Answer: C.
Explanation: THE RATE OF EXCHANGE
Credit sales during 2020 1,200,000 Accounts receivable deemed worthless and written off during 2020 27,000 As a result of a review and aging of accounts receivable in early January 2021, it has been determined that an allowance for doubtful accounts of $16,000 is needed at December 31, 2020. What amount should Murphy record as "bad debt expense" for the year ended December 31, 2020? $16,000 a.$13,000 b.$19,000 c.$40,000d.$16,000
Answer:
$41,000 (not given in the options)
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
The amount of bad debt to be recorded is the sum of the amount written off and the amount to be allowed as allowance for doubtful debt
= $27000 + $16000
= $41,000
While watching a movie, Daysha notices that a few brands have been conspicuously integrated with its screenplay. The main character drives a particular brand of car and drinks only a specific brand of beer. Daysha figures out that this is a marketing strategy that employs _____.
product placement
preattentive effects
explicit memory
Answer:
product placement is the answer
After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production. Ford no longer requires the skill that Cameron had.Cameron is best considered A) not in the labor force. C) frictionally unemployed. B) structurally unemployed. D) cyclically unemployed.
Answer:
B) structurally unemployed.
Explanation:
Structurally unemployed: It is a kind of unemployment that occur due to mismatch between skill required for job available and skill possessed by the individual or unemployed population. This is caused by technological advancement or higher competition in the market. It has long-lasting effect on economy and required fundamental changes to overcome the structural unemployment.
Actions required to overcome structurally unemployed:
Education and training.Relocation of subsidies.In the given case, Cameron has lost his job due to technological advancement in automobile production, which is a case of structural unemployment.
Suppose that there is a financial crisis, and people choose to spend less. As a result, velocity drops by 5 percent. According to market monetarists, if the GDP target growth rate is 3 percent, the Fed would need to increase the money supply by ______________ percent in order to achieve their GDP target.
Answer:
Eight(8) percent
Explanation:
Base on the scenario been described in the question, the fed will need to the supply of money by eight (8) percent in to achieve their target.
Several corn farmers in Iowa meet with their friends each week for breakfast. They talk about their families and about the weather. But soon they engage in more serious discussions about the future demand for corn, the latest prices being offered for their crop, and the cost of their seeds, fertilizer, and machinery.
Which characteristic of a purely competitive market BEST fits the scene described above?
A. Many sellers participate in the market.
B. Sellers offer identical products.
C. Buyers and sellers are well informed about products.
D. Sellers are able to enter and exit the market easily.
Answer:
Option C
Explanation:
The given options are all related to the competitive market structure however the given case most closely relates to the well informed buyer and seller characteristic of the perfectly or pure competitive market.
Under this characteristic, the buyers have the full knowledge and gains maximum profit by burning the product. Similarly seller has the complete knowledge of how to maximize the utility by selling the product.
If the domestic interest rate in a small open economy with perfect capital mobility is higher than the world interest rate, then ______ would drive the domestic interest rate back to the level of the world interest rate. the government capital inflow capital outflow a decline in domestic saving
Answer: capital inflow
Explanation:
Capital flows is the movement of money for investment purpose, trade or business production, and it includes the flow of capital in corporations in the form of investment capital and capital spending on research development and operations.
On a larger scale, the government directs capital flows from tax into operations and programs and through trade with other countries and currencies. When the domestic interest rate in an open economy which is small with perfect capital mobility is greater than the world interest rate, the domestic interest rate would be driven back to the world interest level by the capital inflow.
When there is a change in government spending or taxes to affect aggregate economic activity, this is referred to as A. political posturing. B. monetary policy. C. fiscal policy. D. aggregate policy. When the money supply is changed to affect aggregate economic activity, this is referred to as A. political posturing. B. aggregate policy. C. fiscal policy. D. monetary policy.
Answer:
fiscal policy.
Monetary policy
Explanation:
Fiscal policy is using government spending and tax to influence the economy.
Monetary policy are policies enacted by the Central bank to influence the economy using interest rate and money supply.
I hope my answer helps you
Sara contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sara finds a similar job for the month of July but earns only $3,000. Sara files a suit against Thermal. As compensatory damages, Sara can recover
a. $0.
b. $1,000.
c. $3,000.
d. $2,000.
Answer:
Sarah can recover $2000 in damages.
Explanation:
Since Sarah found a job where she could make the &3000.00 She can only recover the difference. ( 5000 - 3000 = 2000.)
The senior leadership and board of directors are meeting to determine the key priorities for community Hospital for the year ahead. during this time they also used a SWOT analysis to validate the mission. The resulting document of this session is called?
Answer:
lol umm i knew it but then forgot
Explanation:
At the beginning of Year 1, Mitchell Company purchased office equipment for $15,000. The machine has an estimated residual value of $1,000 and an estimated service life of 5 years. If Mitchell uses straight-line depreciation, it will make which of the following entries related to depreciation at the end of Year 1?
Answer:
Debit the depreciation expense for $2800
Explanation:
Straight line depreciation expense = (cost of asset - Salvage value) / useful life
($15,000 - $1,000) / 5 = $2,800
I hope my answer helps you
When a firm's longminus−run average cost curve is horizontal for a range of output, then in that range production displays?
Answer:
constant returns to scale
Explanation:
Constant returns to scale describes a scenario when long run returns as the scale of production increases, when all input levels including physical capital usage are variable.
our company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home gardeners in its customer base. This change is not met with enthusiasm by the sales personnel who have had good long-term relationships with area farmers. You know that the change will be difficult if you cannot overcome the resistance of the sales personnel and obtain their cooperation. You have brought in the local extension agent to explain demographics and the changing nature of the area in which you live. The method for overcoming resistance that you have chosen is ________. communication negotiation coercion participation manipulation and cooptation
Answer:
Communication is the method selected.
Explanation:
Communication is an educative tool and communicating the idea of a change will help reduce employee resistance on two levels. The first is that it will curb the effects of misinformation and poor communication: If employees are brought up to speed on the full facts, that will clear up misunderstandings and resistance should subside. The second advantage of communication here is that it can help "sell" the need for change by packaging it properly.
TEFCO, a computer processor manufacturing company, recently adopted a new fabrication process to manufacture microprocessors. The microprocessors made using this new process have higher computing power and clock speed than other processors available in the market. Although the new process has made TEFCO the industry leader, there is a threat that competitors will be able to match this feat in the near future. It is evident that TEFCO has achieved _____.
Answer:
first-mover advantage
Explanation:
First-mover advantage exists when making the initial move into a market allows a firm to establish a dominant position that other firms may struggle to overcome.
In the U.S. government's 1998 suit against the Microsoft Corporation, a central issue was whether Microsoft should be allowed to integrate its Internet browser into its Windows operating system. Microsoft responded that:_____
a. this integration of products is an example of tying, and the U.S. Supreme Court has consistently ruled that tying is a perfectly acceptable and legal business practice.
b. this integration of products is an example of resale price maintenance, and the U.S. Supreme Court has consistently ruled that fair trade is a perfectly acceptable and legal business practice
c. putting new features into old products is a natural part of technological practice.
d. it would discontinue this integration of products, provided a speedy resolution of the government's case could be reached
Answer: Microsoft responded that
this integration of products is an example of tying, and the U.S. Supreme Court has consistently ruled that tying is a perfectly acceptable and legal business practice.
Explanation: The suit accused Microsoft of illegally protecting its operating-system monopoly and seeking a new monopoly for its own browser, Internet Explorer. The fear was that Microsoft would kill Netscape, monopolize the browser market and use that point of control to dominate the coming age of the web.
Despite the creative editing of video, facts, and emails, Microsoft lost the case. The presiding judge, Thomas Penfield Jackson, ruled that Microsoft violated parts of the Sherman Antitrust Act, which was established in 1890 to outlaw monopolies and cartels.
In 2012, the city of Miketown collected $250,000 in taxes and spent $350,000. In 2012, the city of Miketown had a A) budget surplus of $100,000. B) budget surplus of 57%. C) budget deficit of $100,000. D) budget deficit of $200,000.
Answer:
Option C is correct
C) budget deficit of $100,000.
Explanation:
A budget deficit or surplus is the difference between the estimated expenditures and revenue.
A budget surplus occurs where the estimated total revenue is greater that the estimated total expenditure.
On the other hand, it is deficit where the estimated revenue is less than the estimated expenditures
For City of Miketown, the budget deficit =
250,000 - 350,000
=$(100,000)
The current price of a non- dividend- paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk- free rate is zero. An investor sells call options with a strike price of $32. Which of the following hedges the position? A. Buy 0.6 shares for each call option sold B. Buy 0.4 shares for each call option sold C. Short 0.6 shares for each call option sold D. Short 0.4 shares for each call option sold.
Answer:
option A
Explanation:
Hedge ratio = (36 - 32)/(32 - 26)
= 4:6
Thus investor needs to buy 0.6 shares of this stock in order to hedge the options sold.
Financial statement data for two years for Townson Company are as follows: Year 2 Year 1 Sales $3,645,000 $4,250,000 Fixed assets: Beginning of year 880,000 820,000 End of year 520,000 880,000 All of the following statements are true regarding the company's fixed asset turnover ratio except a.Townson has become more efficient in generating sales with its fixed assets in Year 2 as compared to Year 1. b.since Year 1, it appears that Townson may have become more labor-intensive, requiring smaller amounts of fixed asset investments. c.Townson's fixed asset turnover ratio has decreased between Year 1 and Year 2. d.Townson's fixed asset turnover ratio has increased between Year 1 and Year 2.
Answer:
C) Townson's fixed asset turnover ratio has decreased between Year 1 and Year 2.
Explanation:
Year 2 Year 1
Sales $3,645,000 $4,250,000
Fixed assets:
Beginning of year 880,000 820,000
End of year 520,000 880,000
fixed asset turnover (FAT) ratio = net sales / average fixed assets
FAT ratio year 1 = $4,250,000 / [($820,000 + $880,000) / 2] = 5
FAT ratio year 2 = $3,645,000 / [($880,000 + $520,000) / 2] = 5.2
Townson's fixed asset turnover ratio increased between year 1 and year 2.
Break-even analysis for a service company Sprint Corporation (S) is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 60 million direct subscribers (accounts) that generated revenue of $33,347 million. Costs and expenses for the year were as follows (in millions):
Cost of revenue $14,958
Selling, general, and administrative expenses 7,994
Depreciation and amortization 8,150
Assume that 70% of the cost revenue and 30% of the selling, general, and administratiev expenses are variable to the number of direct subscriber (accounts).
A. What is Sprint Corporations's break-even number of accounts, using the data and assumption given?
B. How much revenue per account would be sufficient for Sprint Corporation to break even, if the number of accounts remained constant?
To calculate Sprint's break-even number of accounts, we separate fixed and variable costs, calculate the variable cost per account, and then find the break-even point using the formula for break-even quantity. For the break-even revenue per account, we divide total fixed costs by the current number of accounts and add the variable cost per account to determine the necessary revenue per account.
Break-even Analysis for Sprint Corporation
To calculate Sprint Corporation's break-even number of accounts, we must first distinguish between the company's fixed and variable costs. Given that 70% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable, we can compute the fixed costs as:
Fixed cost of revenue = 30% of $14,958 million
Fixed selling, general, and administrative expenses = 70% of $7,994 million
The total fixed costs would be the sum of these two figures plus the full amount of the depreciation and amortization, as no variable portion is mentioned for the latter.
Once fixed costs are determined, the variable cost per account can be calculated by taking the variable portion of the cost of revenue and variable portion of selling, general, and administrative expenses and dividing by the number of accounts.
To find the break-even number of accounts, we then rearrange the formula: Break-even Quantity = Fixed Costs / (Price per account - Variable cost per account).
For part B, the break-even revenue per account, if the number of accounts remains constant, can be found by rearranging the formula as: Price per account = (Fixed Costs / Number of Accounts) + Variable Cost per Account. We would divide the total fixed costs by the current number of accounts and add the variable cost per account to get the revenue required per account to break even.
It is essential to remember that the contribution margin plays a crucial role in this calculation, representing the amount by which the price per account exceeds the variable costs per account.
Arbitragers applying Covered Interest Arbitrage drive the international currency and money markets toward the equilibrium described by: Select one: a. the nominal effective exchange rate index. b. the interest rate parity. c. the purchasing power parity. d. the effective exchange rate index.
Answer:
The correct answer is letter "B": the interest rate parity.
Explanation:
The economic theory of Interest Rate Parity (IRP) states that the difference between interest rates in the two countries is equal to the difference between the forward rate and the spot rate in both countries. This equality does not always exist and allows traders to arbitrate positions to earn riskless returns. This approach is mostly used by Forex traders.
Events that occur after the December 31, 2021 balance sheet date, but before the balance sheet is issued, and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be a. discussed only in the MD&A (Management's Discussion and Analysis) section of the
annual report.
b. disclosed only in the Notes to the Financial Statements.c.used to record an adjustment to Bad Debt Expense for the year ending December 31, 2021. d.used to record an adjustment directly to the Retained Earnings account.
Answer:
C) used to record an adjustment to Bad Debt Expense for the year ending December 31, 2021.
Explanation:
Retained earnings account cannot be adjusted after December 31 (or whenever the balance must be done), but bad debt expense can be adjusted, specially if it increases.
Generally a company estimates it bad debt expense, the different methods used to estimate bad debts (allowance, percentage or aging methods) are used more commonly than the direct write-off method. But as every estimate, they can be close to reality or not.
E.g. some companies might have a very important client that represents a large portion of their credit sales, and if suddenly that large client that had always paid on time defaults, that event must be included in the balance sheet since the bad debts expense will increase significantly.
When each employee is assessed in terms of how well he or she performs on a set of performance dimensions based on some predetermined standards of performance, the firm is using a(n) _______. paired distribution approach ranking approach absolute approach forced approach
Answer:
absolute approach
Explanation:
The absolute approach of appraising an employee is one that uses comparism of the employee performance against established standards of the organisation.
Employees are not compared to other employees, evaluation is done on an individual basis.
This is a very objective method of appraisal because the tendency to favour one employee's performance over another through collective performance is not done.
Rather appraisal measures how each employee performs against the set standard.
Why is a company's sales budget developed before the production budget? a : the company needs to find ways to sell as many units as it can maximally produce. b : the company only wants to produce as many units as it expects to sell. c : the sales budget is more important than the production budget, so it receives a larger portion of the company's financial reserves. d : the company's sales managers have more control over the company's finances than the production managers?
Answer:
B
Explanation:
the company only wants to produce as many units as it expects to sell.
The sales budget is first developed before the production budget because the sales budget can forecast earnings. What the sales budget does is to calculate the amount of income it will get from sales activities over the calculated time period. The production budget will then use this data from the company's sales budget to make calculations on the number of products the company would have to produce over the period of time.
The _____ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably avoided by customers, and that cannot be justified by other outcomes that may benefit the consumer or the idea of free competition.
Answer:
The Federal Trade Commission Act is a law passed in 1914.
Ford Motor Company has always attracted and nurtured capable managers, but it has failed to do the same for leaders. Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior-entrepreneurs." Ford's "warrior-entrepreneurs" will be expected to ____.
Answer:
E) do all of these things
A) take a long-term perspective B) inspire and motivate employees to embrace change C) realize that results are more important than processes D) be architects rather than buildersExplanation:
The concept of warrior entrepreneur is more than just an ordinary entrepreneur. A warrior entrepreneur is supposed to be a leader that can operate in the business environment with a sense of commitment and belonging to the company. At the same time he/she must lead and guide the company's employees into embracing a new organization and a new culture. Warrior entrepreneurs are movers, and they must be able to move the organization forward.
Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $ 6 million to set up and will generate $ 23 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $ 12 million during this year and depreciation expense will be another $ 2 million. THSI will require no working capital for this investment. THSI's marginal tax rate is 35%.Ignoring the original investment of $5 million, what is THSI's free cash flow for the first and only year of operation?
a. $5.0 million
b. $3.75 million
c. $8.0 million
d. $6.25 million
Answer:
c.$8.0 million
Explanation:
Free cash flows will be $23
Less; operating expenses ($12)
Less; Depreciation ($2)
Cash flows net $9
Tax at 35% ($3.15)
Net free cash flows $5.85
Add; Depreciation $2
Free cash flows $7.85 million (round off $8.0 million)
Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $236,000 for the lot plus $131,000 for the old building. The company pays $26,500 to tear down the old building and $39,174 to fill and level the lot. It also pays a total of $1,786,153 in construction costs—this amount consists of $1,680,100 for the new building and $106,053 for lighting and paving a parking area next to the building.
Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Answer:
Dr Lot Asset $432,674
Dr Lot Improvement $106,053
Dr New Building $1,680,100
Cr Cash Asset $2,218,827
Explanation:
Cala must record the land cost, the improvement in the land and the cost of new building.
The actual cost of land is calculated as under:
Purchase price of Land $236,000
Purchase Price of Old Building $131,000
Building Tear down Cost $26,500
Filling and leveling cost $39,174
Total Cost of Land $432,674
The old building cost and building tear down cost are the cost that are incurred to bring the asset to ready for use and according to the International Accounting Standard IAS 16 Property, Plant and Equipment, the cost incurred to bring the asset to ready for use position must be capitalized.
Now
The cost of improvement of the lot includes the expenditure of $106,053 for the lightning and paving of a parking area.
The cost of the new building must be capitalized as a new building which is $1,680,100.
So we have paid for preparing three assets, one is the lot, second one is the improvement of the lot and the third one is the new building. So the double entry would be:
Dr Lot Asset $432,674
Dr Lot Improvement $106,053
Dr New Building $1,680,100
Cr Cash Asset $2,218,827
The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts Receivable, $40,000; Inventory, $90,000; and Prepaid Insurance, $12,000. Its quick assets total:
A. $35,000
B. $125,000
C. $75,000
D. $165,000
E. $50,000
Answer:
C. $75,000
Explanation:
All the current assets which can be quickly converted into cash are the quick assets. Inventory and Prepaid Insurance are not the p[art of this because these take much longer time to convert into cash than other current assets. Receivable has more liquidity than inventory because it takes less time to recover.
Cash $25,000
Short-Term Investments $10,000
Accounts Receivable $40,000
Total Quick Assets $75,000
Answer:
Its quick assets total is $75,000. The right answer is C.
Explanation:
In order to calculate the company's quick assets total we need to check according to the data, which of the account balances of the company are quick assets.
Hence, Quick assets are the following:
Cash $ 25,000
Short Term Investments $10,000.
Accounts Receivable $40,000.
Therefore, Total Quick Assets=$ 25,000+ $10,000+ $40,000= $75,000
Dufner Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a par value of $1,000?
Answer:
The answer is $1,106.43
Explanation:
Number of years is 28years[(15years - 1year) x 2]
Yield-to-maturity (YTM) is 2.75%(5.5% ÷ 2)
Present value(PV) = ?
Payment coupon(PMT) = $33[(6.6% ÷ 2) x $1,000]
Future Value(FV) = $1,000.
Using a Financial calculator;
Present value is $1,106.43
Ultimate Company is a defendant in a lawsuit alleging damages of $3 billion. The litigation is expected to continue for several years, and no reasonable estimate can be made at this time of Ultimate Company's ultimate financial responsibility. This situation is an example of:
A. Off-balance-sheet financing.
B. A loss contingency which should be disclosed in notes to Ultimate Company's financial statements.
C. An estimated liability which must appear in Ultimate Company's balance sheet.
D. A loss in purchasing power caused by inflation.
Answer:
Option B.
Explanation:
A loss contingency refers to a charge to expense for what is considered to be a probable future event, such as an adverse outcome of a lawsuit. A loss contingency usually gives the person who is reading an organization's financial statements an early warning of a payment which is impending, and which is related to a likely obligation.
In the scenario presented above, we can see that Ultimate Company is involved in a lawsuit and might be expected to pay $3 billion, this reflects the situation of a loss contingency which should be disclosed in notes to Ultimate Company's financial statements.
Answer: B. A loss contingency which should be disclosed in notes to Ultimate Company's financial statements
Explanation: Ultimate company with an allege lawsuit demage of $3billion and the litigation will continue for several years, this situation is an example of "a loss contingency which should be disclosed in notes to Ultimate Company's financial statements".
A loss contingency means charge to expense for a possible future event such as an outcome of a lawsuit . A loss contingency will give the reader of a financial statements of a firm, early warnings of an impending payments of obligation.
Suppose an economy is initially in a steady state with capital per worker below the Golden Rule level.
If the saving rate increases to a rate consistent with the Golden Rule, then in the transition to the new steady-state consumption per worker will:
A) always exceed the initial level.
B) first fall below then rise above the initial level.
C) first rise above then fall below the initial level.
D) always be lower than the initial level.
Answer:
B) first fall below then rise above the initial level.
Explanation:
'Steady State' & 'Golden Rule' of capital per worker : are concepts of Solow model.
The model defines output (income) per worker as a function of capital per worker, increasing with it at a diminishing rate, & hence the curve is upward sloping swamp shaped. Depreciation is a constant slope straight upward sloping line. Saving is a function of income per worker.
Steady State level is the level of output at which savings (investment) by workers is equal to depreciation of capital stock. Golden rule capital level refers to the saving rate, which maximises steady state level or growth of consumption.If the saving rate increases to a rate consistent with the Golden Rule: the consumption per worker will first fall below the initial level (as savings proportion out of income are more). But, when these savings will be invested back, capital per worker will increase. High capital per worker will imply high output & income per worker. And, then the consumption per worker will rise.