Managers usually conduct a SWOT Analysis for a business. A SWOT analysis is a tool for documenting internal strengths (S) and weaknesses (W) in your business, as well as external opportunities (O) and threats (T).
SWOT analysis (or SWOT matrix) is a strategic making plans and strategic management technique used to assist a person or enterprise perceive Strengths, Weaknesses, opportunities, and Threats associated with business opposition or challenge making plans. It's far on occasion called situational evaluation or situational analysis.[1] additional acronyms the usage of the same components consist of TOWS and WOTS-UP. This method is designed to be used within the preliminary ranges of selection-making approaches and may be used as a device for evaluation of the strategic position of agencies of many types (for-earnings establishments, neighborhood and country-wide governments, NGOs, etc.).[4] it is intended to pick out the inner and external factors which are favorable and damaging to reaching the objectives of the task or undertaking.
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"Classify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses.
1. Office accountant salary
2. Wages for retail store salesperson
3. Depreciation (straight-line) on robotic equipment used in assembly
4. Salary of chief executive officer
5. Depreciation on office equipment
6. Advertising campaigns
7. Display screen
8. Assembly-line supervisor salary "
The accounting costs can be classified into different classes as below,
Office accountant salary: general and administrative expensesWages for retail store salesperson: direct laborDepreciation (straight-line) on robotic equipment used in assembly: factory overheadSalary of chief executive officer: direct laborDepreciation on office equipment: general and administrative expensesAdvertising campaigns: selling expensesDisplay screen: direct materialsAssembly-line supervisor salary: general and administrative expensesWhat is the significance of accounting costs?Accounting costs can be referred to or considered as the costs that represent the nature of expenses or outflow of cash or cash equivalents in an organization. These costs can be in position with the nature that they are affiliated to be incurred in the business during an accounting period.
Therefore, the significance regarding accounting costs has been aforementioned.
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Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows:
Thalassines Kataskeves, S.A.
Income Statement—Bilge Pump
For the Quarter Ended March 31
Sales $ 470,000
Variable expenses:
Variable manufacturing expenses $ 123,000
Sales commissions 50,000
Shipping 10,000
Total variable expenses 183,000
Contribution margin 287,000
Fixed expenses:
Advertising (for the bilge pump product line) 23,000
Depreciation of equipment (no resale value) 119,000
General factory overhead 37,000*
Salary of product-line manager 129,000
Insurance on inventories 9,000
Purchasing department 52,000†
Total fixed expenses 369,000
Net operating loss $ (82,000)
*Common costs allocated on the basis of machine-hours.
†Common costs allocated on the basis of sales dollars.
Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company’s total general factory overhead or total Purchasing Department expenses.
What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?
Discontinuing the bilge pump product line will tend to bring about financial disadvantage of $150,000.
Given,
Sales = $470,000
Shipping = $10,000
Total variable expenses = $183,000
Contribution margin = $287,000
Advertising = $23,000
Depreciation of equipment = $119,000
General factory overhead = $37,000
So here, the product line tend to serve as group of products which is thus been marketed under a brand.
To know if it will be a financial disadvantage if discontinuing the bilge pump product line, then we have to calculate the fixed cost.
Thus, the fixed cost savings can be calculated as - [$23,000 + $129,000 + $9,000] = $161,000
So, since the company is at a loss of - $250,000
The contribution margin and the fixed costs saved, which is less [$250,000) - $161,000]
= $89,000
Hence, discontinuing the bilge pump product will bring about financial disadvantage of $89,000.
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Technician A says that a heat gun may be used to remove emblems.
Technician B says that a mixing board is used for mixing paint.
Who is right?
Answer:
The correct answer is Technician A says that a heat gun may be used to remove emblems.
Explanation:
A heat gun can easily remove emblems but a mixing board is not ever used for mixing paint. Its used to play music on a music desk.
MARK ME BRAILIEST PLEASE!!
How would raising the starting pay at amazon affect government leaders? Would they benefit from it and/or be harmed from it?
Answer:
Be Harmed
Explanation:
If you raise starting pay then you are draining more money from the government then usual.
Answer:
Governmnet leaders could be benefited because higher pay means that progressive tax would take affect. Progressive tax means the more money an individual makes, the more taxes they have to pay. Therefore, the government would be making more money on taxes.
Explanation:
Task: Sales and Marketing Activities of a Company
Select a publicly held company that is well-known for marketing its products. Search its
website and procure a few years' sales reports and annual reports, including sales and
revenue graphs. You could choose any Fast Moving Consumer Goods (FMCG), mobile, or
automobile company-or a company dealing in anything else that interests you. Analyze the
company's sales data and revenue figures, and write an essay summarizing the company's
performance over the last few years.
Type your response here:
After analyzing the company's sales data and revenue figures, it is found out that it has good sales in the Fast Moving Consumer Goods (FMCG).
What are Fast Moving Consumer Goods?
Products that sell quickly and at a low price are referred to as fast-moving consumer goods (FMCG), sometimes known as consumer packaged goods (CPG). Examples include non-durable household items including packaged food, drinks, toiletries, candy, cosmetics, over-the-counter medications, dry goods, and other consumables. Fast-moving consumer goods have a high inventory turnover in comparison to specialty items, which have smaller sales and greater carrying costs. Especially in hypermarkets, big box stores, and warehouse club stores, many retailers solely stock FMCGs. Fast moving goods are also stocked at small convenience stores, where they take up more of the limited shelf space. In rural locations, customers often buy things from adjacent towns and villages.
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Think about your future financial needs. Are you hoping to purchase a car? How will you pay for college? In a paragraph of at least three sentences, use the information on these pages to design a savings and investment plan that will help you reach your goals. Be sure to explain which investments you chose and why.
If one is planning to purchase a car or pay for college, then a savings and investment plan to reach these goals would include:
Saving a portion of one's income Investing in stocks Investing in a fixed deposit How to save and invest?When it comes to savings, the most important thing is discipline. One has to program their mind to save a portion of their income every time and then make a commitment not to dip into these savings. If you hope to do things in future, then your future financial needs such as purchasing a car or going to college need this discipline.
Once you have have learned to save a portion of your income, it is best to invest it so that it grows. Investments need to be diversified to reduce risk.
Because the goal of buying a car or paying for college is something that is needed in the near future, an investment with a higher return is needed. In which case it would be best to pick stocks. To balance them out and still make good enough returns, invest in a fixed deposit as well.
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Help me solve (b) please
Qualitative factors include the suppliers' trustworthiness, the quality of its management, and the quality of its products.
For the company to purchase robots from an outside supplier, they need to maintain the trustworthiness with their supplier for their timely delivery and quality assurance.
The company has to look after the quality of the management of the supplier, the management has to be perfect in their working to complete the order on time. And also the quality of the product has to be the major concern for the company as it will affect their brand name and goodwill in the market. These qualitative factors need to be analyzed by the company for taking decision to purchase the product form the outside supplier.
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Assume that today is December 31, 2019, and that the following information applies to Abner Airlines :
After-tax operating income [EBIT(1-T)] for 2020 is expected to be $500 million .
The depreciation expense for 2020 is expected to be $150 million.
The capital expenditures for 2020 are expected to be $375 million
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 4% per year
The required return on equity is 15 %
The WACC is 11%
The firm has $206 million of non- operating assets
The market value of the company's debt is $2.329 billion
300 million shares of stock are outstanding
Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculationsRound your answer the nearest cent
The company's stock price today should be $15.54 per share.
Step 1: Calculation of free cash flowFree Cash Flow (FCF):
= After-tax operating income + Depreciation expenses - Capital expenditure
= $700 + $150 - $375
= $475 million
Calculation of Value of operations (Vo)Vo = FCF / (WACC - FCF growth rate)
Vo = $475 / (11% - 4%)
Vo = $6,785.71 million
Calculation of the Firm valueFirm value:
= Vo + Non-operating assets
= $6,785.71 + $206
= $6,991.71 million
Calculation of value of equityValue of equity:
= Firm value - Debt
= $6,991.71 - $2,329
= $4,662.71 million
Calculation of stock price per share todayStock price per share:
= Value of equity / Number of shares outstanding
= $4,662.71 / 300
= 15.5423666667
= $15.54 per share
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Raw material as an industrial material
Answer:
Raw materials are the input goods or inventory that a company needs to manufacture its products. Examples of raw materials include steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals.
Which of the following is true about the theory of absolute advantage? The theory accepts the mercantilist idea that international trade is a zero-sum game . The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates. The theory measures a nation's wealth by how much gold and silver it has on reserve. The theory approves the objective of national governments to acquire wealth through restrictive trade policies.
The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates.
Absolute advantage is a term used in economics to describe a party's better capacity for output. It specifically means the capacity to create a specific commodity or service for less money (i.e., more effectively) than a rival party.
The Scottish philosopher Adam Smith, who is regarded as the founder of modern economics, originally presented the idea of absolute advantage in the context of international trade in 1776. He made the case that in order for nations to become wealthy, they should specialize in producing the goods and services in which they have a clear advantage and engage in free trade with other nations to market their goods. This was the central thesis of his monumental work, An Inquiry into the Nature and Causes of the Wealth of Nations.
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Assuming interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized? A. The amount capitalized should be the average between the actual and avoidable interest amounts. B. The amount capitalized should be the higher of the actual or avoidable interest amounts. C. The amount capitalized should always be the actual interest amount. D. The amount capitalized should be the lower of the actual or avoidable interest amounts. E. The amount capitalized should always be the avoidable interest amount.
Interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized the amount capitalized should be the higher of the actual or avoidable interest amounts.
Interest rate may be each a legal responsibility and an asset. Prepaid hobby is recorded as a cutting-edge asset whilst hobby that hasn't been paid but is a cutting-edge legal responsibility. Both those line objects may be discovered at the stability sheet, which may be generated out of your accounting software.
To capitalize is to document a value or rate at the stability sheet for the functions of delaying complete reputation of the rate. In general, capitalizing costs is useful as businesses obtaining new belongings with long-time period lifespans can amortize or depreciate the costs. This manner is referred to as capitalization.
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According the a Human Resources report, a worker in the industrial countries
According to a Human Resources report, a worker in industrial countries spends on average 419 minutes a day on the job.
What is human resources?Human resources are the people who make up an organization's, business sector's, industry's, or economy's workforce. A more specific concept is human capital, which refers to the knowledge and skills that individuals possess.
Human resources professionals recruit, screen, and interview job applicants, as well as place newly hired employees in positions. They may also be responsible for compensation and benefits, training, and employee relations.
In this case, it was stated that employees spend about 419 minutes in the job and this was about 7 hours.
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Complete question
According to the Human Resources report, a worker in the industrial countries ........
Equivalent Units of Production The Converting Department of Toren Company had 19,200 units in work in process at the beginning of the period, which were 35% complete. During the period, 86,400 units were completed and transferred to the Packing Department. There were 15,200 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Toren Company Number of Equivalent Units of Production Line Item Description Whole Units Direct Materials Equivalent Units Conversion Equivalent Units Inventory in process, beginning Inventory in process, beginning Inventory in process, beginning Inventory in process, beginning Started and completed Started and completed Started and completed Started and completed Transferred to Packing Department Transferred to Packing Department Transferred to Packing Department Transferred to Packing Department Inventory in process, ending Inventory in process, ending Inventory in process, ending Inventory in process, ending Total Total Total Total
16,800 units and 16,500 units
The computation of the number of equivalent units of production is shown below:
For Materials:
= Transferred units × Completion percentage + ending work in process units × completion percentage
= 14,800 units × 100% + 2,000 units × 100%
= 14,800 units + 2,000 units
= 16,800 units
For Conversion cost:
= Opening work in process units × remaining percentage + Transferred units × Completion percentage + ending work in process units × completion percentage
= 1,200 units × 75% + 14,800 units + 2,000 units × 40%
= 900 units + 14,800 units + 800 units
= 16,500 units
Transferred units is
= 16,000 units - 1,200 units
= 14,800 units
In mathematics, a percentage (from Latin: per centum, "through 100") is more than a few or ratio expressed as a fraction of one hundred. It is often denoted using the percentage sign, "%",[1] even though the abbreviations "pct.", "pct" and every now and then "pc" are also used.[2] A percentage is a dimensionless quantity (natural variety); it has no unit of measurement. As denominations of cash grew inside the middle a while, computations with a denominator of a hundred have become more and more preferred, such that from the late fifteenth century to the early 16th century, it became commonplace for arithmetic texts to include such computations. Many of those texts implemented these techniques to income and loss, hobby quotes, and the rule of 3. By way of the 17th century, it became popular to cite hobby costs in hundredths.[4]
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The original cost of a piece of equipment was $100,000. The equipment was depreciated using the straight-line method with annual depreciation of $20,000. After two years, the fair value of the equipment is $82,000. How much is the book value of the equipment at the end of the second year?.
$60,000 is the book value of the equipment at the end of the second year
What is book value?Book value is equal to the cost of carrying an asset on a company's balance sheet, and firms calculate it netting the asset against its accumulated depreciation. As a result, book value can also be thought of as the net asset value (NAV) of a company, calculated as its total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges, and so on.The net difference between a firm's entire assets and liabilities is the book value of that company. Book value represents the total worth of a company's assets that shareholders would receive if the company were to be liquidated.The book value of an asset is the same as its carrying value on the balance sheet.A company's or asset's book value is frequently less than its market value.Fundamental analysis makes use of the price-to-book (P/B) ratio and book value per share (BVPS).Cost Of Equipment : $100,000
Year one Depreciation : $20,000
Year Two Depreciation : $20,000
Book Value after Second year: $100,000-$20,000- $20,000
=$60,000
Hence, $60,000 is the book value of the equipment at the end of the second year
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The book value of the equipment at the end of the second year is $60,000.
What is book value?Book value is equal to the cost of carrying an asset on a company's balance sheet, and firms calculate it netting the asset against its accumulated depreciation.As a result, book value can also be thought of as the net asset value (NAV) of a company, calculated as its total assets minus intangible assets (patents, goodwill) and liabilities.For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges, and so on.The net difference between a firm's entire assets and liabilities is the book value of that company. Book value represents the total worth of a company's assets that shareholders would receive if the company were to be liquidated.The book value of an asset is the same as its carrying value on the balance sheet.A company's or asset's book value is frequently less than its market value.Fundamental analysis makes use of the price-to-book (P/B) ratio and book value per share (BVPS).
Cost Of Equipment : $100,000
Year one Depreciation : $20,000
Year Two Depreciation : $20,000
Book Value after Second year: $100,000-$20,000- $20,000
=$60,000
Hence, $60,000 is the book value of the equipment at the end of the second year.
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What GAAP principles govern the consolidation of financial statements?
GAAP principles govern the consolidation of financial statement is when one company's ownership interest in a business provides it with a majority of voting power.
In GAAP principles, there are four principles which are the cost principle, the revenue principle, the matching principle, and the disclosure principle. It's a collection of commonly- followed accounting rules and standards for financial reporting.
The basic criteria for filling a consolidation financial statement with subsidiaries is primarily based on the amount of ownership the parent company has in the subsidiary.
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preferred stock that has contractual rights in which the company is obligated to repurchase the stock at a specified future date is called
Mandatorily redeemable preferred stock is preferred stock that has contract rights requiring the corporation to repurchase the stock at a certain future period.
What is preferred stock?Preferred stock is a share capital component that can have any combination of characteristics that common stock does not, including characteristics of both equity and debt instruments. It is generally regarded as a hybrid instrument.
Preferred stocks can take precedence over ordinary stock in the payment of dividends and upon liquidation, but they are junior to bonds in terms of a claim compared to common stock. The articles of association or incorporation of the issuing firm provide information about the preferred stock's terms.
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Who is liable to third parties for damage caused by an agent’s tortious conduct if the principal had directed the agent to take that action?.
Contractual Liability is liable to third parties for damage caused by an agent’s tortious conduct if the principal had directed the agent to take that action.
Contractual Liability :Claims involving breaches of contracts are aided by contractual liability insurance. It protects the risk that a business owner takes on as a result of a contract. For companies that frequently work with contracts, like contractors, contractual liability coverage is crucial. the responsibility of an entity to provide a customer with goods or services for which the entity has been compensated (or for which payment is due).
The failure or refusal of a party to uphold their end of a contract results in contractual liability. They harm others by not fulfilling or only partially fulfilling their obligations. One party's liability when entering into a contract with another party is known as contractual liability insurance.
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What are the six levels of ethical decision making?
Answer:
Know the Facts. Before tackling an ethical issue, clearly define the nature of the challenge.
Identify the Required Information. You don't know what you don't know.
List the Concerns.
Develop Possible Resolutions.
Evaluate the Resolutions.
Recommend an Action.
The six levels of ethical decision-making include the following:
The knowledge levelThe identification levelEvaluation levelSelection levelAssessment levelAdaptation levelWhat is ethical decision-making?Ethical decision-making refers to a system of reaching decisions while considering the moral aspect of things. In the knowledge stage, the individual who wants to make an ethical decision acquaints him or herself with the laws guiding some acts.
ext, they identify the person with the moral issue and ways to handle them. The evaluation step follows for further insight. Selection, assessment, and adaptation of the result obtained will consequently follow.
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a(n) ________ is a commercial organization with a permanent connection to the internet that sells temporary connections to retail subscribers.
An Internet service provider (ISP) is a commercial organization with a permanent connection to the Internet that sells temporary connections to retail subscribers. These connections can be provided by telephone lines, cable lines, or wireless connections.
What is Internet Service Provider?An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned.
Internet services provided by ISPs can include Internet access, Internet transit, domain name registration, web hosting, Usenet service, and colocation. An ISP serves as the access point or gateway that provides its user access to everything available on the Internet.
The ISP include traditional options like copper wires to provide dial-up, DSL, typical asymmetric digital subscriber line (ADSL), cable modem or Integrated Services Digital Network (ISDN). It also provides higher-speed DSL (such as single-pair high-speed digital subscriber line) and Ethernet.
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What qualities or characteristics might lead to the emergence of an innovation desert? Is it always a geographical definition, or could it be defined in other ways?
No, it is not always a geographical definition. It could be on the basis of need of a community to meet the global requirement. Specific populations fall into identical “innovation deserts,” where the population will need to be rooted in entrepreneurialism and technology in order to be at par with the global culture
What is the import of an innovation deserts?An innovation desert enables the development of a disadvantaged community to be at par with the rest of the world through an inclusive innovation economy. The innovation will eradicate “innovation deserts” in a disadvantaged communities, which are most especially the equivalent of food deserts where individuals lack access to fundamental resources to thrive.
Therefore, the correct answer is as given above
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On June 15, 2021, Allen sold land held for investment to Stan for $65,000 and an installment note of $300,000 payable in five equal annual installments beginning on June 15, 2022, plus interest at 10%. Allen’s basis in the land is $255,500. What amount of gain is recognized in 2021 under the installment method?
Using the installment method means that the amount of gain that will be recognized in 2021 is $27,857.14.
How to use the installment method to find gain recognized?When a payment is to be made in installments, then the gain to be recognized in a year can be found by the installment method:
= Profit margin x Amount paid in 2021
The Profit margin can be found by the formula:
= ( Selling price of land - Seller's basis in the land) / Seller's basis in the land
= ( ( 300, 000 + 65, 000) - 255, 500) ) / 255, 500
= 109, 500 / 255, 500
= 42. 857 %
The gain to be recognized on the land sold by Allen to Stan is therefore:
= 42. 857 % x $ 65, 000
= $27,857.14
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The process of setting up the festival requires experience, expertise, and a constant flow of communication among various stakeholders in order to properly coordinate. This is ______ communication, which mcfarland failed at.
The process of setting up the festival requires experience, expertise, and a constant flow of communication among various stakeholders in order to properly coordinate. This is horizontal communication, which mcfarland failed at.
In an organisation, a stakeholder is a member of "groups without whose aid the corporation would cease to exist", as described inside the first utilization of the phrase in a 1963 internal memorandum on the Stanford research Institute. The principle changed into later evolved and championed through R. Edward Freeman in the Nineteen Eighties.
Someone or organization of those who very own a share in a business. someone such as an employee, customer, or citizen who's involved with an enterprise, society, and many others. and consequently has obligations closer to it and an hobby in its fulfillment
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Salaries for physical therapists rise more than salaries for athletic trainers. What will happen in the labor market for athletic trainers?.
The labor supply will decrease, leading to higher wages and fewer hours for trainers to hire.
When the labor supply curve rises, the substitution effect dominates the income effect. His other three questions concern factors leading to shifts in the labor supply curve. In all three cases the situation implies that the labor supply curve shifts to the left. For example, when the real wage rate rises, the opportunity cost of leisure increases. This tends to encourage workers to provide more labor (the "substitution effect"). But even if the real wage rate rises, workers still earn more for a given number of hours.
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What is value and how is it determined and measured? In your opinion, does business generally determine and measure value appropriately? In a free market, what happens when value is not properly assessed by a business and its leaders? Give a historical example and your thoughts about how and why a disconnect occurred. Cite any sources used to support your answer.
Value is known as the monetary or material, or the assessed worth of an asset, good, or service.
"Value" is attached to the myriad of concepts which includes shareholder value or the value of a firm, fair value, and market value. Some of the terms which are well-known business jargon, and some are the formal terms for accounting and auditing standards of reporting to the Securities and Exchange Commission (SEC)
The process of the calculating as well as assigning a value to a company or an asset is a process called valuation.
Value in the real estate refers to worth of any property, whether it is to be a home or land as determined by the amount which the seller and buyer agree upon. Value in the real estate is only determined when the buyer and seller agree upon a price.
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Receptive developmental networks are characterized by _____ ties and ______ diversity.
A receptive developmental networks are characterized by weak ties and low diversity.
What is a receptive developmental networks about?A receptive developmental networks, as related to receptive language in child development, a receptive language tells about how your child understands language. Here, an expressive language refers to how your child uses words to express himself/herself and young children with language difficulties may have a poor eye contact and difficulty interacting with other children.
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Kroger, the largest u. S. Supermarket chain, recently partnered with alibaba, china’s largest e-commerce marketer, to sell kroger’s organic private-branded food products. This distribution arrangement is.
This distribution arrangement is a strategic channels alliance. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom.
A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. Compared to a joint venture, which involves two companies pooling resources to form a new business organization, the arrangement is less intricate and legally enforceable.
A business could form a strategic alliance to increase its market share, enhance its product offering, or gain an advantage over rivals. The agreement enables two businesses to collaborate on a mutually beneficial project.
The partnership could last a short while or be ongoing, and the contract could be formal or informal.
Despite the fact that the strategic alliance may be informal, each member's duties are well-defined.
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Doeren Inc. began constructing a building for its use on January 1, 2022. All costs associated with the construction are being debited to an account called “Construction-in-Progress.” The construction will take approximately 24 months. Weighted-average expenditures for 2022 have already been determined to be $5,000,000.
The company has one specific, as well as two non-specific loan borrowings. Details are as follows:
Specific Loan Borrowing: $4,000,000 loan at 9% taken out 1/1/2022 and due in 2025.
Non-specific Borrowings:
o Note #1: $2,000,000 at 10%. This loan was outstanding for all of 2022 and is due in 2023.
o Note #2: $500,000 at 12%. This loan was outstanding for all of 2022 and is due in 2024.
A) What portion of the interest on all of its loans should be capitalized in 2022?
B) If the company has already accrued and paid the 2022 interest costs on these three loans by debiting “Interest Expense” and crediting “Cash”, what adjusting journal entry should be made on 12/31/22 to capitalize interest in 2022?
Doren inc. has a loan taken to construct a building which directly increases the liabilities of the enterprise.
A loan is an agreement under which the lender allows another party to use the funds in exchange for interest payments and repayment of the funds at the end of the loan agreement. Credit is a necessary part of the financial system as it provides liquidity for businesses and individuals.
A demand loan is a loan that the lender can cancel. When a loan is repaid according to a fixed schedule over a period of time, it is called an installment loan. A line of credit that can be withdrawn and repaid multiple times is called a line of credit. A secured loan contains collateral that the lender can seize if the borrower fails to repay the loan.
Unsecured loans are not tied to any collateral and therefore carry a higher risk of loss for the lender. Because the risk is high, interest rates can be high.
Thus, it is money or other tangible goods that are given to another party in return for future repayment of the value of the loan and interest and other financing costs.
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Why do many businesses incorporate in Delaware?
Federally-chartered banks must belong to the Federal Reserve System.
It is the smallest state in the Union.
The laws are favorable toward businesses.
The government does not require state-chartered banks to belong to the Federal Reserve System.
Many businesses incorporate in Delaware because:
C. The laws are favorable toward businesses.D. The government does not require state-chartered banks to belong to the Federal Reserve System.Why do Companies Incorporate in Delaware?In 2020, the state saw an additional 250,000 new businesses register in the state which pushes the total number of businesses to over 1.6 million. The state become recognized as a corporate paradise and is “home” to such famous firms as Ama-zon, Go-ogle, Tesla, Walmart, American Express, Di-sney etc.
Despite being the second smallest state, it also seem odd that Delaware became the business mecca it is today. Its has been incentivizing businesses to stay with lenient tax policies, reduced restrictions and simplified corporate laws. In conclusion, the key benefits to incorporating in Delaware are tax benefits, privacy, expediency, simplified structure and the corporation court.
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suppose the government raises income taxes, so consumers have less disposable income. this policy action will cause a(n)
If the government raises income taxes, so consumers have less disposable income. this policy action will cause a decrease in aggregate demand.
What is Aggregate Demand?Aggregate Demand is the total of all demands of products and services in an economy, this demand includes the demand for each and every product and or services produced in an economy.
If government raises income tax consumers will have lower disposable income, which they will be spending to purchase goods and services available in the economy, having low disposable income will result in a decrease in aggregate demand. In other words if disposable income is lower the demand for products and services will also reduce.
Another reason for decrease in aggregate demand is that prices are expected to increase in the near future and so the consumers are saving the disposable income.
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the factors necessary to compute depreciation include (cost/selling price/market value) , salvage value and useful life.
When computing depreciation, the factors that are necessary include:
Cost Salvage value Useful life How can you compute depreciation?Depreciation refers to the process by which fixed assets lose value as they progress in their useful life. For instance, if a company buys a truck in Year 1, the truck will keep losing value for as long as the company uses it. This is simply because there will be wear and tear on the truck from being used for so long by the company.
Depreciation helps companies to account for this loss in value, and then charge it as an expense which allows the company to pay less taxes.
Depreciation can be calculated using different methods, depending on the account policy that the company follows, or the legal practices in the country they are in.
For the most part however, a company will need three factors to find annual depreciation which are the cost of the fixed asset, the useful life, and the salvage value.
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Answer:cost
Explanation:
cost
