Answer:
(1) Debt Ratio in 2017 = 44.57%; Debt Ratio in 2016 = 39.33%; Equity Ratio in 2017 = 55.43%; and Equity Ratio in 2016 = 60.67%.
(2) Debt-To-Equity Ratio in 2017 = 80.42%; and Debt-To-Equity Ratio in 2016 = 64.83%.
(3) Times Interest Earned in 2017 = 4.71 times; and Times Interest Earned in 2016 = 4.22 times.
Explanation:
(1) Calculation of debt and equity ratios
Debt ratio is a ratio that is used to measure the ability of a company to pay off its liabilities with its assets. Debt ratio can be calculated using the following formula:
Debt Ratio = Total Debt / Total Assets
We can then calculate as follows:
Total debt = Accounts payable + Long-term notes payable secured by mortgages on plant assets
Total debt in 2017 = $159,605 + $120,505 = $280,110
Total debt in 2016 = $89,723 + $123,354 = $213,077
Total assets in 2017 = $628,417
Total assets in 2016 = $541,739
Debt Ratio in 2017 = $280,110 / $628,417 = 0.4457, or 44.57%
Debt Ratio in 2016 = $213,077 / $541,739 = 0.3933, or 39.33%
Equity ratio is a ratio that is used to measure the amount of assets of a company that are financed by the investments of the owners of the company. Equity ratio can be calculated using the following formula:
Equity Ratio = Total Equity / Total Assets
We can then calculate as follows:
Total equity = Common stock, $10 par value + Retained earnings
Total equity in 2017 = $162,500 + $185,807 = $348,307
Total equity in 2016 = $162,500 + $166,162 = $328,662
Equity Ratio in 2017 = 0.5543, or 55.43%
Equity Ratio in 2016 = 0.6067, or 60.67%
(2) Calculation of debt-to-equity ratio.
The debt-equity ratio provides the proportion of financing of a company that is contributed by creditors and investors. Debt-equity ratio can be calculated using the following formula:
Debt-To-Equity Ratio = Total Debt / Total Equity
Using the data in part (1) above, we can then calculate as follows:
Debt-To-Equity Ratio in 2017 = $280,110 / $348,307 = 0.8042, or 80.42%
Debt-To-Equity Ratio in 2016 = $213,077 / $328,662 = 0.6483, or 64.83%
(3) Calculation of times interest earned
The times interest earned ratio is a ratio that is used to determine the proportionate amount of income that that is required to cover interest expenses. The times interest earned ratio can be calculated using the following formula:
Times Interest Earned = Earnings before interest and tax (EBIT) / Interest expenses
We can then calculate as follows:
EBIT = Sales - Cost of goods sold - Other operating expenses
EBIT in 2017 = $816,942 - $498,335 - $253,252 = $65,355
EBIT in 2016 = $644,669 - $419,035 - $163,101 = $62,533
Interest expenses in 2017 = $13,888
Interest expenses in 2016 = $14,827
Times Interest Earned in 2017 = $65,355 / $13,888 = 4.71 times
Times Interest Earned in 2016 = $62,533 / $14,827 = 4.22 times
What is the future value of $15,000 received today if it is invested at 7.5% compounded annually for five years
Answer:
the future value is $21,534.44
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
where,
Present value is $15,000
The Interest rate is 7.5%
And, the number of the year is 5 years
Now put these values to the above formula
So, the future value is
= $15,000 × (1 + 0.075)^5
= $21,534.44
Hence, the future value is $21,534.44
Southern Amusements Corporation had the following stockholders' equity on November 30: BEE lick the icon to view the stockholders' equity.) On December 30, Southern purchased 125 shares of treasury stock at $13 per share.
Requirements
1. Journalize the purchase of the treasury stock.
2. Prepare the stockholders' equity section of the balance sheet at December 31, 2016. Assume the balance in retained earnings is unchanged from November 30
3. How many shares of common stock are outstanding after the purchase of treasury stock?
Answer:
the first part is missing, so I looked it up:
1) December 30, 202x, treasury stocks are purchased
Dr Treasury stocks 1,625
Cr Cash 1,625
2) Stockholders' Equity
Paid-in capital:
Common stocks, 1,300 shares $1,550authorized, 310 shares issuedPaid-in capital in excess of par value $4,650Total paid-in capital: $6,200Retained earnings $53,000
Treasury stocks (125 stocks at cost) ($1,625)
Total Stockholders' Equity $51,375
3) outstanding shares = 310 - 125 = 185 outstanding stocks
Which of the following statements is true?A. A government free of corruption is an example of a bad institution.B. Human creativity allows for existing products to improve.C. Wealthy countries tend to have fewer innovative individuals.D. Wealthy nations tend to have weak institutions.
Answer:
I think the most suitable answer to this question can be option B. As everything is below human creativity.
Which of the following is central to developing pre-service strategies?a- Leadership.b- Finance.c- Marketing.d- Capital structure.
Answer:
C. Marketing.
Explanation:
Marketing is central to developing pre-service strategies.
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,292,384 as follows. Work in process, November 1 Materials $78,900 Conversion costs 48,300 $127,200 Materials added 1,598,460 Labor 225,200 Overhead 341,524 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 663,700 units were started into production, and 25,900 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.Required:a. Determine the equivalent units of production and the unit production costs for the Assembly Department.b. Determine the assignment of costs to goods transferred out and in process.c. Prepare a production cost report for the assembly dept.
Answer:
Rivera Company
a1) Equivalent Unit
Materials Conversion
Started & completed 673,000 673,000
WIP 25,900 10,360
Equivalent Units 698,900 683,360
a2) Cost per equivalent unit:
Materials Conversion Total Costs
Costs added $1,598,460 $566,724
Beginning WIP 78,900 48,300
Total costs $1,677,360 $615,024
Equivalent Units 698,900 683,360
Costs per equivalent $2.4 $0.90 $3.30
Costs attributable:
Materials Conversion Total Costs
Started and completed $1,615,200 $605,700 $2,220,900
WIP, November 30 62,160 9,324 71,484
Total costs $1,677,360 $615,024 $2,292,384
c. RIVERA COMPANY
Assembly Department
Production Cost Report
For the month ended November 30,2020
Equivalent units
Quantities Physical Unit Materials Conversion Costs
Units to be accounted for:
Work in process, November 1 35,200
Started into production 663,700
Total units 698,900
Units accounted for:
Transferred out 673,000 673,000 673,000
Work in process, Nov. 30 25,900 25,900 10,360
Total units 698,900 698,900 683,360
Costs Materials Conversion Costs Total
Unit costs
Total costs $1,677,360 $615,024 $2,292,384
÷ Equivalent units 698,900 683,360
= Unit costs $2.40 $0.90 $3.30
Costs to be accounted for:
Work in process, November 1 $127,200
Started into production $2,165,184
Total costs $2,292,384
Cost reconciliation Schedule
Cost s accounted for:
Transferred out $2,220,900
Work in process, November 30
Materials $62,160
conversion costs $9,324
Total costs $2,292,384
Explanation:
a) Data and Calculations:
Total Assembly Department costs = $2,292,384
WIP, November 1:
Materials $78,900
Conversion costs 48,300
Total $127,200
Materials added 1,598,460
Labor 225,200
Overhead 341,524
Units in production:
WIP, November 1 = 35,200
Completion 30% Conversion
Started = 663,700
Ending WIP 25,900
Completion = 40% conversion
b) The equivalent unit of production is the percentage of completion that has been achieved for each stage of the process. It is calculated by applying the percent of work done on the units of production. This is then used to determine the costs per equivalent unit and the costs to be attributable to the ending work in process and the units that have been completed.
The employees of neat clothes work monday through friday every other friday the company issues payroll checks totaling 36,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?
Salaries expense 22,400
Salaries payable 22,400
Amount accrued: $32,000 x 7/10 = $22,400
1. Can you explain how did we get 22,400?
2. Why we divide 7 over 10? What does 7 mean and what does 10 represent?
Answer:
Neat Clothes
1. Can you explain how did we get 22,400?
The total wages for 2 weeks or 10 days (5 days each) is $32,000. For the weeks under review, only 7 days are worked in June, the remaining 3 days are in July. To calculate June salaries alone the $32,000 is divided by 10 days, to get the wages per day, and then multiplied by 7 days for the seven days in June.
2. Why we divide 7 over 10? What does 7 mean and what does 10 represent?
The 7 means the days of work done in June and 10 represents the 2 weeks for which wages are being calculated.
So, dividing 7 over 10 gives the proportion of June salaries from the total of $32,000.
Explanation:
As above.
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:__________.
Average Cost Per Unit
Direct materials $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
13. If the selling price is $21.40 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)
Answer:
Martinez Company
1. Total amount of product costs for 10,000 units:
= 10,000 * $13.90
= $139,000
2. Period costs for 10,000 units:
= 10,000 * $6.15
= $61,500
3. Variable cost per unit of 8,000 produced and sold:
= $11.55
4. Variable cost per unit of 12,500 produced and sold:
= $11.55
5. Total variable costs for 8,000 units produced and sold:
= 8,000 * $11.55
= $92,400
6. Total variable costs for 12,500 units produced and sold:
= 12,500 * $11.55
= $144,375
7. Average fixed manufacturing cost per unit produced for 8,000 units:
= $4.00
8. Average fixed manufacturing cost per unit produced for 12,500 units:
= $4.00
9. Total fixed manufacturing cost for 8,000 units:
= 8,000 x $4.00
= $32,000
10. Total fixed manufacturing cost for 12,500 units:
= 12,500 x $4.00
= $50,000
11. Total amount of manufacturing overhead costs for 8,000 units:
= 8,000 * $5.60
= $44,800
per unit = $5.60
Variable manufacturing overhead = $1.60
Fixed manufacturing overhead = $4.00
Total per unit = $5.60
12. Total amount of manufacturing overhead for 12,500 units:
= 12,500 x $5.60
= $70,000
per unit = $5.60
Variable manufacturing overhead = $1.60
Fixed manufacturing overhead = $4.00
Total per unit = $5.60
13. Contribution margin per unit:
Selling price = $21.40
Variable manufacturing cost per unit = $9.90
Contribution margin per unit $11.50
14. Total amounts of direct and indirect manufacturing costs for 12,000 units:
Direct manufacturing costs = $9.90 x 12,000 = $118,800
Indirect manufacturing costs = $4.00 x 12,000 = $48,000
15. Incremental manufacturing cost if Martinez increases production from 10,000 to 10,001:
= $9.90
Explanation:
a) Data and Calculations:
Average Cost Per Unit
Direct materials $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Total Variable Costs per unit $ 9.90
Fixed manufacturing overhead $ 4.00
Total product cost per unit $13.90
Period Costs:
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
Total period costs per unit $6.15
All Variable costs:
Variable production costs $9.90
Sales Commission $1.10
Variable administrative expense $ 0.55
Total Variable costs $11.55
All Fixed Costs:
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Total fixed costs per unit $8.50
The total amount for the product cost incurred will be $139000.
The period cost for 10000 units will be $61500. If 8,000 units are produced and sold, the variable cost per unit produced and sold will be $11.55. If 12,500 units are produced and sold, the variable cost per unit produced and sold will be $11.55.If 8,000 units are produced and sold, the total amount of variable costs that are related to the units produced and sold will be $92400.The total variable cost for 12500 units will be $144375. The average fixed manufacturing cost for 8000 units and 12500 units will be $4.00. The total fixed manufacturing cost for 8000 units and 12500 units will be $32000 and $50000 respectively.The total amount of manufacturing overhead costs for 8000 units will be;
= 8000 × $5.60
= $44800
The total amount of manufacturing overhead for 12500 units will be:
= 12500 × $5.60
= $70000
The contribution margin per unit will be:
= Selling price - Variable manufacturing cost per unit.
= $21.40 - $9.90
= $11.50
The total amount of direct manufacturing cost will be:
= $9.90 × 12000 = $118800
The total amount of indirect manufacturing cost will be:
= $4.00 × 12000 = $48000
Lastly, the incremental manufacturing cost will be $9.90.
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Green is a sign of danger in some countries so a U.S firm that sells its goods that sells its goods in those countries would probably want to avoid using green on its packaging. Which aspect of packaging is addressed by this issue
Answer:
Aesthetics
Explanation:
Aesthetics refers to the study with respect to the nature and enhancement of beauty, art, and the taste that is concerned with the mind and emotions study.
Since in the question it is mentioned that the Green signifies the danger sign in some of the countries and the countries avoid the use of green on the product' packaging
So this issue represents the aspect of aesthetics and the same is to be considered
Negotiation is gendered in that the qualities of bargainers such as analytic rationality and strategic thinking are linked to:_________.
Answer:
Masculinity.
Explanation:
Negotiation can be defined as the process in which a buyer and a seller of goods and services reach a compromise on the price or amount of money to be paid. Negotiations in business depicts a win-win situation for both the buyer and seller.
Negotiation is gendered in that the qualities of bargainers such as analytic rationality and strategic thinking are linked to masculinity.
This ultimately implies that, when it comes to negotiating the price of an item or a product, the male bargainers (customers) are considered to be more rational by comparing products with existing products and prices, as well as being strategic in thoughts through the consideration of alternatives.
"A market maker that compensates a retail member firm for sending its customer orders to that market maker is:"
Answer: paying for order flow and hence must be allowed to do it so far he or she is subjected to the best execution requirements.
Explanation:
A market maker that compensates a retail member firm for sending its customer orders to that market maker is paying for order flow and hence must be allowed to do it so far he or she is subjected to the best execution requirements.
It should be noted that in this scenario, the retail firm earns the payment for order flow and this is allowed by the Securities exchange commission as long as the best available price is allowed for the trade.
Which law most likely prompted organizations to create codes of ethics and install ethics hotlines?
A) Corporate and Auditing Accountability, Responsibility, and Transparency Act.
B) Federal Sentencing Guidelines for Organizations Act.
C) Procurement Integrity Act.
D) McCarran-Ferguson Act.
Answer:
B) Federal Sentencing Guidelines for Organizations Act.
Explanation:
The Federal Sentencing Guidelines for Organizations Act (FSGO) was passed on November, 1991, and it provides a guideline for organizations' compliance and ethics programs. It applies to virtually all types of private organizations, including corporations, partnerships, non-profits, labor unions, etc.
The integration of the lowest level of the WBS with the organizational units responsible for performing the work is known as
Answer:
Organization breakdown structure.
Explanation:
This structure is used to show the people who would be working on a project.
Organization Breakdown Structure is in hierarchy and it explains the built organizational framework useful for project planning, resource management, time and expense tracking e.tc. it tells us the Employees that have been assigned to do particular projects, using knowledge, skills and the ability to do a task from start till finish.
The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,500 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 20% of total revenue. Fixed costs are estimated to be $6,400 for 2005. How many units should the company sell to break even
Answer:
4,000
Explanation:
Break even quantity = fixed cost / price - variable cost per unit
Total revenue = price x quantity sold
$2 x 5,500 = $11,000
Variable cost = 0.2 x $11,000 = $2,200
Variable cost per unit = $2,200 / 5500 = $0.4
$6,400 / $2 - $0.4 = 4,000
If A, B, and C are three activities connected with SS and FF (combination) relationships with 2-day lag on the SS relationships only. Their durations are 5, 10, and 3; respectively. What is the duration of the project:
Answer:
22 days
Explanation:
number of activities : 3 ( A,B,C)
connected via : SS and FF combination. days lag on SS and F = 2
Durations : 5,10 and 3
A and B is connected by SS and there is a 2-day lag on the SS connection, this means that B will start 2 days after A have ended
i.e when T = 0 , B will start : 5 +2 = 7 days and end in 17 days
while B and C is connected by FF and there is also a 2-day lag on the FF connection, this means that C will start after B has ended and end in 2 days
i.e when B ends at 17 days ; C starts = 17 + 2 = 19 DAYS
hence the project will end in 19 + 3 = 22 days ( i.e when C ends )
EBITDA stands for:________
A) Earnings before Income Taxes, Discontinued Operations and Other Adjustments
B) Earnings before Income Taxes, Discontinued Operations and Other Amortization
C) Earnings before Interest, Taxes, Depreciation and Amortization
D) Earnings before Interest, Taxes, Discontinued Operations and Amortization
Motivating employees is more challenging today than two decades ago because:_______A) employers have difficulty understanding the different needs and expectations that younger generation employees bring to the workplace. B) there are more layers of management today, which makes it more difficult to motivate everyone in management positions. C) corporate downsizing and reduced job security have damaged the levels of trust employees need to work beyond minimum levels. D) all of the above. E) 'A' and 'C' only.
Answer: E) 'A' and 'C' only.
Explanation:
The younger generation of today are in a new world with new values as opposed to the generation that were at work two decades ago. As such, they need to be motivated in different ways. Where in the past simply using money to motivate was the solution, today's generation require other things to motivate them as well such as fulfilment.
Employers therefore have more difficulty understanding the different needs and expectations that this younger generation bring to the workplace.
Also, with the constant downsizing that affects the workplace today, job security is not as pronounced as in the past which has led to employee morale and trust being damaged because they know that they could work really hard and still have their jobs terminated. A lot of them therefore just work at the minimum level so as not to give too much in case they are indeed fired.
Which of the following is a good example of a program?a. Planting a gardenb. Developing a new residential area that includes six custom homesc. Developing a new marketing pland. Taking notes each class meeting to prepare for the finale. Planning a wedding
Answer:
b. Developing a new residential area that includes six custom home
Explanation:
A program refers to a group in which the projects that are related are designed to achieve a common objective within a period of time
Now if we going through the options, the option B is correct as it involves establishing a new residential area that consists of six custom homes i.e. it is customized according to the needs of the client, customers, company, etc
Therefore option B is correct
Incomes rise for low-income and high-income workers, but rise more for the high-income earners. How will this change affect income inequality
Answer:
It will increase the income inequality between the low income earners and the high income earners.
Explanation: Income inequality is a term used to describe the Difference or gap between income earners within a given economy. If the rate of increase of income is higher for the low income earners than for the high income earners it will help to reduce the inequality gaps between both classes. But when the rise is more for high income earners than for low income earners it will increase the inequality gaps between both classes.
Your credit card company charges you 1.43 percent per month. What is the APR on your credit card?
Answer:
APR is 17.16 percent
Explanation:
APR means annual percentage rate and is calculated annually.
APR = 1.43 percent * 12 months = 17.16 percent
Content marketing is a relatively new practice that became popular in the 1950’s with the boom of advertising firms.
A. True
B. False
Answer: false
Explanation:
Content marketing is a marketing method that is focused on the creation and the distribution of content for a specific audience online.
Content marketing is used by organizations to generate leads, attract attention gain a large customer base and increase revenue.
The idea that Content marketing is a relatively new practice that became popular in the 1950’s with the boom of advertising firms is wrong.
Can someone help me figure this out?
Answer:
I can help call me 8470589364
A machinists union and an employer are involved in collective bargaining. The bargaining issues have already been determined. What is the most likely next step in the process
Answer: negotiating an agreement
Explanation:
From the question, we are informed that a machinists union and an employer are involved in collective bargaining and that the bargaining issues have already been determined.
The most likely next step in the process is for an agreement to be negotiated. Here, the negotiation of the contract will take place before they come to a conclusion.
Using a cash flow statement, explain why ultra Cable Corporation's cash balance has declined so precipitously this past year.
Answer:
I looked for Cable Corporation's income statement and balance sheet:
Cable Corporation
Statement of cash flows
For the year ended December 31, 202x
Cash flows from operating activities:
Net income $357,750
Adjustments to net income:
Depreciation expense $197,500Increase in accounts payable $225,000Increase in notes payable $1,125,000Increase in accounts receivable ($850,000)Increase in inventories ($1,626,125) ($928,625)Net cash provided by operating activities ($570,875)
Cash flows from investing activities:
Purchase of fixed assets ($1,975,000)
Net cash provided by investing activities ($1,975,000)
Cash flows from financing activities:
Issuance of long term debt $2,565,700
Dividends paid ($107,325)
Net cash provided by financing activities $2,458,375
Net decrease in cash ($87,500)
Cash balance at beginning of the year $100,000
Cash balance at the end of the year $12,500
What would happen to GDP if a significant number of house-spouses who were previously staying home to care for their children began taking jobs and placing their children in day-care? Would the nation's well-being necessarily be better off?
Answer:
The GDP will increase.
Explanation:
The number of women taking a job will result in the rise of real GDP because their participation will increase the number of economic activities. Therefore, a rise in economic activities will boost the GDP. But it would be uncertain to say that the well being of the nation will be better off because daycare will harm the bond of children and parents. Moreover, lack of parental supervision will result in the low performance of children at the latter age and if the child is at the age in which breastfeeding is required then lack of breastfeeding may harm child's physical and mental health as well.
Jackson Ltd is developing computer software for use in its courier delivery service business. So
far the company had spent $50 000 but the software is still unfinished and not expected to be
finished in time for the preparation of the reports. As a result, the company had to purchase a
computer package amounting to $100 000 to finalise its accounts. There is no further use for the
unfinished software as it is expected that the purchased computer package could be used by the
entity for another 10 years. Which accounting treatment would be consistent with the
framework?
ion
34
Finish
Select one
O a Recognise an asset of $100 000 and expense of S50 000.
Time
O b. Recognise an asset of $150 000
O c Recognise an expense of $150 000
od Recognise an asset of 550 000 and expense of S100 000.
Answer:
Jackson Ltd
Software Development ($50,000) and Purchase ($100,000):
The accounting treatment consistent with the framework is to:
a. Recognise an asset of $100 000 and expense of $50 000.
Explanation:
The development cost of the Software which is abandoned cannot be capitalized. Software development cost can only be capitalized after testing for usability. Otherwise, Software development costs are expensed as they are incurred. On the other hand, the purchased Software can be recognized as a long-term asset, Plant, Property, and Equipment as it will be in use for more than 2 years.
Which of the following would not be considered an advantage of the corporate form of organization?
A. Limited liability of stockholder's.
B. Seperate legal exsistence.
C. Continuous life.
D. Government regulation.
Answer:
D. Government regulation
Explanation:
Having the government regulating a corporate form of organization bus a disadvantage. A corporate organisation is an organization that exists separately on its own as a legal entity. It's advantages includes limited liabilities for people that have shares there, and also ease in ownership transfer. It is guided by a board of directors.
Options A B and C are all advantages.
The disadvantage of the corporate form of organization is Option D government regulation.
Because Interest rates are influenced by government policy, and a rise in interest rates raises the cost of borrowing for businesses.
The other Options are incorrect as:
Option A is incorrect as limited liability is an advantage of the corporate form of organization.
Option B is incorrect as separate legal existence is an advantage of the corporate form of organization.
Option C is incorrect as continuous life is an advantage of the corporate form of organization.
Thus Option D is correct Option for disadvantage of corporate firm.
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Ames Trading Co. has the following products in its ending inventory.
Product Quantity Cost per Unit Market per Unit
Mountain bikes 30 $700 $650
Skateboards 26 230 260
Gliders 12 870 830
Compute lower of cost or market for inventory applied separately to each product.
Answer:
Product Qty Cost Market LCM Result
Mountain Bikes 30 $700 $650 30*650 $19,500
Skateboards 26 $230 $260 26*230 $5,980
Gliders 12 $870 $830 12*830 $ 9,960
If the nominal interest rate is 4.7% and the inflation rate is 3.4%, what is the real interest rate?
Answer:
1.3%
Explanation:
The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
real interest rate=nominal interest rate-inflation rate
nominal interest rate=4.7%
inflation rate= 3.4%
real interest rate=4.7%-3.4%
real interest rate=1.3%
According to this, the answer is that the real interest rate is 1.3%.
Seller Blake's home just hosted a caravan for his agent's brokerage. What should he or his agent do to get feedback from the other licensees?
Answer:
Ask each agent to fill out an evaluation.
Explanation:
Since in the question it is mentioned that the Seller blake hosted a caravan for the brokerage of the agent and to get the feedback from the other licensees he should ask for evalulation filling in order to provide the better presentation and the other types of the feedback with related to the property
Therefore the last option is correct
Giorgio Italian Market bought $10,500 worth of merchandise from Food Suppliers and signed a 120-day, 6% promissory note for the $10,500. Food Supplier's journal entry to record the sales transaction is:
A) Debit Notes Receivable $10,500; credit Sales $10,500.
B) Debit Notes Receivable $10,500; debit Interest Receivable $210; credit Sales $10,710.
C) Debit Accounts Receivable $10,500; credit Sales $10,500.
D) Debit Notes Receivable $10,710; credit Sales $10,710.
E) Debit Accounts Receivable $10,710; credit Sales $10,710.
Answer:
A) Debit Notes Receivable $10,500; credit Sales $10,500.
Explanation:
The journal entry for recording the sales transaction is shown below:
Notes receivable Dr $10,500
To Sales $10,500
(Being the recording of the sales transaction is recorded)
Here we debited the note receivable as it increased the assets and credited the sales as it also increased the revenue so that the correct posting of this transaction could be done
Hence, the correct option is A.