Answer:
$165,000
Explanation:
The computation of the cash flows from operating activities is shown below:
Cash flow from operating activities
Net income reported for the year = $180,000
Less: Increase in account receivable -$15,000 ($40,000 - $55,000)
Cash flow provided by operating activities $165,000
Since there is a $15,000 increase in account receivable and the same is deducted from net income so that the correct amount could arrive
A News Wire article in the text indicates that North Korea is expanding its missile programs. Assume North Korea is currently on its production possibilities curve. If the increase in missile production results in a decrease in food production, this is an example of:
Answer:
opportunity cost
Explanation:
Based on the scenario being described within the question it can be said that this situation is an example of an opportunity cost. This term refers to the cost that you incure from choosing one opportunity over the other options available. Such as in this case, North Korea is giving up increased food production by choosing increased missile production. Therefore, increased food production is it's opportunity cost.
While conducting an audit of a new nonissuer client, an auditor discovers that accounting policies applied in relation to the financial statement opening balances are inconsistent with accounting policies applied during the period under audit. In this scenario, what should the auditor do?
A.Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.
B.Refrain from placing any reliance on information obtained from the review of the predecessor auditor's audit documentation of the prior period.
C.Request that management inform the predecessor auditor that the prior-period audited financial statements require revision.
D.Express a qualified or adverse opinion.
Answer:
A) Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.
Explanation:
When such things happen, the auditor must search more information regarding the accounting policies and must evaluate if the company's accountants adopted accounting policies that are legal and adjust to applicable financial reporting (e.g. GAAP in the US). The auditor must also try to determine the effects of the applied policies and if all proper disclosures have been included or not. The auditor should also try to determine why the company's accounting department did that and how do they justify it.
Actively managed funds find it difficult to consistently earn higher risk-adjusted returns than a broad stock market index. The difference in return between actively managed funds and passively managed index funds can be explained by which of the following?
I. Lower expense ratios at index funds.
II. Higher turnover rates at index funds.
III. Differences in returns in sectors of the market and the overall market return.
Answer:
I and III.
Explanation:
An actively managed investment fund is a fund where a management team makes investments decisions on the funds money. The benefits here have greater flexibility.
A passively managed fund, follows the market index. It's investments decisions are not made by a manager. They are automatically selected to match market index. Passive funds have lower expense ratios.
Sometimes active funds do better than passive funds and sometimes passive funds do better than active funds.
Lower expense ratios at index funds and Differences in returns in sectors of the market and the overall market return explains the difference between these two.
dentify the basic internal control guidelines which should be in place to protect a business's cash by selecting the correct answers below. (Check all that apply.) Excess cash should be left in the bank to maintain liquidity. Cash receipts are promptly deposited in a bank. Cash payments are made by check. Handling cash is separate from recordkeeping of cash. Bills should be paid immediately.
Cash receipts are promptly deposited in a bank.
Cash payments are made by check.
Handling cash is separate from recordkeeping of cash
The following information should be considered:
The guidelines regarding the basic internal control should for protecting the cash of the business by having the cash receipts. Cash payments.The cash should be distinct from cash recordkeeping.Learn more: https://brainly.com/question/1022920
Final answer:
To protect a business's cash, it is crucial to have strong internal controls such as promptly depositing receipts, making payments by check, and separating cash handling from recordkeeping. Excess cash should be managed to earn interest, and banks play a crucial role in facilitating transactions and cash management.
Explanation:
To protect a business's cash, several basic internal control guidelines should be in place. Cash receipts should be promptly deposited in a bank to minimize the risk of loss or theft. Cash payments are best made by check, or other traceable forms such as electronic transfers, to ensure there is a record of the payment. This also helps in preventing and detecting fraud. An important principle in internal controls is the separation of duties; therefore, the handling cash should be separate from recordkeeping of cash. This reduces the risk of embezzlement or errors going unnoticed. Bills should be paid according to their due dates to manage cash flow effectively, not necessarily immediately, which allows for better cash management. As for excess cash, it should not simply be left in a checking account but should be moved into a savings account or invested to earn interest. A sweep arrangement with the bank can automate this process.
Banks facilitate a complex economy by allowing individuals and businesses to store money and carry out transactions without the need to handle large amounts of cash directly. The use of bank accounts for storing money and making transactions via direct withdrawals, checks, or debit cards is crucial for modern financial operations. This explains the role of banks in providing conveniences and why businesses should utilize banking services to handle cash efficiently.
Friends, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with higher quality products such as house wines and fresh foods. Friends has most likely changed its ________. A. organizational structure B. service level C. corporate identity D. price strategy E. positioning
Answer:
E. Positioning
Explanation:
Positioning deals with what organizations should do in order to sell its product and services to consumers. Positioning indicates an organization's product or service place in the mind of consumers. It is aimed at putting the product or services in the mind of the consumers. By redesigning and restocking the store to offer lre upscale environment with higher quality product, Friends had changed its positioning.
In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you forecast that you will be able to sell only 20,000 room-nights, which cost $80 per room per night to service. You spent $30.00 million on the hotel in 2008, and your cost of capital is 20%. The current going price to sell the hotel is $25 million. If the estimated demand is 20,000 room-nights, the break-even price is $ per room, per night. (Hint: Remember that the cost of capital is the opportunity cost, or true cost, of making an investment.)
Answer:
The break-even price is $330
Explanation:
It is important to note that the break-even price is considered as the average avoidable cost. For each room, it is considered as the addition of marginal cost with the annual cost of avoidable capital/room.
The Break-even price is calculated below:
[tex]P^{BE} =[/tex] $25,000,000 × 20% / 20,000 + $80
= $330.
Therefore, the break-even price is $330.
A put on Sanders stock with a strike price of $31 is priced at $2 per share, while a call with a strike price of $31 is priced at $2.50. The maximum per-share loss to the writer of an uncovered put is __________, and the maximum per-share gain to the writer of an uncovered call is _________.
Answer: $29; $2.50
Explanation:
The maximum per share loss to the writer of an uncovered put; that is price of put is zero on expiration
Strike price = $31, at $2 per share
Therefore, maximum per share loss ;
($31 - 0) - $2 =
Maximum per share gain to the writer of an uncovered put occurs when the stock price falls below $31 on expiration.
Maximum per share gain equals $2.50
The maximum per-share loss to the writer of an uncovered put is $29, and the maximum per-share gain to the writer of an uncovered call is -$26.
Explanation:The maximum per-share loss to the writer of an uncovered put is $31 (strike price) minus $2 (price per share), which equals $29. The maximum per-share gain to the writer of an uncovered call is the price per share of the call minus the strike price, which is $2.50 (price per share) minus $31 (strike price), which equals -$28.50. However, since the call writer receives a premium of $2.50 per share, the maximum per-share gain would be -$28.50 plus $2.50, which equals -$26.
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Bernard is a board member at Lopez Electronics Inc. He is also a senior executive of the firm. The board is chaired by Ernest Jones, the CEO of Stanley Motors. According to this scenario, Bernard:_______.
a. is more likely than Ernest to take care of stockholder interests.
b. can use information from board meetings to trade stocks of Lopez Electronics.
c. is an inside director of Lopez Electronics.
d. cannot serve on the board of any other organization.
Answer: C. is an inside director of Lopez Electronics.
Explanation: It was stated that Bernard is a board member at Lopez Electronics and most board members of a company are either executive directors or non executive directors. Based on that fact Bernard should be an inside director at Lopez Electronics.
It was also stated that Bernard is a senior executive in the company, this also point to the fact that he is an inside director.
Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. The firm has a tax rate of 20%. If the machine is sold at the end of two years for $50,000, what is the cash flow from disposal?
Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages- the cash flow from disposal is $46720
Explanation:
Given that the four-year sale is at $50,000.
we know that the book value of the machine must be established in order to determine if a gain or loss has been incurred at disposal.
The depreciation schedule for the $70,000 machine is: given as
Year 1: $70,000 × 0.2000 = $14,000
Year 2: $70,000 × 0.3200 = $22,400
Accumulated Depreciation = $14,000 + $22,400 = $36,400
Book Value of machine = $70,000 - $36,400 = $33,600
Gain on disposal is $50,000 - $33,600 = $16,400
Tax on Gain = Gain on disposal × Tax rate = $16,400 &
times; 0.20 = 20% of $16,400=20/100*16400=3,280
After-Tax Cash Flow at disposal = $50,000 - $3,280 = $46,720
The cash flow from disposal of the machine is $48,440.
Explanation:To determine the cash flow from disposal of the machine, we need to calculate the tax effects and subtract them from the sale price. Here's how:
Calculate the accumulated depreciation over the 2 years using the MACRS percentages. The accumulated depreciation is $12,800 ($70,000× 0.2 + $70,000 ×0.32).Calculate the adjusted basis of the machine by subtracting the accumulated depreciation from the purchase price. The adjusted basis is $57,200 ($70,000 - $12,800).Calculate the taxable gain by subtracting the adjusted basis from the sale price. The taxable gain is $7,800 ($50,000 - $57,200).Calculate the taxes owed on the gain by multiplying the taxable gain by the tax rate. The taxes owed are $1,560 ($7,800 ×0.2).Finally, determine the cash flow from disposal by subtracting the taxes owed from the sale price. The cash flow from disposal is $48,440 ($50,000 - $1,560).The store managers of Chimbake, a chain of bakeries, are allowed to come up with new dessert flavors of their choice as long as they do not fall short of the company's quality standards. They are also allowed to come up with effective marketing strategies based on their respective market requirements. In the context of organizational authority, which of the following is best illustrated in this scenario?A) Centralization of authorityB) Decentralization of authorityC) Staff authorityD) Concentrated authority
Answer:
B) Decentralization of authority
Explanation:
Based on the scenario being described it can be said that the concept that is best illustrated in this scenario would be a decentralization of authority. This is the process in which authority is moved to the lower level managers within an organization. Which is what is happening in Chimbake, since they have given the store managers full authority to control and create the dessert flavors as they see fit.
An American Airlines ad shows the airline's new seats and emphasizes their ability to recline and other benefits, to overcome the __________ of its service. Multiple Choice inconsistency inseparability intangibility inventory costs incongruity
Answer:
Intangibility
Explanation:
Services are businesses that provides intangible products. Examples of such businesses includes accounting, education, cleaning, landscaping, treatment, insurance, transportation services and so on. The primary value of what service offers is intangible. Something is said to be intangible when it can not be touched or seen before purchase. Companies through advertising and other promotional activities tries to overcome the intangibility of their services. In this example, the transport company uses ad showing new seat and other benefits in trying to overcome the intangibility problem.
What effect do you think seasonal demand might have on the price of goods? Explain
why.
If demand rises while supply stays unchanged, the optimum price and quantity rise as well.
Demand falls while supply remains constant, resulting in a lower equilibrium price.
Seasonal demand changes can have an impact on personnel, planning, and cash flow.
The aim is to balance demand by luring consumers with low pricing during sluggish periods and maximize earnings during peak periods by charging higher prices.
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Suppose the current price of gasoline at the pump is $4 per gallon and that 1 million gallons are sold per day. A politician proposes to add a $1 tax to the price of a gallon of gasoline. She says the tax will generate $1 million in tax revenues per day ( 1 million gallons×$1 per gallon=$1 million ). In this situation, the politician is assuming that the demand for gasoline is:
Answer: Perfectly inelastic demand
Explanation:
Perfectly inelastic demand is a type of demand where the quantity demanded for a good or service does not respond to price.
The implication in a perfectly inelastic demand is that the price does not matter as the consumer would purchase the same quantity of a good or service at every price. A nearly perfect example of perfect inelastic demand demand is a life saving drug.
Final answer:
The politician is assuming that the demand for gasoline is perfectly inelastic, but in practice demand usually decreases when price increases due to price elasticity.
Explanation:
The politician is assuming that the demand for gasoline is perfectly inelastic. This means the quantity of gasoline demanded will not change despite the increase in the price due to the added tax. However, in reality, when a tax is imposed, it can either increase the price that consumers pay or decrease the price that sellers receive, depending on the elasticity of supply and demand. Normally, the burden of the tax is shared between producers and consumers, and the actual change in price will be less than the full amount of the tax. If we examine total revenues before and after the price change, they rise from $4,000 per day (1,000 gallons per day times $4.00 per gallon) to $4,037.50 per day (950 gallons per day times $4.25 per gallon), indicating that the demand for gasoline is price inelastic. Nevertheless, for the politician's assumption to hold true, consumers would have to continue purchasing the same amount, which is not typically the case due to the price elasticity of demand.
Вопрос 3 Moogle, Inc. is in the same business as Google, Inc., but has recently retired all its debt to become an all-equity firm. Its return on equity has dropped from 12.00% to 10.75% as a result of this. Google, Inc. continues to have debt in its capital structure, and its debt-to-equity ratio is 30.00%. What is the percentage return on assets of Google, Inc.? (Allow two decimals in the percentage but do not enter the % sign.)
The percentage return on assets (ROA) of Go--ogle, Inc. is 25.00%.
Explanation:To find the return on assets (ROA) for G--oogle, Inc., we need to calculate the percentage return on assets. ROA is calculated by dividing the net income by the total assets. We can find the net income by multiplying the return on equity (ROE) by the equity. Here's how:
ROE = 10.75%
Equity = 100% (since Moogle, Inc. is an all-equity firm)
Net Income = ROE * Equity = 10.75% * 100% = 10.75%
To calculate the total assets, we can use the debt-to-equity ratio of G--oogle, Inc. which is 30.00%. The formula to calculate total assets is:
Total Assets = Debt / (1 - Debt-to-Equity Ratio)
Total Assets = 30.00% / (1 - 30.00%) = 30.00% / 0.70 = 42.86%
Finally, we can calculate the ROA:
ROA = Net Income / Total Assets = 10.75% / 42.86% = 25.00%
If a firm is having financial difficulty, it typically begins to pay its accounts payable more slowly and to borrow from the bank—both of which will increase its current _____causing a decline in the current ratio. The quick ratio is a measure of a firm's ability to pay off _____obligations without relying on the sale of _____, which are typically the least liquid of a firm's current assets. Its equation is:
Quick, or acid ratio (current assets - inventories)/current liabilities
Answer:
Liabilities; short-term; inventories; quick ratio
Explanation:
If a firm is having financial difficulty, it typically begins to pay its accounts payable more slowly and to borrow from the bank—both of which will increase its current liabilities causing a decline in the current ratio.
The quick ratio is a measure of a firm's ability to pay off short-term obligations without relying on the sale of inventories which are typically the least liquid of a firm's current assets.
Its equation is quick ratio.
The liquidity position of a Firm would be satisfactory, if it is able to meet it's current obligations when they become due.
A financially struggling firm may slow down payments to its accounts payable and increase bank borrowings. This can inflate current liabilities, lowering the current ratio. The quick ratio, stripping out inventories from current assets, provides a stricter measure of a firm's short-term liquidity.
Explanation:When a firm is struggling financially, it typically slows down its payments to its accounts payable and borrows additional funds from the bank. Both of these actions can result in an increase in the firm's current liabilities, ultimately causing a reduction in the current ratio. This ratio is an indicator of a firm's short-term liquidity or its ability to cover its current liabilities with its current assets.
The quick ratio, on the other hand, serves as a more stringent measure of a firm's short-term liquidity. Unlike the current ratio, the quick ratio excludes inventories—which are usually the least liquid of a firm's current assets—from the calculation. Thus, the quick ratio effectively measures a firm's capacity to satisfy its short-term obligations using its most liquid assets only. Its formula is (current assets - inventories) / current liabilities.
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Grey Corporation has $100,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a credit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is: a.$1,000 b.$2,070 c.$5,000 d.$6,000 e.$4,000
Final answer:
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is $4,950.
Explanation:
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is $4,950. Bad Debt Expense is calculated by multiplying the percentage of uncollectible receivables (5%) by the total accounts receivable ($100,000), resulting in $5,000. We then subtract the balance of the Allowance for Doubtful Accounts ($1,000) to get $4,000. Finally, we adjust the amount by the amount already reserved in the Allowance for Doubtful Accounts, which is $50 ($5,000 - $1,000). So, the answer is option e. $4,000.
When the federal reserve does an open market operation to increase the U.S. money supply, it A. prints money, which is put into circulation through a tax cut on wages. B. sells bonds to individuals and financial institutions. C. buys bonds from individuals and financial institutions. D. reduces regulation on financial lending institutions to increase the multiplier effect.
Answer: buys bonds from individuals and financial institutions.
Explanation:
The central banks use different methods to decrease or increase the amount of money available in the banking system. The Federal Reserve Board, is the governing body which manages the Federal Reserve System and oversees all domestic monetary policy in the United States.
The Federal Reserve System can affect the money supply by using the open market operations where the Federal Reserve System buys and sells government securities. If the aim is to increase the money supply, the Federal Reserve System buys government bonds as this provides the securities dealers selling the bonds with cash, hence, increasing the overall money supply in the economy.
Katya is developing a business message about a green initiative that her company is hoping to launch. In the process of creating the business message, she studies the background of the employees and considers their needs and priorities. This action belongs to which step of the AIM planning process? a) ideas structuring message b) analysis audience c) analysis message d) development audience review.
Answer: B. analysis audience
Explanation: Audience analysis or Analyzing the Audience entails identifying the audience and creating a speech to adapt the audience style , attitude, interest , needs, priorities and understanding. Audience analysis tasks are done by technical writers in the early stage of a project.
Katya action in developing a business message on the green initiative her company is about to launch was " Audience analysis ".
Every company is required to pay an unemployment tax that is based on the __________. Group of answer choices type of industry and its seasonal fluctuations in employment number of claims filed by ex-employees employer’s total payroll cost. total number of employees covered under workers’ compensation
Answer:
number of claims filed by ex-employees
Explanation:
According to Corporate Tax Laws and Regulations, every company is required to pay an unemployment tax that is based on the number of claims filed by ex-employees.
Gregory Trout has just received a memo explaining that because of his department’s success with the newly developed TemperTool, his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training, and maintaining effective employees. In recruiting and selecting employees for the new positions, Gregory will apply which human resource management goal?
Answer:
Maintaining an effective workforce
Explanation:
One of the major goals of human resource management function is ensuring productivity by providing an entity with right number of highly skilled and efficient employees.
Following are the key goals of human resource management process:
Mintaining productivity and workforce planningDeveloping training programs and modes of evaluationEngaging employees Policy creation w.r.t employeesCoherence of processes for efficiencyAn effective workforce refers to, all the employees as one group, working together, accomplishing the organizational goals in an efficient manner.
In the given case, Gregory's request for three new emoloyees has been approved. The immediate challenge for him being relating to selection, recruitment and training and maintaining effective employees.
Maintaining effective employees also refers to keeping and retaining efficient skilled employees and timely filling up gaps arising due to such employees leaving the organization.
Revenues that are legally restricted to expenditures for specified purposes should be accounted for in special revenue funds, including ____________.a. Proprietary fund revenues b. Gasoline taxes to finance road repairs c. Pension trust fund revenues d. Resources accumulated for payment of general long-term debt principal and interest
Answer:
b. Gasoline taxes to finance road repairs
Explanation:
Revenues that are legally restricted to expenditures for specified purposes should be accounted for in special revenue funds, including gasoline taxes to finance road repairs.
For a bank, when a person deposits money into the bank, this: a creates a liability and an asset for the bank. b creates a liability for the depositor. c is most likely to result in a decrease in the money supply. d creates only a liability for the bank. e creates only an asset for the bank.
Answer:
The answer is A.
Explanation:
Bank deposits from customers create both a liability and an asset for the bank.
1. As a liability: The deposit is the customer's money. The bank is keeping the money for the customer. The customer can withdraw the fund any time.
2. As an asset: The money deposited by the customer can be used by the bank to generate revenue pending when the customer withdraws the money. The money not yet withdrawn by customers is still in the possession of the bank and the bank controls it.
Where is the net pension liability shown in a Comprehensive Annual Financial Report for employees of governmental type activities? Multiple Choice The Statement of Fiduciary Net Position. The government-wide Statement of Net Position. Both of the above. Neither of the above.
Answer:
B. The government wide statement of net position
Explanation:
The government wide statement of net position is a statement showing the financial position of governmental entity and its discretely presented component units. It shows the government balance or left over after all financial obligations and other liabilities are met. Its difference between government assets plus resource outflows and liabilities indicating how much money the government has at that point. The net pension liabilities is part of the liabilities indicated in the government wide statement of net position.
_______________ bring together shippers who post loads and carriers who post their available capacity in order to arrange shipments; compatible shippers and carriers are matched automatically based on business requirements, price, and service.
Answer:
internet transportation exchanges
Explanation:
Internet transportation exchanges bring together shippers who post loads and carriers who post their available capacity in order to arrange shipments; compatible shippers and carriers are matched automatically based on business requirements, price, and service.
Answer:
Internet transportation exchanges
Explanation:
Internet transportation exchanges bring together shippers who post loads and carriers who post their available capacity in order to arrange shipments; compatible shippers and carriers are matched automatically based on business requirements, price, and service.
Internet transportation exchanges also known as freight exchange. It is an internet-based software application that operates as a marketplace by connecting transportation companies(carriers) with clients(shippers) who have product to move. Subscription or transaction fees are charged.
The transportation companies involved in freight exchange are called CARRIERS.
Information are readily available to both shippers and carriers. Such as price, available capacity of truck, location and so on.
It helps shippers move their loads to the desired destination. It also help to save stress and time of searching for carriers.
The carriers generate more revenue and they have more customers.
Keystone predators can maintain species diversity in a community if they
Answer:
The options are given below:
A) competitively exclude other predators.
B) prey on the community's dominant species.
C) allow immigration of other predators.
D) reduce the number of disruptions in the community.
E) prey only on the least abundant species in the community.
the correct option is B
Explanation:
Keystone species refers to a predator which prevents a particular herbivorous species from wiping out the dominant plant species. If the number of prey are low, the keystone predators can be less abundant and still be effective. Keystone species have a disproportionately large effect on its environment relative to its abundance.
Therefore, by preying on a community's dominant species, keystone predators help to maintain the species diversity in the community, because they ensure that the dominant predators do not totally wipe out the various organisms present in the ecosystem.
Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?
Answer:
Unlimited liability
Explanation:
Unlimited liability means that
owners of businesses are liable to pay all the debts incurred by the business.
A sole proprietorship refers to owner of a business which has no distinct legal entity from its owner. It is not a legal entity because the owner can not be separated from the business and all the debts incurred by the business will be borne or paid by the owner.
An example of a sole proprietor is a barber who has his business registered with the corporate affairs commission. It therefore means that all the debts incurred by the business will be borned by the owner.
Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had originally cost the other party $250,000 and had a fair value of $300,000 on the date of the exchange. The retail value of the inventory is $520,000. Toussaint Company is not publicly traded and cannot precisely determine the fair value of its stock. It has used some industry averages, however, and applied Black-Scholes-Merton and estimates the fair value of its stock to be about $28 per share. At what amount should the inventory be recorded?
Answer:
The correct answer is $300,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Original cost = $250,000
Fair value = $300,000
Retail value = $520,000
As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.
Here, Fair value is given.
So, the transaction will be recorded at fair value = $300,000
Final answer:
Toussaint Company should record the inventory at the fair value of $300,000, as this reflects the value received for the common stock issued and aligns with fair value accounting principles.
Explanation:
Recording Inventory at Fair Value
When Toussaint Company issued 10,000 shares of its common stock for merchandise it planned to resell, the inventory should be recorded at the fair value of the stock if the fair value can be reliably measured. Since Toussaint Company estimated the fair value of its stock using industry averages and the Black-Scholes-Merton model at approximately $28 per share, and given that the fair value of the inventory was $300,000, the company should record the inventory at the fair value of $300,000, which reflects the current market conditions and the value that the company has received in exchange for its shares. This is in line with accounting practices that prioritize fair value over historical cost for items that do not have a precise market value if reliable estimates are available.
The retail value of the inventory ($520,000) does not affect the initial recording of the inventory cost, and the original cost to the other party ($250,000) is also not relevant for recording the inventory on Toussaint Company's books.
In the context of visionary leadership, _____ control and manipulate followers, do what is best for themselves instead of their organizations, want to hear only positive feedback, share information that is only beneficial to themselves, and have moral standards that put their interests before everyone else's.
A) ethical charismatics
B) democratic leaders
C) transformational leaders
D) unethical charismatics
Answer:
D. Unethical charismatics
Explanation:
Unethical charismatics leaders are the type of charismatic leaders that have unreasonably high sense of self importance which is based on gaining attention and getting commendations, applause, etc from others while they ignore opinions that are contrary or opposite.
Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties?
Answer:
She's an agent to Cintra and the seller(Blaine) is her Customer
Explanation:
Mavis is an agent to Cintra. She wants to make a purchase from Blaine (a seller) on behalf of her principal (Cintra).
The principal refers to an individual who hires another person to carry out a specific task or function on their behalf. The principal should honor any contract made with the agent.
An agent on the other hand, refers to a person who has been hired by the principal to perform a task or function.
An agent is expected to act in the interest of the principal and also must be competent enough to handle the task assigned to them.
Mavis, as a buyer's agent, owes fiduciary duties to the buyer, Cintra. While she assists Blaine, the unrepresented seller, with paperwork, she does not have an agent-client relationship with him and does not owe him fiduciary duties.
Mavis's relationship to the parties in the scenario described can be a bit complex due to the nature of her duties. As a buyer's agent, Mavis has a fiduciary duty to work in the best interests of her client, Cintra, who is the buyer. This means she must act with loyalty, confidentiality, obedience, accountability, and provide reasonable skill and care in serving the buyer.
However, in this case, Mavis is also assisting Blaine, the unrepresented seller, with the paperwork. This does not mean that Mavis represents Blaine or owes him the same duties as she does to Cintra. Assistance with paperwork is often provided to facilitate the transaction, but it does not establish an agent-client relationship with Blaine. Therefore, Mavis has no legal fiduciary responsibility to Blaine. It is nevertheless important for Mavis to clarify this with both parties to prevent any misunderstandings regarding her role and responsibilities.
Tile & Grout (T&G) contracts to resurface the insides of the pools at Water World Park. T&G knows that without the resurfacing, Water World will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water World can recoverâ___________.A) âthe cost of new pools.B) âthe difference between T&G's price and the eventual cost of resurfacing.C) âthe loss of profit from the delayed opening.D) ânothing.
Answer: C. The loss of profit from delayed opening.
Explanation: Tile and Grout failed to execute the job they were contracted and caused water world to delay opening. In business Tile and Grout company will be held liable for failure to execute contract.
Water world can recover the loss of profit from delayed opening due to the failure in the part of Tile and Grout company.