Answer:
Particulars 2021 2022 2023
Beginning Inventory 277 253 235
Cost of Goods sold 633 623 586
Ending inventory 253 235 220
Cost of good available for sale 886 876 806
Purchases 640 623 595
Purchase discounts 20 17 26
Purchase returns 26 32 16
Freight-in 15 34 18
Explanation:
There are few missing values which are calculated using back solving technique. These values are bold and underlined. Playa Company has missing information for its three year accounts.
Available for sale = Beginning inventory + Net Purchases
Cost of Goods Sold = Cost of good available for Sales - Ending inventory
Ending inventory = Cost of Goods available for Sales - Cost of Goods Sold.
Net purchases = Gross purchases + Freight in - Purchase discount - Purchase return
Held-to-maturity securities are equity securities a company intends and is able to hold until maturity true or false
Answer:
The answer is true
Explanation:
Held to maturity securities are securities that are bought to be held until they matures. It is being classified as non-current asset or long term investment. Example of Held-to-maturity security is a bond.
They are being reported on the balance sheet at an amortized cost(original cost - accumulated amortization). Held-to-maturity with less than a year are regarded as Curren asset while the ones above a year are regarded as non-current.
g "A company with monthly fixed costs of $280,000 expects to earn monthly operating income of $80,000 by selling 12,000 units per month. What is the company's expected unit contribution margin?"
Answer:
unitary contribution margin= $30
Explanation:
Giving the following information:
Fixed costs= $280,000
Operating income= $80,000
Units sold= 12,000
First, we need to calculate the total contribution margin:
total contribution margin= operating income + fixed costs
total contribution margin= 80,000 + 280,000
total contribution margin= $360,000
Now, the unitary contribution margin:
unitary contribution margin= 360,000/12,000= $30
What has the U.S. government done to create economic growth, stability, full employment, freedom, security, equity, and efficiency? Have these policies been successful in reaching the economic goals of the United States? Address how gross domestic product, inflation, and gross domestic product per capita were affected.
Answer:
The U.S. is a market oriented economy with moderate taxation and regulations.
The measures that the U.S. government has taken to create economic growth, stability, full employment, freedom, security, equity and efficiency are mostly market oriented: lower taxes for corporations and some individuals, less regulations, the signing of free trade agreements, the promotion of applied research with universities in alliances with the private sector, and so on.
These policies have been largely succesful. Gross domestic product has continued to grow at a steady pace ever since the 2007-2008 financial crisis was overcome. Inflation has been in the target that is set by the Federal Reserve, and as for GDP Per Capita, the U.S. has one of the highest GDP Per Capita in the world, with $62,000 USD per person in 2019.
Orlando Builders Inc. issued a bond with a par value of $1,000, a coupon rate of 9.00% (semiannual coupon), and a yield to maturity of 5.80%. The bond has 19 years to maturity. What is the value of the bond?
Answer:
Price of bond = $1,365.54
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Orlando Builders Inc. can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 5.80%/2 = 2.9 % per six months
Total period to maturity (in months)
= (2 × 19) = 38 periods
PV of interest =
45 × (1- (1+0.029)^(-21)/0.029)= 1028.087
Step 2
PV of Redemption Value
= 1000 × (1.029)^(-19×2) =337.45
Price of bond
= 1028.08 + 337.45 =1365.54
Price of bond = $1,365.54
Oriole Company has collected the following information related to its December 31, 2017, balance sheet.
Accounts receivable $16,000
Accumulated depreciation—equipment 46,700
Cash 11,000
Equipment $173500
Inventory 64,500
Supplies 5,000
Requried:
Prepare the assets section of Oriole's balance sheet.
Answer:
Oriole CompanyAssets side of the Balance Sheet:
Assets:
Current Assets:
Cash $11,000
Accounts Receivable 16,000
Supplies 5,000
Inventory 64,500 $96,500
Non-current assets:
Equipment $173,500
less acc. depreciation 47,700 $125,800
Total Assets $222,300
Explanation:
The assets side of the balance sheet is usually prepared in the order of liquidity, starting with the most liquid assets, Cash in the Current Assets subsection, or working capital for running the operations of the business. It ends with the most illiquid assets called non-current assets, which form the core resources of the entity in generating revenue. The accumulated depreciation is subtracted from the non-current assets to obtain the net non-current or fixed assets value.
A company had a beginning balance in retained earnings of $44,300. It had net income of $7,300 and paid out cash dividends of $5,950 in the current period. The ending balance in retained earnings equals:
Answer:
$45,650
Explanation:
a) Calculations of Retained Earnings:
Beginning balance = $44,300
Net Income = 7,300
less Dividends -5,950
Ending balance = $45,650
b) A statement of changes in Retained Earnings is always prepared to include the net income available for distribution to stockholders and exclude the distributions already made to stockholders in the form of dividends before arriving at the ending balance of Retained Earnings. This later figure is reported in the Balance Sheet. This process is also part of the closing entries of temporary accounts to permanent accounts at the end of an accounting period.
Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $13,800 ($1,150/month) in advance on October 1.
Required:
1. Record the adjusting entries on December 31.
2. Record the payment of rent in advance of october 1.
3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0).
Answer:
1.
Dec 31 Rent expense $3450 Dr
Prepaid Rent $3450 Cr
2.
Oct 1 Prepaid Rent $13800 Dr
Cash $13800 Cr
3.
Year end balances at 31 December:
Rent Expense = $3450
Prepaid Rent = $10350
Explanation:
Assumption: The year end for the business in on 31 December.
1.
The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.
2.
The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.
3.
The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450
The balance in the prepaid rent account after adjusting the rent expense will be,
Prepaid rent = 13800 - 3450 = $10350
A community council must decide which recreation facilities to construct in its community. Four new recreation facilities have been proposed—a swimming pool, a tennis center, an athletic field, and a gymnasium. The council wants to construct facilities that will maximize the expected daily usage by the residents of the community, subject to land and cost limitations. The expected daily usage and cost and land requirements for each facility follow:
The community has a $140,000 construction budget and 14 acres of land. The tennis center is conditional upon construction of the swimming pool. The council wants to know which of the recreation facilities to construct to maximize the expected daily usage.
Recreation Facility Expected Usage (People/day) Cost (9) Land requirements
Swimming pool 300 35,000 4
Tennis Center 90 10,000 2
Athletic field 400 25,000 7
Gymnasium 150 90,000 3
After you formulate and solve this problem, which one of the following options is not correct:________.
A. The tennis center will not be chosen.
B. The swimming pool will be chosen.
C. The athletic field will be chosen.
D. The gymnasium not will be chosen.
E. The total daily usage will be 790 people.
Multiclient warehousing mixes attributes of ____ and ____ warehousing. Group of answer choices Public; contract Public; common Private; contract Common; private
Answer:
Public; contract
Explanation:
Multi-Client warehousing is the warehousing in which the outsourcing process could be performed with the multiple clients and it also added additional services like bulk packing of products, cross-docking, etc
Moreover, the multiclient warehousing mixes the combination of the public and contract attributed
Therefore the correct option is A.
Bob has saved $315 each month for the last 6 years to make a down payment on a house. The account earned an interest rate of .41 percent per month. How much money is in Bob's account
Answer:
The amount in Bob's account is $26320.516
Explanation:
The total amount saved each month for the down payment (A ) = $315
The interest rate per month (r ) = 0.41 %
Number of years (n ) = 6 years
Below is the calculation to find the total amount in Bob’s account. Here, we will take the number of compounding period as 72 because the interest rate is monthly compounded and there are 72 months in 6 years.
[tex]= A\left [ \frac{\left ( 1+r \right )^{n\times 12}-1}{r} \right ] \\= 315 \left [ \frac{\left ( 1+ 0.0041 \right )^{6\times 12}-1}{0.0041} \right ] \\= 315\left [ \frac{\left ( 1+ 0.0041 \right )^{72}-1}{0.0041} \right ] \\= $ 26320.516[/tex]
Dixie, a cattle ranch owner, earns $350,000/month in revenue. Her monthly cost include: administrative cost: $35,000, Feed: $40,000, Equipment and maintenance: $55,000, Labor: $90,000, Transportation: $20,000, Miscellaneous: $35,000, Foregone rent for the land used for cattle grazing $18,000, Cost of her daughter’s time that helps on weekends: $4,000, owner’s salary: $15,000. Dixie’s accounting and economic profit respectively are
Answer:
Accounting profit = $60000
Economic profit = $38000
Explanation:
Accounting profit is the net income of a company, it is the difference between revenue and expenses. This expenses are wages, transportation cost, cost of raw materials and so on. It makes use of only explicit cost.
Economic profit makes use of both implicit cost (opportunity) and explicit costs. It does not only considers expenses but also considers opportunity costs for making one decision instead of the other
Given that revenue = $350000
Explicit cost = Administrative cost + Feed + Equipment and maintenance + Labor + Transportation + Miscellaneous + owners salary = $35,000 + $40,000 + $55,000 + $90,000 + $20,000 + $35,000 + $15000 = $290000
Implicit cost = opportunity cost = Cost of her daughter’s time that helps on weekends + Foregone rent for the land used for cattle grazing = $18000 + $4000 = $22000
Accounting profit = Revenue - Explicit cost = $350000 - $290000 = $60000
Economic profit = Revenue - Explicit cost - Implicit profit = $350000 - $290000 - $22000 = $38000
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
a. A firm's decision about the size of its new factory.
b. The effects of the Internet on the pricing of used cars.
c. The effect of federal government spending on the national unemployment rate
Answer:
microeconomics : a. A firm's decision about the size of its new factory.
b. The effects of the Internet on the pricing of used cars.
macroeconomics: c. The effect of federal government spending on the national unemployment rate
Explanation:
Why does a business need accounting information? Accounting identifies personnel who do not have strong customer service skills. Accounting accumulates passwords for security purposes. Accounting records business transactions and communicates financial information. Accounting inspires management to work harder in order to climb the corporate ladder.
Answer:
Accounting records business transactions and communicates financial information.
Explanation:
Accounting information refers to the data about the transactions of a company that is recorded and used to create different reports that help to make decisions about the business operations. According to this, the answer is that a business needs accounting information because accounting records business transactions and communicates financial information.
The other options are not right because accounting information is about financial data not about personnel skills, accumulating passwords or inspiring management to work harder.
Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $80,000. The all-equity plan would result in 18,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans
Answer:
Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares
EPS for all equity plan:
($80,000 x 60%) / 18,000 = $2.67 per share
EPS for Plan I:
[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share
EPS for Plan II:
[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share
Transferring a strategic plan into a reality can take more than planning. Provide an example of a leader who has transformed a strategic plan into a reality? How did they innovate and lead the company? What can you learn from this person?
Explanation:
Strategic planning is essential for a company to be well positioned in the market and achieve success. However, more than planning, it is necessary to carry out the actions that will lead the company to achieve its objectives.
An example of a leader who knew how to effectively execute his strategies and make his company globally recognized was Steve Jobs. He wanted to create pioneering products in technological innovation and that at the same time had a focus on the needs and desires of the consumer, in addition to the central functionalities, Apple devices combined characteristics that differentiated them from their competitors, bringing a whole concept behind the brand, combining technology, innovation, design and other elements that transfer value to the product and position the brand in the market.
The greatest examples of business that can be learned from Steve Jobs is to keep the focus on innovation and customer loyalty, combining simplicity for the use of computers and cell phones with a high quality that has become a reference.
Production costs chargeable to the Finishing Department in June in Waterway Company are materials $16,524, labor $21,602, overhead $19,700. Equivalent units of production are materials 20,400 and conversion costs 19,300. Production records indicate that 18,200 units were transferred out, and 2,200 units in ending work in process were 50% complete as to conversion costs and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 125.)
Answer:
Cost Per Equivalent Unit Materials 0.81 Conversion 2.14
Completed Units Costs $ 53690
Ending Work In Process Costs $ 4136
Total Costs $ 57826
Explanation:
Waterway Company
Finishing Department
Materials Conversion
Costs $16,524, $21,602 + $19,700
$ 41302
Equivalent units of production 20,400 19,300
Cost Per Equivalent Unit 16524/20400= 0.81 41302/19300= 2.14
We find the Cost per Equivalent unit and then multiply with the completed units and Ending work in process units to get their costs.
Completed Units Costs $ 53690
Materials = 18200* 0.81 = 14742
Conversion= 18200 * 2.14= 38948
Total Costs $ 53690
Ending Work In Process Costs $ 4136
Materials = 2200* 0.81 = 1782
Conversion= 2200 * 50 % * 2.14= 2354
Total Costs $ 4136
Total Costs Accounted For = Completed Units Costs $ 53690 + Ending Work In Process Costs $ 4136= $ 57826
Total Costs Added During the process = Materials + Conversion = $16,524,+ $ 41302=
$ 57826
Preferred stock is like long-term debt in that ___________. A. it promises to pay to its holder a fixed stream of income each year B. it gives the holder voting power regarding the firm's management C. the preferred dividend is a tax-deductible expense for the firm D. in the event of bankruptcy preferred stock has equal status with debt
Answer:
A. it promises to pay to its holder a fixed stream of income each year.
Explanation:
In Business, stock can be defined as having an equity or ownership by an individual in an organization. Generally, stocks are of two (2) types and these are;
1. Common stock.
2. Preferred stock.
Preferred stock refers to the securities which represents an individual's ownership or share in an organization and having a fixed claim over common stocks in earnings and assets.
Also, the preferred stock pay a fixed amount of interest regularly rather than being paid as a dividend only.
Hence, preferred stock is like long-term debt in that it promises to pay to its holder a fixed stream of income each year. This simply means that, the preferred stockholders are given more priority than the holders of common stocks. Therefore, in the event of liquidation of a firm the preferred stockholder can claim the assets belonging to a the firm.
There are four (4) types of preferred stocks and these are;
1. Perpetual preferred stock.
2. Exchangeable preferred stock.
3. Convertible preferred stock.
4. Cumulative preferred stock.
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
a. Purchased $250,000 of materials.
b. Used $180,000 of direct materials in production.
c. Incurred $450,000 of direct labor wages.
d. Incurred $180,000 of factory overhead.
e. Transferred $760,000 of work in process to finished goods.
f. Sold goods for $1,200,000.
g. Sold goods with a cost of $675,000.
h. Incurred $215,000 of selling expense.
i. Incurred $125,000 of administrative expense.
Required:
a. Prepare the January income statement for Sorensen Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.
Answer:
Required a.
January income statement for Sorensen Manufacturing Company
Sales $1,200,000
Less Cost of Sales ($675,000)
Gross Profit $525,000
Less Expenses :
Selling expense ($215,000)
Administrative expense ($125,000)
Net Income / (Loss) $185,000
Required b.
Work In Process Inventory = $120,000
Finished Goods Inventory = $85,000
Explanation:
Manufacturing Cost Schedule (Determination of Work In Process Inventory)
Direct Materials $180,000
Indirect Materials ($250,000 - $180,000) $70,000
Direct Labor $450,000
Factory Overheads $180,000
Total Cost of Goods Manufactured $880,000
Less Transferred to finished goods ($760,000)
Closing Work In Process Inventory $120,000
Finished Goods T- Account (Determination of Finished Goods Inventory)
Debit :
Transferred from Work In Process $760,000
Totals $760,000
Credit:
Trading Account $675,000
Ending Finished Goods Inventory $85,000
Totals $760,000
Pump prices slide as crude oil falls to six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dropped to $43.46 per barrel on March 17, the lowest since March 2009. Source: Bloomberg Business, March 23, 2015 Explain the effect of a lower crude oil price on the supply of gasoline. A fall in the price of crude oil will ______.
Answer:
lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.
Richmond Heating & Cooling installs and services commercial heating and cooling systems. Richmond uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Leisure estimated that its overhead for the coming year would be $66,750. It also anticipated using4,450 direct labor hours for the year. In November, Leisure started and completed the following two jobs:
Job 101 Job 102
Direct materials used $16,500 10,500
Direct labor hours used 195 72
Richmond paid a $30 per hour wage rate to the employees who worked on these Wo jobs.
Requirements:
a. What is Leisure's predetermined overhead rate based on direct labor hours?
b. Calculate the overhead to be allocated based on direct labor hours to each of the two jobs.
c. What is the total cost of Job 101? What is the total cost of Job 102?
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 66,750/4,450
Predetermined manufacturing overhead rate= 415 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job 101= 195*15= $2,925
Job 102= 72*15= $1,080
Finally, we can determine the total cost:
Total cost= direct material + direct labor + allocated overhead
Job 101:
Total cost= 16,500 + 195*30 + 2,925
Total cost= $25,275
Job 102:
Total cost= 10,500 + 72*30 + 1,080
Total cost= $13,740
A car dealership spends $700,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $1,500,000. What is the car dealership's profit? g
Answer:
$800,000
Explanation:
The computation of the car dealership profit is shown below:
Car dealership profit is
= Total revenue earned - total cost spent
where,
Total revenue earned is $1,500,000
And, the total cost spent is $700,000
So, the car dealership profit is
= $1,500,000 - $700,000
= $800,000
We simply deduct the total cost spent from the total revenue earned so that we get to know car dealership profit
Digby's turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Digby plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Digby next year?
Answer:
$208,443
Explanation:
The computation of total recruiting cost be for Digby next year is shown below:-
[tex]R_1 = (B + R_o + A)\times N[/tex]
as
B indicates baseline spend = $1,000
[tex]R_o[/tex] indicates current year recruits spend = $5,000
A indicates additional next year spend = $500
N indicates the number of new employees for next year = Total employees × turnover rate
N = 510 × 0.0628787
= 32.0681538
now we will put the values into the above formula.
R1 = ($1,000 + 5000 + $500) × 32.0681538
= $208,443
The total recruiting cost for Digby next year will be $208443.
Based on the information given, the calculation for the total recruiting cost will be:
= (B + To + A) × N
where,
B = $1000
Ro = $5000
A = $500
N = 510 × 0.06288 = 32.068
Now, the total recruiting cost will be:
= (B + To + A) × N
= (1000 + 5000 + 500) × 32.068
= 6500 × 32.068
= 208433
Therefore, the total recruiting cost for Digby next year will be $208443.
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Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was earning 1% in interest per year or $1,000,000. Adidas could have also earned $400,000 from investing the $100,000,000 in a watch factory. What is its opportunity cost for Adidas based off of the information in presented this situation
Answer:
The opportunity cost is $400000.
Explanation:
The investment amount in shoe factory = $100,000,000
The earning from money market account = $100,000,000 × 1% = $1,000,000
The second option to invest is watch factory and the investment amount is same = $100,000,000
The earning from watch factory = $400,000
The opportunity cost is the cost of the best-forgone alternative. Therefore, if Adidas decides to invest in a shoe factory then the earning of the watch factory is the opportunity cost. So the opportunity cost of Adidas is $400,000
Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand from AD1 to _____.
Answer: d. AD2 and then to AD3
Explanation:
The Long Run Aggregate Supply Curve represents the supply in the Economy when the Economy is at full employment. Operating at this level would be most ideal for an economy.
The point where AD and AS intersect is the quantity produced in the short run. Government policy should therefore be geared at an equilibrium level where Aggregate Demand = Aggregate Supply = Long Run Aggregate Supply because at this point, the Economy will also be at Full Employment in the Short Run which is ideal.
The Fed should therefore attempt to raise investment by enough to shift aggregate demand from AD1 to AD2 and then to AD3 because at AD3, the Aggregate Demand would intersect the AS at the Full Employment quantity which is ideal.
In the macroeconomics term, the aggregate demand is referred to as the domestic demand of the consumers at the final analysis. It can be also known as the total demand for the final goods and services in an economy at the given period of time. This is the demand that directly contributes to the computation of the Gross Domestic Product.
The correct option is d. AD2 and then to AD3
Option d. AD2 and then to AD3 is correct because the point where AD and AS intersect is the quantity produced in the short run. The government policies should therefore be geared at an equilibrium level.
Option:
a. AD4 and then to AD3
b. AD3 and then to AD4
c. AD3 and then to AD2
These options are wrong because they do not explain the correct shift or the displacement of the curve in the right direction instead they are providing the wrong direction to shift to the aggregate demand curve.
The Fed should therefore attempt to increase the investment by enough shift in the aggregate demand from AD1 to AD2 and then to AD3 because at AD3, the Aggregate Demand would be intersecting the AS at the Full Employment quantity.
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Why have many nations chosen to use taxpayer dollars to subsidize primary, secondary, and higher education
Answer and Explanation:
This is because education has a positive rate of return. Investment in Education is an investment in new knowledge which is beneficial to any country. These countries have subsidized these forms of education because they recognize that an investment in education is an investment in human capital. Which would likely increase future productivity and ability to earn money.
Education is very beneficial to the individual who gets it, but a country where it's citizens have a good level of education benefits everyone positively.
1. Better health outcomes due to breakthroughs in research.
2. Reduction in Crime rates
3. Better environment
4. Also a better government
Are reasons for using taxpayers dollars to subsidize all these levels of education.
Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled $565,000. The estimated residual value of the equipment was $54,000 and the group depreciation rate was determined to be 16%. What is the annual depreciation for the group
Answer:
$90,400
Explanation:
Mondale Winery depreciates it's equipment by making use of the group method.
The cost of equipment that was purchased in 2021 totaled $565,000
The residual value of the equipment was $54,000
The group depreciation rate is 16%
= 16/100
= 0.16
Therefore, the annual depreciation can be calculated as follows
Annual depreciation= Cost of equipment × Group depreciation rate
= $565,000×0.16
= $90,400
Hence the annual depreciation for the group is $90,400
Which one of the following risks can be progressively eliminated by adding stocks to a portfolio?
a. Systematic risk.
b. Unique risk.
c. Market risk.
d. Inflation rate risk
Answer: The answer is "Unique Risk".
Explanation: Market risk can be eliminated in a stock portfolio through diversification. The risk that remains in a stock portfolio after efforts to diversify is known as a unique risk. Average returns on high-risk assets are higher than those on low-risk assets.
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If a check correctly written and paid by the bank for $746 is incorrectly recorded in the company's books for $764, how should this error be treated on the bank reconciliation
Answer:
Add
Explanation:
Hope this helps :)
Add $18 to the book balance this error be treated on the bank reconciliation. Thus, option D is correct.
What is bank reconciliation?A bank reconciliation is a procedure using which the balances of a bank account recorded in an object's books of accounts and the balance listed by the bank within the most relevant bank statement are compared.
Any discrepancy between two numbers should be looked into and, if necessary, fixed. the accounting and finance account report that compares a company's savings account to its books. A summary of all payments, withdrawal, and other cash activity made.
In this, there is a difference in the amount that was to be entered in the given data.
The difference is 764 - 746 = 18
so reconcile the data $18 will added in the book balance
Therefore, option D is the correct option.
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The question is incomplete, the complete question is
Subtract $18 from the book balance.
Add $18 to the bank's balance.
Add $18 to the book balance.
Subtract $18 from the bank's balance.
Subtract $18 from the bank's balance and add $45 to the book's balance.
Other things remain unchanged, the market demand curve for a particular product is expected to shift leftwards when the price of that product declines.
a. True
b. False
The CAL formed from the optimal risky portfolio will be __________ to the efficient frontier of risky assets.
Answer:
tangent
Explanation:
The Capital Allocation Line refers to a line that measures the assets profile with respect to risk plus reward and can be applied to determine the optimal portfolio.
The optimal portfolio involves both risk-free assets and an efficient portfolio of assets i.e to be riskier.
The optimal portfolio of risky assets should be at that point at which the capital allocation line is tangent to the efficient frontier.
This portfolio is desirable since CAL 's slope is the maximum, implying we get the maximum return for the additional unit added with respect to risk.