$95, NRV=$110-6=$104 is the ceiling. The floor is NRV less the typical 20% profit or $104 – 22 = $82. $95 is the replacement cost. Market value is between these three values, therefore it equals $95 as opposed to $100 in cost. Because the cost is smaller, record at cost.
What is NRV?A valuation approach called net realizable value (NRV), which is popular in inventory accounting, takes into consideration the total amount of money an asset can bring in through sales minus an estimate of the charges, fees, and taxes related to that sale or disposal
When determining an asset's value for inventory accounting, the NRV technique is frequently utilized. Accounts receivable and inventory are two of the biggest assets that a firm may disclose on a balance sheet. Both of these asset classes are valued using the NRV method. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards both employ the NRV valuation approach (IFRS).
The application of the principle of conservatism to accounting work is mandated by GAAP for certified public accountants (CPAs). When selecting an accounting approach, there is often room for discretion or judgment. Accounting professionals must always take a more cautious course of action in accordance with the conservatism principle. This indicates that the accountant ought to choose an accounting technique that makes less money and doesn't inflate the worth of assets.\
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Which of the following does not appear on the asset side of a bank's balance sheet? Question 19 options: a) required reserves b) checkable deposits c) loans d) excess reserves
Answer: b) checkable deposits
Explanation:
Checkable Deposits are the deposits by customers into the bank. The bank uses these funds to make loans that it issues out to others. It is recorded as a liability on a Banks Balance sheet because it represents that the bank owes its customers.
Why did Krispy Kreme decide to manufacture all the donut mix and distribute it to the stores?
a) it made the products more consistent in various stores
b) franchise law demands is kind of central production
c) It is always cheaper to use this method
d) The company was having problems with distributors
Answer:
Option A
Explanation:
In simple words, Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain owned by JAB Holding Company. Krispy Kreme was founded by Vernon Rudolph, who bought a yeast-raised recipe from a New Orleans chef, rented a building in 1937 in what is now historic Old Salem in Winston-Salem, North Carolina, and began selling to local grocery stores.
They make all their dough of the product by themselves so that the neutrality regarding their consistency remains intact thought the country,
Albinson Company paid $96,000 for a two-year insurance policy on October 1 and recorded the $96,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Albinson make on December 31, the end of the accounting period (no previous adjustment has been made)
Answer:
Debit Insurance expense $12,000
Credit Prepaid Insurance $12,000
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Monthly insurance expense
= 1/24 * $96,000
= $4,000
Between October 1 and December 31 is 3 months
Total insurance expense = 3 * $4,000
= $12,000
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $992,000 and sales for the year total $11,240,000. The allowance account before adjustment has a credit balance of $13,400. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a credit balance of $13,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $42,900. The allowance account before adjustment has a debit balance of $5,300. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $5,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ b. $ c. $ d. $
Answer:
a) Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a credit balance of $13,400.
Dr Bad debt expense ($28,100 - $13,400) 14,700
Cr Allowance for doubtful accounts 14,700
b) The allowance account before adjustment has a debit balance of $5,300.
Dr Bad debt expense ($28,100 - $5,300) 22,800
Cr Allowance for doubtful accounts 22,800
c) Bad debt expense is estimated at 1/2 of 1% of sales.
Dr Bad debt expense ($56,200 - $13,400) 42,800
Cr Allowance for doubtful accounts 42,800
d) An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000.
Dr Bad debt expense ($44,000 - $13,400) 30,600
Cr Allowance for doubtful accounts 30,600
Explanation:
accounts receivable $992,000
total sales for the year $11,240,000
allowance for doubtful accounts $13,400
total estimated bad debt = 0.25% x $11,240,000 = $28,100
total estimated bad debt = 0.5% x $11,240,000 = $56,200
A major advantage to a business residence situation is_____
Answer:
Difficult but if you are try it will be easier to you
Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?
Answer: d. b and c
Your analysis assumes that velocity is constant, and it is not.
Your analysis assumes that you can correctly define the money supply
Explanation:
Here are the options for the question:
a. Your analysis assumes that Real GDP is constant over time, and it is not.
b. Your analysis assumes that velocity is constant, and it is not.
c. Your analysis assumes that you can correctly define the money supply.
d. b and c
e. a, b and c
According to the constant-money-growth-rate rule, the government should target money growth rate in a way that it will be equal to growth rate of the real GDP.
The likely thing that economist Smith, who favors activist monetary policy would say to economist Jones is that Jones is assuming velocity will be constant, and is also correctly defining the money supply which should not.be the case as velocity isn't always constant.
Charles wants to survey recent customers about the quality of service they received. He has customers' mailing and e-mail addresses. Charles will likely use an online survey primarily because it offers: Group of answer choices more lying by respondents. a chance to exclusively ask unstructured questions. a more inexpensive and quick way to receive and process results. relatively low response rates. improved question design.
Answer:
a more inexpensive and quick way to receive and process results
Explanation:
Online surveys are cheap because in most cases they can be freely sent and distributed on the internet, for example, to the e-mails of the customers.
And they are also easy to process. Finally, they are likely to be responded by many customers as long as they are not too complicated or bothersome. For this reason, they should be short, have very concise and clear questions, and offer privacy to customers if necessary.
The results can be easily analyzed manually or with specialized software.
On January 1, the Elias Corporation issued 10% bonds with a face value of $113,000. The bonds are sold for $110,740. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is.
Answer:
The bond interest expense for the year ended December 31, of the first year is $5,650
Explanation:
We will need to calculate the total annual interest expense on the bond which we are given as 10% of the face value. We will then divide the total interest on the bond by 2 because the pays semi-annual interest.
Total interest expense on the bond will therefore be ; 10% × $113,000
= $11,300
Semi-annual interest expense will now be ;
= $11,300/2
= $5,650
The purpose of stock valuation isGroup of answer choicesof limited value, since the efficient market hypothesis proves that all common stock is always fairly priced.to find common stocks whose market price equals the intrinsic value.to determine whether the common stock's value is fairly represented by its market price.to set the fair market price for a given common stock.
Drs. James and Janet Baker saw that many people experienced difficulty and frustration when typing, some because of physical disabilities. So they invented a voice recognition software to allow users to talk to the computer. Their ideas have become Dragon Naturally Speaking, a popular talk-to-type software application. Which of these statements describes their startup?
A) Borrow heavility from existing products or services.
B) Combine two businesses to create a market opening.
C) Begin with a problem in mind or a pain you can relieve.
D) Recognize a hot trend and ride the wave.
Suppose that Barack and Michelle are duopolists. Barack is producing 300 units of output, and Michelle is producing 400 units of output. When Michelle produces 400 units, Barack maximizes profit by producing 300 units. When Barack produces 300 units of output, Michelle maximizes profit by producing 400 units. Barack and Michelle are
Answer:
Barack and Michelle are at a Nash equilibrium
Explanation:
They are at a Nash equilibrium i.e. they are producing at a point were they will be making a profit of irrespective of the strategy choose by the other firm in the market.
In a Nash equilibrium, every person in a group makes the best decision for herself, based on what she thinks the others will do
ECNAL Corp. manufactures bicycle parts. One of its new products, the Slipstream tire, is advertised to be 20 percent stronger than that of its competitors due to a new rubber compound used that makes the tires skid resistant. After receiving complaints of fraud, the Federal Trade Commission (FTC) determines that the tire is made from rubber similar to that found in most bicycle tires and is not skid resistant. The FTC orders ECNAL to run an ad admitting that its advertisements were misleading and remove the untrue information from its advertisements. In this scenario, which of the following remedies is used by the FTC?
A. corrective advertising
B. cease and desist advertising
C. comparative advertising
D. parody advertising
E. social advertising
Answer:
The correct answer is the option A: Corrective advertising.
Explanation:
To begin with, the concept known as "Corrective Advertising" refers to a severe penalty that is used by many agencies, including the Federal Trade Commision, in ordert to impose to the companies the fact that they had worked unethically regarding certain advertisements that they have been controled by the agency. Therefore that the corrective advertising is a way to penalize those companies, that had advertised products with false information or that might cause harm to the consumers.
At Nanclet, a market research firm, whenever a particular team needs to hire people, the human resource (HR) department conducts the external recruitment processes for them. The HR department also furnishes the recruiters of the recruiting team with a list of questions they are expected to ask all the job applicants, irrespective of the applicants' work experience. In the context of employee selection, this scenario best illustrates _____.
Answer: Structure interview
Explanation:
A structured interview is a form of interview used by an organization in order to ensure that each interview is presented to each candidate with exactly the same questions and also in the same order.
It is a standardized way of interviewing the candidates for a job based on the particular needs of the job the candidates applied for. The candidates are asked same questions irrespective of their qualifications or experience.
Shakira has a balance of $202.86 in her checking account on Saturday morning. She uses her debit card to pay her cell phone bill of $80.73 over the phone. She then picks up her dry cleaning, dog food at the pet store and groceries for debits of $16.89, $35.24, and $113.92. Shakira’s bank uses a balance system of deducting highest transactions first. The bank will not return amounts up to a total of $50 in overdraft, but they do charge a fee for each overdraft. How many overdraft fees will Shakira incur
Answer:
Shakira's bank will charge her 2 overdraft fees for purchasing dog food and her dry cleaning bill.
Explanation:
Shakira's initial balance $202.86
- groceries $113.92
balance = $88.94
- cell phone bill $80.73
balance = $8.21
- dog food $35.24
balance = $27.03 ⇒ OVERDRAFT 1
- dry cleaning $16.89
balance = $43.92 ⇒ OVERDRAFT 2
The number of overdrafts incurred by Shakira is: Two overdrafts.
Overdrafts and Checking accountsAccording to the question;
She has a balance of $202.86.Hence, upon the cell phone payment and the groceries debit which are first deducted;
New balance = $202.86 - $80.73 - $113.92 = $8.21.Hence; The other debits result in an overdraft as follows;
$8.21 - $16.89 = - $8.68 ....1st overdraft.- $8.68 - $35.24 = -$43.92.....2nd overdraft.Read more on overdraft;
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f foreign investmentforeign investment fell by 100%, it would be cut in half. Thus, a decrease of 200% means that it would be totally eliminated, and a decrease of more than 200% is impossible. B. The actual amount of the decrease in foreign investmentforeign investment is less than 100%. C. The statement does not mention the initial amount of foreign investmentforeign investment.
Answer:
if foreign investment fell by 100% it would be totally eliminated, so it not possible for it to fall by more than 100%
Explanation:
Since in the question it is given that reduction of the western investment for the third world countries consist that foreign investment falls by 350% for the year 1990s
So if we go through the options, the wrong statement is the last one as it shows that the foreign investment fall by 100% i.e to be fully eliminated
Hence the other options are wrong
" Brad always buys and uses Nike brand golf balls. If he finds a Titlelist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. Nike has effectively: "
Answer:
b. reduced the price elasticity of demand for its products.
Explanation:
The price elasticity of demand refers to the relationship between the percentage change in the price of a good and the percentage change in the quantity demanded
Like it in the question, it is mentioned that Nike charged a higher price and does not want to lose many sales which results that it declines the price elasticity of product demands
One of the easiest methods of diversifying away firm-specific risks is to: Multiple Choice build a portfolio with 40 to 55 individual stocks. buy only stocks with a beta of 1.0. purchase stocks that plot above the security market line. purchase the shares of an index fund.
Answer:
Option D. purchase the shares of a Index fund.
Explanation:
The reason is that the index funds are itself a mutual fund investment and they follow preset rules which helps an ordinary investor to understand those rules easily. Furthermore, they are already a diversified investment, hence investing in the shares of mutual fund makes the investment risk diversified investment.
In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE's a. Market capitalization? b. Market-to-book ratio? c. Enterprise value?
Answer and Explanation:
1. The computation of Market capitalization is shown below:-
Market Capitalization in 2009 = Market Price × Outstanding Shares
= 10.5 × $105
= $1,102.5 billion
Market Capitalization in 2012 = Market Price × Outstanding Shares
= $17 × $10.6
= $180.2 billion
Changes in Market Capitalization = Market Price × Outstanding Shares
= $1,102.5 billion - $180.2 billion
= $922.3
b. The computation of Market-to-book ratio is shown below:-
Market to Book Ratio in 2009 = Market Value of Firm ÷ Book Value of Firm
= $1,102.5 billion ÷ $105 billion
= 10.5
Market to Book Ratio in 2012 = Market Value of Firm ÷ Book Value of Firm
= $180.2 billion ÷ $116 billion
= 1.55
Changes in Market to Book Ratio = Market to Book Ratio in 2009 - Market to Book Ratio in 2012
= 10.5 - 1.55
= 8.95
c. The computation of enterprise value is shown below:-
Book Debt to Equity Ratio in 2009 = Debt ÷ Book Value of Equity
= $524 ÷ $105
= 4.99
Book Debt to Equity Ratio in 2012 = Debt ÷ Book Value of Equity
= $410 ÷ $116
= 3.53
Changes in Book Debt to Equity Ratio = Book Debt to Equity Ratio in 2012 - Book Debt to Equity Ratio in 2009
= 3.53 - 4.99
= -1.46
Which situation best illustrates the concept of scarcity?
a class designing and selling calendars
a cook learning to be an executive chef
a friend buying a copy of a popular DVD
a person buying a used car due to limited income
Answer:
answer is D
Explanation:
Situation best illustrates the concept of scarcity is a person buying a used car due to limited income
What is Scarcity?Scarcity can be regarded as an economic situation whereby the demand for a resource is more compare to the supply .
Therefore, scarcity is as a result of the resource, been limited.
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ullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%). The goods have an inventory cost on Fullbright’s books of $240,000. What amount of Sales Revenue should Fullbright recognize in 2017?
Answer:
The amount of Sales Revenue Fullbright should recognize in 2017 is $400,000
Explanation:
The total value of $629,406 of the note includes the amount of interest revenue which would be $229,406 which is gotten from (629,406-400,000). The value of sales revenue will be $400,000
The amount of Sales Revenue Fullbright should recognize in 2017 is $400,000
Question 3 of 10
Why do many banks consider student loans risky investments?
A. Student loans have long grace periods.
B. Student loans bring in a low rate of interest.
C. Student loans are regulated by the government.
D. Student loans aren't secured by collateral.
SUBMIT
You are a vendor representative with a new line of fashion watches showing it to a new buyer. The costume jewelry buyer says she would like to buy the line but has too many lines of fashion watches in her assortment already that are not selling. She continues to complain that her worst-selling brand of watches will not help her out with any markdown allowances or take any of the merchandise back. She states that she is no longer buying any more merchandise from this line and will have to wait until it sells before she can bring in a new line of watches. What might you suggest or negotiate?
Answer:
Doing a buyback
Explanation:
Answer:
Since She states that she will no longer buy any more merchandise from this line and she will have to wait until it sells before she can bring in a new line of watches what i would or might you suggest or negotiate is for her to do a BUYBACK.
Therefore BUYBACK can be seen as something or item that have been repurchased due to some unresolved issues that has been reported by the initial owner but has since been resolved and it can as well mean an agreement to buy something in return.
Lastly BUYBACK can tend to be a sale whereby something that is been sold is repurchased from the buyer by either the seller or the initial owner.
Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that the extra money he pays in additional interest each year, if invested at the rate of 2.5% for one year, could earn him simple interest totaling $300. How much does Tyrell pay in additional interest each month?
Answer: $1000
Explanation:
From Tyrell's calculation, if he invests his additional credit card payment at the rate 2.5% per annum for one year could earn him simple interest totaling $300
Recall:
Simple interest = principal × rate × time
Principal = additional credit card payment
$300 = principal(P) × (2.5/100) × 1
$300 = P × 0.025 × 1
$300 / 0.025 = P
P = $12,000
Therefore, additional payment per year = $12,000
Monthly payment thus equals :
$12,000 / 12 = $1000
Answer:
c. $1,000
Explanation:
edge 2020
You bought one of Bergen Manufacturing Co.’s 7.8 percent coupon bonds one year ago for $1,061. These bonds make annual payments and mature twelve years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 4.5 percent. If the inflation rate was 4.4 percent over the past year, what would be your total real return on the investment?
Answer:
The answer is "24.48%"
Explanation:
Given:
current Bond Value is PV(0.045,12,78,1000) = 1300.91
rate = 0.045
time = [tex]\frac{n}{12}[/tex]
coupon number = pmt = 78
price = fv=1000
Total profit = 1300.91 -1061
= 239.91.
Throughout,
The year a bondholder got we should include a coupon rate =78.
So, profit:
[tex]= 239.91 + 78 \\\\ = 317.91[/tex]
return:
[tex]=\frac{317.91}{1061}\\\\ = 29.96 %[/tex]
The actual return on investment accrued to both the formula of brandt is
[tex]=\frac{(nr-ir)}{(1+ir)}* 100 _{where}\\\\ nr = \texttt{nominal rate}\\\\ ir = \texttt{inflation rate} \\\\ nr = 29.96\% \\\\ ir = 4.4\%\\[/tex]
by replacing the formula would result in a real return rate of 24.48 %
Shrives Publishing recently reported $13,000 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow?
Answer: $3762.50
Explanation:
Given the following :
Sales = $13,000
Operating Cost other than Depreciation = $5,500
Depreciation = $1250
Bond value = $3,500
Interest rate = 6.25%
Tax rate = 35%) = 0.35
Expenditure on fixed assets and net operating working capital = $1,550
What was its free cash flow?
Free cash FLOW (FCF) = EBIT(1 - tax rate) + depreciation - ( Expenditure on fixed assets and net operating working capital)
EBIT = Earning before income tax;
EBIT = SALES - Operating Cost other than DEPRECIATION - DEPRECIATION
EBIT = $13000 - $5500 - $1250 = $6250
FCF = $6250(1 - 0.35) + $1250 - $1550
FCF = $6250(0.65) + $1250 - $1550
FCF = $4062.50 + $1250 - $1550
FCF = $3762.50
For a depository institution, reserves are: liabilities it owes to customers. assets on the balance sheet. borrowings from the central bank. checkable deposits. loans to individuals and businesses
Answer:
assets on the balance sheet.
Explanation:
Reserves are percentages of deposits that are required for depository institutions to keep to meet unforeseen contingency. they are usually kept in bank vaults
they are assets and they cannot be lent out
On december 31, 2008, Pico acquired $ 250,000 per value of the outstanding $1,000,000 bonds of its subsidiary, sico, in the market for $ 200,000, on the date, Sico had a $ 100,000 discount on its total liability. Which one of the following is the net amount of gain or loss that will be recognized by pico in its December 31, 2008, consolidated financial statements as a result of its intercompany bonds?
a. $150,000
b. $ 50,000
c. $25,000
d. $75,000
Answer:
Pico gain = $25,000
Explanation:
Given:
Total bonds of sico = $1,000,000
Pico acquired = $250,000
Total amount of premium = $200,000
Discount amount = $100,000
Find:
Pico gain or loss
Computation:
Share of Pico = $250,000 / $1,000,000
Share of Pico = 0.25
Gain in premium = $200,000 × 0.25
Gain in premium = $50,000
Loss in discount = $100,000 × 0.25
Loss in discount = $25,000
Net gain = $50,000 - $25,000
Net gain = $25,000
The________includes a message source that encodes an idea into a message and transmits the message through some medium. Marketing messages exploit a variety of appeals and message structures. The message is transmitted using one of several different communications media and is finally delivered to a receiver, who decodes the message and may provide feedback to the source. Anything that interferes with the communication is called noise.
Answer: Traditional communication model
Explanation:
The Traditional Communication Model was mostly a one-way street where advertisers spoke to customers and may or may not have received feedback.
It worked like this;
A advertising agency (source) made up a message ⇒ message is then transmitted through a medium such as a newspaper or television ⇒ message is then seen/ delivered to consumer (receiver).
The consumer may then choose to reply or rather provide feedback through indirect means such as buying the good or service that was advertised.
If a company is considering the purchase of a parcel of land that was acquired by the seller for $87,000 is offered for sale at $154,000, is assessed for tax purposes at $97,000, is considered by the purchaser as easily being worth $144,000, and is purchased for $141,000, the land should be recorded in the purchaser's books at:
Answer:
$141,000
Explanation:
The company must record the land at the price at which it purchases it. In this case, the company purchased the land at $141,000, so following the historical cost principle (accounting principle), that is the value.
The historical cost principal (under US GAAP) states that any asset must be recorded at the price at which is was acquired even if their market value might be different.
Explain the criticisms of labor unions today. 25 POINTSS
One major criticism of labor unions today is that they have become too large and are out of touch with workers’ needs. In the past, union leadership has shown a pattern of corruption and many people worry that this trend continues today. Some people argue that union activity has hurt the US economy; higher union wages have meant higher prices for consumer goods and the introduction of improved technology has been slow as unions fear it will result in fewer employees.
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