Answer:
The correct answer is the option 2: Gary is not a holder or holder in due course becuase the check was never indorsed.
Explanation:
To begin with, the field of law and more in particular the commercial law and all its scenarios, any check that has been passing through hands must be indorsed in order to be able to be payable to the person who has it the last, in any other case if the check is not indorsed then that means by law that the check has never changed its owner and therefore that it can not be payable for anybody else. That is why, Gary is not a holder because his uncle did not indorsed him the check correctly.
Naida Baronowski is an American fashion designer who has a design firm in Chicago. Naida has been successful in the U.S. and wants to expand her operation overseas. She hopes to open shops in Paris, Milan, Madrid, Rome, Vienna, and Moscow in the next several years. Naida is unfamiliar with foreign operations. She comes to you, her attorney, for advice about how she should pursue her goal of becoming an international fashion company.
If Naida keeps her Joliet plant, and ships her clothes from the U.S. to Paris, Madrid, and other cities, she may be subject, in the U.S., to:
a. import restrictions
b. tariff controls
c. export regulations
d. ad valorem taxes
e. licensing fees
Naida will need to be bound by certain export regulations if she wishes to ship her own clothes abroad.
Naida will also be compliant by the import regulations of the regions she is shipping to, which may or may not be subject to a few restrictions .
There are various regulations, policies and restrictions upon shipping to outer purview of US and they shall abide upon her by laws .Not only US , the regions she is exporting to also have certain more restrictions and taxes and duties,if any, will be applicable to her.There shall be additional policies relating to disclosure of items shipped and blacklisted items will not be able to be shipped.Hence the correct option is C and Naida will be subject to export regulations in the US .
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A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 28 basis points, the price of the bond will go down to $1,027. The duration of this bond is ____ years.
Answer:
7.82 years
Explanation:
Solution
Recall that:
The price of a bond is currently at = 1050
The yield on the bond = 7%
If the yield increases in 28 point basis, the bond price reduces to = $1027
Now,
We find out the bond duration
Thus,
The change in Price/Initial Price = - Duration * Yield change
=$1050 -$1027 = -23
-23/1050 = - Duration * 0.28%
So,
The duration = 23/(1050*0.28%) = 7.82
The bond duration is 7.82 years
magine that the current owner of the land in the previous exercise was willing to sell the land for $2 million. Assuming this amount equaled the social opportunity cost of the land, calculate the net benefits if the county were to purchase the land as a permanent wildlife refuge. In making these calculations, first assume a zero annual growth rate in the $110,000 of annual real benefits; then assume that these benefits grow at a rate of 2 percent per year.
Answer:
$1,666,667
Explanation:
Let assume that the annual growth rate is Zero
PV = ($110,000)/(.05)
= $2,200,000
NPV= $2,200,000 - $2,000,000
= $200,000
Let assume that the benefit growth rate is 2%
PV = ($110,000)/(.05-.02)
=$110,000/0.03
= $3,666,667
NPV=
$3,666,667 - $2,000,000
= $1,666,667
All of the following statements regarding valuation of receivables under U.S. GAAP and IFRS are true except:______
A. Both require the allowance method for uncollectibles unless uncollectibles are immaterial.
B. Both require that receivables be reported net of estimated collectibles.
C. Both require that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.
D. Both allow using percent of sales, percent of receivables, or aging of receivables to estimate uncollectibles.
E. Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible.
Answer:
E. Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible.
Explanation:
GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).
IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.
Also, there are notable similarities between the U.S GAAP and IFRS, these are;
1. Both require the allowance method for uncollectibles unless uncollectibles are immaterial.
2. Both require that receivables be reported net of estimated collectibles.
3. Both require that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.
4. Both allow using percent of sales, percent of receivables, or aging of receivables to estimate uncollectibles.
Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.
2017
Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account.
Jan. 3 Paid $4,800 to enclose the cab and install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400.
Dec. 31 Recorded annual straight-line depreciation on the loader.
2018:
Jan. 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.
Feb. 17 Paid $820 to repair the loader after the operator backed it into a tree.
Dec. 31 Recorded annual straight-line depreciation on the loader.
Required:
Prepare journal entries to record these transactions and events.
Answer and Explanation:
The Journal entries are shown below:-
Jan 1
Equipment Dr, $300,600 ($287,600 + $11,500 + $1,500)
To Cash $300,600
(Being equipment is recorded)
Jan 3
Equipment Dr, $4,800
To Cash $4,800
(Being equipment is recorded)
Dec 31
Depreciation expenses-equipment Dr, $70,850
($300,600 + $4,800 - $20,600 - $1,400) ÷ 4
To Accumulated depreciation-equiment $70,850
(Being depreciation expense is recorded)
Year 2018
Jan 1
Equiment Dr, $5,400
To Cash $5,400
(Being equipment is recorded)
Feb 17
Repair expenses Dr, $820
To Cash $820
(Being repair expense is recorded)
Dec 31
Depreciation expenses-equipment Dr, $43,590
To Accumulated depreciation-equiment $43,590
(Being depreciation expense is recorded)
For Computing the Depreciation year 2018
Particulars Amount
Jan 1 2017 Cost of loader ($287,600 + $11,500 + $1,500) $300,600
Add cost of air conditioning installation on
Jan 3 2017 $4,800
Book value of depreciation for year 2017 $305,400
Less: Depriciation of year 2017
($305,400 - $20,600 - $1,400) ÷ 4 $70,850
After depreciation the book value for year 2017 $234,550
Add: Cost to overhaul the loader's engine $5,400
Before depreciation the book value of 2018 $239,950
Depreciation of year 2018
($239,950 - $22,000) ÷ (4 - 2 + 1) $43,590
The Dodd-Frank Wallstreet Reform and Consumer Protection Act evolved from the mortgage industry meltdown, which was the consequence of deceptive behavior of professionals on Wall Street and uninformed consumers who risked too much and purchased homes whose future monthly payments were more than they could afford. The agency that was created to provide consumers with accurate information so they can make informed decisions about loans and other financial instruments is known as ___________________.
Answer:
Consumer Financial Protection Bureau (CFPB)
Explanation:
The Consumer Financial Protection Bureau (CFPB) was created in 2010 in response to the Great Recession. Its creation was authorized by the Dodd-Frank Act.
Its main duties include supervising banks, lenders, debt collection agencies, credit reporting agencies, and other non-bank entities related to credits and debts. One of its main goals is to make information about credits more clear to ordinary customers, specially credit cards and mortgages. That should help customers understand their rights and responsibilities better.
Profitability ratios profitability ratios in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. your boss has asked you to calculate the profitability ratios of st. mcstanky beer co. and make comments on its second-year performance as compared with its first-year performance. the following shows st. mcstanky beer co.’s income statement for the last two years. the company had assets of $8,225 million in the first year and $13,157 million in the second year. common equity was equal to $4,375 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. in addition, the firm did not issue new stock during either year.St. McStanky Beer Co. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 4,445 3,500 Operating costs except depreciation and amortization 1,855 1,723 Depreciation and amortization 222 140 Total Operating Costs 2,077 1,863 Operating Income (or EBIT) 2,368 1,637 Less: Interest 237 213 Earnings before taxes (EBT) 2,131 1,424 Less: Taxes (25%) 533 356 Net Income 1,598 1,068calculate the profitability ratios of st. mcstanky beer co. in the following table. convert all calculations to a percentage rounded to two decimal places.
Answer:
Details Year 2 Year 1
Operating profit margin 53.27% 46.77%
Net income margin 35.95% 30.51%
Return on total assets 12.51% 12.98%
Return on common equity 36.53% 24.41%
Comments:
1. St. McStanky Beer Co. income generation from operation improved in year 2 by 6.50% as it increased to 53.27% in Year 2 from 46.77% in Year 1.
2. St. McStanky Beer Co. net income generation improved in year by 5.44% as it increased to 35.95% in Year 2 from 30.51% in Year 1.
3. The assets of St. McStanky Beer Co. are less profitable in generating revenue in year 2 as it decreased by 0.84% to 12.51% in Year 2 from 12.98% in Year 1.
4. St. McStanky Beer Co. earns more net income per investment dollar as it returns on common equity improved by 12.11% to 36.53% in Year 2 from 24.41% in Year 1.
Explanation:
The profitability ratios are calculated as follows:
a. Operating profit margin
Operating margin = Operating Income / Net Sales
Year 2 Operating margin = 2,368 / 4,445 = 0.5327, or 53.27%
Year 1 Operating margin = 1,637 / 3,500 = 0.4677, or 46.77%
b. Net income margin
Net income margin = Net income / Net Sales
Year 2 Net income margin = 1,598 / 4,445 = 0.3595, or 35.95%
Year 1 Net income margin = 1,068 / 3,500 = 0.3051, or 30.51%
c. Return on total assets
Return on total assets = Net income / Total assets
Year 2 Return on total assets = 1,598 / 13,157 = 0.1215, or 12.15%
Year 1 Return on total assets = 1,068 / 8,225 = 0.1298, or 12.98%
d. Return on common equity
Return on common equity = Net income / Common equity
Since the firm did not issue new stock during either year, we use the same common equity for the two years as follows:
Year 2 Return on common equity = 1,598 / 4,375 = 0.3653, or 36.53%
Year 1 Return on common equity = 1,068 / 4,375 = 0.2441, or 24.41%
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:QuarterFirst Second Third FourthDirect materials $ 320,000 $ 160,000 $ 80,000 $ 240,000Direct labor 160,000 80,000 40,000 120,000Manufacturing overhead 230,000 206,000 194,000 ?Total manufacturing costs (a) $ 710,000 $ 446,000 $ 314,000 $ ?Number of units to be produced (b) 160,000 80,000 40,000 120,000Estimated unit product cost (a) ÷ (b) $ 4.44 $ 5.58 $ 7.85 $ ?Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.Required:1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30, what must be the estimated total fixed manufacturing overhead cost per quarter?2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
Answer:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30, what must be the estimated total fixed manufacturing overhead cost per quarter?
$182,0002. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
$4.80 per unit3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
The total number of units produced varies a lot, ranging from 160,000 units during the first quarter to only 40,000 units in the third quarter. Since most manufacturing overhead costs are fixed, total costs during the quarters with a low level of production will be too high.4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
$5.12 per unitExplanation:
Quarter First Second Third Fourth
Direct materials $320,000 $160,000 $80,000 $240,000
Direct labor 160,000 80,000 40,000 120,000
variable overhead 48,000 24,000 12,000 36,000
fixed overhead 182,000 182,000 182,000 182,000
Man. overhead 230,000 206,000 194,000 216,000
Total costs (a) $710,000 $446,000 $314,000 $576,000
Number of units 160,000 80,000 40,000 120,000
to be produced (b)
Estimated unit $4.44 $5.58 $7.85 $4.80
product cost (a) ÷ (b)
total fixed manufacturing overhead = $182,000 x 4 = $728,000 / total number of units produced = $728,000 / 400,000 units = $1.82 per unit
so now the total variable overhead costs = $0.30 + $1.82 = $2.12 per unit
total costs per quarter:
Quarter First Second Third Fourth
Direct materials $320,000 $160,000 $80,000 $240,000
Direct labor 160,000 80,000 40,000 120,000
variable overhead 339,200 169,600 84,800 254,400
Total costs (a) $819,200 $409,600 $204,800 $614,400
Number of units 160,000 80,000 40,000 120,000
to be produced (b)
Estimated unit $5.12 $5.12 $5.12 $5.12
product cost (a) ÷ (b)
Seasonal demand refers to the variability in demand that most companies might anticipate because of outside events.
Seasonal demand may provide a number of challenges, and it frequently needs the assistance of experienced managers to help foresee and overcome challenging situations.
The calculations have been attached below.
1. Assuming a $0.30 per piece adjustable production administrative overhead, the total fixed overhead price for the quarter is $182,000
2. Assuming that the previous three quarterly' pricing projections remain true, the anticipated unit product cost for the fourth quarter is $4.80 per unit.
3. The exact reasons why the estimated unit product cost fluctuates from season to season:
The overall number of units produced fluctuates significantly, ranging from 160,000 in the first quarter to just 40,000 in the third. Because of the preponderance of manufacturing overhead expenditures is fixed, overall costs during a quarter with production losses will be too high.
4. Assuming that the business determines a single plant overhead rate rather than a quarter rate higher, the unit charge of creating for all units produced year-round is $5.12.
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Wisdom Toys has budgeted sales and production over the next quarter as follows: Unit Sales Production September 43,000 44,400 October 50,000 52,800 November 64,000 61,200 The company requires that 20% of the next month’s sales in units are on hand at the end of each month. December sales are expected to be 50,000 units. How many video games are in inventory at October 31?
Answer:
$12,800
Explanation:
This can be calculated as follows:
November sales in unit = 64,000
Since Wisdom Toys requires that 20% of the next month’s sales in units are on hand at the end of each month, we have:
Number of video games in inventory at October 31 = November sales in unit * 20% = 64,000 * 20% = 12,800
Therefore, 12,800 video games in inventory at October 31.
If your company’s product is dry soup mixes and canned soups, would a multidomestic strategy, a transnational strategy, or a global strategy seem to be more advisable? Multiple Choice transnational strategy since processed food companies compete in two or more countries simultaneously multidomestic strategy since customer needs and preferences vary greatly in the soup industry A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary. multidomestic as local market conditions preclude a uniform, coordinated worldwide strategic approach global strategy since local managers need little latitude in decision-making
Answer:
A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary.
Explanation:
When selling a product in the international market place between different countries or communities, three approaches can be used.
The transnational, multidomestic and the global strategy.
Global strategy is when a product is not modified but rather same product and service is sold to different countries.
Transnational approach involves modification of the product to meet a countrie's peculiar needs. It is more personalised.
In this scenario the transnational approach is better because not everyone will have same preference of soup.
Customising soups to meet varied needs will make it sell more.
Some company executives favor the idea of contract manufacturing using local players, whereas others feel a direct investment strategy would be better. What would most strengthen argument for direct investment?
Answer:
A.
Explanation:
A direct investment refers to an investment in a foreign business enterprise designed to acquire a controlling interest in this enterprise. Therefore based on the listed options, the one that would strengthen this the most would be that "The operation will be used as an export hub for South Asian markets." Since this will allow for the company to be able to handle all logistics processes in the new market and not have to depend on other companies, thus increasing their controlling interest in that market.
Jill resigns from her job, at which she was earning $50,000 per yer, and uses her $100,000 savings on which she was earning 5 percent interest, to start a business. In the first year she earns revenue of $150,000 and her costs are as follows; Rent 25,000, Utilities 12,000, wages 30,000, materials 20,000 calculate Jill's accounting profit
Answer:
$63,000
Explanation:
Accounting profit is total revenue less total explicit cost
Total cost = 25,000 + 12,000 + 30,000 + 20,000 = 87,000
Revenue = $150,000
Accounting profit = = $150,000 - 87,000 = $63,000
I hope my answer helps you
Kingbird Company has the following stockholders’ equity accounts at December 31, 2017.Common Stock ($100 par value, authorized 8,600 shares) $473,000Retained Earnings 281,300Prepare entries in journal form to record the following transactions, which took place during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)(1) 300 shares of outstanding stock were purchased at $98 per share. (These are to be accounted for using the cost method.)(2) A $21 per share cash dividend was declared.(3) The dividend declared in (2) above was paid.(4) The treasury shares purchased in (1) above were resold at $102 per share.(5) 460 shares of outstanding stock were purchased at $105 per share.(6) 350 of the shares purchased in (5) above were resold at $97 per share.
Answer:
Journal Entries :
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Explanation:
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
Purchase Cost = 300 shares × $98 = $29,400
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
Dividend Calculation = (8600 - 300) × $21 = $174,300
Note : Recognize the Liability : Shareholders for Dividends and recognise the Equity Element : Dividends Declared
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
Note : De-recognize the Liability : Shareholders for Dividends and De -recognize the Assets of Cash.
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
Proceeds = 300 shares × $102 = $30,600
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
Purchase Cost = 460 shares × $105 = $48,300
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Proceeds = 300 shares × $97 = $29,100
The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the a.statement of retained earnings b.balance sheet as an adjustment to stockholders' equity c.income statement as other revenue (expense) d.balance sheet as an adjustment to the asset account
Answer: b.balance sheet as an adjustment to stockholders' equity
Explanation:
Available-for-Sale Investments are investments by the company into other companies by means of owning their bonds or stocks. These bonds or stock are made available for selling and as such the company will not hold them to maturity.
For these types of instruments, the company will record the Unrealized Gains (losses) in Other Comprehensive Income. This is a part of the Equity Section of the balance sheet.
At the end of the period, the Unrealized Gains (losses) resulting from the Available for Sale Securities do not go to the income statement but rather are put into the Accumulated Other Comprehensive Income distinction in the Equity section of the balance sheet. You can find it right below the Retained Earnings line.
Answer:
b.balance sheet as an adjustment to stockholders' equity
Explanation:
Unrealised gain or loss is also called paper gain or loss. This is because an assets value appreciates or depreciates it is not recognised as an actual gain or loss till it is sold.
These items are recorded on accumulated other comprehensive income in the owner's section of the balance sheet.
However when the assets are to be sold in the short run it is called trading securities and are recorded on the income statement when they are sold
For higher levels of management, responsibility accounting reports a.contain about the same level of detail as reports for lower levels of management b.are more detailed than for lower levels of management c.are rarely provided or reviewed d.are more summarized than for lower levels of management
Answer:
d. are more summarized than for lower levels of management
Explanation:
This report is generally explained to be a rundown of a company's budget and also expenditure and it is comprised also of different operations by higher levels of the company's management. In as much as it gives reports and details of the lower part of the company, it is generally explained to be more summarized for higher management levels than for lower levels of management. In its bid to assist and control the company's head or responsibility units, it gives headway to staff care/welfare and also steady overview of benefits to staffs.
A local family-run Greek restaurant has been a part of the community for twenty years. Their mission is to provide local, fresh, healthy, nutritious, and great-tasting food at reasonable prices in a clean, friendly, convenient environment. Their son studied business in college. When he returned to run the restaurant, he wanted to make the business more community-minded and environmentally responsible. What are some additions that could be implemented which are aligned with this company’s values?
The correct answer to this open question is the following.
Although there are not options provided, we can say that some additions that could be implemented which are aligned with this company’s values are the inclusion on the menu of organic food, vegan food, and kosher products so all kinds of customers can find a good option in the restaurant.
Another important thing is the way to market and communicate their innovations to consumers. In college, the son should have learned that the way a restaurant markets its products and services is as important as the kinds of food it offers.
Expand Your Critical Thinking 24-2 (Part Level Submission)Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size.One such non-custom model is called Luxury Base Frame. Normal production is 940 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 850 units were produced; 4,200 direct labor hours were allowed for standard production, but only 3,800 hours were used. Standard and actual overhead costs were as follows.ctual Standard (940 units) (850 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes $ 11,300 40,600 21,200 12,300 25,500 9,400 2,400 7,500 2,800 1,400 660 470 280 $135,810 $ 11,600 48,100 20,800 11,800 23,600 9,400 2,400 7,600 2,800 1,400 1,320 470 280 $141,570 Total X Your answer is incorrect. Try again. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 28.90 per direct labor hour(a) Determine the overhead application rate. THE ANSWER IS NOT 28.90 (Round answer to 2 decimal places, e.g. 15.75.)(b) Determine how much overhead was applied to production.(c) Calculate the total overhead variance, controllable variance, and volume variance.
Answer:
total budgeted costs = $141,570
budgeted production = 1,000 units
standard rate = $141,570 / 1,000 = $141.57 per unit
total actual costs = $135,810
actual production = 850 units
actual rate = $135,810 / 850 = $159.78 per unit
total fixed overhead variance = actual overhead costs - budgeted overhead costs = $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).volume variance = (standard activity - actual activity) x standard rate = (1,000 - 850) x $141.57 = 150 x $141.57 = $21,235.50 unfavorable. Less units where produced than budgeted, that is why the variance is unfavorable.If real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, is known as:
a. an expansion
b. a recession
c. a business cycle
Small ups and downs in real GDP follow a consistent, predictable pattern.
a. True
b. False
Answer:
b. a recession
False
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export
Real GDP is GDP calculated excluding the effects of inflation.
A recession is defined as a period of negative economic growth. An economy is in recession when the GDP over two consecutive quarters is negative.
Trends in real GDP aren't predictable because factors affecting real GDP aren't predictable.
For example, an unforseen event can suddenly affect the economy and greatly depress either consumption or investment or government spending or even net export.
I hope my answer helps you
Typical components in a claim are the claim, a rationale, a call to action, and a statement of goodwill. As you write claims, keep in mind that your goal is to have your claim honored. Focus on facts first and emotions second, if at all. Lay out a logical, reasonable, and professional explanation for your claim. Emotional claims are far more likely to be rejected. Also, remember that you will often work with the same people again and again. So, be polite and focus on the long-term working relationship.
Answer:
True.
Explanation:
These assumptions are true, as a claim can be described as a request for correction or compensation of errors.
Therefore, when writing a claim, it is necessary to focus on adopting a respectful communication with the recipient, who in the workplace will probably be someone that you establish a type of professional relationship, so it is ideal to maintain an ethical and direct posture, exposing all facts of your claim in a logical and non-emotional way, providing the necessary justifications for the claim, which should focus on action and resolution.
A bankrupt who owns a house has the option of either paying the mortgage or losing his home. The court cannot reduce the amount owed; its choice is to discharge the entire debt or leave it whole. Congress considered a bill that would permit a bankruptcy judge to adjust the terms of mortgages to aid debtors in holding onto their houses. Proponents argued that this change in the law would reduce foreclosures and stabilize the national housing market. Opponents said that it was not fair to reward homeowners for being irresponsible. How would you have voted on this bill?
Answer: I will vote in favor of the bill.
Explanation:
Based on the above scenario, I would vote in favor of the bill. The argument here is in the case of bankruptcy, if an individual is willing to pay their dues but because of unavoidable financial circumstances, the individual seeks more time or other assistance which can help so that the person will later pay. I believe it's a good idea which should be supported by the law.
The court should have the right to decide terms of mortgages to help debtors in order for them to pay their debts in future rather than forcing them to leave the house. It will also help the country deal with issue of facilitating housing to maximum number of individuals.
In my opinion, the judge's decision should be given prime importance as the judge must evaluate the intention of the debtor and the capability of the debtor to pay the debts
Sodium Inc. borrowed $175,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?
Answer:
The amount of interest that is recognized for the period from April 1 to December 31 is $15,750
Explanation:
According to the given data we have the following:
interest=12%
From April 1 to December 31 we have 9 months
Sodium Inc. borrowed $175,000
Therefore, in order to calculate the amount of interest that is recognized for the period from April 1 to December 31 we would have to make the following calculation:
Interest for 9 months= $175,000 x 12% x 9 months / 12
Interest for 9 months=$15,750
The amount of interest that is recognized for the period from April 1 to December 31 is $15,750
Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 21,000 pounds of apples is as follows: Grades Pounds Grade A 1,890 Grade B 5,250 Slices 8,400 Applesauce 5,460 Total 21,000 Total joint cost is $17,850. Required: 1. Allocate the joint cost to the four grades of apples using the physical units method. Joint Cost Grades Allocation Grade A $ Grade B Slices Applesauce Total $ 2. Allocate the joint cost to the four grades of apples by finding the average joint cost per pound and multiplying it by the number of pounds in the grade. Round the average cost answer to the nearest cent. Average cost
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1. Allocate the joint cost by using the physical unit method
Particular Allocation of physical unit Allocated joint cost ($)
Grade A $17,850 × 1,890 ÷ 21,000 1606.5
Grade B $17,850 × 5,250 ÷ 21,000 4462.5
Slices $17,850 × 8,400 ÷ 21,000 7,140
Applesauce $17,850 × 5,460 ÷ 21,000 4,641
Total 17,850
Allocated Joint Cost = Total Joint Cost × Pounds Grades ÷ Total Pounds Grades
2. Allocate the joint cost by using multiplying method:-
Average Joint Cost Per Pound is
= Total Joint Cost ÷ Total Pounds Grades
= $17,850 ÷ 21,000
= 0.85
Allocated joint cost = Average Joint Cost Per Pound × Pounds Grades
Particular Allocation of average cost Allocated joint cost
Grade A 0.85 × 1,890 1606.5
Grade B 0.85 × 5,250 4462.5
Slices 0.85 × 8,400 7,140
Applesauce 0.85 × 5,460 4,641
Total 17,850
Vertical integration is: a. A firm's ownership of vertically related activities b. A firm's control over its input sources and the distribution of its output c. A firm establishing close relationships with its suppliers and its buyers d. A firm's acquisition of a supplier or one of its buyers
Answer:
A firm's ownership of vertically related activities
Explanation:
As we know that
There are two types of integration i.e horizontal and vertical
The horizontal integration is the integration in which two or more firms amalgamate dealing in the same type of business i.e their products and the level of production is same
While on the other hand the vertical integration is the integration in which the one firm acquired or purchased another firm dealing in different stages but the production level remains the same
Hence, the first option is correct
The business world is becoming increasingly global due to advances in technology and travel. This means that businesspeople must know how to navigate intercultural ethics, not just the ethics of their particular country. To better prepare for the ethical challenges of a global marketplace, you should broaden your cultural awareness and familiarize yourself with strategies that help you adhere to legal and ethical guidelines.Read the following passages, and then answer the questions.You have recently been told you are going on a business trip to Thailand. You want to schedule a meeting with your supervisor to discuss how she conducts business in an ethical manner while in Thailand. In order to prepare for the meeting, you make a list of questions you would like to ask.What is an example of a good question to ask in this meeting?What are the company policies when it comes to handling bribery?Is it customary in this country to take off your shoes before entering a home?What are the top three sights I should see?After solidifying an overseas deal with a large bottling company, the executive informs you that in order to expedite the signing of the materials, he will need an extra $10,000.How should you react to his request?Immediately judge the man as immoral and corrupt and end the business deal.Inform the executive that this extra $10,000 wasn’t in the original contract. Avoid assuming unethical behavior until you clarify what he is asking for in relation to the agreed-upon contract.Negotiate his request and offer $5,000.Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural challenges of doing global business.Which of the following suggestions acknowledge different values and respect the need for moral initiative? Check all that apply.Find alternatives.Don’t rationalize shady decisions.Avoid transparency.Refuse business if it violates your basic values.
Since the questions are different, the answers are separated for question 1 and 2
ANSWER:
1) The best question to ask is: "What are the top three sights I should see".
2) Avoid assuming unethical behavior until you clarify what he is asking for in relation to the agreed-upon contract.
Inform the executive that this extra $10,000 wasn't in the original contract.
EXPLANATION:
1) It I very important to know the things expected to happen in the meeting, so that you can prepare ahead for it. Knowing the top three sights will help you prepare ahead for them. This question tends to extract the frequent and most occuring actions the supervisor always encounter during her meetings at Thailand.
2) It is not always right for us to condemn people's actions without the details of such action. Try to understand the details of why the executive wants you to add $10,000 to the cost of the project, so that you won't assume wrongly. And it is always right to specify the $10,000 demanded by the executive as a separate cost from the initial cost of the project, if the money does not directly linked the the initial cost of the project.
Distinguish between the direct and indirect strategies. when is each appropriate.
Answer: Depends on Content and Audience.
Explanation:
Deciding which strategy to use depends on the content of the work to be presented or the audience being presented to.
If the content is positive or if the audience are Positive or neutral about the work to be presented, the Direct Strategy is preferable. This refers to stating the conclusion or main idea at the beginning of the presentation and then working to explain it.
However, if you deduce that the audience are not positive to the content or that the content is not exactly good news or positive, it would be best to use the Indirect approach. With this approach you start with the evidence and other information then state the conclusion or main idea towards the end. This gives you the opportunity to win the audience over or at least explain why the content is negative before they reach the conclusion.
current assets and current liabilities were $100 million and $40 million, respectively. The prior year, 2018, Jones and Co. reported current assets and current liabilities of $80 million and $30 million, respectively. What is Jones and Co.'s Working Capital for 2019
Answer:
$60 million
Explanation:
Working capital is the amount of resources at the disposal of a firm in order to run its day-to-day activities.
Working capital is determined by deducting total current liabilities from total current assets
Jones and Co.'s working capital for the year 2019 is the difference between the current assets for 2019 and the current liabilities for the same year
current assets is $100 million
current liabilities is $40 million
working capital=$100 million-$40 million=$60 million
The overarching purpose of credit risk analysis is to: Question 11 options: a) Identify credit opportunities b) Determine a company’s optimal capital structure c) Provide information to banks about credit losses d) Quantify potential credit losses
Answer:
d) Quantify potential credit losses
Explanation:
Credit risk is the possibility of a loss happening because of a borrower's failure to payback a loan or meet up with contractual obligations. The overaching purpose of credit risk analysis is the quantification of the level of credit risk that the borrower poses to the lender. The purpose of credit analysis is to determine if borrowers are credit worthy by quantifying the risk of loss that the lender may experience.
Therefore option D is the answer.
The unadjusted trial balance for Monty Corp. is shown below.
MONTY CORP.
Trial Balance
October 31, 2017
Debit Credit
Cash $15,330
Supplies 2,750
Prepaid Insurance 750
Equipment 4,760
Notes Payable $4,760
Accounts Payable 2,300
Unearned Service Revenue 1,720
Common Stock 11,510
Retained Earnings 0
Dividends 540
Service Revenue 13,360
Salaries and Wages Expense 4,000
Rent Expense 5,520
$33,650 $33,650
Assume the following adjustment data.
1. Supplies on hand at October 31 total $690.
2. Expired insurance for the month is $125.
3. Depreciation for the month is $60.
4. As of October 31, services worth $930 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $260.
6. Interest expense accrued at October 31 is $85.
7. Accrued salaries at October 31 are $1,570.
Prepare the adjusting entries for the items above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
1.
No Entry
2.
Insurance Expense $125 (debit)
Insurance Prepaid $125 (credit)
3.
Depreciation $60 (debit)
Accumulated depreciation $60 (credit)
4.
Unearned Revenue $930 (debit)
Earned Revenue $930 (credit)
5.
Accounts Receivable $260 (debit)
Service Revenue $260 (credit)
6.
Interest expense $85 (debit)
Interest payable $85 (credit)
7.
Salaries expense $1,570 (debit)
Salaries Payable $1,570 (credit)
Explanation:
There is no entry required for supplies on hand as this is the Ledger Account Balance.
Insurance expense is recognized out of the prepaid insurance premium.
The liability : Unearned Revenue is de-recognized and Earned Revenue is recognized when services have finally been performed.
On November 1, 2017, Rodgers Enterprises sold merchandise with a cost of $7,000 for $25,000, FOB destination, with payment terms of 2/10, n/40. The company paid transportation costs of $100. Customer returns on this sale were $5,000 (with a cost of $2,500). The merchandise was returned on November 6. The company received the payment for the balance amount on November 10, 2017. Calculate the net sales revenue. Group of answer choices $19,600 $20,000 $4,500 $20,100
Answer:
The net sales revenue is $19,600
Explanation:
In order to calculate the net sales revenue we would have to make the following calculation:
Net Sales Revenue=Sales Revenue-Sales Returns and Allowances-Sales Discounts
Sales Revenue=$25,000
Sales Returns and Allowances= $5,000
Sales Discounts [($25,000-$5,000)*2%]= $400
Net Sales Revenue=$25,000-$5,000 -$400
Net Sales Revenue=$19,600
The net sales revenue is $19,600
Pablo Management has two employees, each of whom earns $120 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year’s Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees’ wages on Friday, January 4.
Answer:
December 31:
To record accrued wages for one day : (2 workers × $120) =$240
January 4:
To record accrued and current wages.
Wages expenses = 2 workers × 3 days × $120 =$720
Cash =2 workers × 4 days ×$120= $960
Balance=$240
1.)December 31
Wages expenses $240
Wages payable $240
2.)January 4 General Journal
Wages payable $240 (Debit)
Wages expenses $720 (Credit)
Cash $960
