Answer:
The correct answer is Domestic Stage/First Stage.
Explanation:
In the first stage of the international development of a company, also known as the national stage, the orientation and operation of an organization is based on the local area, its market capacity is limited to the country of origin. However, its managers seek to transcend borders to publicize their products / services globally, initially intervening in some international market to expand their production volume and achieve economies of scale.
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.
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).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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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%
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.
Lots of points!!!! The table summarizes the education of four applicants for positions in the STEM career cluster.
Which best describes the jobs each applicant could obtain with their educational background?
Eli can work as an Astronomer, Blake can work as an Agricultural Engineer, Fiona can work as a Mathematician, and Zoey can work as a Conservation Scientist.
Eli can work as a Civil Engineer, Blake can work as an Aerospace Engineer, Fiona can work as a Park Naturalist, and Zoey can work as a Materials Scientist.
Eli can work as an Electro-Mechanical Technician, Blake can work as a Biochemist, Fiona can work as an Industrial Ecologist, and Zoey can work as an Archivist.
Eli can work as an Electronic Engineering Technician, Blake can work as a Museum Conservator, Fiona can work as a Robotics Engineer, and Zoey can work as a Mathematician.
Answer: The answer is B
Explanation: I took the test and got it right
Answer:
Eli can work as a Civil Engineer, Blake can work as an Aerospace Engineer, Fiona can work as a Park Naturalist, and Zoey can work as a Materials Scientist
Explanation:
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.
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.
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.
Interviews in which the interviewer adapts his or her line of questioning based on the answers you give and any questions you ask are known as ______ interviews.
A. creative.
B. screening.
C. open-ended.
D. free-flowing.
Answer:
C. open-ended.
Explanation:
Open-ended interviewing is a way of gathering information from people. An interviewer will ask participants questions, and who will answer those questions. Interviews are considered open-ended because, although questions can be scripted, interviewers generally do not know the content of the response. These interviews may have some questions for participants to gather basic factual data, such as age and gender, but they usually focus on participants' thoughts, feelings, experiences, knowledge, skills, thoughts and preferences.so correct option is C. open-ended.
The correct answer is D. free-flowing interviews. These allow the interviewer to adapt questions based on the interviewee’s responses, creating a conversational and dynamic exchange.
A. Creative:
This term refers to interviews that may involve unconventional or innovative approaches to questioning, but it doesn't specifically address the interviewer adapting based on the candidate's responses.B. Screening:
Screening interviews typically involve a standardized set of questions used to filter candidates based on their qualifications for a position. While screening interviews serve a purpose in the hiring process, they do not necessarily adapt based on candidate responses.C. Open-ended:
Open-ended questions allow for more expansive responses from candidates, but the term itself doesn't capture the idea of the interviewer adjusting their questioning based on candidate responses.D. Free-flowing:
This term suggests a dynamic exchange where conversation moves naturally between interviewer and candidate, potentially allowing for adaptation based on responses and questions asked.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.
Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecting customers. When Glo learns of Flemâs report, Glo fires him. He successfully sues Glo for wrongful discharge. With respect to the employment-at-will doctrine, this is__________.a.an example of the doctrine.b.an exception based on contract theory.c.an exception based on public policy.d.an exception based on tort theory.
Answer: C. An exception based on public policy.
Explanation: Flem reporting to state official about his company Glo inc illegally shipping unsafe goods was a "public good". Flem can sue his firm for firing him on the base of employment at will rule, "exception based on public policy"
Exception based on public policy is a rule to exception on employment at will rule. In this exception, an employer of labor can not fire an employee if it is in violation of the doctrine of public policy of the state.
Why does Maureen Riehl state that internet retailers have an "unfair price advantage" when they don't collect sales tax from out of state customers?
Answer:
See explanation below for answer.
Explanation:
Maureen Riehl states that internet retailers have an unfair price advantage when they don't have to collect sales tax because, by not collecting of tax, it can make their product be up to 10% lower than brick and mortar merchants, so in a market where the profit margins can be as small as 1% to 2%, the 10% profit margin can be a killer.
Therefore, Maureen Riehl suggests that retailers should be taxed just the same, regardless of whether they sell their commodities in a store, through mail, over the telephone, or on the internet. Maureen Riehl posits that the tax policy should not be allowed to determine the winners and losers in the retail industry.
At the end of the article, Maureen Riehl states that, using the same tax policy will put internet retailers and brick-and-mortar retailers on the same footing, where everyone can compete fairly and freely.
Maureen Riehl believes that internet retailers have an "unfair price advantage" because they do not collect sales tax from out-of-state customers. This allows them to offer lower prices compared to brick-and-mortar stores that must collect sales tax, thus giving them a competitive edge.
The notion of "unfair price advantage" stems from the fact that brick-and-mortar stores are required to collect sales taxes on all transactions, whereas online retailers often do not collect sales taxes on sales made to out-of-state customers. As a result, online retailers can offer products at lower prices, making them more attractive to price-sensitive consumers. This discrepancy creates an uneven playing field for physical stores. Some notable points are:
By not collecting sales tax, online retailers can effectively lower their final sale prices.Consumers may prefer shopping online to avoid paying additional sales taxes, thereby affecting the revenue of physical stores.This advantage can be seen as regulatory arbitrage where online retailers bypass traditional tax obligations.The lack of sales tax collection can also strain state revenues, which rely on these collections for public services.
The Marketplace Fairness Act of 2013 aims to address this issue by requiring online merchants to collect and remit sales taxes on out-of-state transactions, thus leveling the competitive field between online and physical retailers. Large online retailers like Amazon.com might support this measure as it standardizes tax obligations and potentially reduces administrative complexities related to sales tax collections.
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.
Rachel recently started a new gift shop in town. When she is deciding how to price the new products in her shop, she measures the value of her products against those of the other shops in her area. Rachel is most likely using a _______ pricing strategy .
Answer:
The correct word for the blank space is: competitive.
Explanation:
Pricing strategies are methods companies use at the moment of setting the prices of their products. The most common pricing strategies are:
Cost-plus pricing. Involves recognizing the production costs and adding a percentage of those costs which represents the profit of the firm. Competitive pricing. Implies establishing the price of a product similar to what competitors in the market have set. Value-based pricing. It requires setting the price of goods and services based on what consumers think the price should be. Price skimming. Involves pricing a product high at first and changing the price according to market fluctuations. Penetration pricing. Implies setting the price of a product low to wipe out competitors and raising it after they completely disappeared.
Andrea thinks that individual citizens, rather than the government, should answer the basic economic questions; however, she feels that the government should prevent large changes in the economy. Her ideas are based on which of these economists?
Keyneskeatsjames jeans
Answer:
Keynes
Explanation:
Andrea's ideas that individual citizens, rather than the government, should answer the basic economic questions; however, she feels that the government should prevent large changes in the economy are based on the economist, Keynes.
John Maynard Keynes a British economist was born on the 5th of June 1883.
Answer:
The answer is Keynes.
Explanation:
Keynesian economics refers to an economic theory of total spending in the economy and how it affects output and inflation. This theory was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.
Keynes suggested that the government should increase expenditures and implement lower tax rates in order to stimulate demand and bring the world's economy out of the depression.
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bearing account so that you can use it whenever you want (that is, hold it as money) or to use it to buy a U.S. Treasury bond. The opportunity cost of holding the inheritance as money depends on the interest rate on the bond.For each of the interest rates in the following table, compute the opportunity cost of holding the $10,000 as money. Interest Rate on Government Bond Opportunity Cost (Percent) (dollars per year) 8 10 What does the previous analysis suggest about the market for money? a) The quantity of money demanded increases as the interest rate rises. b) The supply of money is independent of the interest rate. c) The quantity of money demanded decreases as the interest rate rises.
a. The Opportunity cost for holding 8% interest rate on Government Bonds is $800.
b. The Opportunity Cost for holding 10% interest rate on Government Bonds is $1,000.
c. The previous analysis suggest about the market for money is: b. The quantity of money demanded decreases as the interest rate rises.
a. 8% Opportunity cost
Opportunity cost= 8%× $10,000
Opportunity cost=$800
b. 10% Opportunity cost
Opportunity cost= 10%× $10,000
Opportunity cost=$1,000
c. The previous analysis suggest about the market for money is: b. The quantity of money demanded decreases as the interest rate rises.
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Liberia, a very poor nation in West Africa, is relatively abundant in resources such as mahogany and rubber tree forests, iron-ore deposits, and diamonds. If Liberia is so rich in valuable resources, why is it still so impoverished? a) Liberia lacks the institutions necessary to make productive use of those resources. b) The population of Liberia is too small to use those resources. c) Natural resources are not as important as other types of resources. d) Taxes in Liberia are too high and discourage investment. e) Liberians are content with a low standard of living.
Answer: A. Liberia lacks the institutions necessary to make productive use of those resources.
Explanation: Liberia is a nation rich with natural resources including iron ore, gold, diamonds, natural rubber, vast forest for logging and timber harvesting, and vast agriculture land for ensuring food security.
Liberia is Africa's oldest republic, but it became known in the 1990s for its long-running, ruinous civil war and its role in a rebellion in neighboring Sierra Leone. Around 250,000 people were killed in Liberia's civil war, and many thousands more fled the fighting.
Monetary neutrality means that a change in the money supply can cause _______
Monetary neutrality asserts that changes in the money supply only affect nominal variables like prices and wages, but not real variables like employment and real GDP.
Explanation:Monetary neutrality is a concept in economics stating that a change in the total amount of money within an economy does not affect the real output of that economy, also known as the real GDP. In simpler terms, it means a change in the money supply can cause nominal variables such as prices, wages, and exchange rates to change, but not real variables such as employment, real GDP, and real consumption. It's based on the classical dichotomy and the separation of real and nominal variables in the long-run.
For example, if the Federal Reserve (the central bank of the United States) were to increase the money supply, prices and wages would eventually increase due to inflation, which is a nominal effect. However, employment or real GDP, which are real variables would remain unaffected in the long run, which illustrates the principle of monetary neutrality.
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Monetary neutrality refers to the notion that fluctuations in the money supply can lead to changes in inflation, real GDP, or both, depending on how velocity changes over time. However, in a neoclassical perspective, only the price level, not the real GDP, is affected in the long run.
Explanation:Monetary neutrality translates to the idea that a change in the money supply can cause inflation, a raise in real GDP, or a combination of both. This concept is based on the quantity equation of money. If velocity is constant over time, a percentage rise in the money supply will lead to an equivalent percentage rise in nominal GDP due to either an increase in inflation or real GDP.
If however, velocity changes over time, the effect of changes in the money supply on nominal GDP becomes unpredictable. In a neoclassical view, an expansionary monetary policy affects only the price level, but has no impact on the level of output in the economy in the long run. Therefore, no shift in aggregate demand will affect the equilibrium quantity of output in this model.
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In each of the following situations, identify whether the setting is primarily financial accounting or management accounting.
a. Volkswagen has experienced a declined in U.S. sales, which dropped 18% in 2005 and 24% in 2002 and 2004. Then chief executive, Bern Pischetsrieder, believed the biggest problem at Volkswagen was the cost incurred to produce a car, which was not competitive with other automakers, The company tried to get German workers to agree to pay cuts to reduce the cost.
b. In reporting a 2.1% drop in quarterly income from the previous year's second quarter, Oracle Corp. noted that a weaker dollar affected revenue in its database segment. A weaker dollar makes Oracle's products more expensive overseas and lowers the company's revenue after currency conversation.
c. Cerner is a developer of information technology for the health care industry. As the company incurs expenses to develop a software package, it capitalizes those costs as an asset. Beginning in the year after the software is released, it then amortizes those costs over a five-year period. Normal practice in the software industry is to amortize these costs over a three-year period.
d. BNSF Railway was experiencing an increase in demand for information technology resources even though, overall, the company's business wasn't growing. In an effort to understand the technology group's operations, Chief Information Officer Jeff Campbell developed a balance scorecard for the IT group. Among the measures he tracked were monthly performance against operating budget, percentage of projects delivered on time, employee absenteeism, and internal rate of return on IT projects. Now everyone in the company understands how much it costs to provide the technology support for a particular business application.
Answer:
a. Managerial Accounting
b. Financial Accounting
c. Financial Accounting
d. Managerial Accounting
Explanation:
Managerial accounting also known as management accounting is the practice of decision making, identifying, planning, analyzing, interpreting, and providing expert financial information to managers for the sole purpose of achieving an organization's goals.
Financial accounting is the process of analyzing and preparing financial statements as a financial report for use by the public or external users such as investors, suppliers and clients.
Cow’s Milk Creamery, Inc., needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Company. Cow’s Milk tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cow’s Milk can recover:_______.
a. $0.
b. $10,000.
c. $3,000.
d. $13,000.
Final answer:
Cow’s Milk Creamery, Inc. can recover $10,000 from Dairy Supplies Company for the late shipment as these were communicated and foreseeable consequential damages directly resulting from the breach.
Explanation:
Cow’s Milk Creamery, Inc., has informed Dairy Supplies Company of the urgency of receiving a part by a certain deadline, stating a loss of $10,000 if the part is not received in time. This sets a clear expectation of consequential damages, which are foreseeable and directly related to the delay in shipment. If Dairy Supplies ships the part late, and Cow’s Milk loses $10,000 as a result, the creamery can attempt to recover those specific damages from Dairy Supplies Company.
Considering the situation, Cow’s Milk Creamery, Inc. can recover:
(b) $10,000. This is because the company explicitly communicated the importance of timely delivery and the specific amount of losses that would be incurred if the part was not delivered on time, making these damages foreseeable and recoverable under contract law.
Andre manages a toy packaging factory. After failed negotiations between Andre and the labor union, the union members strike, partially shutting down the factory. In response, Andre shuts down the factory completely, restricting all his employees from coming to work.
This situation best represents a(n) _______.
Answer:
lockout
Explanation:
In business, a lock out happens when a factory's management or owner decides to shut down the factory and will not let the employees go back to work. This generally happens during a labor dispute, when management believes that agreeing to the union's terms would be too disadvantageous for the company and prefer to shut it down themselves. Both a strike and a lockout are legal.
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.
Money A. facilitates specialization in production. B. is anything that is regularly used and generally accepted in economic transactions or exchanges. C. is anything the government declares to have value. D. is necessary to conduct economic transactions.
Answer:
The correct answer is B
Explanation:
Money is the term which is defined or described as any good which is used widely as well as accepted in the transactions comprising the transfer of goods as well as services from oner person to another.
The money could be differentiated among three kinds which are as: bank, commodity money and fiat money.
So, the money is states as anything which is used regularly as well as accepted generally in the economic exchanges or transactions.
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.
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.
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.
Machinery purchased for $63,000 by Concord Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,200 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,725 at the end of that time. Assume straight-line depreciation.
Required:
1. Prepare the entry to correct the prior years' depreciation, if necessary.
2. Prepare the entry to record depreciation for 2021.
Final answer:
A change in depreciation estimates does not require correcting previous years' depreciation, it's handled prospectively. Consequently, no entry is necessary to adjust prior depreciation. For 2021, the new depreciation expense based on the updated life and salvage value is $5,827.50.
Explanation:
Correcting Prior Years' DepreciationOriginally, the machinery was depreciated over 8 years with a salvage value of $4,200, resulting in an annual depreciation expense of $7,350 (($63,000 - $4,200) / 8). Over 5 years, the total depreciation would have been $36,750. However, now that the estimated life is 10 years with a new salvage value of $4,725, the revised annual depreciation is $5,827.50 (($63,000 - $4,725) / 10).
Entry to Correct Prior Years' Depreciation
No adjusting entry is required to correct prior years' depreciation because the change in estimate is accounted for prospectively; thus, prior years' financial statements are not retrospectively adjusted.
Recording Depreciation for 2021
For 2021, the depreciation expense to be recorded is $5,827.50, reflecting the new estimate. The journal entry would be:
Debit Depreciation Expense: $5,827.50
Credit Accumulated Depreciation—Machinery: $5,827.50
A perfectly competitive industry exists under which of the following conditions? I. The product sold is similar across firms. II. There are many sellers, each small relative to the total market. III. There are many sellers, each with total assets less than $2 million. IV. The threat of competition exists from potential sellers that have not yet entered the market.
Answer:
I, II, and IV only
Explanation:
A perfect competition is defined by an idealizing market and shows that the market will reach equilibrium. The prevalence of the perfect competition needs a larger number of buyers and sellers, well defined property rights and homogenous products, profits maximization, rational buyers and no barriers to entry and exit. An example of the agricultural markets as perfect competition, as there are numerous farmers that sell the same vegetables and fruits and have same prices. Another example is that of the foreign exchange markets was the trader's exchange currencies and sell identical goods.The purpose of the flexible budget is to: Multiple Choice allow management some latitude in meeting goals. eliminate cyclical fluctuations in production reports by ignoring variable costs. reduce the total time in preparing the annual budget. compare actual and budgeted results at virtually any level of production.
Answer:
Compare actual and budgeted results at virtually any level of production.
Explanation:
Budget is an estimation of financial plan and operational expenses of an organization with a period. Budget helps to prepare what will be spent by an organization and measured against actual performance at the end of the financial period.
Flexible budget is a budget designed to adjust to changes in level of current revenue. It compares the actual and budgeted results or performance at every level of production.
Management often uses flexible budget to address both areas that were successful and not succesful in past performance. It is used to prepare for the worst or best case situation.
Example of flexible budget is when management identify and analyze cost(Fixed and Variable cost) which affects revenue and expenses. Fixed cost which is fixed at every output level and variable cost which varies with the output level.
The purpose of the flexible budget is to compare actual and budgeted results at virtually any level of production. It allows management to assess performance, identify variances, and make necessary adjustments.
Explanation:The purpose of the flexible budget is to compare actual and budgeted results at virtually any level of production. A flexible budget is created by breaking down fixed and variable costs, allowing management to assess their performance based on different levels of production. With a flexible budget, managers can identify any variances between the actual and budgeted amounts and take necessary actions to achieve their goals.
For example, let's say a company sets a budget for producing 1,000 units of a product. However, the actual production reaches only 800 units due to unexpected circumstances. By comparing the actual costs with the budgeted costs at this level, management can identify if there are any discrepancies and make adjustments accordingly.
The flexibility of the budget allows management to make informed decisions based on the current production level and adjust their approach to meet their goals effectively. It provides them with the opportunity to analyze and control costs more accurately, ensuring the efficient allocation of resources.
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