Answer:
Accrual basis accounting.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is accrual basis accounting.
RKI Instruments borrowed $4,100,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,325,000. What was the interest rate on the loan
Answer:
29.88%(30% when rounded to the nearest whole percentage)
Explanation:
The amount borrowed was the present value of the loan while the amount repaid was the future value of the loan, hence, considering the relationship between the present value and the future value, we can determine the interest rate on the loan as shown thus:
FV=PV*(1+r)^n
FV=future value=the repayment=$5,325,000
PV=present value=loan amount= $4,100,000
r=rate of interest=the unknown
n=the duration of the loan=1 year
$5,325,000= $4,100,000*(1+r)^1
$5,325,000/$4,100,000=1+r
r=($5,325,000/$4,100,000)-1
r=1.298780488 -1
r=29.88%
ECONOMICS
Question 3 of 10
Which fiscal policy would most likely result in the largest budget deficit?
A. Low taxation and low spending
B. Low taxation and high spending
C. High taxation and low spending
D. High taxation and high spending
Low taxation and high spending are the fiscal policies that are most likely to result in the highest budget deficit.
So, option B. is correct.
What is fiscal policy?The employment of government spending and taxation to impact the economy is known as fiscal policy. Fiscal policy is often used by governments to foster robust and sustained growth while also reducing poverty.
This is in contrast to monetary policy, which is implemented by central banks or other monetary authorities.
Low taxation and high spending are the fiscal policies that are most likely to result in the highest budget deficit.
So, option B. is correct.
Find out more information about fiscal policy here:
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A car dealership can offer a $36,000 car under a special promotion with four years financing at 0%, or can offer a discount off the price of the vehicle if the buyer finances the sale at 0.5% monthly over the four years. What discount off the purchase price results in the buyer making the identical monthly payment under either purchase option
Answer:
$4,064.76
Explanation:
According to the scenario, computation of the given data are as follows,
If car financing at 0%, then
Car price = $36,000
Time period = 48 months
So, Monthly payment = $36,000 ÷ 48 = $750
If financing at regular rate then,
Monthly interest rate = 0.5%
Time period = 48 months
Monthly payment , if we consider the same payment = $750
By using excel formula, [=PV(BY8,BY9,-BY10)]
Discount = $4,064.76
Which is the best definition of a wireless network?
A.
A wireless network is a private website.
B.
A wireless network connects computers and devices without cords or cables.
C.
A wireless network connects computers using Ethernet cables.
D.
A wireless network connects computers to smartphones.
Answer:
A wireless network connects computers and devices without cords or cables.
Explanation:
A wireless network is internet without any cords
PrintItem 1 Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,000, and his ending partnership capital balance for the current year is $62,000. His share of this year's partnership income was $6,250. What is his partner return on equity
Answer: 10.68%
Explanation:
The partner return on equity will be calculated by using the formula given as:
= (Partner Net income/Average Partner equity) × 100
The Partner’s Net income is $6250
Average partner equity = (Opening partner equity + Closing partner equity) × 100
= ($55,000 + $62,000) / 2
= $117,000 / 2
= $58500
The Partner return on equity will then be:
= 6250 / 58500 × 100.
= 10.68%
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared. a. True b. False
Answer:
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared.
a. True
Explanation:
The incidence of the FICA tax refers to the extent to which an individual employee or the employing organization suffers from the imposition of the FICA tax. In the final analysis, the incidence may not be borne by the organization but consumers of its goods and services, depending on the elasticity of demand. Employers and employees usually split the FICA tax equally. The FICA (Federal Insurance Contribution Act) refers to the federally mandated tax for Social Security and Medicare.
The statement that "Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared" is True.
What is FICA tax?FICA tax can be regarded as U.S. federal payroll tax.
Therefore, Federal Insurance Contributions Act is been removed from each paycheck and split equally between employers and employees.
Learn more about FICA at:
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Ally wishes to leave a provision in her will that $11,748 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 4%
Answer:
$293,700
Explanation:
The computation of the amount provided is shown below:
= Annual target ÷ Rate of Interest
= $11,748 ÷ 0.04
= $293,700
By dividing the annual target from the rate of interest we can determine the investment that should be provided for this given perpetuity
Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Used Direct Labor Used Factory Overhead Total Manufacturing Costs (1) $42,300 $64,000 $52,300 $ (2) $ $77,800 $144,000 $297,000 (3) $58,300 $ $115,000 $314,000
Answer and Explanation:
The computation of the missing amount of the three different situations is shown below:
As we know that
Total manufacturing costs = Direct materials + Direct labor + Factory overhead
Now
Direct materials Direct labor Factory overhead Total manufacturing
costs
$42,300 $64,000 $52,300 $158,600
$75,200 $77,800 $144,000 $297,000
$58,300 $140,700 $115,000 $314,000
Indicate the section operating activities,investing activities,financing activities,or none in which each of the following would be reported on the statement of cash flows prepared by the indirect method: a gain on sale of fixed assets b net income c retirement of long-term debt d sale of capital stock e distribution of stock dividends f payment of cash dividends g purchase of fixed assets h sale of fixed assets i receipt of interest revenue j Payment of interest expense
Answer and Explanation:
The indication of the following transactions for the cash flow statement is given below:
a. Operating activities
b. Operating activities
c. Financing activities
d. Financing activities
e. None
f. Financing activities
g. Investing activities
h. Investing activities
i. Operating activities
j. OPerating activities
Exhibit 34-5 Country 1 Country 2 Good A Good B Good A Good B 100 0 75 0 80 10 60 30 60 20 45 60 40 30 30 90 20 40 15 120 0 50 0 150 Refer to Exhibit 34-5. The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2. Group of answer choices 20A; 15A 1/20A; 1/15A 10A; 15A 1/2A; 1A 2A; 1/2A
Answer:
2A; 1/2A
Explanation:
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
To determine opportunity cost, add the total amount of good A and B produced by each country
Total quantity of good A produced by country 1 = 300
Total quantity of good b produced by country 1 = 150
opportunity cost of producing good B = 300A/ 150 = 2A
Total quantity of good A produced by country 2 = 225
Total quantity of good b produced by country 2 = 450
opportunity cost of producing good B = 225 / 450 = 0.5A
What is Accounting and bookkeeping
Answer:
Book keppening is the recording of finance transaction, and is part of the process of accounting in business
The process or work of keeping financial record is called accounting
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.1%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 11 % 33 % Bond fund (B) 8 % 25 % The correlation between the fund returns is .1560. Suppose now that your portfolio must yield an expected return of 9% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio
Answer:
standard deviation of your portfolio = 21.35%
Explanation:
Without mincing words, let's dive straight into the solution to this particular question. The following parameters are given in the question and they are:
The expected Return Standard Deviation Stock fund (S) = 11 % with standard deviation of 33%[=0.33] and the expected Return Standard Deviation Stock fund is 8% with standard deviation of 25 %[=0.25]. Also, it is given that the correlation between the fund returns = .1560.
STEP ONE: Determine the proportion of stock in minimum risky portfolio.
Therefore, the proportion of stock in minimum risky portfolio = [( 0.25)² - ( 0.33 × 0.25 ×.1560)] ÷ [ (0.33²) + (0.25²) - ( 2 × 0.33 × 0.25 × 0.156)] = 34.07%[=0.3407].
STEP TWO: Determine the proportion of bond fund in minimum risky portfolio.
The proportion of bond fund in minimum risky portfolio = 1 - 0.3407 = 0.6593 = 65.93.
STEP THREE: Determine the expected return of minimum risky portfolio.
The expected return of minimum risky portfolio = 0.3407 × 0.11 + 0.6593 × 0.08 = 0.0902= 9.02%.
STEP FOUR: Determine the standard deviation of your portfolio.
The standard deviation of your portfolio = [(0.6593²) × (0.25²) × (0.3407²) × (0.33²) + ( 2 × 0.6593 × 0.340 × 0.33 × 0.25 × 0.156)]^0.5 = 0.2135 = 21.35%
Which situation best illustrates an effect of the law of supply
You should change your voicemail message if you are out of the office.
True or false
Answer:
true
Explanation:
i just answered the question
If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because:________
a. the process is not adversarial.
b. the dispute will eventually go to trial.
c. the case will be heard by a mini-jury.
d. the resolution of the dispute will be decided an expert.
Answer:
d. the resolution of the dispute will be decided an expert
Explanation:
Mediation is the process by which conflicts are resolved through a third party that provides expert and impartial negotiation on issues that occurs between different parties.
To make the process effective the parties are required to fully participate in the mediation.
All sides air their views and the expert tries to find a middle ground that the warring parties can agree to.
Java and Kaffe who have a long-standing business relationship need an expert to act as mediator in resolving their issues.
You work for a company that manufactures electric lawn mowers. The mowers work when the user plugs an extension cord into the outlet and into the machine. In order to start the machine, the user must pull a lever and hold it while pushing a button. You believe that your mower is extremely safe. It contains several warnings about using it only on grass, that it is not to be used to shred tree branches or other wood products, and that it is not to be used without the bag attachment for catching the grass that is thrown out the back. A customer sues your company after being hurt when he used the electric lawn mower during a rainstorm. Discuss whether or not your company should have included a warning label to address use of the electric lawn mower in the rain.
Answer: See explanation
Explanation:
Yes. I believe that my company should have included a warning label to address use of the electric lawn mower in the rain.
Since the warning wasn't put there, the customers will believe it is safe to use in the rain that which was exactly what happened in this case. It is the right of the manufacturer to make sure that it's product are safe to use.
The ability to market your skills and persuade internal customers to use your services is an example of:
Answer:
HELPPPPPPPPP
Explanation:
an example of:
A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,025. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Duration years
Answer:
9.52 years
Explanation:
Calculation for the modified duration of this bond
First step is to calculate the Percentage decrease in Price of Bond
Percentage decrease in Price of Bond =($1,025-$1,050)/$1,050
Percentage decrease in Price of Bond=-2.3810%
Second step is to calculate the Percentage change in price
Using this formula
Percentage change in price =-Modified Duration*Change in YTM
Let plug in the formula
-2.3810% =-Modified Duration*0.25%
Modified Duration =2.3810%/0.25%
Modified Duration =9.52 years
Therefore the modified duration of this bond is 9.52 years
Suppose a commerical bank is subject to a 14 percent reserve requirement. The bank currently has $23,000 in checkable deposits and $11,000 in outstanding loans. What is the whole dollar amount of additional loans the bank may loan out. (If the bank is short on reserves enter your number as a negative number).
Answer:
$8,780
Explanation:
Checkable deposits = $23,000
Reserve ratio = 14%
Required reserves = $23,000*14% = $3,220
Outstanding loans = $11,000
So, the additional loans that a bank may loan out is $8,780 ($23,000 - $3,220 - $11,000).
he financial statements of Walgreen Co. reported the following information (in millions): Year 2 Year 1 Cost of sales $51,098 $51,291 Inventories, net 6,852 7,036 The average inventory days outstanding in year 2 is:
Answer:
50.1
Explanation:
The average inventory days outstanding in year 2
= Net / Cost of sales × 365
Given that;
Net = 7,036
Cost of sales = 51,291
Average inventory days outstanding in year 2
= 7,036 / 51,291
= 50.1
Which term refers to placing a load on the system or application to see where the performance and usability breakpoints exist
Answer:
Stress testing
Explanation:
Stress testing involves putting a system or application through extreme operating conditions to observe the breaking point of the system.
It is used to ascertain how stable and reliable a software program is.
The aim is to determine if the application will perform below optimal or crash during extreme operating situations.
The steps for stress testing are:
- Stress test planning
- Automation scripts are created
- Script execution
- Result analysis
- Optimisation of the application
An organization’s _____ is its general purpose or reason for existence
Answer:
cells?
Explanation:
The Core Principles of Economics — End of Chapter Problem
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia
typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend's
company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat
at home, using groceries that cost her $8.
a. Calculate Jia's costs associated with going out to dinner with her friend.
$
b. Calculate Jia's benefits associated with going out to dinner with her friend.
S
Answer:
Cost/58
Benifots /63
Explanation:
She should go out to eat with friend
Taylor Company leased an asset from Lease Corp. using an operating lease for equipment with a useful life of seven years. The initial lease term was for three years. After two years, Taylor Company and Lease Corp. agree to extend the lease term by three years, and to change the amount of lease payments. The additional three years were not originally an option. How should Taylor address this lease modification
Answer:
update the right-of-use asset for the increase in present value
reclassify from an operating lease to a finance lease
Explanation:
In the given instance there is a modification to the lease contract after 2 years of the 3 year lease.
Taylor Company and Lease Corp. agree to extend the lease term by three years, and to change the amount of lease payments.
Financial lease is one that confers a form of ownership of the lessee. He does not only have operational control of the equipment but also bears gains or loss from change in the value of the asset.
The new lease agreement covers most of the useful life of the equipment so it confers some degree of ownership to Taylor company. There is a need to reclassify the lease as a financial lease.
The present value of the asset has also increased has also increased so the right of use should be upgraded
A significant advantage of the payback period is that it Group of answer choices tends to reduce firm risk because it favors projects that generate early, less uncertain returns. places emphasis on time value of money. allows for the proper ranking of projects.
Answer:
tends to reduce firm risk because it favors projects that generate
Explanation:
Payback period as well as capital budgeting is concerned can be regarded as the required time that the funds that was expended on a particular investment is been recouped. It could also be the time to get to break-even point. Instance of this is $1200 investment which was invested at the beginning of 1st year which give a return of $400 towards the end of 1st year as well as 2nd year can be regarded to have two years of payback period. It should be noted that the A significant advantage of the payback period is that it tends to reduce firm risk because it favors projects that generate
Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. (a) Notes payable select an option (b) Advertising expense select an option (c) Common stock select an option (d) Cash select an option (e) Service revenue
Answer:
income statement
Service revenue
Advertising expense
balance sheet
Notes payable
Common stock
Cash
retained earnings statement.
Nill
Explanation:
The Income Statement records Incomes and Expenses. It is used to calculate the Profit earned during the reporting period.
The Balance sheet records Assets, Liabilities and Owners Equity. The Balance Sheet uses Accounting equation : Assets = Liabilities + Owners Equity.
The Retained Earnings records the Opening and Closing Retained Earnings Balances, Profit for the Year and Dividends Paid. It is used to determine the Balance at the end of the year in Profits attributable to Owners
Match the following product types to the appropriate product development description. A. Entail unusually large uncertainties about the technology or market. The development process takes steps to address those uncertainties. B. A firm with a new proprietary technology seeks out a market where that technology can be applied. C. Uses a repeated prototyping cycle. Results from one cycle are used to modify priorities in the ensuing cycle. D. The production process has an impact on the product properties. Therefore, product design and process design cannot be separated. E. Products are designed and built around a pre-existing technological subsystem.
Answer:
1. High-risk products.
2. Technology-push products.
3. Quick-build products.
4. Process-intensive products.
5. Platform products.
Explanation:
A. High-risk product: Entail unusually large uncertainties about the technology or market. The development process takes steps to address those uncertainties.
B. Technology-push product: A firm with a new proprietary technology seeks out a market where that technology can be applied.
C. Quick-build products: Uses a repeated prototyping cycle. Results from one cycle are used to modify priorities in the ensuing cycle.
D. Process-intensive product: The production process has an impact on the product properties. Therefore, product design and process design cannot be separated.
E. Platform products: Products are designed and built around a pre-existing technological subsystem.
Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of €2,000,000 this year, while the Greek subsidiary generated a net inflow of €1,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05. Group of answer choices $525,000 outflow $3,675,000 outflow $210,000 outflow $525,000 inflow
Answer:
$525,000 outflow
Explanation:
The German subsidiary had a net ouflow of €2,000,000
The Greek subsidiary had a net inflow of €1,500,000.
In other words, the U.S-based multinational would record an outflow because the net ouflow shown above is more than the net inflow.
Net ouflow=net ouflow-net inflow
Net ouflow= €2,000,000-€1,500,000.
net ouflow=€500,000.
Lastly, we convert the ouflow into dollars using the below exchange rate
€1=$1.05
€500,000 in dollars=€500,000*$1.05/1€
€500,000 in dollars=$525,000
Drag each tile to the correct box.
Create the sequence showing the procedure followed by the accountant to record the company’s transactions.
example answer: ACEBD or CDBAE
Answer:
Match the invoice with the PO.
Record the transaction in the system.
Post the transaction to a ledger
Generate unadjusted Trial balance
Prepare adjusted Trial Balance.
Issue Financial statements
Closing entries
Post closing Trial balance.
Explanation:
The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.
Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1.
Equipment $47,040 Buildings $600,000
Land 510,000 Capital stock 162,000
Accounts payable 65,760 Cash 37,680
Accounts receivable 12,720 Furnishings 70,440
Salaries payable 40,200 Snowmobiles 18,480
Interest payable 14,400 Notes payable 744,000
Retained earnings ?
Required:
a. Prepare a balance sheet at December 31, 2011.
b. Assume that no payment is due on the notes payable until 2013. Does this balance sheet indicate that the company is in a strong financial position as of December 31, 2011? Explain briefly.
Answer:
Rocky Mountain Lodge
a) Balance Sheet
At December 31, Year 1:
Assets:
Current Assets:
Cash 37,680
Accounts receivable 12,720
Current assets $50,400
Long-term Assets:
Furnishings 70,440
Snowmobiles 18,480
Equipment 47,040
Buildings 600,000
Land 510,000
Long-term assets 1,245,960
Total $1,296,360
Liabilities and Equity:
Liabilities
Current Liabilities:
Accounts payable 65,760
Salaries payable 40,200
Interest payable 14,400
Current liabilities $120,360
Long-term liabilities
Notes payable 744,000
Total liabilities $864,360
Equity:
Capital stock 162,000
Retained earnings 270,000
Total equity 432,000
Total $1,296,360
b) The company is not in a strong financial position as of December 31, 2011.
c) Its current assets cannot settle its current liabilities. There is doubt if the company will be able to settle the long-term notes payable at the level of its current operations because the basis does not exist. It will still require funds to finance operations, as most of the investments are made in long-term assets (especially land and building).
Explanation:
a) Data and Calculations:
Cash 37,680
Accounts receivable 12,720
Furnishings 70,440
Snowmobiles 18,480
Equipment 47,040
Buildings 600,000
Land 510,000
Total $1,296,360
Accounts payable 65,760
Salaries payable 40,200
Interest payable 14,400
Notes payable 744,000
Capital stock 162,000
Retained earnings 270,000
Total $1,296,360
