Posting refers to the process of transferring the debits and credits from the journal entries to the accounts in the ledger. The process of posting comes after all accounting transactions have been journalized.
What steps are involved in journalizing using debit and credit?The process of journalizing transactions is keeping a record of all your business dealings and tracking them chronologically. Typically, this record contains the date, the account you're debiting or crediting, and a brief description of the transaction that took place.
What steps make up the ledger posting process?The ledger, which is the main book, is where the transactions are posted once they have been noted in the journal. Ledger posting is the process of moving the entries from the journal to the appropriate ledger accounts.
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Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. A) True B) False
The assertion is true . Operation management refers to the collective actions that convert inputs into finished products in order to generate value in the form of products and services.
In operation management, what is the difference between input and output?Operations management is the systematic direction and control of a business process in which resources, known as inputs, are transformed into finished goods or services for consumers or clients (outputs). To fully comprehend operations management, we must first define the term operations. "Operations" refers to the sequence of activities that occur during the creation of a product or the delivery of services. Operations, which is used by businesses to convert resources into goods or services, answers the question, "What does the company do?" Operations management is the systematic direction and control of a business process in which resources, known as inputs, are transformed into finished goods or services for consumers or clients (outputs). Input resources are typically divided into two categories: transformed and transforming resources. Transformed resources are those that are transformed during the process of producing goods or services. Materials, information, and customers are all included. The outputs of the transformation model can be either goods or services, or both goods and services. Transformation processes should produce good results (e.g., minimizing inputs to be wasted).
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as a manager, emilio sometimes changes his response to situations based on the situation, or unique elements in a situation. which management perspective does emilio practice?
The top management warned all staff members well in advance about the benefits of transferring to the new office since they anticipated strong employee opposition to their choice. As a result, there was less employee pushback.
To prepare themselves for a speedy and painless resolution, management degree candidates, aspiring managers, and new managers should review some of the most typical scenarios. Employee Complaints: Employee complaints about the workplace are inevitable, and it is the manager's responsibility to hear them. This indicates that top management is the group with authority over the company's changes and has access to the necessary funds and resources. It should exhibit leadership as well as a dedication to the quality management system.
The standard is acknowledged as having no requirements on which position(s) must perform this role. However, it is critical that this individual or group be aware of its obligations and exhibit knowledge, engagement, and active participation throughout the management system process.
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erome is talking to his boss, blanca, about a problem he is having with a project. jerome has explained only part of the problem when blanca jumps in and briefly tells him about how they can fix the issue going forward. which guideline for providing advice did blanca violate?
Jerome has explained only part of the problem when Blanca jumps in and briefly tells him about how they can fix the issue going forward. He violated B. Avoid giving advice too soon.
Seeking and providing advice are essential components of good leadership and decision making. Managers, on the other hand, rarely see them as practical abilities that can be learned and improved.
Receiving advice is frequently regarded as the passive absorption of wisdom. And counseling is sometimes regarded as a question of "good judgment"—you either have it or you don't—rather than a skill to be learned.
When the exchange goes well, both sides of the table benefit. Those who are actually receptive to direction (rather than just looking for confirmation) come up with better answers to challenges than they would on their own.
They enrich their thinking with subtlety and texture, and research suggests that they can overcome cognitive biases, self-serving rationales, and other errors in their logic.
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Complete question:
Jerome is talking to his boss, Blanca, about a problem he is having with a project. Jerome has explained only part of the problem when Blanca jumps in and briefly tells him about how they can fix the issue going forward. Which guideline for providing advice did Blanca violate?
A. Have a "we" conversation.
B. Avoid giving advice too soon.
C. Avoid giving heavy-handed advice.
D. Be concise in your advice.
which journal entry records the amortization of an expense
Depreciation expense is entered in the item called "Depreciation and amortization" on the income statement. Charge depreciation to increase your investment account and reduce your income.
What is the amortization?
Amortization is the repayment of a debt in equal installments over a period of time. Part of each payment goes towards the loan amount and part towards the interest. As the loan is amortized, the principal starts small and increases each month.
What are some examples of amortization?
Companies can amortize the cost of a patent over its useful life. Suppose a company has exclusive rights to his patent for 10 years and the patent is not renewed at the end of that period.
What’s the purpose of Amortization?
Amortization is the process of recording the cost of an asset against expense over its expected useful life and moving the asset from the balance sheet to the income statement. It essentially reflects the consumption of intangibles over their useful lives.
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a tax on gasoline encourages people to drive smaller, more fuel-efficient cars. which principle of economics does this illustrate?
This statement illustrates the principle of incentives in economics. Incentives are like rewards or punishments that are used to encourage or discourage depending on certain behaviors.
In this case, the incentive is a gasoline tax that encourages people to drive smaller, more fuel-efficient cars. This incentive works by making it more expensive to use petrol, making it less attractive to drive cars that are less fuel efficient and more expensive to run. In the long run, this motivates people to buy vehicles that are more fuel efficient and less expensive to run, helping to reduce emissions and mitigate the effects of climate change.
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you want to buy a house in hermosa beach ca, but you can only afford to make monthly payments of $7,100. the interest rate on mortgages right now is 4.25% p.a. with monthly compounding (apr), fixed for 30 years, with monthly payments. you have $155,000 saved to use as a downpayment. what is the most that you can afford to pay for a house (ignoring closing costs, property taxes, etc..)?
You want to purchase a home in Hermosa Beach, California, but your monthly income is barely $7,100. Currently, mortgages have an interest rate of 4.25%.
What is purchase definition in accounting?
Definition: Purchases of goods and services include the value of all items and services obtained during the accounting period for resale or consumption in the manufacturing process, with the exception of capital assets, whose consumption is recorded as consumption of fixed capital. Shoes Unlimited will buy 10,000 pairs of sneakers from a foreign source. This requires the issuance of a purchase order, which is a formal commitment by the company to acquire the particular brand and quantity of shoes.
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mauve inns has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. the tax rate is 21 percent and the dividend payout ratio is 30 percent. what is the firm's sustainable growth rate?
based on the specified 13%. what is the company's pace of sustainable growth.
How are growth rates determined?To calculate growth rates, divide the change between the starting and ending values for such period under study by the new value. The most frequent time intervals for growth rates are annually, annually, monthly, and weekly.
Where
Dividend payout ratio = 30%, or 0.30
Rate of dividend payout = 1 - retention rate = 0.30, for a total of 0.70.
Total assets minus total debt equal $913,600 minus $424,500, which is $489,100.
Return on equity is calculated as Net Earnings / Shareholder Equity, which is $94,000 / $489,100, or 0.19.
By changing the appropriate variables in equation (1), we obtain:
Sustainable growth rate is equal to 0.70 times 0.19, or 0.13, or 13%.
Therefore, the firm's sustainable growth rate is 13%.
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what is the business and science of raising large quantities of fish in tanks or ocean pens known as?
The majority of NOAA's efforts are directed toward marine aquaculture, which is the farming of marine and estuarine-dwelling organisms.
Numerous species, including oysters, clams, mussels, shrimp, seaweed, and fish like salmon, black sea bass, sablefish, yellowtail, and pompano, are produced in the United States through marine aquaculture.
The regulated production of aquatic organisms such as fish, crustaceans, mollusks, algae, and other valuable organisms like aquatic plants is known as aquaculture (least frequently written as aquiculture (e.g. lotus). Contrasted with commercial fishing, which includes capturing wild fish, aquaculture involves raising populations of freshwater, brackish water, and saltwater species in controlled or semi-natural environments.
Aquaculture carried out in ecosystems and lagoons with seawater, as opposed to freshwater aquaculture, is referred to as mariculture, or marine farming. Pisciculture is a kind of aquaculture that involves raising fish for food purposes.
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if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies?
If the amount in supplies expense represents the january 31 adjustment for the supplies used in january. Hence the January 1 beginning balance of supplies was $1,240.
This is because the amount in supplies expense represents the January 31 adjustment for the supplies used in January, which means that the amount in supplies expense was the same as the amount of supplies purchased during January. Therefore, the beginning balance of supplies must have been the same as the amount of supplies purchased, which was $1,240.
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charlotte can produce pork and beans and can switch between producing them at a constant rate. if it takes charlotte 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is charlotte's opportunity cost of pork and what is opportunity cost of beans?
Pork and beans can be produced in Charlotte. Pork has an opportunity cost of 10 pounds of beans divided by 5 equals 2 pounds of beans. 5 pounds of pork, 10 pounds of pork, or 1/2 pound of pork, is the opportunity cost of beans.
The demand for pork drives the demand for market hogs. Retailers create a wholesale demand plan for pork by subtracting an amount from the anticipated pork demand schedule that will cover their expenditures and generate a profit.
2020 saw the COVID-19 have an impact on the pork market. Neither state farms nor small-scale farmers can increase their output. Pork production did not increase and but decreased for the year by 1.42 million tonnes when compared to 2019. The demand for meat eventually exceeds the supply of pork.
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the colorado real estate commission would investigate a complaint a) by the public involving a broker's ethics. b) from a buyer regarding a broker not disclosing that someone was murdered on the property. c) about a broker not supplying closing statements at closing. d) from an associate broker over a dispute regarding commissions with the employing broker.
The Colorado Real Estate Commission (CREC) is responsible for investigating complaints related to the conduct of real estate brokers and salespersons in the state.
Depending on the nature of the complaint, the CREC may investigate a variety of issues.
a) If a member of the public files a complaint involving a broker's ethics, the CREC would investigate the matter to determine if any violations of the state's real estate laws or regulations have occurred.
b) If a buyer files a complaint regarding a broker not disclosing that someone was murdered on the property, the CREC would investigate to determine if there were any violations of the state's real estate disclosure laws.
c) If a complaint is filed about a broker not supplying closing statements at closing, the CREC would investigate the matter to determine if there were any violations of the state's real estate laws or regulations related to the closing process.
d) If an associate broker files a complaint over a dispute regarding commissions with the employing broker, the CREC would investigate the matter to determine if there were any violations of the state's real estate laws or regulations related to commission disputes.
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True or false? Because people respond to incentives, we would expect that if the average salary of accountants increases by 50 percent while the average salary of teachers increases by 20 percent, students will shift majors from education to accounting.
True. (If the average accountant's salary increased by 50% and the average teacher's salary increased by 20%, people would respond incentives and students would be expected to move from education to major in accounting.)
What do accountants do?
Accountants are professionals who handle bookkeeping and classify financial documents such as income statements, balance sheets, etc., necessary to run a business. They audit your books, create reports for tax purposes, and simplify all the financial gigantic jumbo that comes with running a business.
What are four types of accountants?
These four divisions include business accounting, public accounting, government accounting and forensic accounting. A bachelor's degree is almost always required for a career in accounting, but a previous master's degree is often strongly preferred, especially in the field of accounting.
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a certificate of medical necessity should be kept in the business office. question 5 options: true false
A certificate of medical necessity should be kept in the business office is false.
What is business office?
Business office is a place where business activities take place. It is a part of an organization where activities like decision-making, planning, organizing, directing, controlling, and monitoring are done. A business office is typically the hub of the organization, where information is exchanged and communication between staff, customers and other entities takes place.
Medicare defines "medically required" as health care services or supplies that must fulfill recognized medical criteria in order to be used in the diagnosis or treatment of an illness, accident, condition, disease, or one of its symptoms. Each state's rules or regulations may define what constitutes "medical necessity" for Medicaid care.
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if your credit card is denied at a restaurant because your bank thinks there is fraudulent activity, even though there isn't, this is an example of a:
If your credit card is denied at a restaurant because your bank thinks there is fraudulent activity, even though there isn't, this is an example of Fraud.
One of the earliest methods of credit card fraud was to either "dumpster dive" for carbon copies of credit card receipts or steal the card out of someone else's wallet. Since credit card processing began to be done electronically, these two ways are becoming less and less common.
Postal theft is one of the simplest ways to get a person's account information or actual credit card. Personal information, such as credit card account numbers, credit limits, and banking details, may now be accessible to anyone who takes mail.
Without the knowledge of the real owner, the fraudster can use this information to purchase additional cards or open new accounts.
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How the qualified business income deduction simplified calculation?
50% of the qualified business income (QBI), or 25% of the qualified business income (W-2 wages) plus 2.5% of the unadjusted basis of the qualified property used by that trade or business.
How can I simplify the calculation of the qualified business income deduction?
An illustration: You owe $150,000 in taxes, of which $60,000 is QBI. Your deduction of $12,000 is simply calculated by multiplying QBI ($60,000) by 20%. A special formula is used to calculate the deduction if your taxable income is higher than the limit for your filing status.
How is qualified business income calculated?
You can combine multiple sources of income to get your total QBI. You can combine the QBI, W-2 wages, and basis of qualified property for each of your businesses if you have two or more. The W-2 wage and qualified property restrictions are then applied.
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Tubby's Tubes wants to improve their productivity. Their process yield is currently 90. 51% based on 9516 pounds of PVC plastic.
If they are going to improve their productivity to {NP}, how many tubes will they have to produce from the same amount of plastic input?
To find the genuine contributions, one must be able to explain and comprehend ideas of productivity and worth. Patients looking for further assistance may find this emphasis on patient education appealing.
Who creates NP standard operating procedures and who is in charge of making sure they are up to date and implemented?The practitioner is operating in accordance with a protocol or standardised method as established by Section 2725. The attending clinician and operator, the staff nurse, and indeed the site admin or the designee must all contribute to the development and approval of the standard operating procedure or protocol.
How does the NP practise medicine using standardised procedures?NURSE PRACTITIONERS CAN DO THE FOLLOWING FUNCTIONS: Care for cases of acute diseases as outlined in the associated method (also sample attached) and provide patients who are fundamentally healthy with non-controlled medications and equipment.
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paolo is a manager for a small business. he wants his five employees to have positive working relationships and he wants to create a welcoming office environment. to encourage socializing and to motivate his staff to meet organizational goals, paolo invites his employees to lunch once a week. within a few weeks, peter sees an increase in performance and improved collaboration among the staff members. this demonstrates the use of
Peter observes a rise in output and more teamwork among the employees. This exemplifies the application of behavioral management.
What is Behavioral management?Similar to behaviour modification, behaviour management is a less-intensive form of behaviour therapy. Behavior management places more of an emphasis on preserving healthy routines and behaviours while minimizing unhealthy ones, as opposed to behaviour modification, which focuses on altering behaviour. Not least because it fosters a suitable environment for learning, behaviour control in the classroom is crucial. Children can learn constructive behaviour, such as respect for others, if there are clear boundaries. The goal of behaviour management is to influence your child's behaviour toward acceptable behaviours. The best way to influence your child's behaviour is with a supportive and optimistic attitude. Giving your child attention when they behave nicely is preferable to disciplining them when they do something you find objectionable.To learn more about Behavioral management, refer to:
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because of its flexibility, project management is equally useful in ongoing, routine work as well as unique, one-time projects. question 3 options: true false
The correct answer is True. Due to its adaptability, project management can be used for both continuous, ordinary work and one-off, special projects.
Making something suitable for a new application, purpose, or circumstance is the general definition of adaptation. Project managers frequently have to adjust to changing settings, technology, expectations, and situations, just as organisations adapt to change. Matter, organisations, and people all have the ability to adapt.
Being adaptive will improve the chances that your projects will be successful, give you an advantage in your job, and help you handle things at home. It can lead to more chances and innovative solutions to be able to adapt to change as opposed to fighting it or futilely attempting to entirely prevent it.
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there is no need for a government in a market economy. true or false
Answer:false
Explanation: you would still need someone to regulate laws so that it wouldn’t be biased
the four general accounting principles include: (check all that apply). multiple select question. expense recognition full disclosure revenue recognition time period going concern business entity measurement
The going concern principle, the time period principle, the full disclosure principle, and the revenue recognition principle are the four general accounting principles from the options offered.
What is meant by accounting principles?The rules and recommendations known as accounting principles serve as a guide for accounting users when creating and completing accounting reports.
These are accounting's guiding principles:
According to the "going concern principle," a company's existence is unbounded.According to the "time period principle," an entity should divide its activities into several time periods.The full disclosure concept states that no information should be kept secret and that all material information must be published in the financial statements.The idea of revenue recognition states that income is recognized as earned and expense is recorded as incurred. It would be meaningless in this paradigm to accept cash as payment or as a receipt.Therefore, the principles related to accounting process has been explained as above.
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a registerd representative is employed by a broker-dealer that is publicly traded company, listed on the new york stock exchange. which statement is true
Option C is correct. The registered representative may accept unsolicited orders for his employer's stock but can not solicit orders for nor recommend buying that security
In the event that an registered representative is utilized by a public part firm (say Raymond James), by and large or she can't suggest the acquisition of that organization's portions; nor could he at any point request clients to purchase the offers. This is definitely not an express SEC or FINRA guideline; rather industry practice guarantees consistence with FINRA's "appropriateness" necessities; and the prerequisite to reveal control connections at or preceding affirmation. In any case, it is allowed to acknowledge spontaneous client orders for the offers. Registered Representative otherwise called a specialist or "RR," a person who is utilized by a merchant vendor to deal with client accounts and to prompt general society about putting resources into protections. Any individual who requests to trade protections for the records of clients. Any person that makes a proposal to a client or who plays out a reasonableness assurance for a client.
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Complete Question is
A registered representative is employed by a broker-dealer that is a publicly traded company, listed on the New York Stock Exchange.
Which statement is TRUE? The registered representative:
A. may recommend the purchase of his employer's stock to established customers, but not to new customers
B. may recommend the purchase of his employer's stock to new customers, but not to established customers
C. may accept unsolicited orders for his employer's stock; but cannot solicit orders for, nor recommend, buying that security
D. cannot accept solicited or unsolicited orders for his employer's stock; nor can he or she recommend buying that security
an auto company claims that the fuel efficiency of its sedan has been substantially improved. a consumer advocate organization wishes to compare the fuel efficiencies of its sedan between the 2019 and 2021 models. each of 12 drivers drove both the 2019 and 2021 models on a highway and the fuel efficiency was measured (in miles per gallon). the same driver drove the same path for both the models. driver model 1 2 3 4 5 6 7 8 9 10 11 12 2021 31.1 32.4 31.3 33.5 31.7 32.0 31.8 29.9 31.0 32.8 32.7 33.8 2019 28.7 32.1 29.6 30.5 31.9 30.9 32.3 33.1 29.6 30.8 31.1 31.6 test the claim that the average fuel efficiency of the sedan has improved. what is the p-value (round off to third decimal place)? assume normal population.
The p-value is 0.849 assumimg normal population.
What is the p-value?
This question is using the two-sample t-test to test the claim that the average fuel efficiency of the sedan has improved. The two-sample t-test is a statistical test used to compare the means of two samples. It is used to determine if there is a statistically significant difference between the two samples.
To calculate p value the following steps are given below
Step 1: Calculate the mean difference between the 2019 and 2021 models. The mean difference is 1.4 miles per gallon.
Step 2: Calculate the standard deviation of the difference between the 2019 and 2021 models. The standard deviation is 1.88 miles per gallon.
Step 3: Calculate the t-statistic. The t-statistic is 0.74.
Step 4: Calculate the degrees of freedom. The degrees of freedom is 11.
Step 5: Calculate the p-value.
The p-value is 0.849.
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what popular fast food chain encouraged customers to think outside the bun? kfc
The slogan "Think Outside the Bun" is a well-known philosophy developed by Taco Bell, a nationwide leader in the Mexican-style restaurant chain.
What well-known fast-food restaurant encouraged customers to "Think Outside the Bun"?Taco Bell has long entertained fast-food fans with catchy slogans like "Yo Queiroz Taco Bell," "Think Outside the Bun," and "Live mas." Their slogan "Think Outside the Bun" is a play on the phrase "think outside the box," which means to be creative and innovative. With the majority of Taco Bell's competitors serving hamburgers (McDonald's, Burger King, etc.), Taco Bell encourages you to "think outside the (hamburger) bun" and indulge in their coveted Tex-Mex cuisine. Fast food restaurants are more than just sodium-laden meals served in greasy paper bags via drive-thru. QSRs are restaurants that offer limited table service and quickly prepared menu items. They may be run through franchisee agreements or through shared corporate ownership, as McDonald's is. Because of the convenience factor, these restaurants are extremely popular, and in today's fast-paced world, time is extremely valuable.
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3. from an institution-based view and a resource-based view, explain what was behind the success and (ultimate) failure of the old east india company?
The East India Company's success may be explained from an institution-based perspective by its aptitude at navigating and taking advantage of the political and economic institutions of the nations in which it operated.
Due to its success in securing advantageous trade deals and political connections, the business was able to establish a monopoly on trading with the Indian subcontinent. The business was also able to defend its interests and preserve its trading routes by using its military and naval strength. The East India Company's failure, however, can be attributed to its ineffective governance because it grew to be too powerful and corrupt, which stoked unrest among the populace and eventually sparked a rebellion that resulted in the company losing its monopoly power and being disbanded by the British government. The business also failed to adjust to new forms of competition and shifting economic conditions, which eventually contributed to its demise.
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true or false: the actual economy is more complicated than the simple one illustrated in this circular-flow diagram.
the actual economy is more complicated than the simple one illustrated in this circular-flow diagram is true.
'What is economy?'
A complex system of linked trading, consumption, and production activities makes up an economy, and it ultimately decides how resources are distributed among all the players. The requirements of persons who live and work inside the economy are met by the creation, consumption, and distribution of products and services.
The demands of persons who live there and conduct business there are met by the production and consumption of goods and services as a whole.
Market-based economies, also known as free market economies, are self-regulatory and permit the production and distribution of goods in response to consumer demand.
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The given statement is true, that the real economy is more complex than the one depicted in this circular-flow graphic.
The term “real economy” denotes all of a nation's economic, and non-financial components. Only real variables may be used to characterize an economy. A bartering system is an example of a non-financial economy.
While the actual economy is far more complicated, the simple circular flow model can help to comprehend certain important economic links, whereas the circular flow model depicts how money aids in the transformation of production weathers into commodities and services that are then interchanged to consumers.
The real economic system refers to all actual or non-monetary elements of an economic system. A financial system can be completely described by the use of simply real variables. A barter economy is an instance of an economy without economic elements. All items and services are in simple terms represented in actual phrases.
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Classify the following topics as relating to microeconomics or macroeconomics.
Topic
Microeconomics
Macroeconomics
The relationship between the inflation rate and the unemployment rate The effect of a change in price of one good on a related good The effect of minimum-wage law on unemployment The effect of government subsidies on the agricultural industry A firm's decision about whether to continue production or to shut down
Microeconomics focuses on the behaviour of individuals and firms, whereas macroeconomics focuses on the overall behaviour of the economy as a whole.
Microeconomics or Macroeconomics
The relationship between the inflation rate and the unemployment rate - Macroeconomics.
The effect of a change in price of one good on a related good - Microeconomics.
The effect of minimum-wage law on unemployment - Macroeconomics
The effect of government subsidies on the agricultural industry - Macroeconomics.
A firm's decision about whether to continue production or to shut down - Microeconomics.
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The first question to ask yourself when composing a business message is "What channel should I use to send the message?"
A business message can be written using feedback as a medium.
Describe business.A business is a for-profit corporate entity, such as a corporation, limited liability company (LLC), or partnership, that provides professional services. Most companies only have one physical location. They insist on maintaining strict control over the project.
Are businesses and firms the same thing?A firm is a company that operates with the goal of making money by providing products and services. Both the terms business and company are appropriate. There are many different business formats, including sole proprietors and corporations.
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allison is a loader in a warehouse. when one of her fellow employees explains that she will be missing work for a few weeks because her mother is terminally ill, what is the primary type of listening that allison is using?
The primary listening style Allison uses is empathetic.
What kind of hearing is the most common?In interpersonal communication, there are three primary listening styles that are most prevalent: Listening for Information (Listening to Learn) Critical Hearing (Listening to Evaluate and Analyse) Clinical or Empathetic Listening (Listening to Understand Feeling and Emotion). You are first born with the capacity for discriminative listening. All people are born with the ability to listen critically. Even before you can interpret words, you employ this kind of hearing. Listening involves focusing on the speaker's body language, voice, and other verbal and nonverbal cues in addition to the story being given. In other words, it entails paying attention to both verbal and nonverbal cues.
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rig co. sold its factory at a gain and immediately leased it back for 10 years. the factory's remaining economic life is 20 years. the lease was reported appropriately as an operating lease. how should rig report the gain in the financial statements?
Rig Co. should report the gain as income in the period in which the sale was completed. The gain should be reported on the income statement as "Gain on Sale of Factory".
The lease should also be reported on the income statement as an expense over the term of the lease.
The gain on sale of the factory should be reported as a non-operating item on the income statement, separate from the operating lease expense. This allows investors to distinguish between the income from the sale of the factory and the expenses related to the lease of the factory.
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your elderly client's husband died last month with a gross estate valued at $4,000,000, which includes closely held stock valued at $1,000,000. debts and expenses (including state death taxes paid) for his estate are estimated to be $50,000. his will, which appoints his brother executor, leaves one-half of his estate to your client, with the remainder to their two adult children in equal shares. your client recently inherited $7,000,000 from the settlement of her mother's estate. if your client's major objectives are to (1) avoid inclusion of her husband's property in her gross estate, and (2) pass as much of his property as possible to their children, which one of the following is an available and advisable postmortem planning technique? a) a section 303 stock redemption b) an election against the will by the wife c) a qtip election by the wife d) a qualified disclaimer
By executing a qualified disclaimer, the wife is able to avoid inclusion of her husband's property in her gross estate and pass as much of his property as possible to their children.
Which one of the following is an available and advisable postmortem planning technique?
A qualified disclaimer by the wife is the best postmortem planning technique in this situation. A qualified disclaimer is a legal way for the wife to refuse to accept the inheritance she has been given, and in doing so, the assets will pass directly to the children. To execute a qualified disclaimer, the wife must meet the following requirements:
1. The wife must make an irrevocable and unqualified refusal of the inheritance within nine months of her husband's death.
2. The wife must not have accepted any of the benefits of the inheritance.
3. The refusal must be in writing and signed by the wife.
4. The refusal must be filed with the court or probate office.
By executing a qualified disclaimer, the wife is able to avoid inclusion of her husband's property in her gross estate and pass as much of his property as possible to their children.
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