5. Cleveland Resorts purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The machine operated for 2,200 hours in the first year, 3,600 in the second year, 2,850 in the third year, and 3,350 in the fourth year. The company expects the machine to operate for a total of 12,000 hours over its four-year life. Calculate depreciation expense and the accumulated depreciation of the equipment for the second year using each of the following depreciation methods: (a) straight-line,

Answers

Answer 1

Answer:

Annual depreciation= $8,00

Accumulated depreciation year 2= $16,000

Explanation:

Giving the following information:

Cleveland Resorts purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $8,000.

Under the straight-line method, the depreciation expense remains constant during the useful life of the equipment. We need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation=  (40,000 - 8,000)/4= $8,000

Accumulated depreciation year 2= 8,000*2= $16,000


Related Questions

Tempe Inc. produces two products—Basic and Fancy–by a joint process. The company incurred joint costs of $200,000. The company has gathered the following information: Basic Fancy Units produced 30,000 20,000 Sales price $25 $35 Units sold 20,000 18,000 Beginning Inventory 0 0 Determine the value of ending inventory for Basic and Fancy using the sales value at splitoff method.

Answers

Answer:

Basic ending inventory = $27,777.78

Fancy ending inventory = $11,666.67

Explanation:

                                                Basic            Fancy

Units produced                    30,000          20,000

Sales price                             $25                 $35

Units sold                             20,000           18,000

Beginning Inventory                0                      0

joint costs incurred = $200,000

The sales value at splitoff method allocates joint costs based on the products' prices.

Basic is allocated $25 / ($25 + $60) = 41.67% x $200,000 = $83,333.33 of joint costs. Production cost per unit = $83,333.33 / 30,000 = $2.78.

Ending inventory = (30,000 - 20,000) x $2.7778 = $27,777.78

Fancy is allocated $35 / ($25 + $60) = 58.33% x $200,000 = $116,666.67 of joint costs. Production cost per unit = $116,666.67 / 20,000 = $5.83333.

Ending inventory = (20,000 - 18,000) x $5.83333 = $11,666.67

A company makes​ tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is​ reached, an order is released for the economic order quantity. The tool company uses which of the following independent demand inventory systems for​ steel?

Answers

Answer:

Continuous review system

Explanation:

This is a continuous review system because from the arrangement the inventory level of steel is being monitored constantly and a specified amount of it is reordered at variable intervals. To determine the interval between these orders, the usage rate of Steel should be taken into account during the time between placing the order and when ordered material was delivered. With this, there is monitoring of steel which is the stock after every withdrawal. and when there is a drop in the stock level to a point of reorder, a fixed quantity is ordered.

Do women spend more time talking on the phone than​ men? a student collects data from students at her university and reports a​ 90% confidence interval for mu​(men)minusmu​(women) to be ​(minus​150,30), where mu​(men) is the mean number of minutes per month for men. based on this confidence​ interval, can it be concluded that mu​(women) is higher than mu​(men)?

Answers

Answer:

No

Explanation:

Remember, that as used in statistics the Confidence intervals only ascertain the extent to which a sample is uncertainty or certainty, that is, the student report of a​ 90% confidence interval is just a probability the university population of men and women surveyed would fall under this range of value ​(minus 150,30).

Therefore, it cannot be concluded that mu​(women) is higher than mu​(men.

Cassandra sees a 30-minute TV show on an entertainment channel which advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This is an example of:A. a sales promotion.B. personal selling.C. specialty advertising.D. buzz advertising.E. an infomercial.

Answers

Answer: E. an Infomercial

Explanation: Infomercials are long form of videos or television advertisements which act as a single stand-alone program to pitch goods or services with a call to buy. It is mostly different from a regular television commercials, it takes longer video time and there is no breaks in the program.

The 30 minutes television show Cassandra saw was on the entertainment channels which advertised the kitchen appliances, the TV show was "an infomercial ".

The given situation represents the example of an infomercial.

The following information should be considered:

An informercial should be long commercial that should be designed for fit into the 30 minutes or one-hour time slot. It should be generated by the advertisers & are to be designed so that it could be viewed in the regular television shows.

Therefore we can conclude that the correct option is E.

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On July 1, Mesa Verde, Inc. purchased a 6-month insurance policy for $12,600. Prepaid Insurance was debited for the entire amount. The adjusting entries to recognize the expired cost were made each month. On December 31, when the annual financial statements are prepared, the appropriate adjusting journal entry would be ______.a) Prepaid Insurance $10,500; Insurance Expense $10,500 b) Insurance Expense$10,500; Prepaid Insurance $10,500 c) Insurance Expense $2,100; Prepaid Insurance $2,100 d) Prepaid Insurance $2,100; Insurance Expense $2,100

Answers

Answer:

Option C.

Dr Insurance Expense $2,100

Cr          Prepaid Insurance $2,100

Explanation:

The initial payment of $12,600 is for 6 months which means monthly charge of insurance is $2,100 ($12,600 / 6 months). The initial prepaid expense was recorded as under:

Dr Prepaid Insurance $2,100

Cr               Cash Account $2,100

At the end of each month, the insurance expense is recognized and the entry is as under:

Dr Insurance Expense $2,100

Cr          Prepaid Insurance $2,100

When economists attempt to predict the spending patterns of U.S. households, they will typically view the ____________ as a primary determining factor that influences the individual consumption choices that each will make.
a. income level of each household
b. nation's perennial political debate
c. national average spending level
d. national average savings level

Answers

Answer:

The answer is A.

Explanation:

The main determinant of spending or consumption for households is income especially disposable income. Disposable income is the income after tax and other statutory incomes have been deducted.

The higher the disposable income the higher the amount spent on consumption and the lower the disposable income the lower the amount spent on consumption

With a higher income, consumers have more spare money to spend.

In order to create an appealing product​ reputation, Company MRKT has decided to pay to have its products featured in the background of popular​ shows; MRKT hopes consumers will have the mindset that if celebrities use those​ products, then so should they. Company MRKT is utilizing​ a(n) ______ strategy.

Answers

Answer:

Product Placement

Explanation:

A product placement strategy is when products appear on video productions with the goal of targeting a large amount of people that watch them. This helps to increase the sales but also the brand recognition. An example of this is when an actor in a TV show appears drinking a Coke. According to this, the answer is that Company MRKT is utilizing​ a product placement strategy because it is having its products featured in the background of popular​ shows.

Company MRKT is using a product placement strategy to feature its products in popular shows, leveraging viewers' associations with celebrities to influence consumer behavior. This method integrates products into TV or film content subtly. The goal is to make products appear desirable by association.

Company MRKT is utilizing a product placement strategy. This involves paying to have its products featured in the background of popular shows. The intent is to leverage the positive association viewers have with the celebrities in the show, thereby influencing consumer behavior towards buying these products.Product placement is a form of advertising where instead of traditional commercials, products are subtly integrated into television or film content. For example, if viewers see their favorite character using MRKT's products, they are more likely to perceive these products as desirable and fashionable.

Assume your company purchases a new computer with an invoice price of $40,000. You also paid sales tax of $2,000, shipping and preparation costs of $3,000, and insurance for the first year of operation is $4,000. At what amount should the computer be recorded on the balance sheet prior to recording depreciation expense?
A.. $40,000.
B. $42,000.
C. $43,000.
D. $45,000.
E. $49,000

Answers

Answer:

D) $45,000.

Explanation:

invoice price $40,000

sales tax $2,000

shipping and preparation costs $3,000

total = $45,000

The cost of any equipment includes the purchase price, related taxes (sales tax or import tariffs), shipping and handling costs, and insurance during the shipping and installation of the equipment.

Insurance that covers the equipment once it is operating is not included in the original cost of the equipment, it is considered an expense.

Assume you own and operate a small advertising business that employs 25 people. With increased health care costs and related insurance premiums you are contemplating the cancellation of health and hospitalization insurance for your employees. According to Maslow, your decision may cause your employees to become greatly concerned about:
A. self-esteem needs
B. affiliation needs
C. safety and security needs
D. self-actualization

Answers

Answer: (C) Safety and security needs

Explanation:

  The Safety and the security needs are one of the type of Maslow's hierarchy model that helps us to protect from the job security, safe and the healthy environment. The safety and the security are the basic physiological needs that is necessary for survival to each person.

 According to the given question, the decision made by an organization may cause the employees concerned about their safety and the various types of security requirement as employees can concentrate on given task in the healthy work environment only.

 It is also helps in increase the productivity as well as growth of the business and an organization. Therefore, Option (C) is correct answer.      

 

Import restrictions due to the imposition of tariffs by the U.S. government will ultimately cause inefficient resource allocation in the United States. will lead to lower incomes in the economy of U.S. trade partners. will lead to a decline in the quantity of the product consumed in the United States. all of the above are likely to occur

Answers

Answer:

all of the above are likely to occur

Explanation:

Import restrictions would limit the amount of goods imported into the US

as a result of the restriction, the amount of goods sold to the US by its trade partners would fall, as a result, the income of US trade partners would reduce.

Also, the quantity of goods available in the US would fall and consumption would fall.

Import restrictions might lead to US producing goods and services for ehuch it has no comparative advantage in its production. This would lead to ineeficent allocation of resources.

A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $400,000. To earn a 25 percent markup on selling price, the manufacturer would charge _____ for each of the 50,000 watches it expects to sell.

Answers

Answer:

$22.50 per unit

Explanation:

Mark -up is the percentage of cost that is earned as profit.

Using mark-up,

Selling price = Total cost + total profit

Total cot = Fixed cost + variable cost

Total costs = $400,000 +  (10× 50,000)

                   = $900,000

Sales revenue = 125%× 900,000

                       = 1,125,000

Selling price per unit = Sales revenue/units

                       =1,125,000/50,000

                     = $22.50 per unit

Answer:

$24

Explanation:

50,000 watches are sold

variable cost per watch = $10

fixed costs = $400,000

contribution margin to break even = $400,000 / 50,000 watches = $8 per watch

selling price without markup = $8 (contribution margin) + $10 (variable costs) = $18

X - 25% markup = $18

0.75X = $18

X = $18 / 0.75 = $24

Wildhorse Co. began the year 2022 with retained earnings of $651000. During the year, the company sold additional shares of stock for $1017000, recorded revenues of $649000, expenses of $376000, and paid dividends of $141000. What was Wildhorse's retained earnings balance at the end of 2022?

Answers

Answer:

$1,800,000

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

Ending retained earnings = Beginning retained earnings + additional stock issued + net income - dividend paid

= $651000 + $1017000 + $649000 - $376000 - $141000

= $1,800,000

A 30-year Treasury bond as a face value of $1,000, price of $1,200with a $50 coupon payment. Assume the price of this bond decreasesto $1,100 over the next year. The one-year holding period return is equal to:

A) -9.17%
B) -8.33%
C) -4.17%
D) -3.79%

Answers

Answer:

The one-year holding period return is equal to -4.17%, so the right answer is C.

Explanation:

In order to calculate the the one-year holding return we would have to use the fomula for  Holding Period Return (HPR), which is the following:

HPR = Current Yield + Capital Change

Current Yield = Yearly Coupon Payment / Price Paid = 50/1200

Capital Change = (New Value-Old Value)/Original Value = (1100 - 1200)/1200 = -100/1200

HPR = (50-100)/1200 = -0.4166 = -0.417%

Answer:

C) -4.17%

Explanation:

The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

According to given data

Initial Price of Bond = $1,200

Current Value of the bond = $$1,100

Yearly Coupon Payment =  $50

Formula for Holding Period Return

HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ Coupon Payment + [ ( Current Value - Initial Value ) ] / initial value

HPR = [ $50 +  ( $1,100 - $1,200 ) ] / $1,200

HPR = [ $50 - $100 ] / $1,200

HPR = -$50 / $1,200

HPR = -0.0417 = -4.17%

Silicon Co. has forecasted the Canadian dollar for the most recent period to be $0.73. The realized value of the Canadian dollar in the most recent period was $0.80. Thus, the absolute forecast error as a percentage of the realized value was ____%.

Answers

Answer:

8.75%

Explanation:

The forecast error refers to the actual value of the currency vs the expected value of the currency. A forecast is just an estimate or educated guess, and as any estimate it can be wrong.

The absolute forecast error = [(actual – forecast) / actual] x 100 = [$0.80 - $0.73) / $0.80] x 100 = 8.75%

Final answer:

The absolute forecast error as a percentage of the realized value is 8.75%, calculated by the difference between the forecasted and realized value, divided by the realized value and multiplied by 100.

Explanation:

The absolute forecast error is calculated by taking the absolute value of the difference between the forecasted value and the realized value, and then dividing by the realized value to convert it into a percentage. In this case, Silicon Co. forecasted the Canadian dollar to be $0.73, while the realized value was actually $0.80. Therefore, the absolute forecast error is the absolute value of ($0.73 - $0.80) which equals $0.07. To find the error as a percentage of the realized value, we divide the error by the realized value and then multiply by 100, i.e., ($0.07 / $0.80) * 100 = 8.75%.

Thus, the absolute forecast error as a percentage of the realized value was 8.75%.

A stock listing contains the following information:

P/E 17.5, closing price 33.10, dividend .80, YTD% chg 3.4, and net chg of -.50. Which of the following statements are correct given this information?


I. The stock price has increased by 3.4% during the current year.
II. The closing price on the previous trading day was $32.60.
III. The earnings per share are approximately $1.89.
IV. The current yield is 17.5%.
A. I and II only
B. I and III only
C. II and III only
D. III and IV only
E. I, III, and IV only

Provide excel calculation.

Answers

Answer:

The correct option is B, I  and III only

Explanation:

The earnings per share can be computed from the P/E ratio pf 17.5

P/E=Price of stock/earnings per share

price of stock  is $33.10

P/E ratio is 17.5

earnings per share is unknown

17.5=33.10/EPS

EPS=33.10/17.5

EPS =1.89

YTD of 3.4% implies that the stock price has grown by 3.4 % in the course of the year.

The previous day closing stock price  of $32.60 cannot be substantiated as more details are required.

Current dividend yield =dividend per share/current stock price

                                       =$0.80/$33.10

                                        =2.4%

The correct option is B,as the first and third comments were correct

Charles Malone recently renewed his card membership
at DiscountMania. The card has an annual $40 fee, but Charles believes that it
pays for itself because he receives good prices on electronics, contact lenses,
and even tires for his car. Shortly after renewing the card, Charles began
receiving calls from collection agencies claiming that he owed money. With the
help of others, he learned that another Charles Malone also owned a
DiscountMania card, and wrote checks with insufficient bank funds when making
purchases. DiscountMania had linked Charles’ personal information with the
other Charles Malone’s personal information. Charles experienced:_____________.
A. Buyer myopia
B. Database fraud
C. Information trafficking
D. Identity theft

Answers

Answer:

D. Identity theft

Explanation:

Identity theft is the use of a persons identity to make transactions and payment after acquiring the personal or financial information of that person. The person whose identity was used would suffer the consequences of the defaulters action. This information include a persons name, finger print, credit card number, pin number, password, date of birth and so on for the aim of accessing the person finances.

Final answer:

The issue Charles Malone experienced is known as Identity theft. This occurred when DiscountMania erroneously linked his personal information to that of another individual with the same name, leading to debt collection calls directed towards him wrongfully. D. Identity theft.

Explanation:

In the case presented, Charles Malone experienced D. Identity theft. Identity theft refers to the deliberate use of someone else's identifying information, usually for financial gain, resulting in potential harm to the individual whose identity has been stolen. This can be achieved through various methods, one of which includes having one's personal information mixed up with another person's, as experienced by Charles.

In this situation, DiscountMania, unfortunately, linked his information to that of another person named Charles Malone who had been issuing checks without sufficient funds. The errors in the database led to Charles receiving calls from collection agencies for the debt of the other Charles Malone, acting as a stressful and potentially damaging case of identity theft.

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If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized workers' pensions required under the collective agreement then attempts to reduce workers' pension entitlements, the union members will most likely __________.
a) be unable to defend against this action.
b) take defensive strike action.
c) enter into collective bargaining
d) receive higher wages instead

Answers

Answer:

B. Take defensive strike action.

Explanation:

One of the functions of a trade union or labor union is to protect the interest of its members in a workplace. So, if a profit firm treats its workers poorly by underfunding contribution to workers pension as required under a collective agreement while paying out record bonuses to executives then attempts attempt to reduce workers pension entitlements, the union members will most likely embark on an industrial strike.

The aim of the strike is to halt daily operations of the firm until their demands are heard and an agreement is reached. The members of the union were treated unfairly by the firm by not honoring their pension funding agreement and to make matters worse the decided to try and reduce the workers pension.

If the members don't embark on the industrial strike, the firm would reduce their pension benefits. The most likely action of the union members would be to embark on a defensive strike action to protect themselves.

Mei feels irritated when Linda's unbridled enthusiasm often leads her to lose sight of critical project details. Linda feels frustrated when Mei often analyzes so many details that it slows down the decision-making process. The discord between Mei and Linda is explained by ________.
a. poor management.b. lack of self-disclosure.c. communication style bias.d. a poorly constructed team.

Answers

Answer:

C. Communication Style Bias

Explanation:

Communication style bias is a psychology state that occurs when an individual meets another individual or person whose communication style is different. A particular communication style describes the way in which an individual thinks and behaves. When working with an individual, getting in sync with the person's communication style becomes paramount to avoid irritations between the two. In this case, the way Mei thinks and behaves is very different from the way Linda thinks she behave hence why the have such negative perspectives about each other.

If the price is below average total cost, then in the short run a perfectly competitive firm should: A. raise price. B. continue to produce to minimize losses. C. shut down. D. There is not enough information given to answer this question.

Answers

Answer:

B. continue to produce to minimize losses. 

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. Buyers and sellers are price takers Because they cannot set prices of products.

If in the short run, price is below average variable cost, the firm should shut down.

If price is below average total cost in the short run, the firm should continue production.

I hope my answer helps you

Aaron earns $24.00 per hour with $36 per hour for hours in excess of 40 hours per week. He worked 50 hours at his job during the first week of March 2020. Aaron pays state and federal income taxes at 15%, and pays 7.65% for FICA(OASDI and Medicare. All of his income is taxable under FICA). Determine Aaron's net pay for the week.

Answers

Answer:

$1,021

Explanation:

Net income is the net of Gross income and any taxes and deduction.

Income tax and FICA(OASDI and Medicare are calculated on the gross income and

First we calculate the total income using standard and overtime rate

Total Numbers of Hours worked in a week = 50 hours

Standard Hours = 40 hours

Rate of Standard Hours = $24 per hour

Rate of overtime = $36 per hour

Income

Standard = $24 x 40 = $960

Overtime = $36 x (50-40) = $360

Total  = $960 + $360 = $1,320

Income tax = Gross Income x Income tax rate = $1,320 x 15% = $198

FICA(OASDI and Medicare = Gross Income x rate = $1,320 x 7.65% = $101

Net Income = $1,320 - $198 - $101 = $1,021

Red Baron Pizza discovered that if it reduced the retail price of its pizzas by 25% from $8 to $6, the demand for its pizzas increased 50% from 2 million to 3 million pizzas. Based on this experience they concluded that the elasticity of demand for their pizza products was:

Answers

Answer:

Elasticity of demand for their pizza products was 2

Explanation:

The formula for calculating elasticity of demand is given as:

Percentage change in quantity demanded divided by the percentage change in price.

From the question above, we are given the following:

Percentage change in quantity demanded = 50%

Percentage change in price = 25%

Therefore:

Elasticity of demand = 50% / 25%

Elasticity of demand = 2

Black Top Taxis is hiring new drivers. One of the key selection criteria for potential candidates is the ability to choose the right action quickly in response to several different signals and the ability to respond quickly to signaling information after it occurs. The selection criteria indicate that to be selected, a candidate must have the two psychomotor abilities ofA) perceptual speed and extent flexibility.B) control movement abilities and originality.C) visualization and gross motor coordination.D) response orientation and low response time.E) number facility and response orientation abilities

Answers

Answer:

The correct answer is letter "D": response orientation and low response time.

Explanation:

Response orientation refers to the ability individuals develop that allows them to choose rapidly between different alternatives portrayed. It does not only involves selecting an alternative quickly but choosing the correct option.

Low response time implies reacting in front of a given situation with the minimum delay possible. It shows how prepared an individual may be and how fast that person can provide solutions to face the event.

Mariel has a​ $60,000 basis in her partnership interest just before receiving a parcel of land as a liquidating distribution. She has no remaining precontribution gain and will receive no other distributions. Under what conditions will​ Mariel's basis in the land be​ $60,000?

Answers

Answer:

Explanation:

While accepting a benefit, the premise is commonly equivalent to the premise in the organization as long as there are no exchanging conveyances of cash, undiscovered receivables, and stock. In the event that such selling appropriations were incorporated they would have an all out premise to the association that is not exactly Mariel's premise in her organization, prompting a misfortune. Then again, the premise of an advantage will never increment. It can just continue as before or decline.  

Mariel just gets land for this situation so her premise in the land will stay at $60,000, since she didn't get selling dissemination of cash, hidden receivables and stock.

[The following information applies to the questions displayed below.]



On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $580,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

3. If the market interest rate is 7%, the bonds will issue at $621,216. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)

Answers

The following journal entries will be passed in the books of accounts

Explanation:

Date                 General Journal  Debit  Credit

Janaury 1, 2021  Cash                  580000  

 Bonds payable                          580000

 (To record issuance of bonds)    

June 30, 2021  Interest expense  23200  

 Cash                                                  23200

 (To record first semiannual interest payment)    

December 31, 2021  Interest expense  23200  

 Cash                                                              23200

 (To record second semiannual interest payment)      

2  Date  General Journal  Debit  Credit

Janaury 1, 2021  Cash  542277  

 Discount on bonds payable  37723  

 Bonds payable                        580000

 (To record issuance of bonds)    

June 30, 2021  Interest expense  24402  

 Discount on bonds payable   1202

 Cash                                                            23200

 (To record first semiannual interest payment and amortization of discount)    

December 31, 2021  Interest expense  24457  

 Discount on bonds payable                              1257

 Cash                                                                 23200

 (To record second semiannual interest payment and amortization of discount)        

3  Date             General Journal   Debit  Credit

Janaury 1, 2020 Cash               621216  

 Premium on bonds payable                     41216

 Bonds payable                                     580000

 (To record issuance of bonds)    

June 30, 2021  Interest expense   21743  

 Premium on bonds payable    1457  

 Cash ($580000 into 8% into 0.5)   23200

 (To record first semiannual interest payment and amortization of premium)    

December 31, 2021  Interest expense  21692  

 Premium on bonds payable             1508  

 Cash                                                23200

 (To record second semiannual interest payment and amortization of premium)  

Final answer:

When interest rates rise, the value of existing bonds decreases. Therefore, you would expect to pay less than $10,000 for the bond. To calculate what you would be willing to pay for the bond, you would need to calculate the present value of the bond's future cash flows.

Explanation:

a. When interest rates rise, the value of existing bonds decreases. Therefore, you would expect to pay less than $10,000 for the bond.

b. To calculate what you would be willing to pay for the bond, you would need to calculate the present value of the bond's future cash flows. This can be done using the present value formula or a financial calculator.

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In his analysis of the Dell fraud for Forbes, Edward Hess comments: "Too often, the market's maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it apparently did at Dell. That behavior produces non-authentic earnings that obscure what is really happening in business. Short-termism can result in a range of corporate and financial games that may enrich management at the expense of market integrity and efficient investor capital allocation." Comment on Hess's statement from two(2) perspectives: earnings management and financial analysts earnings projections. Explain the difference between financial statement fraud and disclosure fraud. How did Dell use each one to produce materially misstated financial results

Answers

Answer:

As earnings naturally represent the managements ability and success, earnings is the item that is most prone to be misrepresented.

we know that projections are forecasts that are never 100% correct and these projections are extremely sensitive to macro environmental factors.

Financial statement fraud refers to intentional, fraudulent misrepresentations and miscalculations in the financial statement accounts, balances and cash flows. such fraudulent alterations are usually done at the accounts level and in those accounts and transactions.

Disclosure fraud refers to fraudulent activities and misrepresentations that are done by not including balances, hiding real figures and not disclosing essential and material items that are necessary to be disclosed.

Explanation:

Answer:

As earnings naturally represent the managements ability and success, earnings is the item that is most prone to be misrepresented.

we know that projections are forecasts that are never 100% correct and these projections are extremely sensitive to macro environmental factors.

Financial statement fraud refers to intentional, fraudulent misrepresentations and miscalculations in the financial statement accounts, balances and cash flows. such fraudulent alterations are usually done at the accounts level and in those accounts and transactions.

Explanation:

Carpino Company purchased equipment and these costs were incurred: Cash price $75,000 Sales taxes 3,500 Insurance during transit 750 Installation and testing 1,500 Total costs $80,750 What amount should be recorded as the cost of the equipment?

Answers

Answer:

$80750

Explanation:

The total cost of $80,750 would be recorded as the amount or rather the cost of equipment. This is because according to GAAP ( Generally accepted accounting principles), all cost involved in acquiring a business asset including sales tax, insurance and so on should be reported in the balance sheet with a book value that is equal to the overall acquisition cost ( which in this case includes sales tax, insurance, installation and testing).

Your temporary placement service needs to place personal selling personnel who use different communication channels according to the products they are contracted to sell. You presently have several positions to fill that require personnel experienced in various communication channels. You want to categorize the type of experience needed before you start calling your employees.Choose the statements that inaccurately categorizes its job description to the type of personal selling communication channel it utilizes.A) A retail outlet needs someone to sell auto repair supplies and parts to business directly to customers.This outlet uses over-the-counter selling.B) A soft drint distributor needs bilingual representatives to take product orders when customers call.This involves field selling.C) An insurance companies need sales representatives to place phone calls to prospective clients to sells renters insurance over the phone.These sales representatives will use telemarketing.D) Sales representatives are needed to support technicians and purchasers on a continous basis by phone, mail and e-mail. They will utilize inside selling.

Answers

Answer:

The answer is B.) A soft drink distributor needs bilingual representatives to take product orders when customers call. This involves field selling.

Explanation:

This type of representation builds a relationship with customers that encourage them to come back and patronize them more often.

Bilingual customer service representative provide customer in English and any other foreign language, could also be in a native language. They deliver optimized value with customers and constituents by developing and implementing profitable solutions to address expectations, continuously receiving compliments from customers and awarded monthly employee of the month several times during the year.

A $ 45 comma 000​, threeminus​month, 12​% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Answers

Answer:

The correct answer is $312.5.

Explanation:

According to the scenario, the computation of the given data are as follows:

The interest amount after one month of issue considered as accrued interest.

So, Face value = $45,000

interest rate = 12%

Period = 1 month

So, we can calculate the accrued interest by using following formula:

Accrued interest amount = ( FV × rate) ÷ 12

= ($45,000 × 12% ) ÷ 12

= $312.5

When Krispy Kreme decided to expand its operation internationally, it chose to first make its doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization, the company sold the right to manufacture and sell its doughnuts to Canadians. In other words, Krispy Kreme used:

a. contract manufacturing
b. direct investment
c. importing
d. a strategic alliance
e. licensing

Answers

Answer:

The answer is E.

Explanation:

Licensing is a business arrangement in which one company(Krispy Kreme) authorizes another company(Canadian company) permission to manufacture its product for a specified payment. The benefits for licensing are:

1. To create business opportunities by expansion

2. It makes an entry into foreign market easier

3. It reduces risk for the two parties.

Assume the current U.S. dollar-British spot rate is 0.6993£/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%, what is the approximate forward exchange rate for 360 days? Select one: a. £0.6993/$ b. £0.7060/$ c. £1.42/$ d. £1.43/$

Answers

Answer:

The answer is B. £0.7060/$

Explanation:

The forward exchange rate is the exchange rate at which a party is willing to exchange one currency for another at a future date when it enters into a forward contract with the other party

The formula for forward exchange rate = Spot rate x [(1 + foreign interest rate) / (1 + domestic interest rate) ]

Spot rate is 0.6993£/$

Foreign interest rate is 6%

Domestic interest rate is 5%

0.6993£/$ x (1 + 0.06/1 + 0.05)

0.6993£/$ x 1.06/1.05

= 0.7060

£0.7060/$

Final answer:

Using the spot rate and the interest rates in the two countries, the forward exchange rate is calculated to be approximately £0.6993/$. Therefore, the correct answer is a. £0.6993/$.

Explanation:

The forward exchange rate can be calculated using the spot rate and the interest rates in the two countries. The formula for this calculation is: Forward Rate = Spot Rate * (1 + Interest Rate in Domestic Country) / (1 + Interest Rate in Foreign Country). Substituting the given values into this formula gives us Forward Rate = 0.6993£/$ * (1 + 0.05) / (1 + 0.06). Calculating this gives us an approximate forward exchange rate of 0.6993£/$. Therefore, the correct answer is a. £0.6993/$.

To calculate the forward exchange rate, we can use the formula:

Forward Rate = Spot Rate x (1 + Interest Rate of the Foreign Currency) / (1 + Interest Rate of the Domestic Currency)Plugging in the values, we get: Forward Rate = 0.6993 x (1 + 0.06) / (1 + 0.05) Forward Rate ≈ 0.7060£/$

So the approximate forward exchange rate for 360 days is £0.7060/$ (option b).

Learn more about Forward Exchange Rate here:

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