Answer:
3 years
Explanation:
Under the NASAA Model Rule covering Investment Adviser records, the adviser's articles of incorporation must be retained for a total of 3 years. As stated in Rule 203(a)-2
"Partnership articles and any amendments, articles of incorporation, charters, minute books, and stock certificate books of the investment adviser and of any predecessor, shall be maintained in the principal office of the investment adviser and preserved until at least three years after termination of the enterprise."
On December 31, 2017, Jerome Company has an accounts receivable balance of $316,000 before any year-end adjustments.
The Allowance for Doubtful Accounts has a $1,000 credit balance. The company prepares the following aging schedule for accounts receivable:
Total Balance 1-30 days 31-60 days 61-90 days over 90 days
$316,000 $152,000 $87,000 $50,000 $27,000
Percent uncollectible 1% 2% 3% 21%
What is the Allowance for Uncollectible Accounts at December 31, 2017?
A. $1,000
B. $11,430
C. $9,430
D. $10,43
Answer:
The Allowance for Uncollectible Accounts at December 31, 2017 is $10,430
Explanation:
In order to calculate the Allowance for Uncollectible Accounts at December 31, 2017 we would have to make the following calculation:
Allowance for Uncollectible Accounts at December 31, 2017=Estimated Allowance 1-30 days+Estimated Allowance 31-60 days+Estimated Allowance 61-90 days+Estimated Allowance over 90 days
Estimated Allowance 1-30 days=Balance*% Uncollectible
Estimated Allowance 1-30 days=$152,000*1%=$1,520
Estimated Allowance 31-60 days=$87,000*2%=$1,740
Estimated Allowance 61-90 days=$50,000*3%=$1,500
Estimated Allowance over 90 days=$27,000*21%=$5,670
Allowance for Uncollectible Accounts at December 31, 2017=$1,520+$1,740+$1,500+$5,670
Allowance for Uncollectible Accounts at December 31, 2017=$10,430
The city of Albuquerque, New Mexico, designed a computer-based restaurant recommendation system that helps visitors find a restaurant that needs their particular needs. Visitors answer questions about their preferences for price range, atmosphere, food selections, and location and then receive a list of restaurants that fit those preferences. This is a(n) _______________ system.
Answer:
Expert system
Explanation:
This is an expert system. Such a system is a computer program that follows the behavior of an expert such as helping visitors find a restaurant that needs their particular needs.
Such Expert systems can be useful in solving difficult problems, explaining result, they can be used to learn also.
A municipal bond carries a coupon rate of 5.45% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 30% combined tax bracket?
Answer:
7.78%
Explanation:
Equivalent taxable yield can be calculated as follows
Equivalent taxable yield = Coupon rate / 1 - Tax Rate
Equivalent taxable yield= 5.45%/ 1 - 30% x 100
Equivalent taxable yield = 7.78%
Howard Cho has been hired by Greenwood Enterprises to work on an assembly line in its small engine division. He understands that he will be on probation for 30 days and then must join the union. Cho Enterprise has a(n)_________ shop.
Answer: Union
Explanation:
The options to the question,:
A Open
B. Managed
C. Union
D. Closed
E. Agency
From the question, we are informed that Howard Cho has been hired by Greenwood Enterprises to work on an assembly line in its small engine division and that he understands that he will be on probation for 30 days and then must join the union. This implies that Cho enterprise has a union shop.
A union shop is a form of a union security clause whereby the employer may employ workers who are into the union or those who don't but those that are not yet union members will have to join after a 30 days period.
The specifications for a plastic liner for a concrete highway project calls for thickness of 5.0 mmplus or minus±0.10 mm. The standard deviation of the process is estimated to be 0.02 mm.  
The upper specification limit for this product​ = ? mm ​(round your response to three decimal​places).
The lower specification limit for this product = ? mm (round to three decimal palces)
The process capability index (CPk) = ? (round to three decimal places)
The upper specification lies about ? standard deviations from the centerline (mean thickness)
Answer and Explanation:
The computation is shown below:
Upper specification limit is
= 5 + 0.1
= 5.1 mm
Lower specification limit is
= 5- 0.1
= 4.9 mm
The process cabability index is
= min(USL - mean ÷ 3 × standard deviation , mean - LSL ÷ 3 × standard deviation)
= min((0.1 ÷ 3 ×0.02) , (0.1 ÷ 3 × 0.02))
= min(1.67,1.67)
= 1.67
Since Upper specification is 5.1 mm
And, the Mean line is 5 mm
So, the upper specification lies at a distance for
= 5.1 - 5
= 0.1 mm
Standard deviation is 0.02 mm
Hence, upper specification lies at
= 0.1 ÷ 0.02
= 5
This standard deviation from the means
As a firm buys more capital and less labor, the marginal physical product of capital __________ and the marginal physical product of labor __________, assuming the law of diminishing marginal returns has set in for each factor.
Answer:
As a firm buys more capital and less labor, the marginal physical product of capital ___decreases_______ and the marginal physical product of labor ___increases______, assuming the law of diminishing marginal returns has set in for each factor.
Explanation:
In Economics, the law of diminishing returns states that when one production input is increased while the other input is held constant, the marginal production per the increasing input will decrease relatively to the marginal production of the fixed input.
Effectively, this economic law recognizes that increasing one input while allowing the other inputs to be constant will produce diminishing increase in total output. This law is also called the principle of diminishing marginal productivity. It is very helpful in decision making to enable management balance production inputs in order to achieve maximum outcomes.
Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed, with a mean of $150 and a standard deviation of $25.
a. If the company offers the service contract to customers for a yearly charge of $200, what is the probability that any one customer’s service costs will exceed the contract price of $200?
b. What is Ward’s expected profit per service contract?
Answer:
a. The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. Warda expected profit per service contract is $50
Explanation:
a. In order to calculate the probability that any one customers service costs will exceed the contract price of $200 we would have to calculate first the z value as follows:
z=x-μ/σ
z=$200-$150/$25
z=2
Therefore, probability that any one customers service costs will exceed the contract price of $200 is p(x>$200)=p(z>2)
=1-p(z≤2)
=1-0.9772
=0.0228
The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. To calculate Warda expected profit per service contract we would have to make the following calculation:
Warda expected profit per service contract=service charge per contract-expected cost
Warda expected profit per service contract=$200-$150
Warda expected profit per service contract=$50
Warda expected profit per service contract is $50
The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine-hours in Department B. At the beginning of the year, the Corporation made the following estimates: Department A Department B Direct labor cost $ 60,000 $ 40,000 Manufacturing overhead $ 90,000 $ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 2,000 15,000 What predetermined overhead rates would be used in Department A and Department B, respectively?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Department A:
Direct labor cost= $60,000
Manufacturing overhead= $90,000
Department B:
Manufacturing overhead= $45,000
Machine-hours= 2,000
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
Department A:
Predetermined manufacturing overhead rate= 90,000/60,000
Predetermined manufacturing overhead rate= $1.5 per direct labor dollar
Department B:
Predetermined manufacturing overhead rate= 45,000/2,000= $22.4 per machine-hour
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4%, 5%, and 6% over each of the next three years, what is the interest rate on a three-year bond if the liquidity premium on a three-year bond is 0.5%
Answer:
Interest rate on the a three year bond =5.5%
Explanation:
one-year bond rate expected = 4%, 5%, 6% for the next three years
liquidity premium on a three year bond = 0.5%
number of years = 3
The interest rate on the a three year bond can be calculated as
= liquidity premium + ( summation of bond rates for the next three years/number of years )
= 0.5 + ( (4+5+6)/3)
= 0.5 + ( 15/3)
= 0.5 + 5 = 5.5%
The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each, to work in process is Group of answer choices Work in Process 4,000 Materials 4,000 Work in Process 4,000 Factory Overhead 4,000 Work in Process 4,000 Cash 4,000 Materials 4,000 Work in Process 4,000
Answer:
The correct option is:
Work in Process 4,000 Materials 4,000
Explanation:
The total cost of the part= $2.50*1,600 units
The total cost of the part=$4,000
Going by the rule of the double which requires receiving account to debited while giving account is credited, we debit work-in-process with $4,000 while materials(inventory in the balance sheet) is credited with the same amount of $4,000.
12. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. what is its P/E ratio
Answer:
P/E Ratio = 12x or 12 times
Explanation:
We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.
P/E = Price per share / Earnings per share
We already have EPS. We need to calculate the price per share.
It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,
M/B = Market price per share / Book value per share
1.2 = Market price per share / 20
20 * 1.2 = Market price per share
Market price per share = $24
So, P/E ratio = 24 / 2
P/E Ratio = 12x or 12 times
Data from the financial statements of Crafty Crafts and Hobbies, Inc. are presented below (in millions): Crafty Crafts Hobbies, Inc. Total liabilities, 2016 $31,957 $25,461 Total liabilities, 2015 36,104 30,046 Total assets, 2016 46,186 32,872 Total assets, 2015 46,514 35,208 Net sales, 2016 161,466 81,702 Net income, 2016 1,040 1,766 To the nearest hundredth of a percent, what is the 2016 return on assets ratio for Crafty Crafts
Answer:
Crafty Crafts:
Return on Assets Ratio = Net Income/Average Assets x 100
= $1,040/46,350 x 100
= 2.2%
Explanation:
a) Data
Crafty Crafts Hobbies, Inc.
Total liabilities, 2016 $31,957 $25,461
Total liabilities, 2015 36,104 30,046
Total assets, 2016 46,186 32,872
Total assets, 2015 46,514 35,208
Net sales, 2016 161,466 81,702
Net income, 2016 1,040 1,766
b) Average Assets:
Crafty Crafts = (2016 + 2015 assets)/2 = ($46,186 + 46,514)/2 = $46,350
c) The Return on Assets Ratio: This financial performance ratio shows how much of the earnings is generated from the assets of the company in a particular period. It shows the efficiency of management to generate profit from the assets. Usually, the average assets value is used to even the variations over the period.
Indicate whether each scenario wll affect the GDP deflator or the CPI for the United States,
Shows up in the.
GDP Scenario
A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
An increase in the price of a German-made phone that is popular among U.S. consumers Deflator CPI.
Answer:
1st scenario shows the GDP deflator and second shows the CPI.
Explanation:
The consumer price index (CPI) is determined by dividing the market price of commodities (basket) with the base year prices of that basket or commodity and then multiply with a hundred. The CPI reflects only the price of goods and services brought by the consumer.
Therefore, the first scenario price of a treewood is the GDP deflator and the second scenario is CPI.
g "If a product sells for $22, variable costs are $12 and fixed costs are $280,000, what would total sales have to be in order to break-even?"
Answer:
$616,061
Explanation:
The computation of the break even sales is shown below:
As we know that
Break even point = (Fixed expenses) ÷ (Profit volume Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $22 - $12
= $10
And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100
So, the Profit volume ratio = (10) ÷ (22) × 100 = 45.45%
And, the fixed expenses is $280,000
Now put these values to the above formula
So, the value would equal to
= ($280,000) ÷ (45.45%)
= $616,061
Tuliptime, Inc. sold American fashions to a Japanese company at a price of 3.3 million yen. On the sale date, the exchange rate was $0.01 per Japanese yen, but when Tuliptime received payment from its customer, the exchange rate was $0.0103 per yen. When the foreign receivable was collected, Tuliptime:_______A. Credited Sales for $1,170.
B. Credited Gain on Fluctuation of Foreign Currency for $1,170.
C. Debited Loss on Fluctuation of Foreign Currency for $1,170.
D. Debited Cash for $39,000.
Answer:
B. Credited Gain on fluctuation of foreign currency for $1,170
Explanation:
The journal entry to record the collection of foreign receivables is provided
Account Titles and Explanation Debit Credit
Cash 40,170
(3,900,000 * 0.0103)
Foreign reserve 39,000
(3,900,000 * 0.01)
Gain of fluctuation of foreign currency 1,170
(3,900,000 * 0.0003)
Hence, the correct option is Credited Gain on fluctuation of foreign currency for $1,170
Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a:
Answer and Explanation:
The Journal entry is shown below:-
Work in progress Dr, $24,000
To Manufacturing Overhead $24,000
(Being the overhead assigned is recorded)
For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead
Working note
Overhead amount = (Milling Department + Cutting department) × Overhead rate
= (1,800 + 3,000) × $5
= $4,800 × $5
= $24,000
Brokers and sales agents who submit required criminal background information and fingerprints to TREC when seeking their original license:________.
Answer: Will Make sane submission when their liscence is expired
Explanation:
Institutions are very careful this days with documents and information they receive from organization, and so advise this organizations to file in their criminal records so they know what they have done and can track whatever sheddy deals they did in the past. This process is also carried out when renewing liscence.
g "A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of: "
Answer:
$125,714
Explanation:
Calculation for A company margin of safety
Using this formula
Margin of safety =Operating net income ÷contribution margin ratio
Let plug in the formula
Margin of safety =$88,000 ÷ 0.70
Margin of safety= $125,714
Therefore A company margin of safety will be $125,714
Prior to liquidating their partnership, Perkins and Brooks had capital accounts of $17,000 and $26,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $52,000. The partnership had $2,000 of liabilities. Perkins and Brooks share income and losses equally. Determine the amount received by Perkins as a final distribution from liquidation of the partnership.
Answer:
The amount received by Perkins as a final distribution from liquidation of the partnership is $65,500
Explanation:
In order to calculate the amount received by Perkins as a final distribution from liquidation of the partnership we would have to make the following calculation:
amount received by Perkins as a final distribution from liquidation of the partnership=Perkins share of profit+Perkins capital account balance
Perkins capital account balance=$17,000
To calculate Perkins share of profit we would have to calculate the profit on liquidation as follows:
profit on liquidation=carrying value of non-cash asset prior to liquidation+sale of asset
carrying value of non-cash asset prior to liquidation=Perkins and Brooks capital accounts+partnership labilities
carrying value of non-cash asset prior to liquidation=$17,000 + $26,000 +$2,000=$45,000
Hence, profit on liquidation=$45,000+$52,000
profit on liquidation=$97,000
As Perkins and Brooks share income and losses equally, Perkins share of profit=$97,000*50%
Perkins share of profit=$48,500
Therefore, amount received by Perkins as a final distribution from liquidation of the partnership=$48,500+$17,000
amount received by Perkins as a final distribution from liquidation of the partnership=$65,500
The amount received by Perkins as a final distribution from liquidation of the partnership is $65,500
Suppose that in 2017, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of $110 per book and enrolled in 30 credit hours of coursework at a price of $350 per credit hour. In 2018, the typical student continued to purchase 10 textbooks and enroll in 30 credit hours, but the price of a textbook rose to $120 per book, and the tuition price increased to $390 per credit hour. The base year for computing a "student price index" using this information is 2017.
Required:
What is the value of the student price index in 2017? In 2018? Show your work.
Answer:
2017 Price Index is 1002018 Price Index is 111Explanation:
The Price Index for any given Base year is always 100. 2017 is staed to be the base year so it's price index is 100.
2018
The Student Price Index can be calculated using the formula;
SPI = [tex]\frac{cost of basket of goods in the year of interest}{Cost of the basket of goods in the base year} * 100[/tex]
= [tex]\frac{(10 * 120) + (30* 390)}{(10 * 110) + (30 * 350)}[/tex] * 100
= [tex]\frac{12,900}{11,600} * 100[/tex]
= 111.21
= 111
Stoneheart Group is expected to pay a dividend of $3.23 next year. The company's dividend growth rate is expected to be 3.6 percent indefinitely and investors require a return of 12 percent on the company's stock. What is the stock price?
Answer:
$38.45
Explanation:
Data provided
Next year dividend = $3.23
Required rate of return = $12%
Growth rate = 3.6%
The solution of the stock price is shown below:-
Stock price = Next year dividend ÷ (Required rate of return - Growth rate)
= $3.23 ÷ (12% - 3.6%)
= $38.45
So, we have solved the stock price with the help of above formula.
Jane and Brad both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jane focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Brad can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Part 1. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production?
A. Jane has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
B. Jane has an absolute advantage in both coffee and nuts.
C. Brad has an absolute advantage in both coffee and nuts.
D. Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts.
Part 2. a. What is the opportunity cost for Jane to produce one more pound of nuts? pounds of coffee
b. What is the opportunity cost for Jane to produce one more pound of coffee? pounds of nuts
c. What is the opportunity cost for Brad to produce one more pound of nuts? pounds of coffee
d. What is the opportunity cost for Brad to produce one more pound of coffee? pounds of nuts
Part 3. Who has a comparative advantage in nut production? Who has a comparative advantage in coffee production?
A. Brad has a comparative advantage in both coffee and nut production.
B. Jane has a comparative advantage in both coffee and nut production.
C. Brad has a comparative advantage in nut production, and Jane has a comparative advantange in coffee production.
D. Jane has a comparative advantage in nut production, and Brad has a comparative advantange in coffee production.
From the information given above, it can be ascertained that Jane and Brad are competitors, and that Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts. Therefore, the option D holds true.
What is the significance of absolute advantage?An absolute advantage can be referred to or considered as the advantage that a firm has over others in an economy owing to multiple factors with respect to production, supplying, and distribution and other such activities.
In a condition given above, Brad has a productivity more than Jane in terms of coffee, while Jane has better productivity over Brad in terms of beans. They both have absolute advantage where they have better rate of production compared to their competitors.
Therefore, the option D holds true and states regarding the significance of absolute advantage.
Learn more about absolute advantage here:
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The complete and precise question has been added below for better reference.
Jane and Brad both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jane focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Brad can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Part 1. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production?
A. Jane has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
B. Jane has an absolute advantage in both coffee and nuts.
C. Brad has an absolute advantage in both coffee and nuts.
D. Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts.
A 1,000 loan is to be repaid with equal payments at the end of each year for 20 years. The principal portion of the 13th payment is 1.5 times the principal portion of the 5th payment. Calculate the total amount of interest paid on the loan
Answer:
$632
Explanation:
using an excel spreadsheet I prepared an amortization schedule
The interest charged was 5.2% per year and the yearly payment will be $81.60. The principal portion of the fifth payment = $36.25 and the principal portion of the thirteenth payment = $54.38 (1.5 times the principal paid at the end of year 5).
total interests paid = $632
For each of the following entities, identify if the entity would be governed by GASB standards by selecting a "G", FASB standards by selecting an "F", or FASAB standards by selecting an "FB". (Hint: Search the website of the entity listed if you are unsure.)
1. Your university
2. Department of Defense
3. American Institute of Certified Public Accountants
4. The county in which you live
5. Internal Revenue Service
6. Mayo Clinic
7. New York City
8. American Cancer Society
9. Metropolitan Washington Airports Authority (operates the Washingtorn, DC, airports)
10.The Metropolitan Museum of Art, New York City
Answer:
1. Your university: F
2. Department of Defense: FB
3. American Institute of Certified Public Accountants: F
4. The county in which you live: G
5. Internal Revenue Service: FB
6. Mayo Clinic: F
7. New York City: G
8. American Cancer Society: F
9. Metropolitan Washington Airports Authority (operates the Washingtorn, DC, airports): G
10.The Metropolitan Museum of Art, New York City: F
Explanation:
GASB is an acronym for Government Accounting Standards Board (GASB) and it's mainly a private, non-governmental organization (NGO) that is saddled with the responsibility of developing and creating reporting standards used in accounting such as the Generally Accepted Accounting Principles (GAAP) for local and state government in the United States of America since 1984.
FASB is an acronym for Financial Accounting Standards Board (FASB) and it's an autonomous non-profit agency which through the use of Generally Accepted Accounting Principles (GAAP), is saddled with the responsibility of establishing and maintaining accounting and financial reporting standards for all firms, business enterprises, and as well as nonprofit organizations doing business in the United States of America. It has its headquarter in Norwalk, Connecticut, United States and was founded in 1973.
FASAB is an acronym for Federal Accounting Standards Board (FASAB) and it's a federal advisory committee which is solely responsible for the development of accounting standards for government agencies in the United States of America. It also is responsible for setting the Generally Accepted Accounting Principles (GAAP).
It has its headquarter in Washington DC and was founded in October 1990.
During the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:
Answer: deduct the check amount from the bank balance
Explanation:
From the question, we are informed that during the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account but the check did not clear the bank during July.
Since we are told that the check did not clear the bank in July, when preparing the July 31 bank reconciliation, the company should make sure that the amount on the check is deducted from the balance of the bank.
A company has net income of $182,000, a profit margin of 10.00 percent, and an accounts receivable balance of $106,201. Assuming 75 percent of sales are on credit, what is the company's days' sales in receivables?
Answer:373
Explanation:
i think it is beause you do youe calater
Short-run aggregate supply is down sloping because producers supply less at higher prices. is up sloping because producers supply less at higher prices. shows how much Americans are willing and able to consume at each price level. shows the various amounts that producers are willing and able to produce at each price level. is up sloping because consumers demand more at higher prices.
Answer:
The correct answer is the fourth option: Shows the various amounts that producers are willing and able to produce at each price level.
Explanation:
To begin with, the concept of the "aggregate supply" represents in the economy field the total amount of output, understood as goods and services, that producers are willing and able to produce and sell at a stated price level in a certain amount of time. This term also involve three different time situations in which the short run aggregate supply curve is the one that is upward sloping because there is a relationship between the amount of the output that the sellers want to sell and the price of it.
Define business inventories and explain how they are counted in GDP.
Answer:
Business Inventories refer to the excess of goods produced over goods sold. In a given year, final goods and services are produced for sale so they are consumed. However, not all of these goods are consumed with the rest being consumed in another period. These goods that were not sold for consumption will then fall under Business Inventories.
When accounting for them in GDP, only the increase in Inventory is added. This way the inventory is accounted for in the year that it was produced in. Specifically speaking, Inventories fall under the Investment component of GDP and is typically referred to as Inventory Investment.
Why would bankers need to see the business plan?
You are developing the project charter for a new project. Which of the following
is NOT part of the enterprise environmental factors?
✓
A) Lessons learned from previous projects
B) The work authorization system
C) Government and industry standards that affect your project
D) Knowledge of which departments in your company typically work on projects
Answer: A) Lessons learned from previous projects
Explanation:
Enterprise Environmental Factors (EEF) refers to all environmental factors that have a say in whether a project is successful or not. They include both internal factors such as company infrastructure, knowledge and capability (departments with the knowledge on project design and implementation) and internal project authorization systems as well as external factors such as Government standards and market conditions.
Lessons learned from previous projects, while important, are not included in this list and are not Enterprise Environmental Factors.