for these two vehicles?
Answer: C : They will need to subtract a partial year of depreciation from the book value of the second truck but not the first truck.
Explanation:
When disposing of fixed assets such as vehicles, depreciation has to be charged on them to see their Net Book Value.
Companies usually depreciate their vehicles on a yearly basis in accordance with the end of their fiscal year. This company therefore most likely depreciates on December 31.
The first truck is sold 2 days after this Depreciation so there is no need to add more depreciation to it.
However the second truck on the other hand was sold 6 months later. Depreciation needs to charged on this substantial period but since it was not for the full year, a partial one needs to be charged.
asyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $21 per dozen. Their current volume is 4,250 dozen per month. They are considering reducing their sales price by 24% per dozen. What % increase in unit sales is necessary to achieve the same level of total contribution?
Answer:
%variation= 31.58% increase
Explanation:
Giving the following information:
Selling price per dozen= $21
Sales in units= 4,250
They are considering reducing their sales price by 24% per dozen.
First, we need to determine the actual total contribution:
Total contribution= 21*4,250= $89,250
Now, with the new selling price, the percentage variation in sales units:
Selling price= 21*0.76= $15.96
89,250= 15.96*units
5,592= units
Percentage:
%variation= [(5,592/4,250) - 1]*100= 31.58%
Under the general requirements of Code Sections 162 and 212 regarding trade/business and income-producing activities, to be deductible an expense must be
Answer:
Related to carrying on the activity
Explanation:
The general requirement of the code sections 162 and 212 about the expense allowing as a deduction against income of the business is that the expenses are only allowable if it is related to the same business income. This means that the trading expense would be set off against trading income and rental expense would be set off against rental income. Furthermore, the expenses (losses) would be only deductible for the future years if the business has not abandoned its operations which means the expenses are related to carrying activities.
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,090. Estimated direct labor cost was $481,580 for 19,900 hours.Actual costs for the most recent month are summarized here:Item Description Total CostDirect labor (1,800 hours) $46,361Indirect costs Indirect labor 2,540Indirect materials 3,420Factory rent 3,300Factory supervision 4,730Factory depreciation 5,760Factory janitorial work 1,270Factory insurance 1,890General and administrative salaries 4,240Selling expenses 5,350Required1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)Predetermined Overhead Rate _____ Per DL Hour2. Calculate the amount of applied manufacturing overhead.Applied Overhead Rate _____3. Calculate actual manufacturing overhead costs.Actual Manufacturing Overhead Costs _____4. Compute over- or underapplied overhead.Overhead _____
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $181,090
Estimated direct labor houra= 19,900
Actual costs:
Indirect labor= $2,540
Factory rent= $3,300
Factory supervision= $4,730
Factory depreciation= $5,760
Factory janitorial work= $1,270
Factory insurance= $1,890
Actual overhead= $19,490
Actual direct labor hours= 1,800
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 181,090/19,900= $9.1 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.1*1,800= $16,380
Actual manufacturing overhead costs= $19,490
Finally, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 19,490 - 16,380
Under/over applied overhead= $3,110 underapplied
Product _____ involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.1. lining2. bundling3. modification4. churning
5. sabotage
Answer:
Product modification
Explanation:
-Product lining refers to offering different goods that are sold separately.
-Product bundling refers to offering different goods that are sold as a group.
-Product modification is a change that is made to a product to make it more appealing and adjust it to customers' needs.
-Product churning is when companies sell an important amount of products to a point that it doesn't benefit the customers.
-Product sabotage is when companies get customers to buy the products that generate more revenue instead of the options with a lower price.
According to this, the answer is that product modification involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales because it refers to making changes to a product to adapt it to customers needs and make it more appealing.
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016: Cost Retail Beginning inventory $ 460,000 $ 590,000 Net purchases 940,000 1,370,000 Freight-in 52,700 Net markups 64,000 Net markdowns 34,000 Net sales 1,280,000 Estimate ending inventory and cost of goods sold (LIFO)
2.
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016:
Cost Retail
Beginning inventory $ 310,000 $ 455,000
Net purchases 858,000 1,220,000
Freight-in 25,500
Net markups 49,000
Net markdowns 19,000
Net sales 1,205,000
Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))
3.
On January 1, 2016, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
Cost Retail
Beginning inventory $ 56,000 $ 80,000
Net purchases 223,040 330,000
Net markups 6,000
Net markdowns 8,000
Net sales 307,000
Retail price index, end of year 1.02
Calculate the inventory value at the end of the year using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.)
Answer:
The ending inventory value using LIFO retail method is $710,000
Explanation:
Beginning inventory $590,000
Purchases $1,370,000
Net Markups ($64,000)
Net Markdowns ($34,000)
Goods Available For Sale $1,990,000
Cost to retail percentage = 70.91%
Net sales $1,280,000
Ending Inventory = $710,000
Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after 16 years
Answer:
$1,100
Explanation:
Calculation for what will the investment be worth after 16 years
Rule of 72 is the rule or methods which help in estimating an investment's doubling time.
Therefore According to the rule of 72 what we are going to do is to double the amount of money invested in the Certificate of deposit which was $550
Hence,
Since $550 was invested at an annual interest rate of 4.5%. Thus the rule of 72 tells us that the money will double every 16 years,
Approximately:
Years Balance
Now $550
16 $1,100
( The amount of $550 doubles every 16 years)
Therefore what the investment be worth after 16 years will be $1,100
When setting optimal prices, which of the following is a concern when utilizing a regression of observed sales on observed prices to set them?
a. All of these answers apply.
b. Future prices might be outside the range of past prices.
c. There is not enough variation in observed prices.
Answer:
The Future prices might be outside the range of past prices when setting optimal price
Explanation:
Future prices might be outside the range of past prices is a concern when utilizing a regression of observed sales on observed prices to set them because setting An optimal price enables the price at which the seller can make the highest profit possible in order to increase revenue with maximum profitability in which this can only be done when using the optimal pricing strategy for example in a situation where a company is competing in several locations and different market segments, this means clearly understanding and planning a special approach for the environments before the company makes any changes in their pricing strategy is important because Future prices might be outside the range of past prices.
Carter divorced his wife in the current year. In accordance with the divorce decree, he paid her $15,000 as a property settlement in the division of their net assets. In addition, he paid her $10,000 in partial fulfillment of the annual requirement to pay her $12,000 a year in child support. What amount may Carter deduct on his tax return for the current year
Answer:
$0 (at least under current laws)
Explanation:
Child support payments are not tax deductible. Even alimony payments made to former spouses are not tax deductible anymore.
Any property settlements resulting from a divorce are not tax deductible either nor are they considered taxable income for the receiving party.
So in this case, until the current law changes, Carter cannot deduct any amount from his tax return.
1. As a Cost and Management Consultant in the banking industry in Ghana, one of your highly
esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to
whether target costing can be applied to the banking industry in Ghana. They further require you
to advise them on what products or services can target costing be applied.
2. 1
What forces have caused cost and management accounting systems designed decades ago to
become less relevant and less valuable for organizational employees in today’s globally
competitive environment?
Answer and Explanation:
The explanation is shown below:-
1. Goal costing is a form of administration with the main emphasis on reducing costs to a set value. Upon targeting the administration front pick the desired value of trading and benefit perimeter, then evaluate the price to achieve this desired cost of trading and benefit perimeter. This then handles all the tasks needed to meet these planned costs. The key aim of goal costing is the company match, the selling price is the consumer price always, and the profit is reduced by the way out.
Target costing for all units can be applied. And to the banking sector in Ghana as a whole, it can be applied. Target costing may be used in the banking division to reduce the expense of service delivery. The full use of bank sources such as deposits, ATMs, money tellers, etc. can be made here.
To most important services such as credit cards, savings, ATM facilities, Internet banking, etc, goal costing can be enforced. The bank must be able to sell the aforementioned services at the same price in the sector and should discover methods to reduce the value to a target price using normal costs. Internet banking gateways, for example, can be outsourced on a central level to minimize costs, ATMs can be further established via ties between previously operated banks.
2. 1 Established decades earlier, the cost and management accounting systems are known as conventional cost control.
Modern cost control has many drawbacks as a result of which companies have to switch to the new cost and accounting control system known as strategic cost management
Some of the factors that make the management of conventional costs less important and less efficient in today's globally competitive environment are as follows:
a. Concentrate on short term targets.
b. Cost management & quality containment is the primary goal.
c. A reactive approach to commodity cost analysis.
d. Although reducing costs, the results could eventually result in fewer goods being delivered.
e. The nature of today's market is too easy to manage.
f. This will not adequately distribute indirect costs which are the main costs in the scene today.
Scenario: mary ling works for xyz corporation, llc and they have just merged with abc, inc. maryâs job, supervisor, and work location have not changed, but under the merger the companies are now working under the name abcxyz, inc. what does mary need to do to update this information with university of the cumberlands?
Answer:
Updating the new business registry or company name is important to avoid fraud or future legal or legal problems.
Explanation:
There must first be a change in the name of the company because there is an income of a new partner, now the various documents or supports must record the deed, stamp and registration of the new business registration or name so that they can continue to be made new contracts or negotiations under the new legal figure that has been established.
South Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be
Answer:
The Break-even point in units= 1,200 units
Explanation:
The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss.
The beak-even point can be determined as follows:
The Break-even point in units = Total general fixed cost / Contribution per unit margin
Contribution per unit = Selling price - variable cost
= 20 - ( 60% × 20)= 8
The Break-even point in units= 9,600/8 =1,200 units
The Break-even point in units= 1,200 units
Sunshine Blender Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calculate the total contribution margin.
Answer:
Total contribution margin= $60,000
Explanation:
Giving the following information:
Units sold= 3,000
Selling price per unit= $45
Unitary variable cost= $25
First, we will calculate the unitary contribution margin:
Unitary contribution margin= 45 - 25= $20
Now, total contribution margin:
Total contribution margin= 3,000*20= $60,000
During 2022, Sheridan Company entered into the following transactions.
1. Purchased equipment for $318,770 cash.
2. Issued common stock to investors for $139,050 cash.
3. Purchased inventory of $70,940 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.)
Answer with its Explanation:
Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.
Accounting Equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Equipment 318,770 - Cash $318,770 = Zero Net Effect
Transaction 2: The increase in the equity will increase the current asset as well here, which means:
Fixed Assets + Current Asset = Equity + Liability
Current Assets + $139,050 = Issued common stock + $139,050
Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Current Asset + $70,94 = Current liabilities + $70,940
How much would you be willing to pay today for an investment that pays $1,300 per year at the end of the next 10 years
Answer:
The investment is worth $8,732.11 today.
Explanation:
Giving the following information:
Cash flow= $1,300
Number of years= 10
To calculate the present value, we need a discount rate. If not, the value of money through time is irrelevant.
Imagine a discount rate of 8% compounded annually.
First, we will calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {1,300*[(1.08^10) - 1]} / 0.08
FV= $18,832.53
Now, the present value:
PV= FV/(1+i)^n
PV= 18,832.53/1.08^10
PV= $8,732.11
In response to the economic crisis in 2008, President Merkel "highlighted in her speech what the German government has already done: a financial sector rescue package worth up to €500 billion, and a proposed stimulus package of tax breaks [on income] and spending measures aimed at triggering investments of up to €50 billion over the next two years." Which parts of the stimulus plan will increase labor supply?
Answer:
Chancellor Merkel's proposed stimulus consisted of two parts:
a financial rescue package worth €500 billion (which I personally believe only helped bankers but didn't increase labor supply)tax breaks and investment measures worth €50 billionThe only part of the stimulus package that would actually help to increase labor supply is the last part, which also is the smallest part, since it should have increased investments. When investment increases, the interest rates decrease and aggregate demand increases. As aggregator demand increases, the demand for labor also increases. An increase in the demand for labor results in higher wages, which in turn increases labor supply until an equilibrium is reached.
Governments generally rescue financial institutions arguing that they are really important to the economy, but what is really amazing and repeats itself all over the world is that the same governments favor free markets. When small businesses fail, governments do not care, and small businesses represent 99% of America's companies. Governments only start caring when rich people lose money, since free market rules only apply to them when they favor them. If free market rules do not favor the rich, they are bad and governments intervene.
On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on the November 1 to record the acceptance of the note
Answer:
Debit note receivable with $10,000
Credit accounts receivable with $10,000
Explanation:
The journal entry below should be used to record the acceptance of the note on November 1.
Note receivable account Dr $10,000
Accounts receivable Cr 10,000
A package of 8 frankfurters costs $5.00 and a package of 12 hot dog buns costs $3.00. If Jeffrey makes a hot dog sandwich using only a frankfurter and a bun, what percent of the cost of his hot dog sandwich comes from the bun?
Answer:
Buns= 28.57%
Explanation:
Giving the following information:
A package of 8 frankfurters costs $5.00 and a package of 12 hot dog buns costs $3.00.
First, we need to calculate the unitary cost of the frankfurters and buns.
Frankfurters= 5/8= $0.625
Buns= 3/12= 0.25
Now, the percentage of buns per hotdog:
Total unitary cost= 0.625 + 0.25= 0.875
Buns= 0.25/0.875= 0.2857= 28.57%
Who would benefit if the exchange rate with yen (in U.S. dollars) increased (i.e. one dollar can buy more yens)?
Answer:
The answer is US consumers
Explanation:
Exchange rate is the rate at which a country can exchange its currency with another country’s currency.
An increase in the exchange rate of dollar with Yen discourages the Japanese from buying american goods.
Since US dollar is appreciating in relative to Japanese Yen, US consumers will benefit since they are buying the goods at a now cheaper rate.
Henry Co. assigned $400,000 of accounts receivable to Easy Finance Co. as security for a loan of $335,000. Easy charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Henry collected $110,000 on assigned accounts after deducting $380 of discounts. Henry accepted returns worth $1,350 and wrote off assigned accounts totaling $2,980. Reference: Ref 7-2 The amount of cash Henry received from Easy at the time of the transfer was
Answer:
$328,300
Explanation:
Amount of cash received by Henry from Easy at the time of the transfer was = Amount of Loan - Commission
= $335,000 - ($335,000*2%)
= $335,000 - $6,700
= $328,300
Thus, the amount of cash received by Henry from Easy at the time of the transfer was $328,300
Continental Company is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.
Required:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
b. Prepare a bond amortixation schedule up to and including January 1, 2022
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
d. Prepare the journal entry to record the bond called on January 2021
Answer:
(a). Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000).
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check attachment.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014.
Account description (credit):
(4) cash = $2,120,000.
Explanation:
So, we are given the following data or information which is going to help us in preparing the journals from "a" to "d".
=> The new hockey arena cost
= $2,500,000.
=> " The downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project."
=> *It therefore decides to issue $2,000,000 of 11%."
So, let us go down in solving these question.
(a). The journal entry to record the issuance of the bonds on January 1, 2018;
Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000)..
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check the attached picture below.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d).Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014(carrying value bond - redemption value).
Account description (credit):
(4) cash = $2,120,000(106% of $2,000,000).
g "Barter Corp. sold American telecommunications equipment to a British company for 710,000 pounds. On the sale date, the exchange rate was $1.65 per British pound, but when Barter received payment from its customer, the exchange rate was $1.60 per pound. When the foreign receivable was collected, Barter Enterprises:"
Answer:
Debited Cash of $1,136,000
Debited Loss on Fluctuation of Foreign Currency for $35,500
Explanation:
Calculation for when the foreign receivable was collected, Barter Enterprises
We are going to first calculate for the date when Barter received the payment.
On the date when Barter received payment, they will received :
710,000 *$1.60 = $1,136,000
Therefore On the date when Barter received payment, they had debited Cash of $1,136,000
We are going to calculate for Loss on Fluctuation of Foreign Currency
= (710,000 *$1.60) - (710,000 *$1.65)
=$1,136,000-$1,171,500
= $35,500
Therefore they as well had Debited Loss on Fluctuation of Foreign Currency for $35,500
The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy?
Answer:
The answer is 20
Explanation:
The money multiplier show us how an initial deposit can lead to a higher final increase in the total money supply or it relates to the maximum amount of bank money that can be created, given a certain amount of money from central bank money.
Money multplier = 1 / reserve requirement
Reserve requirement is 5% of the deposits
Therefore, money multiplier is
1 / 0.05
20
Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its domestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.
Answer:
are equal to it's domestic production
Explanation:
A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.
Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.
When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.
The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.
"According to the law of demand, with everything else being equal, the quantity demanded for a good or service will _____________ as the price increases."
Answer: Decrease
Explanation:
According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.
That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.
We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream
Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.
At the beginning of 2016, Stillwater Company had a $250 balance in its Supplies account. During the year the company paid $1,500 cash for additional supplies. The physical count of supplies on hand at the end of 2016 was $1,400. Which of the following statements related to Stillwater Company's 2016 transactions is incorrect?
a. The account Supplies represents a liability on the balance sheet.
b. The statement of cash flows for operating activities decreased by $1,500.
c. Net income decreased by $350.
d. All of the statements are correct.
Answer:
a. The account Supplies represents a liability on the balance sheet.
Explanation:
Operating activities are the activities that organization carry out to ensure the smoothness of such company day to day activities. Examples of operating activities are cash receipts from sales of goods, cash payments to suppliers, employees, and expenses.
Stillwater Company Operating cost is decrease by 1,500 as the cash paid to the supplier in addition is an outflow
Also,
Balance of supplies 250
Supplies at hand 1400
1,650
Cash paid for supply (1,400)
in addition
Net Income 250
Conclusion: The option A cannot is incorrect as supplies account is recognized under the Current Asset as an asset not a liability.
Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.Which of the following is not a defense to the formation of the contract?A. fraudB. illegalityC. incapacityD. unconscionabilityE. mirror image rule
Answer:
Explanation:
There are six defenses of the contract formation which are given below.
Incapacity Statute of Frauds Illegality Misrepresentation/Fraud Duress UnconscionabilityThis rule suggests a contract law rule that the acknowledgment of a contract should match the idea which causes the contract. It means acknowledgment should not become a cause of rejection or counter offer.
The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called:________
a. strategic fit.
b. strategic issues.
c. scenarios.
d. environmental uncertainty.
e. strategic factors.
Answer:
D. environmental uncertainty.
Explanation:
This could be explained to be a condition or situation when an organisation in form of a firm is said to have little or no information about its external environment and in this condition, making it unpredictable; especially when not expected. In other words, the term environmental uncertainty can be easily explained to be unpredicted, unexpected uncertainties that are said to happen in an external environment.
Global warming can be capitalized to be one of the physical and major environmental uncertainties that occurs in such a place.
Sabv Corporation's break-even-point in sales is $910,000, and its variable expenses are 80% of sales. If the company lost $41,000 last year, sales must have amounted to:
Answer:
Sales= $705,000
Explanation:
Giving the following information:
Break-even-point in sales= $910,000
Variable expenses= 80% of sales.
Loss= $41,000
First, we need to calculate the fixed costs:
Fixed costs= 910,000*0.2= $182,000
Now, we need to determine the contribution margin:
Actual CM= 182,000 - 41,000= $141,000
Finally, the sales revenue:
Sales= 141,000/0.2= $705,000