Learn everything there is to know about commercial banks' allowance for loan losses and provision for credit losses in this tutorial.
What is provision of agreement?
A contract provision is stated in the written agreement and is enforceable by law. The clause frequently calls for action by a given date or within a certain window of time. All parties' interests are safeguarded by contractual obligations. Following are the many accounting provisions: provision for bad debts. Liability restructuring Depreciation reserve. A constitutional provision is a law that was written into the founding laws and was not created by statute or common law. An Indian constitutional provision is a law that was written into the foundational laws rather than being derived from statute or common law.
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When a profit-maximizing firm finds itself minimizing losses because it is unable to earn a positive profit, this task is accomplished by producing the quantity at which price is equal to
a. sunk cost.
b. average fixed cost.
c. average variable cost.
d. marginal cost.
This task is accomplished by producing the quantity at which price is equal to marginal cost.
What is a marginal cost?Because it can enable an organization to maximize its production through economies of scale, marginal cost is a crucial topic in management accounting.Producing till marginal cost (MC) equals marginal revenue will help a business optimize its earnings (MR).Higher output results in reduced fixed costs per unit since fixed costs are constant regardless of production levels and are spread across more units.Producing more units will result in higher variable costs because variable costs are based on production levels.When expanding output leads in step costs because of changes in relevant ranges, businesses must be careful (i.e. additional machinery or storage space needed). So, option d is correct.
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box, a nongovernmental not-for-profit organization, had the following transactions during the year: proceeds from sale of investments $80,000 purchase of property, plant, and equipment $10,000 proceeds from long-term debt $100,000 loss on sale of investment $5,000 what amount should be reported as net cash provided by financing activities in box's statement of cash flows?
What should Dash include as a liability on its balance sheet as of June 30? 20,000 dollars annually.
How would you define financing?Finance is the method of generating funds or cash for any kind of spending. It involves allocating various financial resources, including as credit, mortgages, and invested capital, to the areas of the economy that may benefit from them most.
What is a finance case study?The issuance of bonds and shares, the acquisition of loans, the settlement of debt, the repurchase of shares, etc. are a few examples of finance operations. Since it is directly impacted by all of these actions, analysts and investors see a firm's capital structure as a critical gauge of its financial health.
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in 2022, nasira, a single taxpayer, bought a principal residence, taking out a mortgage of $500,000. later in 2022, she takes out a home equity loan of $200,000 to build an addition to the home. which of the following, with respect to the deductibility of the interest on the home equity loan, is correct? a) the interest on the debt is not deductible because the total debt on the residence exceeds $375,000. b) as home equity debt, the interest is not deductible. c) none of the interest is deductible unless she has occupied the home two of the past five years. d) the interest on the debt is deductible because the debt was incurred to improve the residence, and the total indebtedness does not exceed $750,000.
It differs. A home equity loan or line of credit (HELOC) can only be used to "buy, develop, or substantially improve a" house.
What are the 4 different loan types?
The 10 various loan kinds you should be aware of are personal loans, auto loans, student loans, mortgage loans, home equity loans, credit-builder loans, loans from friends and family, payday loans, auto title loans, and pawn shop loans. Each type of loan fulfills a certain need and has a different APR range, loan size, and payback duration. The bulk of loan types are characterized by the borrower receiving a large sum up front and repaying it over time. However, there are few exceptions, including loans used to construct
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what are some ways operations managers can improve process capability? multiple select question. standardize process steps upgrade or automate equipment reduce the process variability inspect all incoming raw material
Process control is the practice of observing and modifying a process to get the intended result with the least amount of variance. Process control contributes to growth.
What are means and techniques?Simply said, the means are the resources or equipment used to complete a task. Methods are simply the strategies or actions used to accomplish a task. Methods are the specific tools and techniques you use to collect and analyze data (for example, experiments, surveys, and statistical tests). Sociology is the name given to the scientific study of society. The term "methods" in sociology refers to the research techniques utilized to gather, produce, and analyze data that is relevant to the researcher.
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Which of the following is NOT true of the type of game known as the prisoner’s dilemma?
A) It is a zero-sum game.
B) it is a non-zero-sum game.
C) it is a situation in which two firms achieve the worst outcomes if both act in their own best interest.
D) It is characteristic of industries with two dominant competitors
The prisoner's dilemma describes a situation in which two parties, who are separated and unable to communicate, must each decide whether to cooperate with the other or not.
What is a prisoner's dilemma game?Two people are forced to decide whether to cooperate with one another in the prisoner's dilemma while they are separated and unable to communicate. When both parties agree to cooperate, everyone benefits most.
a game in which all players make self-interested, rational decisions that worsen the situation for everyone.
A decision-making and game theory paradox known as the "prisoner's dilemma" shows that two rational decision-makers acting in their own self-interest cannot come up with the best possible outcome.
A non-zero-sum game known as the "Prisoner's Dilemma" is typically used in game theory to analyse cooperation (Axelrod, 1984). A "defect" or "cooperate" move are the options available to the two players in the game.
Therefore, the correct answer is option a) It is a zero-sum game.
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levi and askay (2021) stated that a manager of an organization should make the employee conform to the needs of the organizational processes and systems because deviation produces quality defects and inefficiencies. this view is from . a. source organization ( by henry cabbaing) b. scientific management (by fredrick taylor) c. pre-industrial revolution management. d. the interactional approach. e. agricultural orientation (by jarad framington)
This view in this case is from scientific management (by Fredrick Taylor).
What is scientific management?A management philosophy called "scientific management" examines and combines workflows. Its primary goal is to increase economic efficiency, particularly the worker productivity. It was one of first attempts to use science to build management processes. Taylor started the theory's development in the US during the manufacturing industries of the 1880s and 1890s, particularly steel. In the 1910s, its influence peaked. Despite being outmoded as a separate theory or school of thought by the 1930s, the majority of scientific management's issues are still vital components of industrial engineering and management today. At first, Taylor used the terms "shop management" and "process management" to refer to his strategy. However, the term "scientific management" gained popularity in 1910 thanks to zealous lawyer Louis Brandeis.
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Between the two investment plans listed below, which will have the greatest future value and by what amount
The data that you have shared confirms that the 401(k) will have a higher future value in comparison to the Roth IRA, with a difference of $43,666.31 specifically.
How do you determine the future value?To calculate the future worth of a 401(k) account, we need to first establish the annual contribution amount. As per the information given, the employee contributes 9% of their salary which is $45,624, resulting in an annual contribution of $4,106.16. Additionally, the employer also contributes a maximum of 3% of the employee's contribution, which is $1,368.72. In total, both investment plans contributions combined give an annual contribution of $5,474.88, resulting in a future value of $196,302.40. On the other hand, the Roth IRA account has a monthly contribution of $352.45, giving it a future value of $152,636.09. Comparing both accounts, it can be seen that the 401(k) account has a greater future value by $43,666.31.
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The complete question is:
Between the two investment plans listed below, which will have the greatest future value and by what amount? Round all answers to the nearest cent.
The investment plan is attached in the picture.
insider trading involves select one: a. an online activity that establishes a barter exchange system between businesses. b. investors using private company information to further their own fortunes. c. the exchange of assets between companies in the same industry. d. a payment or reward for socially conscious behavior.
Insider trading (B) is a strategy used by investors to improve their financial advantage.
What is insider trading?Any purchase or sale of a security made in violation of fiduciary responsibility or other relationship of trust and confidence and based on substantial, nonpublic knowledge about the security is referred to as illegal insider trading.
Insider trading is obviously prohibited because it offers the insider an unfair competitive advantage, puts their interests ahead of those to whom they owe a fiduciary obligation, and enables them to artificially manipulate the price of a company's stock.
Investors who engage in insider trading do so in an effort to increase their financial gain.
Therefore, insider trading (B) is a strategy used by investors to improve their financial advantage.
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land developers sometimes get a mortgage that includes several properties as collateral. as they pay down the loan they can get various properties released. what type of mortgage is this?
Land developers sometimes get a mortgage that includes several properties as collateral. as they pay down the loan they can get various properties released.
The above case is an example of blanket mortgage.
Mortgages can also be divided into two categories: 1) conventional mortgages 2) Jumbo loans 3) Mortgages backed by the government 4. Fixed-rate loans 5) Mortgages with adjustable rates There are now additional loan types based on theseA blanket mortgage, also known as a blanket loan, is a type of financing that supports the simultaneous purchase of several real estate properties. The lending process can be simplified and costs can be decreased with blanket loans, which are popular among commercial property owners, developers, and real estate investors.You offer your existing property's equity as part of a blanket loan instead of providing the down payment of $30,000 in cash. In addition to attaching a second lien to your existing property, the lender alsoTo know more about mortgage here
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Fran is from Country B. Use the data below to help Fran discover the GDP per capita in her home country. Note that population is expressed in millions of people, whereas Real GDP is expressed in billions of U.S. dollars.
Country - Population (in millions) - Real GDP (in billions of U.S. dollars)
A = 310 | $1,240
B = 595 | $29,155
C = 1,025 | $3,570
D = 1,020 | $35,700
Fran discover the GDP of $49,000 per capita in her home country. The total monetary or market worth of all the completed products and services produced within a nation's boundaries.
GDP per capita = Real GDP/Population
COUNTRY B
Real GDP = $29,155000000000
Population = 595000000
GDP per capita = $29,155000000000/595000000
= $49,000
whereas Real GDP is expressed in billions of U.S. dollars. Country - Population (in millions) - Real GDP (in billions of U.S. dollars)Gross domestic product (GDP) is a monetary measure of the market worth of all final products and services produced and sold (not resold) by countries within a certain time period. Because of its complexity and subjectivity, this metric is frequently changed before being regarded a credible indication. GDP (nominal) per capita, on the other hand, does not reflect differences in the cost of living and the inflation rates of the countries; thus, comparing living standards between nations on the basis of GDP per capita at purchasing power parity (PPP) may be more useful.
Complete question:
Fran is from Country B. Use the data below to help Fran discover the GDP per capita in her home country. Note that population is expressed in millions of people, whereas Real GDP is expressed in billions of U.S. dollars.
Country - Population (in millions) - Real GDP (in billions of U.S. dollars)
A = 310 | $1,240
B = 595 | $29,155
C = 1,025 | $3,570
D = 1,020 | $35,700
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FILL IN THE BLANK Scroll through the figures presented within the website, and look for the information presented within these statements.Then, use what you have found to complete each sentence.According to the information on the website, Germany is the _______ largest economy in the world and the ________ in Europe.In 2012, Germany's GDP per capita was______ trillion .In 2012, Germany's unemployment rate was ______ .
According to information on website, Germany is the fifth largest economy in the world and largest in Europe.
What is an economy?A system of interconnected production, consumption, and trade activities is called an economy, and it ultimately determines how resources are distributed among all of players. To meet the requirements of persons residing in and participating in economy, commodities and services are produced, consumed, and distributed. Free trade of products and services between individuals and businesses is permitted in market-based or "free market" economies, depending on supply and demand. Producers choose what is produced and sold, as well as the pricing to charge. Producing what customers want and charging what customers are willing to pay are prerequisites for success. Prices and overall production are governed by the principles of supply and demand through these choices. Production typically expands to meet demand when customer demand for a particular product rises.
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The "Control" phase of DMAIC is intended to ensure that:
Multiple Choice__ a. data analysis is overseen. b. the proper subset of process inputs are monitored. c. variability reduction is pursued. d. improvements are sustained. e. inputs are closely monitored.
The "Control" step of the DMAIC process is meant to guarantee that gains are maintained.
Sustainability: What is it and why is it important?Sustainability is the ability to continue existing and growing without using up all of the natural resources currently accessible. According to the Brundtland Report, sustainable development is growth that meets present needs without jeopardizing the ability of future generations to meet their own.
Sustainability - What is it?Meeting our needs today without sacrificing the potential of future generations to do the same is what is meant by sustainability. With natural resources, we also need economic and social resources. Environmentalism is only one aspect of sustainability.
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Which of the following is not a cost pool used with the activity-based costing method?a. Materials handlingb. Productionc. Setupsd. Engineeringe. All are used
Option (b), Activity-based costing does not include production as a cost pool (ABC Costing). The term "cost pool" describes the overhead expenses incurred throughout various production-related tasks.
Exactly what is meant by "activity-based costing"?By using the activity-based costing (ABC) method, overhead and indirect costs like salaries and utilities can be divided among goods and services. The ABC system of cost accounting is based on activities, which are characterized as any event, activity, or unit of labor with a specific goal.
The use of a cost pool in activity-based costingAn activity cost pool is the sum of all costs associated with doing a certain business task, such producing a particular product. Combining all expenses incurred throughout a task makes it simpler to obtain an accurate assessment of the cost of that task.
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decision point: determining your strategy to increase exposure you must determine a strategy to increase online ad exposure to the store's target market. which strategy would you recommend to the director to increase exposure? select an option from the choices below and click submit. you recommend to do nothing. after all, the online campaign just recently started, and it may take time to impact consumer awareness of the online ad. you recommend to discontinue the online ad program because it doesn't seem to be reaching the target consumer. you recommend to evaluate how well your target consumers detect or see the online advertisement.
You recommend to evaluate how well your target consumers detect or see the online advertisement.
What does the word "advertising" mean?In order to advertise a good, service, or cause, advertising involves buying space. Ads, as in short for advertisements, are the real promotional messaging. Reaching those who are most likely to be inclined to buy a company's goods or services—and persuading them to do so—is the purpose of advertising.
What types of advertisements are there?Direct mail, comparison shopping, teamwork, cooperative marketing, and outdoor advertising are a few types of product promotion. Television, radio, print, websites, social media, outdoor/billboards, and digital placement are some of the different media used for advertising.
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which answer best explains why marketing organizations continue to advertise even when those marketers realize that most targeted consumers are no longer paying attention to the ads?
Marketing organizations continue to advertise even when consumers no longer pay attention because it is an essential part of creating brand awareness and staying top-of-mind.
How do marketing organizations create brand awareness?Marketing organizations create brand awareness by utilizing a variety of strategies, such as advertising, social media marketing, content marketing, email marketing, public relations, and more. These strategies help to keep the brand visible in the marketplace, reinforcing the message the company wants to communicate to its target audience.
What are the benefits of advertising?Advertising offers numerous benefits to marketing organizations, such as increasing brand recognition, creating a positive brand image, gaining customer loyalty, reaching a larger audience, and more. Advertising also helps to build trust and credibility, as well as encouraging people to take action. It is an effective way to reach potential customers and increase sales.
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freddie mac was originally created as a secondary mortgage market for a) loan products originated by saving and loan associations. b) bank-originated home loans. c) fannie mae overflow. d) fha and va home loans.
Freddie Mac was originally created as secondary mortgage market for loan products originated by the saving and loan associations.
What is mortgage?A mortgage is a type of loan used to purchase or maintain real estate such as a home, land, or other building. The borrower agrees to make a series of regular payments to the lender over time, usually divided into principle and interest. Borrowers are need to fill out an application with their selected lender and meet a variety of requirements, such as minimum credit scores and down payments. Mortgage applications must pass a rigorous underwriting process before moving on to the closing stage. There are several mortgage types, such as fixed-rate and conventional loans, depending on the demands of the borrower. Mortgages are sometimes known as liens or claims against real property.
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oint g is an example of an inefficient point, while point f is an example of an unattainable point. b. does the economy above demonstrate the law of increasing opportunity cost?
Yes the economy above demonstrate the law of increasing opportunity cost. Opportunity cost represents the potential profit missed by an individual, investor, or firm by choosing another alternative.
Why do we call it an opportunity cost?Opportunity cost is the time you spend studying and the money you spend doing something else. Opportunity cost indicates potential profit missed by selecting alternative. Opportunity costs are by definition invisible and are often overlooked. Example: The farmer decided to plant wheat. Opportunity cost is to grow another crop or use resources (land and farm tools) in another way.
Is the opportunity cost a real cost?“The real cost of purchase is not actual dollar cost. Rather, it is the opportunity cost, the value of the investment not made because the money was spent elsewhere.”
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complete question:
A production possibilities table for DVDs and computers is shown below. (computers, DVDs)
(0,80)(20,70)(40,55)(60,35)(80,0)
Point G (20,40)
Point F (60,70)
graph. (XY 1-100 by 20)
Point ___(A,B,C,D,F,G)____ is an example of an inefficient point, while point ___(A,B,C,D,F,G)____ is an example of an unattainable point.
Does the economy above demonstrate the law of increasing opportunity cost? (Y/N)
Yes the economy above demonstrate the law of increasing opportunity cost.
What is opportunity cost?Opportunity cost is the cost of foregone opportunities. It is the value of the next best alternative that must be given up in order to pursue a certain action or decision. In economic terms, it is the cost of the next best alternative use of resources. Every action or decision has an opportunity cost, whether it is a personal or business decision. For example, if an individual chooses to spend their time studying for a test, the opportunity cost is the foregone opportunity to do something else with that time, such as watching a movie or going out with friends. Similarly, a business that decides to produce one product over another, the opportunity cost is the revenue that could have been earned by producing the alternative product. The concept of opportunity cost is important in decision making, as it helps to evaluate the trade-offs and relative value of different options.
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The ultimate measure of performance is: A)The amount of the firm's earnings B)How the earnings are valued by the investor C)The firm's profit margin D)Return on the firm's total assets
Answer: option
option
Explanation:
If a Veteran wanted to buy a $60,000 house in a city with a population of 100,000 people, which of the following loans could he NOT apply for?VA loanFHA loanRECD loanConventional loan
If a Veteran wanted to buy a $60,000 house in a city with a population of 100,000 people, then they cannot apply for a RECD loan, which means option C is correct.
RECD stands for Rural Economic and Community Development. These loans are guaranteed or direct in nature and are given if the person wishes to construct something in a rural area. But in the above case, the veteran wants to buy a well constructed house, so this loan cannot be applied for assistance.
These loans are given by the private entities to improve or furnish the homes which are built in rural areas. It helps in development of rural region.
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you are currently working on creating a document that will be used to gain authorization for the project. during this process, you need to locate the benefit analysis that was performed to justify the project. where is the best place to look for this information?
The document you are currently working on will be used to obtain approval for the project. Locate the benefit analysis that was done to support the project during this process. The BEST place to look for this information is in the business case.
How to explain a business caseThe business case includes the benefits, drawbacks, expenses, and dangers of the current situation and the anticipated future in order for senior management to evaluate whether the project should proceed.
A business case provides justification for initiating a project or job. It's typically provided as a well-structured written contract, but it can also appear as a brief oral agreement or presentation.
Who wrote the business case, and when?Although project managers or business analysts are frequently given this duty by businesses, program management is frequently responsible for creating a thorough business case. Project Assurance can also aid in the development of the Business Case.
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Select one:O a. it shifts the AD curve in the long-termOb. it shifts the AD curve in the short-termOc. it shifts the AS curve in the short-termO d. it shifts the AS curve in the long-term
The correct option is C. It shifts the AS curve in the short term.
An abbreviation is a shortening of a phrase or a word. An acronym is an abbreviation that bureaucracy a word. An initialism is an abbreviation that makes use of the first letter of each word inside the word (consequently, a few however no longer all initialisms are acronyms).
Brief-time period dreams can be used to break down large, extra-trendy desires. They do not replace those massive, overarching dreams, however, alternatively, give you a route to obtain them. putting and running on short-time period goals helps you: realize what you can accomplish nowadays and take movement.
A quick time period at the start of something. it's going to meet our desires, at least for the fast term. His plan has blessings over the short term. generally used inside the phrase in the brief term. It won't make any distinction within the quick term.
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In practice, most companies list accounts on their trial balance in alphabetical order.a. Trueb. False
The trial balance does not contain an alphabetical listing of the accounts. In reality, they are ordered in the following order: Assets.
Describe assets.One of the words with a general meaning and a defined meaning is "asset." The asset is a word that is commonly used to describe someone who is a real asset to their community.
But what do finance professionals understand by assets in the context of commercial accounting?
An asset is anything of value that a business anticipates will be useful in the future. The main element of a company's net worth is its assets. When giving loans, lenders may also take into account a company's assets. This article solely discusses company-owned assets; it does not discuss right-of-use assets (i.e. leased assets).
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describe some of the factors that management considers when setting its minimum target rate of return.
Management considers factors such as the cost of capital, industry trends, and risk tolerance when setting its minimum target rate of return.
Cost of capital: The cost of capital represents the cost of obtaining funds to invest in the business. A higher cost of capital means that a higher rate of return is required to make the investment worthwhile.
Industry trends: The management team will also consider the general economic conditions and trends in the industry. If the industry is experiencing a downturn, the management team may set a higher minimum rate of return to compensate for increased risk.
Risk tolerance: The management team will also consider their own risk tolerance. If the management team is comfortable with taking on a higher level of risk, they may set a lower minimum rate of return. However, if the management team is less comfortable with risk, they may set a higher minimum rate of return.
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the period of time during which the terms of a contract may be enforced according to the statute of limitations are what?
Within four years of the onset of the cause of action, an action for breach of any sale contract must be filed. The original agreement stipulates that neither party may extend nor reduce the statute of limitations beyond one year.
In India, what is the statute of limitations?The Limitations Act of 1963 defines India's statute of limitations. The law governing the criminal statute of limitations is Section 468 of the Code of Criminal Procedure
How long does the time limit last?The obligation becomes due on the day the claim arises, which is when the limitation period begins. Limitations can be anywhere from one to ten years, depending on the nature of the claim. When a claim becomes actionable, limitation periods begin to run.
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question 5 billings upholstery has defined a problem it needs to solve: find a more environmentally friendly way to produce its furniture. a data analyst gathers relevant data, analyzes it, and uses it to draw conclusions. the analyst then shares their analysis with subject-matter experts from the manufacturing team, who validate the findings. finally, a plan is put into action. this scenario describes what process? 1 point customer service data science identification of trends data-driven decision-making
This is an example of data-driven decision-making in action.
What exactly is data-driven decision making?
In general, the decision-making process based on data is depicted below.
The practice of relying on data to guide and verify a chosen course of action is referred to as "data-driven decision-making" (or "DDDM" for short). This happens all the time in business.
Decision-making is the process of selecting options by recognizing a decision, gathering information, and evaluating potential answers. A step-by-step decision-making process can help you make more careful, meaningful decisions by gathering important information and identifying options.
When you present your company to customers in a corporate setting, you show them a structure rather than a person's face. Due to its size and intimidating appearance, the corporation appears to be formidable on the surface. But it always breeds suspicion.
Finally, the corporate world is the world of business and industry that students will enter after finishing high school or college.
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which report is available to individuals outside of a business, and shows operating activities, financing activities, and investing activities?
cash flow statement is available to individuals outside of a business, and shows operating activities, financing activities, and investing activities.
A company's operating, investing, and financing activities over a given accounting period are all summed up in the statement of cash flows. It also provides information on previous management choices about things like the issuing of capital stock or the sale of long-term bonds. A cash flow statement is a sort of financial statement that summarizes all of the cash inflows a company experiences from both internal and external sources. It also covers any cash withdrawals made during a specific time period to pay for investments and business expenses.
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i accidentally scheduled the wrong meeting time for an interview. does this hurt my chances of getting the job
Answer: no. most times, you can call, email, (whatever way you use to contact) the manager and ask to reschedule an interview and explain why.
Explanation: most managers are able to reschedule at a later time and it doesn't minimise your chances of getting hired.
the manager of the bank where you work tells you that your bank has $10 million in excess reserves. she also tells you that the bank has $400 million in deposits and $375 million dollars in loans. given this information you find that the reserve requirement must be
The manager of your bank informs you that your bank has $10 million in excess reserves. She also says the bank has $400 million in deposits and $375 million in loans. Based on this data, the reserve requirement must be 15/400.
What method should be used by the Bank to increase reserve requirements?
One method of controlling the money supply is through reserve requirements, which refer to the amount of cash that banks must keep against deposits in bank accounts. When reserve requirements are reduced, banks can lend more money, increasing the amount of money available for use throughout the economy. A higher reserve requirement demonstrates the Federal Reserve's contractionary monetary policy. Higher reserve requirements for banks mean less money available to lend to individuals and businesses. When a bank advances another loan and the borrower receives a bank deposit in exchange, the money supply expands beyond the realm of open market transactions.
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an annual review of total compensation shows one total in the payroll database and a different total in the hr software. what should be your next step?
An annual review of total compensation shows one total in the payroll database and a different total in the hr software.The first step would be to investigate the discrepancy between the two totals.
It would be helpful to look at the details of each record to determine why the totals are different, such as differences in the salaries, bonuses, or other benefits included in the totals. Once the cause of the discrepancy is identified, steps can be taken to correct the issue and ensure that the correct total is reflected in both the payroll database and the HR software.
Therefore, Investigating the gap between the two totals would be the first step.
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a bakery corporation earns a total revenue of $157,000. its expenses are $52,000. if the bakery needs to pay 21% corporate income tax, how much tax will they pay
A bakery corporation earns a total revenue of $157,000. its expenses are $52,000. if the bakery needs to pay 21% corporate income tax, they have to pay $21,750.
The bakery corporation will need to pay a 21% corporate income tax on its total revenue of $157,000. To calculate the amount of tax the bakery will pay, we need to subtract the expenses from the total revenue. So, we subtract $52,000 from $157,000 to get a net income of $105,000. We then multiply this net income by 21% to get the total tax that the bakery will have to pay. So, 21% of $105,000 is $21,750.
Therefore, the bakery will pay $21,750 in corporate income tax. The process of calculating the tax that the bakery will need to pay can be summarized as follows. First, subtract the expenses from the total revenue to get the net income. Then, multiply the net income by 21%, which is the corporate income tax rate, to get the total tax that the bakery will need to pay. In this case, the total tax that the bakery will need to pay is $21,750.
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