The income statement approach to estimate bad debts uses the percentage of current year's credit sales.
Why Bad Debt Estimation Matters?Bad debt is a type of accounts receivable of an organization that can no longer be collected from a customer because the customer is unable to pay the amount owed by the organization.Reporting bad debt increases your overall costs and reduces your net income. Therefore, the amount of bad debt a company reports will ultimately change the amount of tax it pays during a given tax period.Bad debts are generally classified as: selling, general and administrative expenses and included in the income statement.Where do bad debts written off appear on the income statement?Bad debt write-offs add allowances for bad debt accounts to the balance sheet accounts. This is then deducted from accounts receivable on the current balance sheet. The results are displayed as net receivables.
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Which of the following is an example of a quantity quota? O A city sets a limit on the maximum rent that tenants pay. A city awards a construction firm a monopoly over all public housing construction. O A city imposes a tax on all people who move into the city. A city enforces zoning laws that restrict the number of housing units. Question 5 (1 point) Jorge sells a hammock for $85. His marginal cost for one hammock is $40, and his average cost is $50. What is Jorge's producer surplus on the sale of one hammock? -$5 $45 $35 $40 Question 19 (1 point) Which of the following statements is correct? The incidence of a tax is determined by the statutory burden of the tax. Taxes lead to shortages. Regardless of the statutory burden of a tax, the actual economic burden will depend on the relative elasticities of demand and supply. The economic burden of a quota is always equivalent to the economic burden of a tax.
Cities enforce zoning laws that limit the number of residential units. This is an example of a quantity quota.
A quantity quota is when a government regulates the number of units of goods within a particular zone. For example, zoning laws that limit the number of residential units are called volume quotas.
A policy of reducing quantities is called a quota, which is a government-imposed limit on the number of goods that can be bought or sold. If the government sets its 2 million barrel quota, both consumers and producers will have to cut consumption and production to that level.
Countries use quotas in international trade to regulate the amount of trade between them and other countries. Countries occasionally impose quotas on specific goods to lower imports and boost domestic manufacturing. Theoretically, quotas boost domestic production by lessening competition from other nations.
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although fair trade practices are appealing to conscious consumers, why do some farmers get left behind by fair trade?
Some wealthy farmers will have easier access to the benefits of fair trade than poorer farmers because they have greater social or cultural capital.
What is meant by social or cultural capital?Social capital refers to social connections (e.g., made through employment or clubs) and cultural capital refers to knowledge and academic credentials (institutionalized cultural capital), cultural possessions such as art (objectified cultural capital), and ways of speaking or manner, shown through posture or gestures.
Who benefits from fair trade the most?Theoretically, fair trade affords small farmers and laborers the safeguards necessary for a long-term means of subsistence. 1. Income sustainability: By assisting producers in setting minimum prices, fair trade workers and farmers are better protected against volatile market prices.
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ata used in budgeting: fixed element per month variable element per tenant-day revenue 0 $ 35.10 wages and salaries $ 3,100 $ 8.10 food and supplies 2,100 14.60 facility expenses 8,600 3.60 administrative expenses 7,100 0.60 total expenses $ 20,900 $ 26.90 actual results for march: revenue $ 136,130 wages and salaries $ 28,610 food and supplies $ 64,325 facility expenses $ 23,250 administrative expenses $ 7,101
Therefore the revenue variance is $8,717 which is unfavorable
What are administrative expenses?The expenditures of paying wages and salaries as well as perks to non-sales staff are referred to as administration expenses. Operating expenses are one of three categories of costs that make up a business. Selling and miscellaneous expenses round out the list.
On a company's income statement, administrative costs are shown as indirect expenses because they don't directly support the production of goods or the provision of services. Administration costs are referred to as fixed costs since they often remain constant even when output volumes alter (as opposed to variable costs or semi-variable).
What are the examples of administrative expenses?Salaries for senior management and prices for general services or supplies, such as legal, accounting, secretarial labour, and information technology, are examples of administrative expenses. These expenses are typically not included in gross margin calculations because they are typically not directly tied to the creation of a company's products or services. Administrative costs are listed on the income statement underneath cost of goods sold (COGS) and may be combined with other costs like general or selling costs. Some administrative costs are recurring since they are a necessary component of running a firm.
Briefing:The computation of the revenue variance is shown below:
Revenue variance = Revenue at Flexible budget - Actual revenue
where,
Revenue at flexible budget is
= 3,630 × $35.10
= $127413
And, the actual revenue is $136,130
So, the revenue variance is
= $136130 - $127413
= $8,717 unfavorable
We simply deduct the actual revenue from the flexible budget revenue so that the revenue variance could come
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the first step in preparing the master budget is a plan showing the planned sales units and the budgeted dollars from the sales. this plan is called the:
The plan of preparing the master budget showing the planned sales units and the budgeted dollars from the sales is called the budgeted income statement.
An income statement can be referred to or considered as the statement that represents the financial position of a company as on a given date. It also represents the profitability of the company during the current period of business operations. A budgeted income statement shows a predicted or planned financial position, and may be different from the actual ones.
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select all that apply select the three primary objectives of product advertisements. multiple select question. to identify to remind to persuade to target to inform
The three primary objectives of a product advertisements are:
to informto persuadeto remindWhat is a product advertisement?In marketing, a product advertising refers to any method of communication about the promotion of a product, which is done in an attempt to induce potential customers to purchase the product.
Most advertisement usually requires payment to a communication channel and the general objective of this adverts is to increase brand awareness or to demonstrate the differences between product and competing products in order to sell them.
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The TelePizza chain, which operates in Europe and Latin America, has copied Domino's service model but maintains differentiation in terms of location. TelePizza is an example of a(n) ________.
A) counterfeiter
B) adopter
C) cloner
D) imitator
E) adapter
The Telepizza chain, which operates in Europe and Latin America, has copied Domino's service model but maintains differentiation in terms of location. TelePizza is an example of a(n) counterfeiter.
TelePizza chain, an item that uses another person's trademark without that person's consent is considered a counterfeit. Criminals that make or sell counterfeits aim to unfairly profit from the reputation of the trademark owner. A serious felony, counterfeiting is the fraudulent imitation (or forgery) of a trademarked product or service. The impact of counterfeiting on tax collections and government fees is immediate. Additionally, it negatively affects skilled employment that relies on retailers, suppliers, and the supply chain.
Though they were built by a different party and do not meet the criteria of the original manufacturer, these counterfeit items frequently wear the trademark of a reliable and respectable company. They're frequently made illegally and sold to generate money for supporting other illicit sports.
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1. how would you describe netflix's strategy process over time? 2. how was netflix able to disrupt the u.s. home entertainment industry? 3. what are netflix's core competencies? 4. how can netflix increase demand for its services in the united states? 5. what challenges does netflix face by going beyond the u.s. market?
Netflix employs customer-focused, data-driven marketing techniques that are effective in the modern world.
You can utilize these tools for online business promotion much like Netflix does because their performance depends on ongoing analysis and optimization.
Netflix disrupted the television industry and drove cable companies to adjust their business practices by developing engaging original programming, analyzing user data to better serve subscribers, and, most importantly, allowing people to enjoy content in the ways they want.
Convenient home delivery of information. Their first plan was to save us from having to visit a video rental shop. Their switch from a DVD-only business strategy to one that included streaming video reflected this proficiency and gave them access to the streaming video market.
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Negative social consequences of inappropriate social networking use include
damaging relationships
being incarcerated
infringing copyrights
harassing others
Negative social consequences of inappropriate social networking use include damaging relationships. Option A is correct.
What drawbacks do social networking sites have?The usage of social networking may also have a detrimental impact on them by diverting their attention, preventing them from sleeping, and exposing them to bullying, rumors, unrealistic expectations of other people's lives, and peer pressure.
The risks might be related to how often youngsters use social networking. The relationships in the actual world are also destroyed by the unnecessary usage of social networking.
Therefore, option A is correct.
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a patient is assigned to a community mental health center inpatient facility instead of a mental hospital. in this case, the decision-makers have applied the principle of:
In a case wherein a patient is assigned to a community mental health center inpatient facility instead of a mental hospital, the decision-makers have applied the principle of least restrictive environment.
What do you mean by least restrictive environment?Individuals receiving special education should spend as much time as possible in regular surrounding settings (least restrictive environment, or LRE). LRE is a philosophy that directs a person's educational program; it is not a location. Each individual's LRE may differ because they are all different. Examples include individual classroom aids, itinerant (visiting) special education teachers, and assistive technology like a computer or communication device.
Who are decision makers?A decision maker is the person or group in charge of making crucial strategic decisions depending on a variety of factors, such as the length of time available, the resources at hand, the type and quality of information at hand, and the number of interested parties.
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what happens to inventory spending during the early stages of an economic recession? a. inventory spending will be positive for some time, and firms will run production and try to increase their production levels as much as possible. b. inventory spending will be positive for some time, but firms will quickly cut production and try to sell their already manufactured goods before increasing production again. c. inventory spending will be negative for some time, but firms will quickly cut production and try to sell their already manufactured goods before increasing production again. d. none of the above are correct.
Inventory spending will be positive for some time, but firms will quickly cut production and try to sell their already manufactured goods before increasing production again.
The products and supplies that a business holds with the intention of reselling, manufacturing, or using them are called inventory or stock. The primary goal of inventory management is to determine where and how products are stored.
It is necessary to go beyond the usual scheduled production and storage of materials at different locations in the factory or at multiple locations in the supply network. Service industries have adopted the idea of inventory, stock, or work-in-progress from industrial processes.
Hence the correct option is A.
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8. albert's recently paid its annual dividend of $1.98 per share. at that time, the firm announced that all future dividends will be increased by 2.2 percent annually. what is the firm's cost of equity if the stock is currently selling for $28.40 a share?
If albert's recently paid its annual dividend of $1.98 per share. at that time, the firm announced that all future dividends will be increased by 2.2 percent annually. The firm's cost of equity if the stock is currently selling for $28.40 a share is: 9.33%.
How to find the cost of equity?Using this formula to determine the cost of equity if the stock is currently selling for $28.40.
Cost of equity= Annual dividend ( 1+ Future dividend)] /Stock per share + Future dividend
Let plug in the formula
Cost of equity = [$1.98(1.022)]/$28.40 + .022
Cost of equity = 0.0713 + 0.022
Cost of equity = 0.0933 × 100
Cost of equity = 9.33%
Therefore the Cost of equity is 9.33%.
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The automatic antenna tuner on the ft-dx10 is designed to ensure what ohm antenna impedence is presented?.
The 50 Ohm resistive impedance of the FTDX10 is intended for amateur operating frequencies. Select the best antenna for the operation and bands (for example, a dipole, YAGI, or cubical quad antenna).
Impedance What is it?The result of adding resistance and reactance is impedance. It was described as anything that can prevent electrons from flowing freely via an electrical circuit. As a result, it affects the electrical circuit's current generation. It might be present in every potential component of a circuit and in every potential electrical circuit. The mathematical symbol for impedance is Z, and its unit is the ohm. It consists of both reactance and resistance.
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2. russell corporation had the following activities: recorded depreciation of $5,000 purchased $10,000 of equipment with cash paid $4,000 in interest payments received $8,000 cash for the sale of an asset what is the amount of net cash flows from (used for) investing activities?
Depreciation is characterized as a non-cash expense that has no impact on an activity's cash flow. Net cash used for investing-related activities is = -2,000.
What is Depreciation ?Depreciation is the practice of subtracting a business asset's cost over a number of years as opposed to just one. Depreciation is calculated using four main techniques: straight line, double declining, sum of the years'
Cash outflow from the purchase of $10,000 in equipment will have an impact on investing activities.
Cash received as part of investing activity is received $8,000 from the sale of an asset.
Interest payment of 4,000 is an operating activity.
-10,000 + 8,000 is the net cash used for investing activity.
Net cash used for investing-related activities is = -2,000.
Depreciation is an accounting technique that disperses an asset's cost over the course of its anticipated useful life.
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which level of organizational culture is the hardest to change? a. artifacts b. enacted values c. espoused values d. basic underlying assumptions
11. dividend reinvestment plans dividend reinvestment plans (drips) allow shareholders to reinvest their dividends in the company itself by purchasing additional shares rather than being paid out in cash. understanding how dividend reinvestment plans work under dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, which acts as a trustee. the bank then uses the money to repurchase the company’s existing stock in the stock market. the bank then allocates the shares purchased to the participating stockholders’ accounts on a pro rata basis. some firms that use dividend reinvestment plan will allow stockholders to purchase stock at a price slightly below the market price. why do firms use dividend reinvestment plans? companies decide to start, continue, or terminate their dividend reinvestment plans for their stockholders based on the firms’ need for equity capital. a firm is likely to start using new stock drips if it additional equity capital.
Firms use dividend reinvestment plans because it automatically uses the payoff generated from dividend stocks to buy additional shares of the corporate.
Hundreds of publically listed firms operate what are known as dividend reinvestment plans, or DRIPs. just like the form, they drip the company's dividend into new shares of their own stock at every quarterly dividend payout. firms run these programs with none current value to you.
A stock is a general term wont to describe the possession certificates of any company. A share, on the opposite hand, refers to the certificate of a specific company. Holding a specific company's share causes you to a stockholder. Description: Stocks ar of 2 types—common and most popular
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select all that apply
when the auditor does not receive a response to the positive confirmations, possible procedures include _________
sending second and third requests
verifying sales by examining the sales journal
having the client contact the customer to ask for a response
examining specific subsequent cash receipts
examining shipping documents
When the auditor does not receive a response to the affirmative confirmations, possible actions include:
often after cash receiptsshipping papersadditional client recordssending second and third requestsIf an auditor doesn't receive a response for confirmation, what should they do?The auditor should take alternative approaches to the nonresponses when they receive a negative response in order to obtain the data necessary to reduce audit risk to a manageable level.
How should an auditor proceed if they are unable to compile enough pertinent evidence?The auditor must make the attempt to provide extra audit evidence to back up any serious allegations made in a financial statement.
What should an auditor do in circumstances where an adequate level of assurance cannot be attained?The ISAs mandate that the auditor disclaim an opinion or withdraw (or resign)3 from the engagement, as permitted by applicable law or regulation, in all situations where internal control cannot be obtained and a qualified opinion in the auditor's report is not sufficient under the circumstances for reporting to the intended users of the financial statements.
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the capital balances of the fgh partnership are as follows: fortier $ 120,000 gauthier 75,000 houle 225,000 the partners' income sharing ratio is: fortier, 35%; gauthier, 45%; houle, 20%. escoffier joins the partnership by contributing $150,000 to the partnership for a 25% interest in the partnership. assume the partnership’s identifiable net assets are carried at amounts approximating fair value. if the bonus approach is used, escoffier’s capital balance is:
Net assets provided have a $1,200,000 fair value.
What a name for Escoffier?In the French culinary world, Auguste Escoffier established a legacy that is today cherished by cooks around the world. He wrote the cookbook Le Guide Culinaire, published 5,000 recipes, and created methods for managing kitchens.
What foundation should the partnership utilize when recording the assets that were donated?Contributed assets are valued at fair market value when they are recorded. A partner earns funds or ownership in the partnership whenever they invest in the company. Each partner will have their own capital account and withdrawal (or drawing) account.
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the presence of neighborhood amenities, such as shopping and schools, is an example of which real estate value influencer?
Physical amenities/services and their exceptional can purpose the cost of residences in the regional to go up or down.
What do imply by means of amenities?plural amenities. : some thing that helps to furnish comfort, convenience, or enjoyment. hotels with modern-day amenities. providing residents with the fundamental amenities. commonly services : some thing (such as a traditional social gesture) that promotes smoothness or pleasantness in social relationships.
What are standard amenities?the sanitary services recommended for all dwellings via the housing law: a constant bath or shower, wash-hand basin, and sink, all furnished with warm and bloodless water, and a flush toilet. Collins English Dictionary. Copyright © HarperCollins Publishers.
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https://brainly.com/question/22526795#SPJ4which items are considered changes in estimates that would be treated on a prospective basis in the current period and future periods? (select all that apply.)
Increasing the residual value of an asset, extending its usable life Revisions to an earlier estimate made in light of fresh data and past financials are not restated.
The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value. In lease agreements, one of the lessor's main methodologies for figuring out how much the lessee must pay in periodic lease payments is the residual value. The asset's final worth is its residual value. In order to determine the final sum, it is deducted from the starting amount. That provides us with the depreciation figure. This sum is divided by the usable years of the asset using a straight-line depreciation technique. the discrepancy between a response variable's observed value and its expected value as predicted by the regression line. The difference in depreciation between your car's current value and residual value, which is used to determine a portion of your monthly payments for the vehicle, makes the residual value crucial. Interest, fees, and taxes make up the remaining amount.
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what do you believe is the most important account (for example, cash, loans, etc) on pnc's balance sheet? why?
Yes, cash is the first line item on a company's balance sheet and is a current asset.Cash is the asset with the greatest liquidity and is simple to purchase.The ease with which an asset can be exchanged for cash is known as liquidity.The universal standard for determining liquidity is cash.
What role does the balance sheet play?
In addition to displaying what the company owns and owes, a balance sheet's purpose is to inform interested parties about the company's financial situation.Understanding how to use, analyze, and read a balance sheet is essential for all investors.A stock's balance sheet may provide insight or justification for an investment.
Why is the cash account the most important?
A company's lifeblood is cash, and it must generate sufficient cash from its operations to cover its costs and have enough left over to repay investors and expand.While a company's earnings can be manipulated, its cash flow reveals its true health.
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the it department chair spent most of his day training subordinates on new software that the company had recently purchased. which function of management was the it department chair performing?
The function of management that the department chair is engaged in by training new subordinates is Staffing .
What are the functions of management ?The functions of management are the different roles that the management of a company are engaged in to ensure that the company meets the various goals that a company sets .
The function of management that is engaged in the training of employees would be staffing. This function allows management to engage in staffing activities that will bring in the best type of labor for a company.
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skylark corporation produces apparel for women. the firm experienced a boom in the introduction phase of its life cycle due to the high-quality talent of its middle and top- level executives. which of the following would help skylark retain its competitive advantage in the present economic downturn?
Keeping existing employees satisfied and recruiting top talent of the following would help skylark retain its competitive advantage in the present economic downturn.
An worker is a person who receives paid to paintings for someone or organization. workers don't want to paint complete time to be taken into consideration personnel—they surely want to be paid to work by using an agency (the character or commercial enterprise that will pay them)
An employee is a expert who works for an enterprise in trade for wages or a earnings . employees negotiate terms and input into legit agreements with employers, generally with the aid of signing offer letters or employment contracts, to enroll in the group.
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Which of the following personnel selection methods has a high criterion-related validity and a low content validity?
A) Physical ability tests
B) Cognitive ability tests
C) Biographical information
D) Personality inventories
E) Work-sample tests
Biographical information is a personnel selection methods has a high criterion-related validity and a low content validity.
What exactly does a Biographical information entail?In-depth information on a person's life is contained in a biography, or simply a bio. It depicts a person's experience of these life events rather than simply listing the fundamental facts like mortality, education, job, and relationships. A biography, in contrast to a profile or curriculum vitae (résumé), tells a person's life story while highlighting various aspects of it, including personal details of their experiences. It may also contain a personality analysis of the person being profiled. Though fiction can also be used to depict a person's life, biographical writings are often nonfiction. Legacy writing is one elaborate method of biographical coverage. The genre of biography includes works in numerous genres, such as literature and film.
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julius operates an athletic apparel store. his records indicate that he had sales of $97,000. customers returned $2,000 worth of clothing and shoes because of various reasons. his cost of goods sold was $25,000. what is julius's schedule c (form 1040) gross profit?
Julius' Schedule C (Form) gross profit would be $47,000
Define gross profit.Your gross profit is the selling price of your items less their production costs. It is your service's selling price less the time and labor expenses incurred to complete the work for a service-based firm. Gross profit is another phrase for total sales, often known as revenue or turnover, less total sales expenses.
To determine gross profit, sales money is reduced from the direct costs of bringing the product to market. Net profit is calculated as sales revenue minus all business expenses. In both business and accounting, net income is an entity's revenue less the cost of goods sold, costs, depreciation and amortization, interest, and taxes for a given accounting period.
Given:
Gross income = Sales - returned goods - costs of goods sold
$97,000 - $25,000 - $2,000 = $70,000;
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In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the internet service offered by both providers is equally fast and reliable. Dozens of clothing manufacturers produce plain black undershirts. Consumers view plain black undershirts as identical and have no preference which company makes their undershirts. In a large city, one chain of coffee shops controls a large market share because locals believe its coffee tastes better than that of its competitors.
The classification of the scenarios as either a competitive market or not are as follows:
In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the internet service offered by both providers is equally fast and reliable - Competitive market.Dozens of clothing manufacturers produce plain black undershirts. Consumers view plain black undershirts as identical and have no preference which company makes their undershirts. - Competitive market.In a large city, one chain of coffee shops controls a large market share because locals believe its coffee tastes better than that of its competitors. - Non-competitive marketWhat is a competitive market?A competitive market means a structure in which no single consumer or producer has the power to influence the market. The market response to supply and demand fluctuates with the supply curve, a representation of a product's quantity. Since the competitive market means the producer must be willing to sell a product according to what the market pays, then, the supply curves adjust to keep the producer's costs relative to its sales.
Some of the features of Perfectly Competitive Market includes:
large number of buyers and sellershomogenous productsfree exit and entry of firmsperfect knowledge among buyers and sellersno transport costsperfect mobility of factors of production.Read more about competitive market
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the total book value of wtc’s equity is $11 million, and book value per share is $20. the stock has a market-to-book ratio of 1.5, and the cost of equity is 14%. the firm’s bonds have a face value of $7 million and sell at a price of 110% of face value. the yield to maturity on the bonds is 10%, and the firm’s tax rate is 21%. what is the company’s wacc?
D = 1.10 × $7m = $7.7m, E = 1.5 × $11m = $16.5m (E=bond maturity)
V=D + E = $7.7 million + $16.5 million = $24.2 million
WACC = (D / V) (1 Tc), (E / V) rDebt rEquity = ($7.7m / $24.2m) (1 0.21 / 0.10) + ($16.5m / $24.2m) × 0.14 =0.1206, or 12.06%.
Why is bond maturity so important?When evaluating interest rate risk, the maturity of a bond is critical. The amount by which the price of a bond will rise or fall in response to a change in interest rates. A bond with a longer maturity also has a higher interest rate risk. When assessing the potential performance of a bond, four main variables must be addressed. The current price of the bond in relation to its face value is one. Another variable is the maturity of the bond (the number of years or months for which the issuer borrows money). A third factor is the bond's interest rate and yield—its effective return based on its price and face value.
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1) Disney Weakness:
Walt Disney Company has a higher employee turnover rate compared to competitors.
explain how you would turn the Disney weakness into a Strength or the Disney Threat into an Opportunity.
- Explain how your actions would impact Marketing, Finance, Management and Operations.
Understanding a company's strengths, weaknesses, opportunities, and threats is facilitated by performing a SWOT analysis. It is very helpful in assessing any company's standing.
SWOT analysis of Disney: conclusion
We can learn a lot about Disney's operations by conducting a SWOT analysis of the company as a whole. Despite any challenges they may encounter, Disney remains one of the strongest brands in the world. This does not appear to be changing anytime soon.
Disney does have some threats and weaknesses, but they also have the means to effectively deal with them. The magic will always be around if they know how to use their strengths.
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At the end of January, Park Cleaners, Inc (PCI) analyzed the following transactions for which journal entries have not yet been prepared.
1 An inventory count at the close of business on January 31 reveals that $300 of supplies are still on hand.
2 Insurance of $200 ($2,400 / 12) expires each month.
3 The truck has a useful life of 5 years (60 months) and has a salvage value of $2,500.
4 Completed cleaning services for customers for a total of $3,000, but have not yet sent out the invoices.
For the above transactions, Prepare the Adjusting Journal Entries, Post to the General Ledger (t-accounts), and Prepare an Adjusted Trial Balance.
5.Prepare the Income Statement, Statement of Retained Earnings, and the Balance Sheet.
To record the rent expense for the month of January 2019, debit rent expense of $2,000 and credit prepaid rent of $2,000 respectively.$6,00 in supplies are debited. To record the expense for supplies for the month of January 2019, credit Supplies $6,000.
To record the depreciation expense for the month of January 2019, debit $250 for depreciation expense and credit $250 for accumulated depreciation.
To record the advertising spend for the month of January 2019, debit $200 for advertising expenses and credit $200 for prepaid advertising.).
Transaction and Data Analysis:
1. A $2,000 rent expense Rent in Advance: $2000
2. Materials Cost: $6,000 $6,000 in supplies ($7,600 - $1,600) $250 in depreciation costs Depreciation accumulated to $250 ($15,000/5 * 1/12).
$200 in advertising expenses $200 ($600/3) for prepaid advertising.
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monetary policy and fiscal policy are the only factors that influence aggregate demand. a. true b. false
False, monetary policy and fiscal policy are not the only factors that influence aggregate demand.
Monetary policy is a set of actions designed to control a country's total money supply and promote economic growth. Interest rates and bank reserve requirements are two examples of monetary policy strategies.Monetary policy is typically classified as expansionary or contractionary.
Price stability is the primary goal of monetary policy.The price stability goal is met when the domestic economy's general price level remains as low and stable as possible in order to foster long-term economic growth.
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financing a budget deficit by leads to inflation, and inflation the real value of government debt.
Yes, financing a budget deficit by borrowing leads to inflation and can reduce the real value of government debt. This is because the government is issuing more money to pay for its debt, which increases the money supply and causes prices to rise.
The Impact of Financing a Budget Deficit on Government DebtInflation reduces the value of government debt because it erodes the purchasing power of the money used to repay the debt. The government must repay the debt with more money than was originally borrowed, due to the decrease in the value of money. This means that the real value of the debt is reduced and that the government will have to pay back more than it originally borrowed. As a result, financing a budget deficit by borrowing can lead to higher inflation, which in turn reduces the real value of government debt.
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