Taxable income is often reduced in the year when transaction exposure losses are recognized. Over several years, operations exposure losses may lower taxes.
How much money is subject to taxation?The gross income cutoff for reporting taxes ranges from $12,550 to $28,500 for the 2022 tax year, depending on your aged, filing status, and dependents. If you earn $400 or so more in self-employment, you must record your earnings and submit taxes.
How can I tell if the money I make is taxable?Salaries, wages, bonuses, and other compensation are all included in the taxable income, which also includes unpaid and investment income. This sum will also be used to calculate your tax due.
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Casualty gains and losses from business or investment property:
a. Are subject to the 10 percent of adjusted gross income limitation.
b. Are not subject to the depreciation recapture provisions.
c. May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year
. d. Are treated the same as casualty gains and losses from personal property.
Casualty gains and losses from business or investment property:
C). May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year.
How do casualty losses work?A casualty loss can be the consequence of your property being damaged, destroyed, or lost due to any abrupt, unforeseen, or uncommon catastrophe, such as a flood, storm, tornado, fire, earthquake, or volcanic eruption. Normal wear and tear or degeneration that occurs over time are not considered casualties.
The terms federal casualty losses, disaster losses, and qualifying disaster losses relate to catastrophes that have been officially declared by the federal government. Each loss has different needs. Consult Publication547 or the instructions for Form 4684 for further details.
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Not using a credit card to pay for purchases online while using a public computer can help prevent what?
Select one:
O
O
O
O
a. Identity theft
b. Overspending
c. Bad credit
d. All of the above
When initiating a business call, it is important to open with the most important issue to be discussed. True/False
Answer:
A) True
Clarification:
Moral learning can be viewed as an instructive recommendation that has the reason for planning understudies to respect their future working life, through delivering help to obtain abilities that will give them enablement to play out their callings with obligation as well as independence.
Business morals can be viewed as an investigation of required business strategies as well as strategic policies. The subject expected to learn could include could be corporate social responsibility, corporate administration, and others. It ought to be noticed that Morals Figuring out how to perceive moral issues is the main move toward grasping business morals.
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assume that the following are independent situations recently reported in the wall street journal. 1 general electric (ge) 7% bonds, maturing january 28, 2023, were issued at 111.12. boeing 7% bonds, maturing september 24, 2037, were issued at 99.08. were ge and boeing bonds issued at a premium or a discount? the general electric bonds were issued at a and the boeing bonds were issued at a etextbook and media list of accounts prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $800,000 of bonds in total. (credit account titles are automatically indented when amount is entered. do not indent manually) no. account titles and explanation debit credit etextbook and media
(a)Which price did GE and Boeing bonds sell for when they were issued?
GE: Premium
Boeing: Discount
(b): How is it possible for bonds to be issued at different prices although both paying the same contractual interest rate?
Due to the fact that bond prices are dependent on the market rate of interest rather than the stated rate of interest, the two bonds' prices are different.
Since the selling prices of the two bonds varied, it follows that the market interest rates at the time of their issuance must have been different.
C): Assuming that each firm issued a total of $740,000 in bonds, prepare the journal entry to document the issuance of each of these two bonds.
1.Cash (111.40% X $740,000) =$824,360
Bonds Payable 740,000
824,360-740,000= 84,360
Premium on Bonds Payable is $84,350
2.Cash (98.70% X $740,000) =730,380
Discount on Bonds Payable $9,620
730,380+9,620= $740,000
Bonds payable is $740,000
Is Boeing a reliable bond?However, investment firms do not believe Boeing to be a particularly alluring prospect. Moody's rates Boeing's credit as being two categories above junk, while S&P Global rates it only one notch above trash, according to Barrons. As a result, investors will probably make tough concessions when purchasing Boeing's bonds.
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________ uses price points to establish prices that help create the impression that the product is less expensive than it is.(1) Psychological pricing(2) Everyday low pricing (EDLP)(3) Bundling(4) High-low pricing(1) Psychological pricing
Psychological pricing uses price points to establish prices that help create the impression that the product is less expensive than it is.
Option 1 is correct .
Psychological pricing :The use of pricing to sway a customer's purchasing decisions or spending patterns is known as psychological pricing.The objective is to satisfy a customer's psychological need, whether that need is to save money, invest in the best product, or receive a "good deal."
The benefits of psychological pricing :The reality that buyers don't always know what something should cost is exploited by psychological pricing. The most common ways we may tell if something is a good deal are to buy it for less than it would normally cost or to compare it to similar items in the same category.
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Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock:
Common stock, $14 par value, 99,100 shares authorized
Preferred stock, $46 par value, 8 percent, 59,300 shares authorized
During January and February of this year, the following stock transactions were completed:
a. Sold 78,900 shares of common stock at $28 cash per share.
b. Sold 20,000 shares of preferred stock at $79 cash per share.
c. Bought 5,100 shares of common stock from a current stockholder for $16 cash per share.
Net income for the year was $90,400; cash dividends declared and paid at year-end were $31,200.
Question:
Prepare the stockholders' equity section of the balance sheet at the end of the year.
Stockholder's equity will be equal to $3766800, considering the value of common stock, preferred stock, additional capital and retained earnings.
common stock = $14*78,900 = $1,104,600
Preferred stock = $46*20,000 = $920,000
Add: additional paid in capital (78900 * $14 +20000 * $33) = $ 1764600
Add: retained earnings ($90400-$31200) = $59200
Less: treasury stock (5100 * $16) = $81600
Stockholder's equity = $3766800
Equity, also known as shareholders' equity or owners' shares for privately owned businesses, is the quantity of cash which would remain in the hands of a company's shareholders in the event that all of those assets were sold off and its liabilities were fully settled. It is the worth of sales revenue less any obligations owing by the company that were not transmitted with sale inside the case of an acquisition.
Additionally, a company's book value may be represented through shareholder equity. Equity may sometimes be given in exchange for cash. Additionally, it symbolizes the proportionate holding of a company's equity.
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TRUE/FALSE. the addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.
The statement that the addition of creative benefits for employees provides organizations with a competitive edge in employee retention is True.
How can companies retain employees ?There are several ways to retain employees and one of them is to offer creative benefits to employees that other companies don't. This gives a competitive edge in both retaining and acquiring employees.
Every time, HR teams and department managers should exert every effort to manage staff in a way that promotes employee retention. Employees with tenure know how to accomplish tasks, are familiar with your business's workings, and—most importantly—know one another.
On the other hand, finding and hiring new personnel might be extremely expensive. In fact, according to a survey from The Society for Human Resource Management (SHRM), a business will typically spend 6 to 9 months of an employee's compensation on finding, hiring, and onboarding a new team member.
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od techniques for dealing with intergroup problems include . third-party consultation organization mirror intergroup team building all of the above none of the above
Organizational development techniques for dealing with intergroup problems include all of the options like team building, third-party consultation etc.
Organizational development (OD) aims to assist organizations in increasing their effectiveness and achieving their objectives. Third-party consultation entails using an outside mediator to help groups within an organization communicate and solve problems. This can be useful when there are persistent disputes or misunderstandings among groups that are challenging to settle on one's own. Organization mirror is a procedure where a group of consultants work with a company to find and fix problems that might be preventing it from being effective.
Analyzing organizational structures and procedures as well as fostering interaction and cooperation between various sections within the organization can be part of this. Intergroup team building involves bringing together representatives from different groups within an organization to work together on a specific project or task. This can help to build trust and understanding between groups and can be an effective way to address intergroup conflicts or misunderstandings.
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they were producing more crops than needed, fewer were needed overseas because of the tariff war, prohibition led to 90 percent fall in barley, and changing tastes in food in america. this lead to a 25 percent decline in demand for wheat and farm income fell from 22 billion to 13 billion
this lead to a 25 percent decline in demand for wheat and farm income fell from 22 billion to 13 billion.
A consumer's desire to buy products and services and willingness to pay a certain price for them are two aspects of demand, an economic notion. When a product or service's price goes up, less people will typically buy it. In a similar vein, a rise in demand will follow a fall in a product or service's price. Demand is a concept that both customers and businesses are highly familiar with because it is logical and happens frequently throughout the course of almost any day. When a product's pricing is low, for instance, shoppers who are keeping an eye on it will purchase more of it. Customers buy fewer items or maybe even nothing at all when anything happens to raise the pricing, such a change in season.
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If aggregate demand is growing faster than long run aggregate supply, the Federal Reserve is most likely to
(A) sell securities on the open market
(B) increase bond prices
(C) increase income taxes
(D) decrease the discount rate
(E) decrease the required reserve ratio
If aggregate demand is growing faster than long run aggregate supply, the Federal Reserve is most likely to - sell securities on the open market.
What does the Federal Reserve simply do?
The Federal Reserve offers the USA a reliable, flexible, and secure financial and monetary instrument. The Fed's most significant responsibilities are providing financial services, preserving economic equilibrium, monitoring and regulating banks, and providing nationwide monetary coverage.
The Federal Reserve, sometimes known as the Fed, is the most effective economic organisation in the USA and arguably the whole world. Its primary responsibilities include maintaining the money supply, setting hobby quotations, and controlling the economy's markets.
The Federal Reserve is not supported by funds from Congress. Its operations are typically funded by interest gained on the securities it owns, which were acquired as a result of the Federal Reserve's open market operations.
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tanya is an independent truck driver who delivers cargo all around the country. for tanya, she and her truck are:
Tanya is an independent truck driver who delivers cargo all around the country. For Tanya, she and her truck are complementary inputs in the production.
Truck drivers are an essential part of the transportation industry. They transport goods and materials all over the country, keeping the economy moving. Truck driving is a demanding job, requiring long hours on the road and careful attention to detail.
Drivers must be safe and efficient to succeed in this career. In some cases, truck drivers may also be responsible for loading and unloading their cargo. Truck drivers typically work long hours and may be required to travel for extended periods of time.
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in comparison to investment portfolios comprised entirely of corporate stocks and bonds, portfolios which include some form of real estate investment tend to offer higher returns for the same level of risk.
True, in comparison to investment portfolios comprised entirely of corporate stocks and bonds, portfolios which include some form of real estate investment tend to offer higher returns for the same level of risk.
What is investment ?An investment refers to an asset purchased for income appreciation. Valuation refers to the increase in value of an asset over time. When a person purchases a commodity as an investment, the intention is not to consume the commodity, but to use it to create wealth in the future. He one of the best ways for beginners to learn how to invest in stocks is to deposit money into an online investment account. This account can be used to invest in stocks and equity funds. Many brokerage accounts allow you to start investing with as little as one share. Investing is an effective way to invest money and potentially build wealth. With smart investments, investment may decrease inflation and increase in value. The huge growth potential of an investment is largely due to the power of compound interest and the risk/return trade-off.To learn more about investment from the given link:
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Question:
T or F? In comparison to portfolios comprised entirely of corporate stocks and bonds, investment portfolios which include some form of real estate investment tend to offer lower levels of risk for equivalent returns.
FILL IN THE BLANK. aggregate supply curves are___for low levels of output, and___for high levels of output.
For low levels of output, aggregate supply curves are comparatively flat; for high levels of output, they are comparatively steep.
What is aggregate supply?The total amount of merchandise that businesses will produce and sell is known as aggregate supply, or real GDP. The positive association between price level and real GDP in the short run is demonstrated by the upward-sloping aggregate supply curve, also known as the short run aggregate supply curve.
Price, time, employer remuneration, technical breakthroughs, inflation and deflation, governmental rules, and the availability of resources are some of the variables that influence the aggregate supply curves.
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Which one of the following expenditures for retirees is likely to increase?
A. insurance
B. federal income taxes
C. clothing expenses
D. workrelated expenses
E. provincial income taxes
Insurance is an expenditures for retirees is likely to increase. The deductible, policy limit, and premium are the three main parts of most insurance contracts.
A contract (policy) referred to as insurance is one in which an insurer indemnifies a third party against losses resulting from particular calamities or hazards.There are numerous varieties of insurance plans. The most popular types of insurance are life, health, auto, and homeowners.Businesses need particular insurance coverage that protects them from risks that pertain only to their particular industry. For instance, a fast-food restaurant needs a policy that protects against harm or damage that results from using a deep fryer to prepare food. While an auto dealer is not at risk for this kind of mishap, they must have insurance to cover any harm that might be caused during test drives.Learn more about Insurance, here
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In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe.The clerk is engaged in:A)market researchB)personal sellingC)institutional sellingD)sales promotionE)services marketing
In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe. The clerk is engaged in personal selling. So, option (b) is relevant.
Give a brief account on personal selling.Personal selling is a face-to-face selling method in which a salesman uses their interpersonal abilities to influence a consumer into purchasing a specific product. To persuade the consumer that the product will only bring value, the salesperson tries to emphasize a variety of its qualities. Personal selling does not always have the goal of convincing a customer to purchase a product. To inform clients of a new product, businesses frequently try to adopt this strategy.
The business uses a person-to-person strategy to promote its product and create knowledge of it. A salesperson is better at pitching a product to a potential consumer because selling requires a human touch.
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T/F ohn decided to buy a new maytag washing machine despite the fact that it was more expensive than other brands
Money due maturing technique It gauges the remittance for dubious records by duplicating the records receivable by the proper rate for the maturing time frame and afterward adds those two sums together. For instance: 2,000 x 0.10 = 200.
What is the allowance entry in the journal?
Method of Allowance: Journal Entries (Debit and Credit) The allowance method uses adjusting entries to write off certain customer accounts that have been determined to be uncollectible in order to estimate the cost of "bad debt" toward the end of a period.
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mncs have invested in china multiple choice by lower material costs. by lower labor costs. all of the options by a desire to preempt the entry of rivals into china's potentially huge market.
Option D is correct (All of the options). MNCs have invested in China -
A. by lower material costs.
B. by lower labor costs.
C. by a desire to preempt the entry of rivals into China's potentially huge market.
China will stay a hot investment destination for global partnerships looking to grow producing and imaginative organizations before very long, expressed leaders of unfamiliar organizations on Tuesday.
MNCs, they said, will incline toward China on account of its profoundly thought supply chains, close worldwide linkages and rewarding homegrown market.
Regardless of difficulties brought about by the Omicron variation of Coronavirus in specific urban communities, particularly during the subsequent quarter, China's Gross domestic product extended 2.5 percent in the main portion of this current year, showing that impermanent financial disturbances won't sabotage the country's capacity to draw in worldwide financial backers over the long haul, they said.
Many regions of the planet are confronting episodes of unpredictability because of the Russia-Ukraine struggle, taking off food and energy costs, and a drowsy financial recuperation. Conversely, China has been reinforced by strong financial establishment and versatility. The nation has to a great extent kept its purchaser costs stable and worked with the activity of worldwide stock chains in the primary portion of this current year, said Chen Wenling, boss financial expert of the Beijing-based China Community for Global Monetary Trades.
As per the Ministry of Commerce, foreign direct investment in the Chinese mainland, in real use, extended 17.3 percent year-on-year to 564.2 billion yuan ($83.61 billion) in the initial five months of the year.
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T/F. a profit center generates revenues and incurs costs, and its manager is responsible for major investing decisions.
The following statement, "A profit center generates revenues and incurs costs, and its manager is responsible for major investing decisions." is true.
A corporate division or section that makes money while spending money is called a profit center. In other words, it's a division that use corporate assets to produce revenue. This can be viewed as a department that generates revenue or sales for the company.
While a stock dividend may be less valuable than a cash dividend in the short-term, it can be a more efficient way to distribute dividends to shareholders over the long-term.
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describe what you will use the money for example
Make your focal point and priorities clear. A long listing of daily charges is not helpful here.
I endorse that you simplify your use to no greater than three gadgets or categories, with a percentage allocation to each. An example would possibly be 50 percent for marketing, 30 percentage for stock and 20 percentage for staffing.
What would you use the supply for?A furnish can supply seed money for exploring a commercial enterprise opportunity, provide working capital for a commercial enterprise plan or furnish help in different ways.
The primary rule of thumb is to divide your monthly after-tax profits into three spending categories: 50% for needs, 30% for wishes and 20% for financial savings or paying off debt. By frequently retaining your fees balanced throughout these predominant spending areas, you can put your cash to work greater efficiently.
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https://brainly.com/question/24373500#SPJ4maria's pizza offers one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. gil orders two slices. from this information, we know that the marginal benefit to gil of a second slice is at least , and the marginal benefit to gil of a third slice is less than .
The marginal benefit to gil of a second slice is at least , and the marginal benefit to gil of a third slice is less than is $0.5.
A marginal benefit is a maximum quantity a customer is willing to pay for a further properly or carrier. it's also the additional satisfaction or application that a purchaser gets whilst the extra appropriate or provider is bought.
Calculation:-
Cost of one slice of the pizza is $2.
but Gill bought 2 slice pizza which cost him $3.5
So marginal benefit is $0.5
The 3 slice of the pizza is $ 4.50
here the marginal benefit is less than $0.5
In economics, utility is the satisfaction or advantage derived by using ingesting a product. The marginal utility of a very good or carrier describes how a great deal delight or pleasure is received by way of clients due to the increase or decrease in consumption by way of one unit. There are three styles of marginal application.
Marginal benefit is the maximum amount a consumer pays for one extra accurate or carrier. Marginal advantage generally decreases as consumption will increase. Marginal value of production is the change in fee for making one extra right or incremental unit of service.
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Financial statements of a nonissuer compiled without audit or review by an accountant should be accompanied by a report stating that:
Financial statements of a nonissue compiled without audit should be accompanied by a report stating that the accountant does not express an opinion or any other form of assurance on the financial statements.
What is financial statement?
Financial statements are documents that describe a company's operations and financial performance. Government organisations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes.
A financial statement contains what?
The balance sheet, the income statement, and the cash flow statement are the three primary forms of financial statements. Together, these three statements display a company's assets, liabilities, revenues, expenses, and cash flows from financing, investing, and operating operations.
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What is the difference between gross and net pay Everfi?
Answer:
Explanation:gross profit is sales- COGS
Net profit is ASSETS-LIABILITIES
Net pay is the amount received after taxes have been deducted from total income. Gross pay comes from hourly earnings, whereas net pay is a salary.
What is net pay?Net pay is the term used to describe the turn pay that employees get after all payroll deductions have been made from its gross pay.Net income is the sum a worker is paid following deductions include taxation, whereas total salary is the quantity they make after concessions are made.
Net pay is the term used to describe the stand pay that individuals get after all pay reductions have been made from its gross pay.
Once tax, benefits, as well as other wage garnishments, are taken out of an employee ’s regular, that amount is known as their total income. Net pay, often known as take-home compensation, is the sum left after all payroll deductions are included in the calculation.
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choose all that apply. micro-conversions can be: group of answer choices credit card applications email list sign ups sales brochure downloads donations
Micro-conversions can be Brochure downloads, Email list sign-ups
and Credit Card Applications.
What is the formula for the micro conversion rate?
Conversion rate percentage can be calculated by taking the total number of conversions, dividing it by the total number of visitors, and multiplying the result by 100%. Any assignment you give website visitors to complete to use this calculation is acceptable. Measure macro or micro objectives.
A website visitor who has taken a small action or two that suggests they are going to convert is thought to have made a micro-conversion. Micro-conversions, though not included in a site's overall conversion rate, are a good sign of how well your funnel is working.
Therefore, credit card applications email list sign-ups sales brochure downloads donations are micro-conversions.
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If natural resources are developed by a company, the initial valuation should include
If natural resources are developed by a company, the initial valuation should include Development costs, exploration costs, restoration costs, and acquisition costs.
Herbal sources are assets which are drawn from nature and used with few adjustments. This consists of the resources of valued traits such as industrial and commercial use, aesthetic fee, clinical hobby and cultural cost.
Natural resources are materials from the Earth that are used to aid life and meet humans's wishes. Any natural substance that humans use can be taken into consideration a natural useful resource. Oil, coal, natural gas, metals, stone and sand are herbal sources. other herbal sources are air, daylight, soil and water.
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which of the following probably occurred as the u.s. economy experienced declining real gdp in 1957? check all that apply. industrial production increased. home sales increased. consumer spending declined. the unemployment rate increased.
The unemployment rate declined.
There is a blue-shaded area in 1957 that represents the time of the decline. As a result, the current phase is a recessionary one.
Short-term fluctuations in real GDP are irregular and unpredictable is true because the short term ups and downs are directly or indirectly dependent on the short term investments and the preferences in the market or the market sentiments.
The U.S. economy experienced increasing real GDP in 1958 mainly occurred because of the consumer spending decrease, increase in real income, the decline in the unemployment rate, increase in productions, increase in profits.
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Atkins Company had 20,600 shares of $5 par value common stock outstanding prior to declaring a 10% common stock dividend. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the effect of the common stock dividend?a. Retained earnings decreased $10,300.b. Total stockholders' equity decreased $10,300.c. Total stockholders' equity decreased $22,660.d. Retained earnings decreased $22,660.
The issuing bank should credit common stock for an amount equal to the Par value of the shares issued when issuing stock dividends to the company's common stockholders.
A shareholder is a natural person or a business that a company has recorded as having the rightful ownership of shares of a private or public corporation's share capital. Shareholders are another name for a corporation's owners. Is an increase in stockholders' equity advantageous? Greater adaptability in the case of a financial or economic downturn for a corporation is often indicated by higher stockholder equity. Understanding stockholders' equity allows investors to gain knowledge about a company's financial status. A parent business may offer and issue tracking stocks as a unique type of equity in order to monitor the monetary performance of a divisional sector. On open markets, tracking stocks often trade separately from the parent company's stock. The following is an example of stock tracking.
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In the context of marketing ethics, identify the arguments put forth by defenders of advertising. (Check all that apply.)
Advertising and other marketing strategies violate consumer autonomy by generating wants.
What is Advertising?Advertising refers to the methods employed to market a good or service.
Reaching the demographics most likely to be interested in purchasing a company's goods or services is the aim of advertising.
Advertising aims to draw consumers' attention by emphasizing a product or service.
Although there are many other uses as well, commercial advertising is the most common. It is frequently used to promote a certain commodity or service.
Commercial advertising typically aims to increase consumption of their products or services by "branding," which associates a product name or image with certain features in consumers' thoughts.
On the other hand, commercials that are meant to result in an immediate sale are referred to as direct-response advertisements.
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Decision Point: Choosing the Type of Advertising Objective
Your first task is to set an advertising objective. Remember, your key goals are to build brand preference for your product and to differentiate your product as the safe and natural choice. Decide on the best type of objective for your national campaign.
Persuasive advertising: Reinforce why consumers should choose Enliven as their first choice.
Type of Advertising Objective is D. Persuasive advertising: Reinforce why consumers should choose Enliven as their first choice.
advertising is an advertising and marketing tactic involving procuring space to promote a product, carrier, or motive. The real promotional messages are called advertisements, or ads for brief. The aim of marketing is to reach human beings most likely to be willing to pay for a company's services or products and trap them to buy.
Examples of above-the-line advertising and marketing are tv, radio, & newspaper commercials. beneath-the-line advertising includes conversion-targeted sports that are directed toward a particular goal institution. Examples of beneath-the-line advertising are billboards, sponsorships, in-shop advertising, and so on. advertising and marketing is a way of advertising and marketing your commercial enterprise with the purpose to growth sales or making your audience aware about your services or products. till a patron offers with you directly and in fact buys your services or products, your advertising can also assist to form their first impressions of your business.
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When a bond sells at a discount, the carrying value ________ after each amortization entry.increasesdecreasesstays the samecannot be determined
When a bond sells at a discount, the carrying value increases after each amortization entry. increases, decreases stays the same cannot be determined.
Bond sales prior to maturity When a bond matures (when it becomes due), investors receive its face value, or "par value," back. But bondholders who sell their bonds before they mature can receive a very different payout. For instance, the bondholder could have to sell at a discount—below par—if interest rates have increased since the bond was bought. However, the bondholder could be able to sell at a premium above par if interest rates have declined. You could have to pay a commission or your broker might take a "markdown" if you wish to sell your bond before it matures.
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egrane, incorporated's monthly bank statement showed the ending balance of cash of $19,700. the bank reconciliation for the period showed an adjustment for a deposit in transit of $2,100, outstanding checks of $3,200, an nsf check of $1,900, bank service charges of $90 and the eft from a customer in payment of the customer's account of $2,700.
As per the bank reconciliation, the cash balance in the account is $17,890
The term bank reconciliation refers a periodic process of checking the accuracy of both the bank's and book's cash balances by accounting for all the reconciling items caused by timing difference.
Here we have given that Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $19,700. the bank reconciliation for the period showed an adjustment for a deposit in transit of $2,100, outstanding checks of $3,200, an NSF check of $1,900, bank service charges of $90 and the eft from a customer in payment of the customer's account of $2,700.
And we need to find the cash balance in the account.
While we looking into the question we have identified the value of the following,
End balance cash = $19,700
deposit in transit = $2,100
outstanding checks = $3,200
NSF = $1,900
bank service charges = $90
Payment = $2,700
Now, the formula to do the computation of the cash balance before the adjustment is shown below:
=> Ending cash balance + deposit in transit - outstanding checks + NSF + bank service charges - payment
Apply the values on it, then we get
=> $19,700 + $2,100 - $3,200 + $1,900 + $90 - $2,700
=> $17 890
Therefore, the cash balance is $17 890
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