Answer:
14.77%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.97% + 1.40 × 7%
= 4.97% + 9.8%
= 14.77%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is shown in the answer
Based on the concept of the risk-free rate and the available information, the expected return on Twittér stock is $14.77
How to determine the expected returnTo calculate the expected return consistent with the systematic risk associated with the returns on Twittér stock, use the Capital Asset Pricing Model (CAPM).
The CAPM formula is as follows:
Expected Return = Risk-Free Rate + (Beta * Market Risk Premium)
Given the following information:
Risk-Free Rate = 4.97%
Market Risk Premium = 7%
Beta (β) for Twittér stock = 1.40
calculate the expected return:
Expected Return = 4.97% + (1.40 * 7%)
Expected Return = 4.97% + 9.8%
Expected Return = 14.77%
Therefore, in this case, it is concluded that the expected return that is consistent with the systematic risk associated with the returns on Twittér stock is 14.77%.
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A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qualified for their positions. The restaurant chain owner wanted to save money and so he offered the job to the woman at a salary $10,000 lower than what he offered the man. This is a violation of The Equal Pay Act of 1963. Which entity, if notified, could enforce the Equal Pay Act of 1963 on behalf of these employees?a. Chamber of Commerce b. Small Business c. Administration d. Equal Employment Opportunity e. Commission
Answer:
The answer is letter A. Chamber of Commerce
Explanation:
Because the chamber of commerce opposes pay discrimination and supports equal employment opportunity and strong enforcement of the Equal Pay Act of 1963 and the Title VII of the Civil Rights Act of 1964.
Answer:
The correct answer is letter "D": Equal Employment Opportunity Commission.
Explanation:
President John F. Kennedy (1917-1963) signed the Equal Pay Act of 1963 (EPA) to ban any type of discrimination on gender-based salaries. The U.S. enforces the EPA through the Equal Employment Opportunity Commission (EEOC) which is the largest federal agency responsible for enforcing civil rights laws in the workplace regarding discrimination on grounds of race, color, religion, gender, age, national origin or sexual orientation.
Fitness Bands Corporation gathered the following information: Standard Total Cost Actual Total Cost Direct materials Standard: 2,400 pints at $ 3.50/pint $8,400 Actual: 2,600 pints at $ 6.00/pint $15,600 What is the direct materials price variance?A. $2,500 unfavorable B. $1,750 unfavorable C. $1,750 favorable D. $2,500 favorable
Answer:
Nono of the answer is correct.
Explanation:
Giving the following information:
Standard Cost: 2,400 pints at $ 3.50/pint $8,400
Actual: 2,600 pints at $ 6.00/pint $15,600
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3.5 - 6)*2,600= 6,500 unfavorable
Service level is:A) the probability of stocking out.B) the probability of not stocking out.C) something that should be minimized in retail.D) calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage) for single-period models.E) B and D
Answer:
E) B and D
Explanation:
Service levels are basically the term used to calculate the measures performance of the system. There are goals set, and the service level defines the percentage for which the goals shall be achieved.
The probability that the stock will not be less as compared to the level required.
The formula for calculating the service level is the cost of shortage divided by the total cost of shortage along with the total cost associated with the overage. This is because even keeping excess will be expensive.
Quality of working life programs were implemented largely to deal with problems associated with:A. Job control unionismB. Worker dissatisfactionC. Management favoritism and biasD. Poor communication between management and labor
Answer:
B. Worker dissatisfaction
Explanation:
There are several reasons for job dissatisfaction, some of them include poor environment, poor management, unethical acts sometimes.
All of cases lead to worker dissatisfaction, so in order to remove the dissatisfaction in workers the quality of working life has to be improved which provides for better working lifestyle to workers. And this ultimately results in the satisfaction among workers towards the work culture they are offered.
Thus, in the current circumstance the work culture is improved and accordingly implemented so that to erase the worker's dissatisfaction.
Marvin Corporation has the following information reported on the balance sheet as of December 31, 2017 Common Stock, $10 par value (authornized 20,000 shares) $90,000 Treasury Stock (6,000 shares) $30,000 Based on the information above, how many shares of common stock are outstanding? O A. 9,000. B. 6,000. O C. 3,000 O D. 60,000 Click to select your answer O Type here to search
Answer:
How many shares of common stock are outstanding?C. 3,000
Explanation:
Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.
The company issued 9,000 shares, it is reflected in the Common Stock account, $90.000 / $10 = 9,000.
Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.
Finally the total Common Shares outstanding are 3,000.
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: Indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs?
A : $70,875
B : $52,875
C : $66,375
D : $91,125
Answer:
The correct answer is C.
Explanation:
Giving the following information:
They generally use a static budget with the following costs based on 8,000 units per month: Indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000.
Unitary variable costs= (22,000 + 25,000 + 12,000)/8,000= 59,000/8,000= 7.375
Units= 9,000
Total variable cost= 9,000*7.375= 66,375
The first step in the project control process for measuring and evaluating project performance is to ch13 Select one: a. Determine the project objectives. b. Determine the project deliverables. c. Analyze the project budget. d. Set a baseline plan e. Review the project priority matrix.
Answer:
The correct answer is (D)
Explanation:
One of the most significant perspectives to be considered in connection is to frame a benchmark plan. Execution estimation and target-setting are essential to the development procedure, however a pattern plan is basic and is considered as an initial step. While numerous private companies can run themselves easily without target-setting, however every organisation must have a plan and a way to execute those plan.
Galt Industries has just issued a callable, $1000 par value, five-year, 6% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $978.94, then its yield to maturity is closest to:
Answer:
6.50%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $978.94
Face value = $1,000
PMT = 1,000 × 6% ÷ 2 = $30
NPER = 5 years × 2 = 10 years
The formula is shown below:
= Rate(NPER,PMT,-PV,FV,type)
The present value come in negative
So, after solving this, the answer would be 6.50%
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. Which of the following accurately describes the effect of an investment tax credit? Check all that apply.
A. Trade balance increases Exchange rate decreases
B. Real interest rate increases National saving increases
C. Net capital outflow decreases Domestic investment decreases True or False:
D. As a result of the investment tax credit, exports to other countries decrease. True False
Answer:A. Trade balance increases Exchange rate decreases
C. False
D. False
Explanation:
A subsidy on domestic investment will encourage more investment from the populace as the cost of investment will reduce which invariably means more goods are produce, export increase, trade balance increases and exchange rate decrease.
The real Interest rate will equally fall due to the subsidy and domestic investment increases.
Which of the following statements is FALSE?A) As the enterprise value represents the entire value of a firm before the firm pays its debt,to form an appropriate multiple, we divide it by a measure of earnings or cash flows afterinterest payments are made.B) We can compute a firmʹs price-earnings ratio by using either trailing earnings or forwardearnings with the resulting ratio called the trailing price-earnings or forwardprice-earnings.C) It is common practice to use valuation multiples based on a firmʹs enterprise value.D) Using a valuation multiple based on comparables is best viewed as a ʺshortcutʺ to thediscounted cash flow method of valuation.
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
Plato Industries' projected sales for the first six months of 2012 are given below:
Jan. $250,000 April $300,000 Feb. $340,000 May $350,000 Mar. $280,000 June $380,000
20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale.
Cost of goods sold is 85% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale.
Total other cash expenses are $70,000/month.
The company's cash balance as of February 28, 2012 will be $10,000.
Excess cash will be used to retire shortminusterm borrowing (if any).
Plato has no short term borrowing as of February 28, 2012. Ignore any interest on shortminusterm borrowing.
The company must have a minimum cash balance of $40,000 at the beginning of each month.
What is Plato Industries' total cash receipts for April 2012?
A. $326,000
B. $340,000
C. $302,000
D. $300,000
Answer:
help
Explanation:
Answer:
The answer is C. $302,000.
Explanation:
We have the given information that:
+ Cash's receipt is only from sales and;
+ 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale.
=> Cash receipt in April 2012 = 20% * Sales of April 2012 + 50% * Sales of Mar 2012 + 30% * Sales of Feb 2012 = 20% * 300,000 + 50% * 280,000 + 30% * 340,000 = $302,000
=> So, the right choice is C. $302,000
For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth or expansion. These undistributed profits are referred to
1. ascurrent assets.
2. owners' equity.
3. retained earnings.
4. dividends payable
Answer:
3. retained earnings.
Explanation:
When a company earns profit, taxes are deducted to find the net profit or net earnings. From these, it pays dividends at a certain dividend payout ratio; which is usually dividends/ net profit. Whatever remains is reinvested back into the company for funding potential profitable projects and other expansions and are referred to as retained earnings. This gives the retention rate which is basically (1 - payout ratio).
Western Wear Clothing issues 3,000 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming the issue price is $11 per share, record the issuance of common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
The journal entry for the issuance of the common stock is shown below:
Explanation:
Cash A/c.............................................Dr $33,000
Common Stock A/c........................Cr $30
Paid in Capital A/c...........................Cr $32,970
Working Notes:
Cash = Number of shares × Issue Price
= 3,000 × $11
= $33,000
Common Stock = Number of Shares × Par Value
= 3,000 × $0.01
= $30
Paid in Capital = Cash - Common stock
= $33,000 - 30
= $32,970
The appropriate journal entry to record the transaction is: Debit Cash $33,000; Credit Common Stock $30; Credit Paid in Capital $32,970
Journal entryBased on the information given the journal entry to record the transaction is:
Western Wear Clothing journal entry
Debit Cash $33,000
(3,000 × $11)
Credit Common Stock $30
(3,000 × $0.01)
Credit Paid in Capital $32,970
( $33,000 - $30)
Inconclusion the appropriate journal entry to record the transaction is: Debit Cash $33,000; Credit Common Stock $30; Credit Paid in Capital $32,970.
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In the life cycle theory of consumption, the motive to save is:A.To be able to open a business.B.To become wealthy.C.To leave a large endowment for one's children.D.To build a family dynasty.E.To afford to retire.
Answer: To afford to retire
Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.
As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.
However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.
HR Industries (HRI) has a beta of 1.8, while LR Industries' (LRI) beta is 0.6. The risk-free rate is 5.5%, and the required rate of return on a stock with a beta of 1 is 12.5%. The expected rate of inflation built into rRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference (in percentage points) in the required returns for HRI and LRI? A. 3.8% B. 0.9% C. 1.5% D. 2.4% E. 3.5%
Answer:
None of above options are correct. 7.8% .
Explanation:
Rf = 5.5% - 1.5% = 4%
Rhri = 4% + 1.8*(10.5% - 4%) = 15.7%
Rlri = 4% + 0.6*(10.5% - 4%) = 7.9%
Difference = 15.7% - 7.9% = 7.8%
The difference (in percentage points) in the required returns for HRI and LRI is 7.8%
Herman, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the U.S. Herman states that the child lives with him, is not married, is disabled, and has not worked during the year. What should Herman's Tax Professional do to determine if the child can qualify Herman for EITC? Enter Herman's child on his return and identify him as a disabled qualifying child. Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met. Ask for proof of the child's income. Explain to Herman that a 35-year-old child is too old to be a qualifying child for EITC
Answer:
Herman's tax professional should "Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met."
Explanation:
Earned Income Tax Credit (EITC) is a refundable tax credit that can be earned by low and middle income workers, especially those who have children.
According to EITC guidelines, a parent can claim EITC on behalf of a disabled child and there is no age limit for such a child to quality for EITC. However;
• The child must be totally and permanently disabled such that he cannot work or engage in any activity to earn income.
• A doctor's report has to be provided to confirm that the child is permanently disabled.
Herman's tax professional must therefore carefully explain these requirements to Herman, and also apply sound judgement and common sense to see if Herman's child meets the requirements.
Herman's Tax Professional should explain the tax definition of disabled to assess if Herman's 35-year-old child can be considered a disabled qualifying child for EITC, despite their age. The professional needs to verify that the child meets all IRS criteria, including residency and financial dependency status.
Explanation:Herman, who is not a dependent, inquires about claiming the Earned Income Tax Credit (EITC) for his 35-year-old dependent child, who is disabled and has not worked during the year. Given these circumstances, Herman's Tax Professional should first advise Herman of the tax definition of disabled and assess if the child meets this definition. Although at first glance, it may appear that a 35-year-old child is too old to qualify for EITC, the IRS allows exceptions for disabled qualifying children regardless of their age, provided they meet other requirements such as living with the taxpayer in the United States for more than half the tax year and not providing over half of their own support.
Therefore, the tax professional should not outright dismiss the claim but instead, systematically evaluate the child's situation against the IRS criteria for a qualifying child for EITC purposes. Proof of the child's income, or lack thereof, may also be required to confirm they did not have earnings that would disqualify them from being considered a dependent for the purposes of claiming the EITC.
.
One element in preparing a financial plan for a client is to determine the appropriate type and amount of life insurance. If a client is conservative, 30 years old, and married with 2 young children, whose income is unpredictable, the IA may recommend what type of life insurance policy?
Answer:
Permanent Life Insurance Policy
Explanation:
Permanent Life Insurance Policy is a flexible insurance policy that allows policy holders to borrow from their insurance policy (policy loan). Furthermore, withdrawal up to the total premium amount paid into the policy is allowed.
The following income statement is for X Company and its only two products - A and B:
Total Product A Product B
Sales $174,760 $85,650 $89,110
Variable Costs 96,836 51,390 45,446
Contribution margin $77,924 $34,260 $43,664
Fixed costs:
Avoidable 71,970 24,600 47,370
Unavoidable 31,500 5,270 26,230
Profit $-25,546 $4,390 $-29,936
Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
Answer: The answer is $4,390
Explanation:
Product A. Product B. Total
$ $ $
Sales. 85,650. 89,110. 174,760
Less: Variable cost. (51,390) (45,446) (96,836)
------------ ----------- ------------
Contribution. 34,260. 43,664. 77,924
Less : Fixed cost
Avoidable. (24600) (47,370) (71,970)
Unavoidable. (5,270) (26,230) (31,500)
---------- ----------- ----------
Net Profit/ Loss. 4,390 profit. ( 29,936) loss (25,546) loss
Note The statement shows clearly that on the present budget, the product B shows a loss of $29,936 and this is the reason while X company is considering dropping it. Since it drop product B then X company new profit will be $4,390
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 195,500 Operating income $55,750 Less: Income taxes (@ 40%) 22,300 Net income $33,450 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Required: For East Mullett Manufacturing, calculate the following: 1. Average operating assets $ 2. Margin (round to two decimal places) % 3. Turnover (round to two decimal places) 4. Return on investment (round to one decimal place)
Final answer:
The average operating assets are $425,000, the Margin is 10.49%, the Turnover is 1.25, and the Return on Investment is 13.1%.
Explanation:
To calculate the average operating assets for East Mullett Manufacturing, we take the sum of the operating assets at the beginning and end of the year and divide by two. Therefore, the average operating assets = (Operating Assets Beginning of Year + Operating Assets End of Year) / 2 = ($390,000 + $460,000) / 2 = $425,000.
To find the Margin, divide the operating income by sales and multiply by 100 to get a percentage: Margin = (Operating Income / Sales) × 100 = ($55,750 / $531,250) × 100 = 10.49%.
The Turnover, or asset turnover ratio, is calculated by dividing sales by average operating assets: Turnover = Sales / Average Operating Assets = $531,250 / $425,000 = 1.25.
Lastly, the Return on Investment (ROI) is determined by multiplying margin by turnover: ROI = Margin × Turnover = 10.49% × 1.25 = 13.11%. Since ROI is expressed as a percentage, we leave it as is, so it's 13.1% when rounded to one decimal place.
Cyra is a musician who is contracted to perform for Vanta Blue, a local pub. Vanta Blue pays her an advance as part of the contract. But Cyra never shows up to perform at Vanta Blue. Vanta Blue sues Cyra for breach of contract and to request an order that Cyra carry out her contractual obligation. Which of the following remedies is most likely to be sought by Vanta Blue in this caseA. specific performanceB. substantial performanceC. tender performanceD. injunctionE. condition subsequent
Answer:
Specific performance.
Explanation:
In this case, Vanta Blue even pay upfront although Cyra end up not showing up. Cyra is suppose to perform as it is dealed.
A disadvantage of the fixed-period inventory system is that:
(A) it involves higher ordering costs than the fixed quantity inventory system.
(B) since there is no count of inventory during the review period, a stockout is possible.
(C) additional inventory records are required.
(D) orders usually are for larger quantities. the average inventory level is decreased.
Answer:
The correct answer is letter "B": since there is no count of inventory during the review period, a stockout is possible.
Explanation:
The fixed-period inventory system, also known as a periodic inventory system, only updates the organization’s inventory balance when an actual physical count of the inventory is necessary. Most companies only carry out a physical inventory count once every quarter or year, being this the reason why this system is called "fixed-period". However, this could lead to a company stockout at an unexpected period when the count was not carried out yet.
The main disadvantage of the fixed-period inventory system is that there is no continuous monitoring of inventory, meaning a stockout (running out of an item in stock) is possible despite the regular review schedule.
Explanation:The main disadvantage of the fixed-period inventory system is option (B), it is that there is no count of inventory during the review period, which means a stockout - a situation where an item is out of stock - is possible. Unlike the fixed quantity system where orders are placed to replenish inventory to a specific level, the fixed-period system operates on a review schedule. With this, inventory levels are not continuously monitored, which may lead to possible shortages, especially if demand unexpectedly increases.
Options (A), (C), and (D) are generally not disadvantages associated with the fixed-period system. The costs, record keeping, and order quantity depend on organization practices and resources and doesn't directly affect the fixed-period nature of the inventory system.
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Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $30,000 and the fair market value is $38,000. Melvin trades the stock for bonds with a fair market value of $35,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?
Melvin's recognized gain from trading the stock is $8,000, and the basis for the bonds he received is $35,000.
Melvin's recognized gain is calculated by determining the difference between the fair market value of the stock traded ($38,000) and the basis of the stock ($30,000). Therefore, Melvin's recognized gain is:
Fair Market Value of Stock - Adjusted Basis
($38,000 - $30,000) = $8,000
Since Melvin received $3,000 cash and bonds valued at $35,000, the total value he received is $38,000.
For the basis of the bonds, the basis will be the same as the stock's adjusted basis plus recognized gain minus cash received:
Adjusted Basis of Stock + Recognized Gain - Cash Received
($30,000 + $8,000) - $3,000 = $35,000
Therefore, Melvin's recognized gain is $8,000, and the basis for the bonds is $35,000.
Assume material A calls out material B. Material A has a stock quantity of 20. Material A has a demand for 100 due on 7/2 and there is an order for 80 with a due date of 7/2 and start date of 6/25. What is the requirement date that will be generated for product B
_____(Enter your answer as a date in the format M/DD; eg 8/1 or 7/12)
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The requirement date for material B depends on the lead time for its production and availability. If the lead time is negligible, then material B would be required by 6/25 to meet the demand for material A due on 7/2.
Explanation:The requirement date for material B is determined by the need date of material A and any lead time required for material B to be produced, transported, and made ready for use in producing material A. Given that material A has a demand of 100 units due on 7/2 and there is an order for 80 units with the same due date of 7/2 and a start date of 6/25, we must consider the lead time necessary for the procurement or production of material B. If the lead time is not provided, it is impossible to accurately determine the requirement date for material B. However, if we assume that material B is readily available or the lead time is negligible, material B would theoretically be required by the start date of the order for material A, which is 6/25.
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Johnson Corp. has an 8% required rate of return. It’s considering a project that would provide annual cost savings of $50,000 for 5 years. The most that Johnson would be willing to spend on this project is Present Value PV of an Annuity Year of 1 at 8% of 1 at 8%
1 .926 .9262 .857 1.7833 .794 2.5774 .735 3.3125 .681 3.993A) $165,600.B) $125,910.C)$199,650.D)$34,050.
Answer:
C)$199,650
Explanation:
The computation of the spending amount is shown below:
= Annual cost savings × PVIFA (8%, 5 years)
where,
Annual cost saving is $50,000
PVIFA = 3.993
Now put these values to the above formula
So, the value would be equal to
= $50,000 × 3.993
= $199,650
Simply we multiply the annual cost saving with the PVIFA so that the true amount can come.
Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the economy has entered a recession. Assuming each candidate makes one statement about the economy, can you tell whether he or she is a classical or a Keynesian economist?
Presidential candidates can be understood as aligning more with Keynesian or Classical Economics based on their views on government intervention in the economy in response to a recession. Keynesians support active measures such as tax cuts or increased government spending, while Classical Economists favor letting the market adjust naturally.
Explanation:In understanding whether a presidential candidate aligns with Classical or Keynesian Economics, it's crucial to pay attention to their respective views on government intervention in the economy. Keynesian Economists, as developed by John Maynard Keynes, believe in periods of recession, the government should intervene through expansionary fiscal policies that would stimulate consumption and investment, thereby shifting the aggregate demand curve to the right. These measures could include tax cuts or direct increases in government spending.
On the other hand, Classical Economists advocate for a self-regulating economy where markets freely adjust to periods of highs and lows without government intervention. If a candidate supports robust government intervention to combat the recession such as boosting aggregate demand via increased government spending or tax cuts, they are more in line with Keynesian Economics. If they oppose this and advocate for minimal intervention, let the economy self-regulate and adjust naturally, they tend closer to Classical Economics.
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A presidential candidate's response to a recession could potentially indicate whether they lean more towards Keynesian economics (favoring government intervention) or classical economics (advocating minimal intervention). Metrics could include mention of tax cuts, government spending, or managing aggregate demand.
Explanation:Yes, it is possible to infer whether a presidential candidate is a classical or a Keynesian economist based on their responses to economic issues such as a recession.
A Keynesian economist typically believes that government intervention can help stabilize the economy during a recession by managing aggregate demand.
For example, if a candidate suggests the use of expansionary fiscal policy, such as tax cuts to stimulate consumption and investment, or direct increases in government spending to boost aggregate demand, they are likely following Keynesian principles.
On the other hand, a classical economist would generally advocate for minimal government intervention, trusting in the natural ability of the market to self-correct.
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When calculating your return on investment you should ignore:A) paper gains.B) losses you avoided by not buying a stock that has since decreased in price.C) dividends that have been declared on a stock you own if you have not yet received the dividend.D) paper capital losses.E) fees you are charged in the process of purchasing a security.
Answer:
B) losses you avoided by not buying a stock that has since decreased in price
Explanation:
If a stock has not been bought, there has not been a transaction involving that particular stock. Even though, in theory, you may have avoided losses by not buying a stock that has decreased in price, there hasn't been any actual gain or loss on investment related to that stock since there was no investment.
Since all other alternatives present valid parameters when calculating return on investment, the answer is B).
Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement auditA Relationships involving only balance sheet accounts tend to be more predictable than relationships involving income statement accounts.
B Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.
Answer:
The answer is letter B
Explanation:
Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.
Because analytical procedures are evaluations of financial information made by study of plausible relationships among financial and nonfinancial data using models that range from simple to complex. The reason is that income statement amount is based on transactions over a period of time, but balance sheet amounts are for a moment in time. Moreover, amounts subject to management discretion tend to be less predictable.
In the decision support system (DSS) environment, a__________is responsible for supplying information on what a model does, what data inputs it accepts, how the model's output should be interpreted, and what assumptions go into creating and using the model.
Answer:
The correct answer is: Model Builder
Explanation:
A Model Builder is an application useful to create and edit models. It is a visual programming language for workflows that combine sequences (input) that become feeds for a different tool (output), being used as data stored. This application can also be used along with other programming languages such as Python.
Modern economic growth:
Multiple Choice:
has been experienced by all countries around the world.
makes a country's output per person rise at a compounded rate.
refers to the phenomenon when a country's total output rises.
started occurring during the time of the Roman Empire.
Answer:
Makes a country's output per person rise at a compounded rate.
Explanation:
Modern economic growth has led to compound rate of financial development, or the compound development rate, and the output per person which is measured by GDP per capita. Modern Economic growth has made numerous changes and has helped to improve the output ratio per person. This implies that the speed of development is being doubled by a base that incorporates past GDP development, with substantial impacts after some time.
Tamara Tools, Inc. wishes to earn a 30% return on its $100,000 investment in equipment used to produce T-squares for carpenters. Based on estimated sales of 20,000 T-square tools next year, the costs per unit would be as follows:Variable cost$15.00Fixed selling and administrative costs2.00Fixed manufacturing cost3.00At how much per unit should T-squares be priced for sale?A. $21.50B. $20.00C. $16.50D. $15.00
Answer:
A. $21.50
Explanation:
The computation of the per unit price is shown below:
= (Total cost + expected profit) ÷ (number of units sold)
where,
Total cost equal to
= (Variable cost per unit + Fixed selling and administrative costs per unit + Fixed manufacturing cost per unit) × (number of units sold)
= ($15 + $2 + $3) × 20,000
= $400,000
The expected profit would be
= $100,000 × 30%
= $30,000
And, the number of units sold is 20,000
Now put these values to the above formula
So, the per unit would equal to
= ($400,000 + $30,000) ÷ (20,000)
= $21.50