Answer: information system audit
Explanation:
The information system audit is the process through which organizations periodically have an external entity which helps in reviewing the controls in order to uncover any potential problems in the controls
In order to know how effectivene the information system controls is, the information systems audit is vital. It is required to verify the accounting records of an organization as well as the financial statements.
Sample means and ranges were obtained for five samples of 10 units per sample from a production process. Assume the process was considered to be in control during the period these samples were collected. The results are as follows:
Sample Mean Range
1 10.58 0.23
2 9.97 0.25
3 9.99 0.21
4 10.23 0.28
5 10.23 0.28
Required:
What is the central line of the X chart for this process
Answer:
10.20
Explanation:
Given the data :
Sample___ Mean ____Range
1 ________10.58 _____0.23
2________ 9.97 _____ 0.25
3 ________9.99 _____ 0.21
4 ________10.23_____ 0.28
5 ________10.23 _____0.28
The central line of the X_chart :
CL = xbar = Σx / n
CL = central line
x = mean values of the samples
n = number of samples
xbar = (10.58 + 9.97 + 9.99 + 10.23 + 10.23) / 5
xbar = 51 / 5
xbar = 10.20
Central line = 10.20
Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 2,150 shares outstanding at a price per share of $70. EBIT is expected to remain constant at $20,000. The interest rate on new debt is 10 percent and there are no taxes. a.Rebecca owns $30,100 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow
Answer:
Pagemaster Enterprises and Rebecca
If the firm has a 100 percent payout, Rebecca's cash flow is:
= $3,097.
Explanation:
a) Data and Calculations:
Outstanding shares = 2,150
Current price of shares = $70 per share
Market value of outstanding shares = $150,500 ($70 * 2,150)
Debt = 30% of $150,500 = $45,150
Equity = 1- 0.30 = 0.70 or 70%
Interest rate on new debt = 10%
Interest expense = $4,515 ($45,150 * 10%)
EBIT = $20,000
Interest (4,515)
EBT = $15,485
Dividend payout ratio = 100%
Rebecca's investment value = $30,100 = 20% ($30,300/$150,500 * 100)
Therefore, Rebecca's cash flow = $3,097 (20% of $15,485)
Cromartie Ltd. prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred $1,245,000 in research expenditures to develop a new product. An additional $756,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What amount of the above expenditures would Cromartie expense in its 2021 income statement
Answer: $1,245,000
Explanation:
Going by IFRS standards, Research and Development Costs should be expensed as incurred so long as commercial feasibility has not been established.
Once this is established however, the costs after that are to be capitalized. In this scenario, the costs before feasibility are $1,245,000 so these costs are going to be expensed as periodic costs.
Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason has a disability. Katrina has seniority. Jason asks for a transfer, which would represent an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his disability. The court is most likely to rule that:___.
1. Jason’s disability is a sufficient basis for relief.
2. Katrina’s seniority is a good defense.
3. Longhaul’s action was a business necessity.
4. Longhaul’s action was a reasonable accommodation.
Answer:
Katrina's seniority is a good defense.
Explanation:
Industrial Jurisprudence
This is refered to as a system of rules and regulations that is used by labor and management fashion to show their specific employment rights and obligations in the work environment.
Seniority System
This is refered to as different rules and procedures usually within an agreement that shows the allocation of certain job situations including promotion, layoff and recall, as well as certain economic benefits based on length of service. This is application to many organizations.
Seniority
This very important measure of employee job security and it start with acquiring seniority on the date & time of hire (cannot be awarded until completion of probationary period).
Jason may lose the case as a result of the seniority system.
Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipment to his customers. Michael visits his customers on a regular basis to provide information about new products and to solve technical problems that may arise as his clients use the equipment. For Michael, personal selling works better than other forms of promotion because of _______. a. the value of the product b. the number of potential customers c. the role of social media d. the complexity of the product
Answer:
d. the complexity of the product.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. The pre-service strategies includes identifying the following target market, design, branding, market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Personal selling also known as face-to-face selling can be defined as a sales technique or strategy in which the salesperson meets with the potential buyer (customer) for the sole purpose of convincing him or her to buy a product.
For Michael, personal selling works better than other forms of promotion because of the complexity of the product i.e high technicalities associated with the product. The product Michael are highly technical and as such would require guidance or explanation on how to safely use them.
Personal selling would be a better promotional tool for Michael because of the complexity of the product.
Personal selling entails a direct process of selling and buying products through establishing a face-to-face communication system. Thus, it requires a sales representative to meet up with the customers to get the sales transaction completed.
A complex and technical product requires a skilled and expert who possesses great knowledge in that product. It would help in showing the advanced technical functions, benefits, and risks that the product has.
Learn more about personal selling here:
https://brainly.com/question/14072692
The Neptune Company offers network communications systems to computer users. The company is planning a major investment expansion but is unsure of the cost of equity capital as it has no publicly-traded equity. Your assignment is to determine an appropriate equity cost. List and explain the steps you will need to take to complete this assignment.
Answer:
Collect estimates of beta for firms in the same businessExplanation:
A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days, decreases its inventory period by 1 day and increases its payables period by 3 days. What will the length of the cash cycle be after these changes
Answer:
41 days
Explanation:
Calculation to determine What will the length of the cash cycle be after these changes
Using this formula
Cash cycle Length=Cash cycle+Increases in receivables period -Decreases in inventory period -Increases in payables period
Let plug in the formula
Cash cycle Length = 43 days+2 days -1 days - 3 days
Cash cycle Length= 41 day
Therefore What will the length of the cash cycle be after these changes is 41 days
On January 1, 2021, Red Inc. issued stock options for 210,000 shares to a division manager. The options have an estimated fair value of $4 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2021
Answer:
$280,000
Explanation:
Fair value = $4
Options granted = 210,000 shares
Total compensation = Fair value*Options granted
Total compensation = $4 * 210,000
Total compensation = $840,000
Number of years = 3
Compensation per year = Total compensation / Number of years
Compensation per year = $840,000 / 3
Compensation per year = $280,000
Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.
Answer:
B. Bonds are typically less risky than stocks.
Explanation:
Answer: B. Bonds are typically less risky than stocks
Explanation:a. p. e. x. (just took the test)
The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The firm will incur a $20 flotation cost for each bond issued. If the firm's tax rate is 40%, what is the after tax-cost of the firm's debt
Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
Bob listened to a new song and did not like it at all. Shortly thereafter, this song was used by a company as its new advertising jingle, and the song was played over and over, so Bob was repeatedly exposed to the song. You would expect Bob
Answer:
I would expect Bob to complain to the businesses owner that the song is driving him crazy
Explanation:
:)
Classify the scenarios as part of the U.S. capital account or the U.S. current account.
1. You are currently in a labeling module.
2. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop.
3. Al, a U.S. citizen, purchases a vacation home in Ixtapa, Mexico. A U.S. company exports its product.
4. Moira, a U.S. citizen, purchases an imported doll house for her daughter.
5. The Canadian government purchases U.S. Treasury securities.
6. Margarita, a Mexican citizen, receives dividends on stock she owns in Apple, a U.S. company.
Answer:
The Current account has to do with the trade of goods and services across countries.
The Capital account on the other hand deals with transfers of funds as well as investments - including real estate - in other countries.
3. Al, a U.S. citizen, purchases a vacation home in Ixtapa, Mexico.⇒ U.S. CAPITAL ACCOUNT.
Deals with an investment in another country so this goes to the Capital account.
4. A U.S. company exports its product. ⇒ U.S. CURRENT ACCOUNT
This has to do with the trade of goods so falls under the current account.
5. Moira, a U.S. citizen, purchases an imported doll house for her daughter. ⇒ U.S. CURRENT ACCOUNT.
This has to do with a trade in goods and services so goes to current account.
6. The Canadian government purchases U.S. Treasury securities. ⇒ U.S.. CAPITAL ACCOUNT.
This has to do with an investment in the United States from another country so this is a capital account transaction.
7. Margarita, a Mexican citizen, receives dividends on stock she owns in Apple, a U.S. company. ⇒ U.S. CURRENT ACCOUNT.
Dividends and remittances fall under the current account when coming from another country.
Answer:
Classify each scenario as part of the U.S. financial account or the U.S. current account.
Al, a U.S. citizen, purchases a vacation home in Ixtapa, Mexico.
Financial Account
A U.S. company exports its product.
Current Account
Moira, a U.S. citizen, purchases an imported dollhouse for her daughter.
Current Account
The Canadian government purchases U.S. Treasury securities.
Financial Account
Margarita, a Mexican citizen, receives dividends on stock she owns in
Apple, a U.S. company.
Current Account
Explanation:
The balance of payments is divided into two accounts, the capital and financial account and the current account. The U.S. financial account includes financial assets and real assets. The current account includes goods, services, income payments, and transfers.
The scenarios of Al's vacation home and the Canadian government purchasing U.S. Treasury securities belong in the financial account.
Imports, like Moira's daughter's dollhouse, exports, and the dividends Margarita receives from Apple are all part of the current account.
On July 22, George sold $24100 of inventory items on credit with the terms 2/15, net 30. Payment on $15500 sales was received on August 1 and the remaining payment was received on August 12. Assuming George uses the gross method of accounting for sales discounts, what entries was made on August 1 to record the cash received?
Answer:
Dr Cash $15,190
Dr Sales Discount $310
Cr Accounts Receivable $15,500
Explanation:
Based on the information given the Journal entries that was made on August 1 to record the cash received is :
August 1
Dr Cash $15,190
($15,500-$310)
Dr Sales Discount $310
($15500*.02=$310)
Cr Accounts Receivable $15,500
(To record the cash received)
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
Required:
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
A. Monthly flat fee to clean workshop
B. Laminate coverings for desktops
C. Taxes on assembly workshop
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2018. Assume the following manufacturing costs:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2018.
Answer:
Business Solutions
1. Costs Classification:
A. Monthly flat fee to clean workshop = fixed / indirect
B. Laminate coverings for desktops = variable / direct
C. Taxes on assembly workshop = fixed / indirect
2. A Schedule of Cost of Goods Manufactured:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: 0
Ending work in process: (550)
Cost of goods manufactured $3,500
3. Cost of goods sold:
Beginning finished goods inventory: $0
Cost of goods manufactured $3,500
Ending finished goods inventory: $320
Cost of goods sold = $3,180
Explanation:
a) Data and Calculations:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
b) Variable costs are input or direct costs that change with the level of output. Fixed costs are indirect costs that do not change based on the units produced.
An unfavorable price variance occurs because of A. Price increases on raw materials. B. Price decreases on raw materials. C. Less than anticipated levels of waste in the manufacturing process. D. More than anticipated levels of waste in the manufacturing process.
Answer:
C. the answerExplanation:
less than anticipated levels of waste in the manufacturing process.
Which of the following are examples of internal communication?
Memos
Formal letters
Quality control alerts
Client newsletters
Answer:
Memos
Explanation:
it is confirmed . And correct
Memos are examples of internal communication. Thus, option 'A' is the correct option.
What is meant by internal communications?Within a corporation, internal communication is a comprehensive process. In order to accomplish the objectives of the company, it covers how information is distributed laterally and up and down communication routes. Within teams and throughout the organization, communication is shared in a variety of ways (verbally, in writing, and digitally). The goal of internal communication is to provide an efficient flow of information across departments and coworkers inside a business. This holds true for all levels of management and staff.
It also functions among staff members who are communicating with one another at work. Employee engagement is increased and corporate culture is nurtured by effective internal communication. Information can be exchanged verbally or electronically using tools like the workplace intranet. An intranet's attractiveness is that it's accessible to employees and is accessible around the clock.
Learn more about communications, here:
https://brainly.com/question/29484724
#SPJ2
The cost of purchasing 310 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Kenton's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper
Answer: $36000
Explanation:
You didn't complete the question but based on what I got online, the price was given as $0.20. Therefore, the total sales value at the split-off point for paper will be calculated as:
= Total sheets × Price
= 180000 × $0.20
= $36000
Therefore, the total sales value at the split-off point for paper is $36000
The current cash flow from existing assets is highly relevant to the investor. However, since the value of the firm depends primarily upon its growth opportunities, profit projections from those opportunities are the only relevant future flows with which investors are concerned. True False
Answer:
False
Explanation:
Statement of Cash Flows
This depicts the changes in cash for the same period of time as that covered by the income statement. The cash flow statement depicts all sources such as receipts of cash and all the users such as payments of cash. This provides information abou cash receipts (inflows) and cash payments (outflows).
The Categories of Cash Inflows and Outflows includes
1. Operating Activities
2. Investing Activities
3. Financing Activities
The intrinsic value of a company's operations is as a result of the different sources of cash flows that the operations will generate now and in the future, in general, the value of operations depends on all the future expected free cash flows and not just growth.
On July 1, of the current year, Robert forms the Yew Corporation. In exchange for 100 percent of the corporation's stock, Robert contributes land with a fair market value of $100,000. Robert acquired the land 5 years ago at a cost of $30,000. At the date of the contribution, the land is subject to a $10,000 mortgage which the corporation assumes. What is the basis of the land to Yew Corporation
Answer:
$20,000
Explanation:
Based on the information given the basis of the land to Yew Corporation will be the amount of $20,000 which represent the cost of acquiring the land less mortgage reason been that we were told that the land was acquired by Robert 5 years ago at the amount of $30,000 in which it was subject to $10,000 mortgage.
Hence,
Basis=Cost of land -Mortgage
Basis=$30,000-$10,000
Basis=$20,000
While advocates of a market-oriented economy tend to argue that consumers benefit substantially when firms seek short-term profits by providing differentiated products, critics of market-oriented economies may argue that product differentiation (along with marketing and advertising) is _______________. Select the correct answer below: dishonest socially wasteful low quality boring
Answer: socially wasteful
Explanation:
Product differentiation is when a product is being distinguished from similar products in order to make it more appealing and therefore drive consumers choice.
It should be noted that critics of market-oriented economies may argue that product differentiation is socially wasteful.
Suppose that California Co., a U.S. based MNC, seeks to capitalize a difference in interest rates between euros and British pounds via the use of a carry trade. In particular, after 1 month, funds invested in euros will yield a 0.50% percent return, while funds invested in pounds will yield a return of 2.00% percent. Currently the spot rate of the British pound is $1.00 while the spot rate of the euro is $0.80. In other words, the pound is worth 1.25 euros. California Co. expects these spot rates to remain constant over the next month.
After 1 month, California Co. now has 612,000 pounds after investing their converted pounds. However, it is now time for California Co. to repay the 500,000 euro loan. If California Co. borrowed these euros at the prevailing rate of 0.50% percent, they must repay a total of ______________ euros. At the cross rate of 1.25, this repayment is equivalent to pounds. Thus, after repaying the loan, California Co. will have ___________ pounds.
Answer: See explanation
Explanation:
The loan repayment of the 5000 euros after one month will be:
= 500,000 × (1 + .5%)
= 500,000 × 1.0005
= 502,500
Converting 502500 euros to pounds will be:
= 502500/1.25
= 402,000
Therefore, the pounds remaining will be:
= 612,000 - 402,000
= 210,000 pounds
If California Co. borrowed these euros at the prevailing rate of 0.50% percent, they must repay a total of (502500 euros). At the cross rate of 1.25, this repayment is equivalent to (402,000) pounds. Thus, after repaying the loan, California Co. will have (210,000) pounds.
Vick Vickers has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Vickers account for the cash received at the end of the engagement
Answer:
Vick Vickers
Vickers accounts for the cash received at the end of the engagement by debiting Cash account and crediting Consulting Fees (Revenue).
Explanation:
Then the fees received upfront, which were earlier credited to the Deferred Service Revenue account, are then closed by a debit to the Deferred Service Revenue and a credit to the Consulting Fees (Revenue) account. This is in line with the double-entry system of financial accounting and the new Revenue from Contracts with Customers, IFRS 15 or the ASC 606 equivalent.
Which of the following statements about corporate governance in China is false? a. The state still uses direct and/or indirect controls to influence the strategies employed by most firms. b. The Chinese governance system may be tilting toward the Western model. c. Firms with higher state ownership tend to have lower market value and more volatility in those values over time. d. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Answer: D. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Explanation:
Corporate governance refers to a system of policies and rules, which dictate how the operations of an organization are manageed. The statements that are true about corporate governance in China include:
• The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• The Chinese governance system may be tilting toward the Western model.
• Firms with higher state ownership tend to have lower market value and more volatility in those values over time.
Therefore, the answer to the question will be option D as it's not true about corporate governance in China.
A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment
Answer:
the annual rate of return is 22.50%
Explanation:
The computation of the annual rate of return is shown below:
Average investment is
= ($900,000 + $300,000) ÷ 2
= $600,000
Now
Annual rate of return is
= Annual net income ÷ Average investment
= $135,000 ÷ $600,000
= 22.50%
hence, the annual rate of return is 22.50%
MAD Inc. has a capital structure consisting of 40 percent debt and 60 percent common equity financing. The company has $400 million in net income and plans to pay out 25 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock
Answer:
$500 million
Explanation:
Retained earnings = Income * (1 - Dividend payout percentage)
Retained earnings = $400 million * (1-0.25)
Retained earnings = $400 million * 0.75
Retained earnings = $300 million
Amount that can be raise without selling new stock: Retained earnings / % of equity financing in total capital
= $300 million / 60%
= $300 million / 0.60
= $500 million
Which factors are considered when deciding how to make goods and services?
Answer:
determining who has the greatest need
finances of prospective buyers(X)
methods traditionally used to make a good
ways to produce items at a lower cost or higher quality (X)
ways to make the biggest profit (X)
Explanation:
he exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. What is the total compensation cost for this plan
Answer:
$63,500
Explanation:
Missing word "Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 63,500 $1 par common shares. The exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model"
On January 1, 2021, options were granted for 84,000 $1 par common shares
The exercise price equals the $4 market price of the common stock on the grant date.
Each option has a fair value of $1 based on an option pricing model.
Total compensation cost for this plan = Estimated Fair value per option* Option granted
Total compensation cost for this plan = 63,500 * $1
Total compensation cost for this plan = $63,500
Flint Corporation issues $440,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds
Answer:
$414,282.91
Explanation:
The issue price of the bonds is also known as the Present Value (PV) or current price of the Bonds and is calculated as :
FV = $440,000
PMT = ($440,000 x 9%) ÷ 2 = $19,800
P/yr = 2
N = 9 x 2 = 18
I/yr = 10%
PV = ?
Using a Financial calculator to input the values as above, the PV or issue price will be $414,282.91
A maker of computer games expects to sell games at a price of per game. These units cost to produce. Selling, general, and administrative expenses are million and depreciation is . What is the EBIT break-even point for the number of games sold in this case?
Answer:
$33,684 units
Explanation:
Calculation to determine the EBIT break-even point for the number of games sold in this case
Using this formula
Units sold=(Selling, general, and administrative expenses+Depreciation)/(Price per game-Units cost)
Let plug in the formula
Units sold=($1,000,000+$280,000)/($48-$10)
Units sold = $1,280,000 / $38
Units sold= $33,684 units
Therefore the EBIT break-even point for the number of games sold in this case will be $33,684 units
Your opinion is that CSCO has an expected rate of return of 0.15. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of return is 0.115. According to the Capital Asset Pricing Model, this security is
Answer:
Overpriced
Explanation:
The computation is shown below;
As we know that
Expected rate of return = risk free rate + beta × ( expected market rate of return - risk free rate )
= 0.04 + 1.3 × (0.115 - 0.04)
= 0.1375
As the return of the security is 0.1375 i.e. more than the expected rate of return i.e. 0.115
Hence, it is overpriced