Answer:
option (D) $2,400
Explanation:
Data provided in the question:
Payments to miscellaneous expense:
Travel expense = $300
Total value of Christmas gifts = 20 × $75 = $1,500
Contribution to local political candidate = $600
Now,
The maximum deduction that Ashley can claim for these payments
= Travel expense + Total value of Christmas gifts + Contribution to local political candidate
= $300 + $1,500 + $600
= $2,400
Hence,
The correct answer is option (D) $2,400
Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment thirty feet up into a hayloft. Moon goes to Davidson Hardware and tells Davidson that he needs some heavy-duty rope to be used on his farm. Davidson recommends a one-inch-thick nylon rope, and Moon purchases two hundred feet of it. Moon ties the rope around the piece of equipment; puts the rope through a pulley; and, with a tractor, lifts the equipment off the ground. Suddenly, the rope breaks. The equipment crashes to the ground and is severely damaged. Moon files a suit against Davidson for breach of the implied warranty of fitness for a particular purpose.
What law has many rules governing warranties of goods?
a. Uniform Transactions Code
b. Uniform Sales Code
c. Uniform Commercial Code
d. Uniform Goods Code
Answer: c) Uniform Commercial Code
Explanation:
it has different articles e.g for sales of goods, warranties and disclaimer (seller assuring buyer of the quality of product). And this is what has transpired between Moon and Davidson
Inscribe, Inc. manufactures and sells pens for $ 5.00each. Cubby Corp. has offered Inscribe, Inc. $ 4.00per pen for a oneminustimeorder of 3 comma 600pens. The total manufacturing cost per pen, using absorption costing, is $ 1.00per unit and consists of variable costs of $ 0.80per pen and fixed overhead costs of $ 0.20per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order?
Final answer:
Accepting the special pricing order from Cubby Corp. would result in an increase in operating income of $11,520 for Inscribe, Inc. This is calculated by subtracting the total variable costs from the total incremental revenue generated by the order.
Explanation:
The change in operating income from accepting the special pricing order offered by Cubby Corp. can be calculated by first determining the incremental revenue from the order and then subtracting the incremental costs associated with producing the additional pens. Since Inscribe, Inc. has excess capacity, the fixed costs will not change, and the variable cost per pen is $0.80.
Incremental revenue is calculated as the offer price ($4.00) multiplied by the quantity of pens (3,600). Incremental costs are the variable costs per pen ($0.80) multiplied by the same quantity. The change in operating income will be the incremental revenue minus the incremental costs.
Incremental Revenue: $4.00 x 3,600 = $14,400
Incremental Costs: $0.80 x 3,600 = $2,880
Change in Operating Income: $14,400 - $2,880 = $11,520
Therefore, accepting the special pricing order would result in an increase in operating income of $11,520.
In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign.
Refer to Scenario 11.2. By using a larger can size and different colors, Coca-Cola is changing the ______________ of the product.
a. repositioning
b. quality
c. product features
d. styling
e. functionality
Answer: (D) Styling
Explanation:
The coca-cola is changing the styling of products as it increase the marketing and the business. By changing the styling of existing product we make the product more attractive by developing new ideas on the product.
We can create and develop the new product by changing the existing drawbacks and create into the new styling of the product and also re-position the existing product in the market.
By advertising the new products on the different types of platform like the social media we advertising the brand of the products.
Therefore, Option (D) is correct.
Suzanne is excited about a Black Friday sale in which big-screen TVs are advertised for only $400. However, when she gets to the store, they tell her that they ran out of these "special price" TVs and now only have the same TV but for $800 instead. Suzanne is disappointed, but still agrees to the higher priced item. Which persuasion technique is at play in this example?A. a fear appealB. foot-in-the-doorC. the lowball techniqueD. door-in-the-face
If the opinion issued on prior years’ financial statements is no longer appropriate and financial statements are presented in comparative form, the auditors’ current report should Multiple Choice Reference the type of opinion issued on the prior years’ financial statements and indicate that the current opinion on these financial statements differs from that expressed in the prior years. Indicate that the opinion on the prior years’ financial statements cannot be relied upon. Not reference the prior years’ financial statements. Express the revised opinion on the prior years’ financial statements without referencing the previously-issued opinion.
Answer:
Reference the type of opinion issued on the prior years’ financial statements and indicate that the current opinion on these financial statements differs from that expressed in the prior years.
Explanation:
Both businesses and auditing companies change, they are not static and the people that work for them also change.
Maybe something changed about the business's situation and what could have been once considered a correct or appropriate opinion, can longer be considered that way.
Or even if the company's situation has not changed, but the auditing firm or its personnel has changed and no two people have the same opinion over certain financial aspects, nor they should have.
Some cafes that sell espresso drinks teach their employees wrist and arm relaxation exercises because the repetitive motions required to operate a restaurant espresso machine can cause injury. What kind of business risk management does this situation represent?
Answer: Risk prevention
Explanation: In simple words, risk prevention refers to a risk management strategy in which an organisation takes some actions or conduct different activities to minimize or diminish the potential harm that may or may not occur in the future.
Usually the problems for which such strategy is used, have high probability of happening, thus, companies prefers to take disciplinary actions in advance rather than corrective actions in future.
In the given case, the cafes knows that their employees could get injured due to repetitive motions thus they were conducting exercises for relaxation.
Hence we can conclude that they are doing risk prevention.
In 2012 one dollar bought 100 yen. Assume that today one dollar buys 150 yen. An investor residing in the U.S. bought 100 shares of a Japanese company in 2008. Today the investor sold those Japanese shares. The price of each share did not change over that time period. However, the currency value changed.Did the U.S. investor in Japanese stock make or lose money over that time?
Answer: loss
Explanation:
assuming the price of the shares in the japanese company in 2008 is 1 yen to i shares which totals 100 yen.he bought it for a dollar. in the recent market the exchange is now 150 yen to 1 dollar. i.e 100 yen wud be equal to 0.6 dollars .
Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
a) Other taxes are typically used to cover general spending, but funds from corrective taxes can only be used to alleviate pollution
b) Corrective taxes bring the allocation of resources closer to the social optimum, and thus improve economic efficiency
c) Other taxes get passed on from businesses to consumers, whereas corrective taxes do not
d) Correct taxes alter incentives, whereas other taxes typically do not.
Answer:
The correct answer is option B.
Explanation:
A corrective tax is a policy used by the government to decrease negative externality. It is different from negative externality in the sense that it brings allocation of resources closer to the socially optimal level.
The imposition of tax on a product increases the cost of production of a commodity. This increase in the cost of production will cause the production of the product to decrease. As a result, a fewer quantity of the product causing externality will be produced.
So negative externality will be reduced and the economy will move closer towards economic efficiency.
When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies? a. assume a threat b. avoid a threat c. mitigate a threat d. transfer a threat
Answer:
d. transfer a threat
Explanation:
When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating the risk management technique of transferring a threat. This refers to the act of outsourcing the risk to a third party who will take all the responsibility of dealing with the outcome of the risk.
With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:
Answer:
The correct answer is discretionary fiscal policy.
Explanation:
Discretionary policy is one that governments apply to influence public revenues or expenses. They have the advantage that they can act directly on the problems, but the drawback is that they usually take a long time, because the procedures require an acceptance process that is too long.
Regan wants to develop a long-term relationship with his customers. To accomplish this objective, Regan will need to pay close attention to:
a) the evaluation of product performance.
b) the definition of the type of product needed.
c) the acquisition and analysis of proposals.
d) the receipt of an order.
e) the recognition of a need or problem.
Answer: The Evaluation of product performance
Explanation: According to the question Regan an organization owner wants to build a lasting relationship with his customers.
For this to be accomplished he needs to pay close attention to the report or feedback gotten from the consumers of his product to enable him know what's on the heart of his product's consumers.
To develop a long-term relationship with customers, Regan must focus on the recognition of a need or problem, cater to customer determination, and listen to changing customer needs and feedback.
Regan wants to develop a long-term relationship with his customers. To accomplish this objective, Regan will need to pay close attention to e) the recognition of a need or problem. This is because customer determination is pivotal, as only a customer can decide how well a product meets their needs based on their experience. Establishing a rapport before presenting a product is important to tailor the offering to the client's needs, as advised by Adler & Elmhorst (2005).
Customer determination is key as customers assess product quality through use.Building a relationship involves understanding and responding to customer needs and requirements, which may change over time.Listening to customer expectations and feedback is essential for retention and to make the product resonate with their evolving needs.In practice, continuing to meet the customer's needs ensures repeat business, which is crucial for maintaining the scale of operations needed in modern mass production enterprises. By focusing on the recognition of a need, Regan will be able to sustain and grow customer relationships effectively.
Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If demand for lunch plate increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at _______ price.
Answer:
Explanation:
The lunch plate industry in Oahu is a perfectly competitive industry.
This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.
The industry is currently in long-run equilibrium and has the price level at $5.
As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.
As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.
So the long-run equilibrium will be reestablished at a lower price than earlier.
To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called__________.
Answer: Debt Factoring
Explanation: Debt factoring is when a company sells it's outstanding accounts receiveable to a financial organization who will then collect this debt on the company's behalf. This financial organization will then pay the company the portion of the total debt it is able to collect, minus it's portion it charged the company as a fee.
This service usually occurs on difficult outstanding debtors, and the company is aware that it will not receive the total debt that it sells to the financial organisation, i.e. certain debt will be written off as bad debt.
Factoring is the service where a company sells its accounts receivable to a financial organization to reduce the cost and time spent on collections, while also improving cash flow.
Explanation:To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. This service is called factoring. Factoring allows a company to receive immediate cash for its receivables, which can be important for cash flow management, especially for small or growing businesses. This arrangement may also include the financial organization taking over the task of collecting on the receivables, thus saving the company time and administrative costs associated with collections. In the context of financial services and credit management, factoring is an essential tool for companies that need to manage their accounts and maintain healthy financial operations.
In 2016, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarah's insurance company told her that her policy did not cover the theft. Sarah's other itemized deductions last year were $2,000. She had AGI of $30,000 last year. In August of 2017, Sarah's insurance company decided that Sarah's policy did cover the theft of the silverware and they paid Sarah $5,000. Determine the tax treatment of the $5,000 received by Sarah during 2017.
a. $5,000 should be included in gross income.
b. Last year's return should be amended to include the $5,000.
c. None of the $5,000 should be included in gross income.
d. $2,900 should be included in gross income.
e. None of these choices are correct
Answer:
C) None of the $5,000 should be included in gross income.
Explanation:
During 2016, Sarah's itemized deductions (other than the stolen silverware) were only $2,000. If Sarah wanted to deduct the stolen silverware, she could have taken a casualty loss = $6,000 - $100 - $3,000 = $2,900. Her total itemized deductions would equal $2,000 + $2,900 = $4,900.
But during that year, Sarah should have opted for a standard deduction of $6,300 which is higher than her itemized deductions. That means that Sarah didn't claim any deduction for her silverware, so any money received from the insurance company should not be included in her gross income.
Final answer:
Option D is correct: $2,900 of the $5,000 reimbursement Sarah received in 2017 should be included in her gross income as it represents the amount previously deducted and provided a tax benefit in the prior year.
Explanation:
The tax treatment of the $5,000 received by Sarah due to the theft of her silverware, which was initially not covered by her insurance in 2016, should be assessed based on the tax rules concerning recoveries. When Sarah had her silverware stolen, she likely took a casualty loss deduction for the theft, reducing her taxable income.
The amount of the loss would have been the lesser of the silverware's adjusted basis ($6,000) or its fair market value ($10,000), minus insurance reimbursements and a $100 reduction. As Sarah did not receive any insurance reimbursement in 2016, and given her AGI was $30,000, the loss would be subject to a further reduction of 10% of her AGI. Therefore, the deductible loss would calculate as follows: ($6,000 - $100) - ($30,000 x 0.10) = $4,900.
In 2017, Sarah received a reimbursement of $5,000. According to U.S. tax law, if a taxpayer receives reimbursement in a year subsequent to the deduction, the taxpayer must include the reimbursement in gross income to the extent it provided a tax benefit. Since the entire $4,900 provided a tax benefit last year, only that portion of the $5,000 reimbursement is reportable as income. The remaining $100 is not included because it did not provide a tax benefit.
Therefore, option D is correct: $2,900 should be included in gross income.
Which Command Staff member approves the Incident Action Plan and all requests pertaining to the ordering and releasing of incident resources?A. Public Information OfficerB. Safety OfficerC. Liaison OfficerD. Incident Commander
Answer:
D. Incident commander.
Explanation:
Incident commander handles basically every incident emergency there is and execute incident action plan.
Incident Commander approves the Incident Action Plan and all requests pertaining to the ordering and releasing of incident resources. Correct option is D.
In the Incident Command System (ICS), the Incident Commander (IC) is the Command Staff member responsible for overall management of the incident. The IC is the one who approves the Incident Action Plan (IAP) and all requests related to the ordering and releasing of incident resources. The IAP outlines the incident objectives, strategies, tactics, and resource assignments to effectively manage the incident. The IC is in charge of making critical decisions and ensuring that the incident is handled efficiently and safely.
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An increase in the price level will A. shift the aggregate demand curve to the left. B. move the economy up along a stationary aggregate demand curve. C. move the economy down along a stationary aggregate demand curve. D. shift the aggregate demand curve to the right.
Answer:
The correct answer is option B.
Explanation:
An increase in the price level would cause consumer spending to decrease as the purchasing power of the consumer will decline. This will cause the quantity of total output to decrease.
As a result, there will be an upward movement on the same aggregate demand curve, indicating a contraction in the economy.
A decrease in the price, on the other hand, would cause an expansion in the economy. It would be indicated by a downward movement on the same curve.
Only people that earn wages from an employer must complete a tax return.
True
False
The given statement is false.
The following information should be considered:
In the case when a person earns or not earning it is compulsory to file the tax return. As it is a necessary thing which need to follow.Therefore we can conclude that The given statement is false.
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Westenhover City is a municipality that has governmental activities, business-type activities, a discrete component unit, and a blended component unit. Which of the following would not properly appear as a specific line item in Westenhover City's government-wide statement of activities? Select one: A. Revenues of the discretely presented component unit B. Revenues of the governmental activities C. Revenues of the blended component unit D. Revenues of the business-type activities
Answer:
The answer is letter C.
Explanation:
Revenues of the blended component unit.
Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks and orders authentic and beautiful handmade rugs, which he has shipped to Canada, where he sells them through his brick-and-mortar stores and through his www.tabrizi.com website. In terms of the marketing channel, Jeff is acting as a(n). a. consumer b. agent c. wholesaler d. brokerage firm e. middleman
Answer:
Jeff is acting as a "middleman"
Explanation:
A middleman acts as a link between producers and retailers or consumers. He delivers goods to the consumers at the right place and time.
Jeff, by shopping for handmade rugs all over the world and then selling in his stores and on his website, is acting as a "middleman" between the producers of the rugs and the consumers.
What are the benefits of having strong corporate governance?
a. Managers and employees fear for their jobs; fear improves productivity.
b. There are no benefits to corporate governance, which is seen as an unneeded expense.
c. The ability to be strategically competitive and perform without risk of being ethically or legally exposed. d. One person has a large amount of power to make actions as quickly and riskily as necessary.
Answer: Option (C)
Explanation:
Here, from the given options the correct option is (C). Corporate governance is referred to as the system or method through which organizations are both directed by the employees at the top hierarchy and thus controlled by the shareholders. There are several benefits of having a strong corporate governance, the option (C) is one of them. Since the strong corporate governance induces the capability of performing strategically especially against the competition.
The _____, authorized by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act is charged with writing and enforcing rules covering consumer financial products and services including mortgages, credit cards, payday loans, loan servicing, check cashing, debt collection, and others.A. Consumer Product Safety CommissionB. Consumer Financial Protection BureauC. American Federation of LaborD. Bureau of Public Debt
Answer: B. Consumer Financial Protection Bureau
Explanation:
The Consumer Financial Protection Bureau was authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 and was a response to the 2007-2008 financial crisis which was followed by great recession. They are responsible for consumer protection in the finance sector and their functions include; writing and enforcing rules and regulations covering consumer financial products and services including mortgages, credit cards, payday loans, loan servicing, check cashing, debt collection etc.
Company C has a machine that, working alone at its constant rate, processes 100 units of a certain product in 5 hours. If Company C plans to buy a new machine that will process this product at a constant rate and if the two machines, working together at their respective constant rates, are to process 100 units of this product in 2 hours, what should be the constant rate, in units per hour, of the new machine?
A. 50
B. 45
C. 30
D. 25
Answer:
C. 30
Explanation:
If the first machine processes 100 units in 5 hours,
Number of units in 1 hour = 100/5
= 20 Units
In 2 hours, this machine would process
= 2 × 20
= 40 Units
Therefore where there are 100 units to be processed in 2 hours, the first machine would process 40 units in the given time
The new machine would have to process the remaining
Number of units to be processed by new machine
= 100 - 40
= 60 Units
If the machine is to process 60 units in 2 hours, constant rate, in units per hour, of the new machine
= 60/2
= 30 units per hour
Sombre is a toy manufacturer that orders the components required to make toys way before its customers make a purchase. They make modules with those components and later, upon receiving customer requests, make toys using those modules. They do this to make sure they are able to cater to the demands of the customers. It is evident that Sombre has adopted a(n) _____A) assemble-to-stock operationB) make-to-stock operationC) make-to-order operationD) assemble-to-order operation
Option(D) Sombre adopts an assemble-to-order operation, assembling ready-made modules into toys upon customer orders, offering customization and quick fulfillment.
The toy manufacturer Sombre has adopted a assemble-to-order operation, where they keep ready-made modules in stock and upon receiving customer orders, they assemble these modules into finished toys. This process is different from make-to-stock, where finished products are made ahead of time in anticipation of future demand, and make-to-order, where products are only made after receiving a customer's order.
The assemble-to-order approach allows Sombre to offer a level of customization while also being able to quickly fulfill customer orders.
Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants
a. no penalties or sanctions.
b. the imposition of a fine on Bay City.
c. the imprisonment of Bay City's shareholders.
d. the piercing of Bay City's corporate veil.
Answer:
A) no penalties or sanctions.
Explanation:
As long as Bay City Merchants operate correctly and there is no wrong doing or fraud committed, then there should be no problem if they decide to work without shareholders' meetings. Of course if problems start to occur, then a shareholder can request that this policy is changed. If problems are really severe and involve unethical or illegal practices, then the corporate veil would be pierced.
Under the Revised Model Business Corporation Act, Bay City Merchants Corporation's agreement among all shareholders to operate without meetings likely warrants no penalties or sanctions. This reflects an internal corporate governance decision and provided that it complies with the law, it does not typically breach corporate regulations.
Explanation:The question presents a scenario where Bay City Merchants Corporation has six shareholders, four of whom are members of the same family, and all shareholders agree to operate without shareholder meetings. According to the Revised Model Business Corporation Act, this action most likely warrants no penalties or sanctions. These agreements are often permissible provided they comply with the formalities of the corporation laws, such as having written consent from all shareholders. Moreover, corporations enjoy certain flexibilities including the limited liability of shareholders, which is restricted to their investment amount, and the ability for corporations to choose financing methods that are most suitable for their growth and operations.
Under the Revised Model Business Corporation Act, unanimous written consent to forgo official meetings can be lawful under certain conditions. This would not typically prompt the imposition of a fine, imprisonment, or piercing of the corporate veil—which is a legal action to hold shareholders personally liable for the corporation's debts and obligations. The shareholders' agreement to operate without meetings likely reflects an internal corporate governance decision which, as long as it is in compliance with the corporation's charter and state law, does not violate corporate regulations.
Grace is a manager in a medical office. It seems that every year when she evaluates employees for wage increases, Kevin and Taneesha always receive raises, while most other employees do not. The other employees accuse Grace of having favorites, and believe Kevin and Trisha are unfairly rewarded. Grace feels Kevin and Taneesha deserve their raises, and that she makes that determination based on facts, not on whom she favors. How can Grace best convince her other employees that she is being fair in her determinations?A) pick a different person at random each year to receive a raiseB) post the criteria she will use to determine raise recipients at the beginning of each yearC) explain that raises will be determined by a new process that will be kept secret from everyoneD) disqualify Kevin and Taneesha from receiving raises for the next three yearsE) post the criteria she used to determine raises after recipients are announced
Answer:
(B) post the criteria she will use to determine raise recipients at the beginning of each year
Explanation:
Based on the story, Grace has to be fair with the assessment of her team. She should let her workers know her criteria, so that they would understand what type of performance is expected from the company, and how only those that can achieve it will receive wage increases. This would create a better atmosphere between her employees and foster healthy competition rather than the current suspicion that permeates now.
Archway Architects, Inc., makes travel arrangements online and stores the confirming documents and receipts on its servers. Under the UETA, "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form" is
a.an e-contract.
b.a shrink-wrap agreement.
c.a partnering agreement.
d.a record.
Answer:
The correct answer is D that it is a record.
Explanation:
Record is the term which is described as keeping a track of the items which is necessary for the business by recording them and can be use a proof if something wrong happen in the business.
So, keeping the documents as well as the receipts on the servers, under the UETA, information which is inscribed, stored in any form is a record.
Your boss asks you to email a spreadsheet that shows what the company owns and what it has borrowed (owes) at a fixed point in time and shows the net worth of the business. When sending the email, you MOST LIKELY will attach the file named ________.
Answer:
The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.
Explanation:
Balanced sheet
A balance sheet is an annual report of finance that accounts at a particular time on the funds, debts or on equity of any corporation and lays the foundation of calculations for calculating return rates and determining its financial performance of the company.
The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.
Answer: balance sheet
Explanation: In simple words, balance sheet refers to the financial statement that is prepared by the organisation to depict its market position at a specific point of time, generally at the end of the year.
In balance sheet, the accountant shows the amount of assets that a company owns at that point of time, and the liabilities and capital in the business.
In the given case, the boss wants us to show how much a company owns and owes at a fixed point. Hence we can depict that by using balance sheet.
Which one of the following is the correct presentation of Accounts Receivable and its contra account on the balance sheet? Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) Less: Allowance for Doubtful Accounts (2,000) $623,000 Accounts Receivable $642,000 Plus: Allowance for Doubtful Accounts 2,000 $644,000 Accounts Receivable $642,000 Less: Allowance for Doubtful Accounts (2,000) $640,000 Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) $625,000
Answer:
Accounts Receivable $642,000 Less: Allowance for Doubtful Accounts (2,000) $640,000
Explanation:
The contra asset account will be deducted from Accounts Receivable resulting in the net cash realizable value of $640,000.
=$642,000 - $2,000 = $640,000
At December 31 year-end, Crain Corporation has an S8400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note What will Crain's financial statements report for this situation at December 31?
A. The balance sheet will report the note receivable of $8,400
B. The balance sheet will report the note receivable of $8,400 and interest receivable of $700 °
C. Nothing because the business has not received the cash yet.
D. The income statement will report a note receivable of $8,400
Answer:
A) The balance sheet will report the note receivable of $8,400
Explanation:
Notes receivables and promissory notes are part of the Notes Receivables account, which is an asset account in the balance sheet. They are recorded as follows:
Dr Notes Receivable account 8,400Cr Accounts Receivable account 8,400Both accounts are asset accounts, but notes receivable is replacing accounts receivable. Therefore since notes receivable is increasing, it should be debited, and since accounts receivable is decreasing, it should be credited.
You don't record any interest, only after the interest is paid, you should record it as interest revenue.
It is claimed that mutual funds have two advantages. The first is that mutual funds allow people with small amounts of money to diversify. The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings.
a. Economists strongly agree with both claims.
b. Economists are skeptical of both claims.
c. Economists are skeptical of the first claim, but strongly agree with the second.
d. Economists strongly agree with the first claim, but are skeptical of the second.
Answer:
The correct answer is d. Economists strongly agree with the first claim, but are skeptical of the second.
Explanation:
A mutual fund is an investment alternative that consists of contributions from natural and legal persons (called participants or contributors), to form equity for their investment in shares, debt instruments or fixed income, or a combination of both ( shares + fixed income). They offer a diversified investment alternative since they invest in numerous instruments at the same time. These instruments vary according to the type of fund and are defined by the investment policy regulated by the Superintendency of Securities and Insurance. They are managed by corporations called General Fund Administrators (AGF) that are chosen by the participants themselves. It is important to choose both the administrator and the type of fund based on what best suits each personal situation.