Answer:
Increase Net Cash from operations
Explanation:
Depreciation is an element for Non-Cash. This is, there is no cash payment involved. If depreciation is an allowable expense then it reduces the company's tax burden. In other words, by paying depreciation as allowance cost the corporation can save the tax amount. The depreciation thus raises Net Cash From Service.
A corporate charter specifies that the company may sell up to 32 million shares of stock. The company issues 24 million shares to investors and later repurchases 9.0 million shares. The number of issued shares after these transactions have been accounted for is:
Answer: 15 million shares
Explanation:
From the question, we are given the information that a corporate charter specifies that the company may sell up to 32 million shares of stock and the company issues 24 million shares to investors and later repurchases 9 million shares.
The number of issued shares after these transactions have been accounted for will be the difference between the shares that were issued and the shares that were bought back. This will be:
= 24 million shares - 9 million shares
= 15 million shares
In early January 2019, Blue Corporation applied for a trade name, incurring legal costs of $15,400. In January 2020, Blue incurred $8,100 of legal fees in a successful defense of its trade name. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Answer:
2019 Amortization =$1,540
2019 Book Value=$13,860
2019 Amortization =$2,440
2019 Book Value=$19,520
Explanation:
Computation for 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Calculation for 2019 Amortization (15,400 ÷ 10)
= 1,540
Calculation for Book Value of December 31, 2019
= 15,400 – 1,540
= 13,860
Calculation for 2020 Amortization will be:
(13,860 + legal fees 8,100) ÷ 9)
= 21,960÷9
= 2,440
Calculation for the Book Value of December 31, 2020
13,860 -2,440
=11,420
= 11,420+8,100
=$19,520
The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Group of answer choices Requires that ending work in process inventory be stated in terms of equivalent units of production. b. Can be used under any cost-flow assumption. c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. d. Considers the ending work in process inventory only partially complete.
Answer:
c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
Explanation:
The average cost method of process costing differs from the FIFO method of process costing in that it does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
The average method Equivalent units of Production include goods transferred out and ending inventory whereas FIFO method Equivalent units of Production include goods transferred out ,ending inventory and beginning inventories as well.
FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.
An average cost method of process costing differs from the FIFO method of process costing because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
The average method Equivalent units of Production include
goods transferred outending inventoryThe FIFO method Equivalent units of Production include
goods transferred out ending inventorybeginning inventories as well.
The FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.
Hence, the average cost method differs because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
Therefore, the Option C is correct.
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A zero-coupon bond is selling at a deep discount price of $450. It matures in 11 years. If the yield to maturity of the bond is 6.2%, what is the duration of the bond (rounded to two places)
Answer:
Duration is 11 years
Explanation:
The Duration of a zero coupon bond is equal to it's maturity. Since it matures at 11 years the duration of the bond is therefore also 11 years.
It is a bond that pays no interest. A zero-coupon bond is a bond where the face value is what is repaid during the time of maturity. There are no periodic interest payments, or have so-called coupons, that is why they are referred to as zero-coupon bond. Investor gets par value when it matures.
Trailblazer Company sells a product for $210 per unit. The variable cost is $105 per unit, and fixed costs are $588,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $223,440.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Trailblazer Company sells a product for $210 per unit. The variable cost is $105 per unit, and fixed costs are $588,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 588,000/ (210 - 105)
Break-even point in units= 5,600 units
Desired profit= 223,440
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (588,000 + 223,440) / 105
Break-even point in units= 7,728 units
ou just won $80,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 9% per year. If you intend to retire in 45 years, how much are these lottery winnings expected to be worth when you retire?
Answer: $3,866,182.89
Explanation:
The winnings in 45 years are the future value of the $80,000 that you just won based on the return rate of 9%.
Future Value = Present Value ( 1 + return) ^ number of years
= 80,000 ( 1 + 0.09) ⁴⁵
= $3,866,182.89
Lottery winnings will be worth $3,866,182.89 when you retire.
a. Janette and Lola, who are sisters, acquire an apartment building, ownership listed as joint tenancy with right of survivorship. Janette furnished $1,200,000 and Lola $800,000 of the $2,000,000 purchase price. Of the $800,000 provided by Lola, $200,000 had previously been received as a gift from Janette. When the property is worth $3,000,000, Janette died. What amount is included in Janette's gross estate
Answer:
The amount included in Janette's gross estate is $1,800,000
Explanation:
We cannot include the gisft gven ti Lora by Jannette as a part of Jannette's estate. Therefore, The git is part of Lora's estate.
To calculate the amount included in Jaettes gross estate it will be:
60 percent of the new price $ 3,000,000
(60/100)*$ 3,000,000= $1,800,000
Vaughn Manufacturing purchased office supplies costing $7140 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2550 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:
Answer:Debit supplies expense $4,590; Credit supplies 4,590
Explanation:
office supplies cost and debited = $7140
Amount still on hand = $2550
Supplies expense = $7140 -$2550=$4, 590
An adjusting journal entry is an entry in financial reporting that records income expenses not noticed so as to adjust the amount before financial statement are made at the end of a reporting period.
The appropriate adjusting journal entry to be made at the end of the period would be.
Account and explanation Debit Credit
Supplies expense $4, 590
supplies $4, 590
How do you find the value of a bond, and why do bond prices change
Answer:
Explanation:
as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.
The kenosha company has three product lines of beer mugslong dasha, b, and clong dashwith contribution margins of $ 5, $ 4, and $ 3, respectively. the president foresees sales of 175 comma 000 units in the coming period, consisting of 25 comma 000 units of a, 100 comma 000 units of b, and 50 comma 000 units of c. the company's fixed costs for the period are $ 351 comma 000. what is the company's breakeven point in units, assuming that the given sales mix is maintained?
Answer:
break even point in units:
a = 11,700b = 46,800c = 35,100Explanation:
beer mugs contribution margin expected sales
a $5 25,000
b $4 100,000
c $3 50,000
fixed costs = $351,000
if the sales proportion remains the same, we can assume a bundle of products = 1a + 4b + 3c (1 for every 25,000 units) whose contribution margin = $5 + $16 + $9 = $30
break even point = fixed costs / bundle's contribution margin = $351,000 / $30 = 11,700 bundles
break even point in units:
a = 11,700
b = 11,700 x 4 = 46,800
c = 11,700 x 3 = 35,100
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $43 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Purchase
Treasury Stock $255,000 (debit)
Cash $255,000 (credit)
Sale 1.
Cash $108,000 (debit)
Common Stock $108,000 (credit)
Sale 2.
Cash $98,000 (debit)
Common Stock $98,000 (credit)
Sale 3.
Cash $43,000 (debit)
Common Stock $43,000 (credit)
Explanation:
When a Company purchases its own shares
De-recognize the Assets of Cash and also de-recognize the Equity item Treasury Stock.
When a Company sales its own shares
Recognize the Assets of Cash and recognize the equity item Common Stock.
Comparing the expenditure and resource cost-income approachesfor calculating GDP The expenditure and resource cost-income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Alex pays Awesome Foods Market $1,000 to cater his daughter's engagement party. He's attracted by Awesome Foods Market's guarantee that he'll be happy with the catering, or he'll get his money back.
2. Awesome Foods Market pays JoAnn's Catering $900 to cater the party. 3. JoAnn's Catering buys plasticware worth $150 from Kostko.
3. Al's Lawn Care buys grass seed worth $200 from Green Center Nursery.
Compute contributions to GDP, using the expenditure approach. Assume that Green Center Nursery receives the grass seed at no charge and that other costs are zero.
Hint: Add the amount of money spent by buyers of final goods and services.
Which of the following would be included in the expenditure method of calculating GDP? Check all that apply.
a. The Home Station spends $850.
b. Ralph spends $1,200.
c. Al's Lawn Care spends $200.
The total contribution to GDP, measured by the expenditure method, is $______
Now use the following table to compute contributions to GDP, employing the resource cost-income approach. In particular, indicate the costs of intermediate goods and the value added at each stage of production.
Stage of Production Sale Value Cost of Intermediate Goods Resource Cost-Income
Green Center Nursery $200 __________ ______________
Al's Lawn Care $850 __________ __________
The Home Station $1,200 __________ __________
The contribution to GDP that you found using the expenditure approach corresponds to the sum of the___________ at each stage of production.
Answer:
Comparing the expenditure and resource cost-income approaches for calculating GDP
1. Computation of contributions to GDP, using the expenditure approach
1. Alex spends for catering his daughter's party $1,000
3. Al's Lawn Care buys grass seed $200
Total GDP = $1,200
2. Expenditure included in calculating GDP:
b. Ralph spends $1,200.
3. The total contribution to GDP, measure by the expenditure method, is $1,200.
4. Computation of Contributions to GDP, using the resource cost-income approach:
Stage of Sales Value Cost of Resource Cost-Income
Production Intermediate Goods
Primary $200 $0 $200
Intermediate $850 $200 $650
Final $1,200 $850 $350
The contribution to GDP that you found using the expenditure approach corresponds to the sum of the___$1,200________ at each stage of production.
Explanation:
Three different methods can be used to measure a country's GDP (Expenditure, Income and Production), which produce the same amount.
The expenditure method is calculated by adding total amount spent on total consumption, government purchases, net exports and investments by firms, households and government.To compute GDP under this method, all of the expenditures made on final goods and services are added up. It is widely used to estimate GDP.
The income approach calculates GDP by adding income from various production factors, including such income components as interest on capital, rent, wages, profit and salaries.
The production approach (output approach), measures GDP as the difference between value of output less the value of goods and services used in producing these outputs during an accounting period.
The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $627,200. Cost of goods sold average 38 percent of sales and the profit margin is 5.1 percent. The average accounts receivable balance is $35,300. On average, how long does it take the company to collect payment for its services
Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
Monica discovered that she can bake five pies in three hours without giving up production of any cakes. If she were operating on the production possibilities curve, this would be an example of increasing opportunity cost. decreasing opportunity cost. constant opportunity cost. zero opportunity cost. static opportunity coss.
Answer:
Zero opportunity cost
Explanation:
Opportunity cost in business is defined as the value of an alternative forgone to arrive at a more favorably valued option in the course of making a decision. Opportunity cost is necessary as every alternative is considered to have alternative usages.
However , in a situation where no alternative option is given up in arriving at a particular decision , or the given up alternatives have no value to you, it is said that the selected decision comes with no opportunity cost , that is it has a zero opportunity cost.
As Monica could still afford to bake five pies in three hours without giving up the production of any cakes , the production of pies had zero opportunity cost.
In Rooney Company, direct labor is $20 per hour. The company expects to operate S at 10,000 direct labor hours each month. In January 2017, direct labor totaling $206,000 b is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a flexible P budget report. Evaluate the usefulness of each repor.
Answer and Explanation:
The preparation is presented below;
a. For a static budget report
Product line Budget Actual Difference
Direct labor $200,000 $206,000 $6,000 unfavorable
(10,000 direct labor hours × $20 per hour)
It is unfavorable as the budget is less than the actual
b. For a flexible budget report
Product line Budget Actual Difference
Direct labor $208,000 $206,000 $2,000 favorable
(10,400 direct labor hours × $20 per hour)
It is favorable as the budget is more than the actual
Prepare a multiple-step income statement through the calculation of gross profit.
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement.
Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30,
FOB shipping point, invoice dated July 1.
Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point,
invoice dated July 2. The merchandise had cost $500.
Jul. 3 Paid $125 cash for freight charges on the purchase of July 1.
Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash.
Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB
destination, invoice dated July 9.
Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise
purchased on July 9.
Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
Jul. 16 Paid the balance due to Boden Company within the discount period.
Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB
shipping point, invoice dated July 19.
Jul. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Jul. 24 Paid Leight Co. the balance due after deducting the discount.
Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60,
FOB shipping point, invoice dated July 31.
Answer:
inventory 6,000 debit
account payable 6,000 credit
--to record July 1st--
Acc Rec 900 debit
Sales Revenues 900 credit (+900 income)
--to record sale--
COGS 500 debit (-500 expense)
Inventory 500 credit
--to record cost of sale--
Delivery expense 125 debit (-125 expense)
Cash 125 credit
--to record freight-out --
Cash 1,700 debit
Sales Revenues 1,700 credit (+1,700 income)
--to record sale--
COGS 1,300 debit (-1,300 expense)
Inventory 1,300 credit
--to record cost of sale--
Inventory 2,200 debit
Account Payable 2,200 credit
--to record purchase--
Account Payable 200 debit
Inventory 200 credit
--to record return of goods--
Cash 882 debit
Sales DIscount 18 debit
Accounts Receivables 900 credit
--to record payment from customer--
Account Payable 6,000 debit
Cash 5,940 credit
Inventory 60 credit
--to record payment to supplier--
Cash 1,200 debit
Sales Revenues 1,200 credit (+1,200 income)
--to record sale--
COGS 800 debit (-800 expense)
Inventory 800 credit
--to record cost of sale--
Sales Returns 200 debit
Account Receivables 200 credit
-- to record return from customer--
Account Payable 2,000 debit
Cash 1,960 credit
Inventory 40 credit
--to record payment to supplier--
Cash 980 debit
Sales DIscount 20 debit
Accounts Receivables 1,000 credit
--to record payment from customer--
Cash 7,000 debit
Sales Revenues 7,000 credit (+7,000 income)
--to record sale--
COGS 4,800 debit (-4,800 expense)
Inventory 4,800 credit
--to record cost of sale--
Explanation:
Cheek
900 x 2% = 18
net of discount 900 - 18 = 882
Boden:
6,000 x 1% = 60
Net of discount 6,000 - 60 = 5,940
Leight:
2,200 - 2,000 = 2,000 balance due
2,000 x 2% = 40
net of discount 1,960
Art Co:
1,200 - 200 = 1,000 balance due
1,000 x 2% = 20 discount
net = 1,000 - 20 = 980
Ray presents information about the office supplies his company sells to a
business owner. The business owner seems interested, however, when Ray
ask her to commit to a purchase, she is hesitant and says her budget was
recently cut. Which of the following would be an effective way to handle the
customer's objections?
A. Provide a solution to this objection, such as offering a discount for
a year-long contract on office supplies.
B. Agree to check back with the business owner in six months to see
if her financial situation has changed.
C. Push the business owner to accept your offer, and don't back
down until you have a commitment.
D. Accept the that the business owner can't afford your office
supplies and move on to the next sale.
SUBMIT
The effective way to handle the customer's objections providing a solution to the objection.
Thus, the correct option is A.
What is a customer objection?Customer objections are the reservations a potential customer has that, at best, lead them to delay and, at worst, lead them to forego making an online purchase. People want to be certain they are buying a quality item.
Customer care refers to how well a business treats its clients and forges an emotional bond with them. Everyone on the team, not just a customer success manager or a customer service person, should be able to handle it.
Simply listening is the greatest way to do this. To understand the root of the client's distrust, pay attention to both what they say and what they choose to leave unsaid.
Learn more about customer objection, here
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The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off.
a. True
b. False
Answer:
if im correct its true but please check or make sure from someone else but im positive its true
Explanation:
In theory, there are three key legal issues related to distribution. If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, a _______ is in place. Exclusive dealing Exclusive territory Tying contract Slotting fee None of these
Answer:
Tying contract
Explanation:
In theory, there are three key legal issues related to distribution, these are exclusive dealing, tying contract and exclusive territory.
If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, a tying contract is in place.
Simply stated, a tying contract is an agreement which conditions an intermediary such as retailer or wholesaler, to purchase other products (the "tied" products) from the supplier, in order to get the product (the "tying product) which is actually required.
For instance, XYZ company (intermediary) can purchase computers at 15% discount from a certain supplier, but is also mandated to agree to purchase computer desk and printer from the same supplier.
Determine the difference in the present worth of the following two commodity contracts at an interest rate of 8% per year. Contract 1 has a cost of $10,000 in year 1; this cost will escalate at a rate of 4% per year for ten years. Contract 2 has a present cost of $80,520.
Answer:
Difference = 4418.64
Explanation:
We first need to determine the present value of the contract 1. We already have the present value of contract 2.
The present value of contract 1 will be,
Present value = 10000/(1.08) + 10000*(1.04)/(1.08)^2 +
10000*(1.04)^2/(1.08)^3 + 10000*(1.04)^3/(1.08)^4 + 10000*(1.04)^4/(1.08)^5 + 10000*(1.04)^5/(1.08)^6 + 10000*(1.04)^6/(1.08)^7 + 10000*(1.04)^7/(1.08)^8 + 10000*(1.04)^8/(1.08)^9 + 10000*(1.04)^9/(1.08)^10 +
10000*(1.04)^10/(1.08)^11
Present Value-Contract 1 = 84938.63563 rounded off to 84938.64
Difference = 84938.64 - 80520 = $4418.64
Lord Greystroke uses his limited income to purchase fruits and nuts; he is currently buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke:__________.
1. is making the utility-maximizing choice.
2. should buy more fruits and less nuts because the last pound of fruits cost less than the last pound of nuts.
3. should buy more fruits and less nuts because the last dollar spent on fruits added more to total utility than the last dollar spent on nuts.
4. should buy more nuts and less fruits because the last pound of nuts added more to total utility than the last pound of fruits.
5. should buy more nuts and less fruits because the last dollar spent on nuts added more to total utility than the last dollar spent on fruits.
Answer:
1. Is the answer
Explanation:
the utility-maximizing choice between consumption goods happens where the marginal utility per dollar is the same for both goods, and the consumer has finished his or her budget. By buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke is utilizing this concept
Flint Company buys merchandise on account from Windsor, Inc.. The selling price of the goods is $1,050, and the cost of the goods is $660. Both companies use perpetual inventory systems.
Required:
Journalize the transaction on the books of both companies.
Answer and Explanation:
The journal entries are shown below:
On the books of Flint Company
Merchandise Inventory $1,050
Accounts payable $10,50
(Being Merchandise purchased on account is recorded)
For recording this we debited the inventory as it increased the assets and credited the account payable as it is also increased the liabilities
On the books of Windsor Inc. Company
Accounts Receivable $1,050
To Sales $1,050
(Being Merchandise sold on account is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the sales
Cost of goods sold $660
To Merchandise inventory $660
(Being the cost of merchandise is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the inventory as it decreased the assets
Jake, a pharmaceutical sales representative, often takes lunch to doctors' offices. Over lunch with the doctors and their staffs, he reviews his company's products. Jake does not try to close a sale during these lunches. What type of personal selling does this describe
Answer:
The correct answer is: order-creaters.
Explanation:
To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named "order-creaters" and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.
If the maker of a note does not pay at maturity, ________. Group of answer choices the debtor no longer owes the payee interest revenue cannot be accrued on the note the note is no longer in force because it has expired the principal is recorded as a debit to the Accounts Receivable account
Answer:
recorded as a debit to the Accounts Receivable account
Explanation:
You invested $10,000 in a mutual fund at the beginning of the year when the NAV was $32.24. At the end of the year, the fund paid $0.24 in short-term distributions and $0.41 in long-term distributions. If the NAV of the fund at the end of the year was $35.23, what was your return for the year
Answer:
Return for the year is 11.29%
Explanation:
Beginning of the year, NAV = $32.24.
At the end of the year,
Short-term distributions = $0.24
Long-term distributions = $0.41
End of the year was, NAV = $35.23
No. Of mutual funds = $10000 ÷ $32.24 = 310.1737
Distributions per fund = Short term distributions + Long term distributions = $0.24 + $0.41 = $0.65
Total distributions = $0.65 × 310.1737 = $201.61
Closing value of fund invested = No. Of funds × Closing NAV
Closing value of fund invested = 310.1737 × $35.23 = $10927.42
Total net benefit = (Closing value of fund - Opening value of fund) + Total distributions
Total net benefit = ($10927.42 - $10000) + $201.61
Total net benefit = $1129.03
Now,
Return on fund invested = Total net benefit/Opening value of fund
Return on fund invested = $1129.03 ÷ $10000
Return on fund invested = 0.1129 or 11.29%
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates representation of the agreement
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates' representation of the agreement?
A) Disputes and Litigation
B) Termination of Agreement
C) Indemnification
D) Regulatory Compliance
Answer:
The correct option is C) Indemnification Clause
Explanation:
This simply means that if the associate is found liable by a third-party due to errors and omissions or any action of tort, the principal or the broker, will not be vicariously held liable.
This clause may seem unfair given that for the most part of the relationship, the associate and the broker are bound by similar interests. However, sometimes one party may become self-focused, and this results in errors which translate to lawsuits.
This clause is a way of protecting the Broker. It is also implied that the associate will also enjoy immunity from any costs and damages which the broke may be held liable to.
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Bank fees for check printing are recorded by the bank as: Multiple Choice An increase in the bank’s asset account. A decrease in the bank’s asset account. A decrease in the depositor’s bank account. An increase in the depositor’s bank account.
Answer:
A decrease in the depositor’s bank account
Explanation:
The Bank fees are income to the Banks Financial Statements while they reflect a decrease in the assets of cash in the depositors bank account.
Therefore, Bank fees for check printing are recorded by the bank as a decrease in the depositors bank account.
From the following list, identify those that are likely to serve as source documents.
a. Sales ticket
b. Trial balance
c. Balance sheet
d. Telephone bill
e. Invoice from supplier
f. Company revenue account
g. Income statement
h. Bank statement
i. Prepaid insurance
Answer:
Telephone bill
Sales ticket
Invoice from supplier
Bank statement
Prepaid insurance
Explanation:
Source documents in accounting are defined as the original record of a transaction that contains transaction details and provides evidence that a transaction occurred.
It is source of information entered into the accounting system. They can be printed on paper or electronic in nature.
From the given list the following are source documents: Telephone bill, Sales ticket, Invoice from supplier, Bank statement, Prepaid insurance.
They are sources from which transaction information can be obtained for entry into the accounting system
Tawstir Corporation has 400 obsolete personal computers that are carried in inventory at a total cost of $576,000. If these computers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the computers can be sold in their present condition for $40,000. What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?
Answer:
If the company upgrades the units, income will increase by $20,000 (compared to sell as-is).
Explanation:
Giving the following information:
Units= 400
If these computers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000.
As an alternative, the computers can be sold in their present condition for $40,000.
We won't take into consideration costs before the upgrade, because they will remain in both options.
Sell as-is:
Effect on income= $40,000 increase
Continue processing:
Effect on income= 160,000 - 100,000= $60,000 increase
If the company upgrades the units, income will increase by $20,000 (compared to sell as-is).
Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?
A. Increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation.
B. Increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment.
C. Increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation.
D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Explanation:
M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.
From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.
Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.