Answer: Exchange
Explanation: Exchange refers to the process in which two parties exchange with each other something of value, to satisfy each others wants. It is considered as a key ingredient of marketing.
Exchange can occur either on monetary basis or on non monetary basis.In the monetary exchange one person receives goods and the other receives money.
While in non monetary transactions both the parties receives some commodity from each other.
In a normal costing system, the cost of a job includes
A. actual direct materials, actual direct labor, and estimated (applied) overhead.
B. estimated direct materials, estimated direct labor, and estimated overhead.
C. actual direct materials, actual direct labor, actual overhead, and actual selling cost.
D. actual direct materials, actual direct labor, and actual overhead.
E. None of these. Job-order costing requires the use of actual, not normal, costing.
Answer:
a. actual direct materials, actual direct labor, and estimated (applied) overhead.
Explanation:
The cost will include all the resources that are directly related to the final product that the firm will try to sell.
The correct option is A. actual direct materials, actual direct labor, and estimated (applied) overhead.
In a normal costing system, the cost of a job is composed of the following elements:
1. Actual direct materials: This refers to the actual cost of materials that are used directly in the production of a specific job. These costs are typically traceable to the job and are recorded when the materials are issued from inventory to the production floor.
2. Actual direct labor: This is the actual cost of labor that is directly involved in working on a specific job. Like direct materials, direct labor costs are also traceable to the job and are recorded as the labor is performed.
3. Estimated (applied) overhead: Overhead costs are indirect costs that cannot be easily traced to individual jobs. In a normal costing system, overhead is applied to jobs based on a predetermined overhead rate. This rate is calculated by dividing the estimated total overhead costs for a period by the estimated total allocation base (such as direct labor hours or machine hours) for that same period. The applied overhead is not the actual overhead incurred but rather an estimate to facilitate costing of jobs.
The other options are incorrect for the following reasons:
B. Estimated direct materials and estimated direct labor are not used in a normal costing system. Instead, actual costs are used for direct materials and direct labor.
C. Actual selling costs are not included in the cost of a job in a normal costing system. Selling costs are typically treated as period costs and are expensed in the period in which they are incurred, not allocated to the cost of goods sold or inventory.
D. Actual overhead is not used in a normal costing system. Instead, estimated overhead (applied overhead) is used.
E. Job-order costing can use either actual costing or normal costing. The statement that job-order costing requires the use of actual, not normal, costing is incorrect. Job-order costing can be implemented with a normal costing system, which is common in many manufacturing environments to simplify the process of assigning overhead costs to jobs.
Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting.
a. Focused on the future
b. Reporting is based mainly on the company as a whole
c. Reports are prepared usually quarterly and annually
d. Information is verified by external auditors
e. Focused on the past
f. Main characteristic of data is that it must be relevant
g. Reports tend to be prepared for the parts of the organization rather than the whole organization
h. Primary users are internal (for example, company managers)
i. Governed by Generally Accepted Accounting Principles (GAAP)
j. Main characteristic of data is that it must be reliable and objective
k. Reports are prepared as needed
l. Not governed by legal requirements
m. Primary users are external (i.e., creditors, investors)
Managerial accounting and financial accounting differ in several characteristics. Managerial accounting focuses on the future, while financial accounting focuses on the past. Managerial accounting reports tend to be prepared for parts of the organization, while financial accounting reports are based mainly on the company as a whole.
Explanation:a. Focused on the future: Managerial accounting focuses on the future by providing information for decision-making and planning.
b. Reporting is based mainly on the company as a whole: This characterizes financial accounting, as it focuses on providing financial information about the entire organization.
c. Reports are prepared usually quarterly and annually: Both managerial accounting and financial accounting prepare reports on a quarterly and annual basis to analyze performance.
d. Information is verified by external auditors: Financial accounting requires external audits to ensure the accuracy and reliability of the financial statements.
e. Focused on the past: Managerial accounting mainly focuses on analyzing historical data to evaluate performance and make informed decisions for the future.
f. Main characteristic of data is that it must be relevant: This is a characteristic of both managerial accounting and financial accounting, as both types of accounting require relevant information for decision-making.
g. Reports tend to be prepared for the parts of the organization rather than the whole organization: This is a characteristic of managerial accounting, where reports are prepared for specific segments or departments within the organization.
h. Primary users are internal (for example, company managers): The primary users of managerial accounting information are internal personnel such as managers, who use the information for decision-making.
i. Governed by Generally Accepted Accounting Principles (GAAP): Financial accounting follows GAAP, which provides guidelines for reporting financial information.
j. Main characteristic of data is that it must be reliable and objective: Both managerial accounting and financial accounting require reliable and objective data to ensure accurate decision-making and reporting.
k. Reports are prepared as needed: This relates to managerial accounting as reports can be prepared based on the specific needs of management.
l. Not governed by legal requirements: This is a characteristic of managerial accounting, which is not subject to the same legal requirements as financial accounting.
m. Primary users are external (i.e., creditors, investors): The primary users of financial accounting information are external parties such as creditors and investors.
Learn more about Difference between Managerial Accounting and Financial Accounting here:https://brainly.com/question/34933148
#SPJ6
Managerial accounting is focused on the future, prepares reports as needed, and uses data that is relevant, whereas financial accounting focuses on the past, prepares reports annually or quarterly, and needs reliable and objective data.
Explanation:Here's how each of these characteristics relate to managerial accounting or financial accounting:
a. Focused on the future - Managerial Accounting b. Reporting is based mainly on the company as a whole - Financial Accounting c. Reports are prepared usually quarterly and annually - Financial Accounting d. Information is verified by external auditors - Financial Accounting e. Focused on the past - Financial Accounting f. Main characteristic of data is that it must be relevant - Managerial Accounting g. Reports tend to be prepared for the parts of the organization rather than the whole organization - Managerial Accounting h. Primary users are internal (for example, company managers) - Managerial Accounting i. Governed by Generally Accepted Accounting Principles (GAAP) - Financial Accounting j. Main characteristic of data is that it must be reliable and objective - Financial Accounting k. Reports are prepared as needed - Managerial Accounting l. Not governed by legal requirements - Managerial Accounting m. Primary users are external (i.e., creditors, investors) - Financial Accounting Learn more about Managerial Accounting vs Financial Accounting here:https://brainly.com/question/33407257
#SPJ6
Phyllis, Inc., earns book net income before tax of $600,000. Phyllis puts into service a depreciable asset this year, and first year tax depreciation exceeds book depreciation by $120,000. Phyllis has recorded no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 21%, what is Phyllis's total income tax expense reported on its GAAP financial statements?
a. $252,000b. $210,000c. $168,000d. $42,000
Answer:
b. $210,000
Explanation:
The computation of the total income tax expense is shown below:
= Net income before tax × U.S tax rate
= $600,000 × 21%
= $210,000
As in the question, the net income before tax includes depreciation expense so we do not add it again. That's why we do not consider the depreciation expense in the computation part.
The kitchen manager at an Italian restaurant is deciding what assignments he should give to his
two cooks, John and David. John can make 25 pizzas or 40 servings of pasta per hour and David
can make 20 pizzas or 30 servings of pasta. Which of the following should be the manager's choice?
A) David will make pizza because he has comparative advantage in making pizza.
B) John and David both will spend half their time making pizza and half their time making
pasta because each has a comparative advantage in making pizza.
C) Fire David because he is not as productive as John. John will do both jobs.
D) John will make pizza because he has comparative advantage in making pizza.
Answer:
A) David will make pizza because he has comparative advantage in making pizza.
Explanation:
Make Pizzas Serving make pizzas/serving pasta
25 40 0,63
20 30 0,67
Your supervisor has asked you to set up a RAID hard drive array in a tower system, which has a motherboard that uses the B360 chipset. You have installed the required three matching hard drives to hold the array. When you enter BIOS/UEFI to configure the RAID, you cannot find the menus for the RAID configuration. What is most likely the problem?
Answer:
the most likely problem is that the B360 motherboard chipset does not support RAID configurations.
Explanation:
In the context of Information Technology RAID is a way to connect various drives together in order to improve performance, redundancy, or both. Based on the information provided within the question the most likely problem is that the B360 motherboard chipset does not support RAID configurations. Not all motherboard chipsets actually have support for RAID, whether or not they do support it is usually found in the motherboards included manual.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
The B360 chipset does not support RAID.
Explanation:
Your supervisor has asked you to set up a RAID hard drive array in a tower system, which has a motherboard that uses the B360 chipset. You have installed the required three matching hard drives to hold the array. When you enter BIOS/UEFI to configure the RAID, you cannot find the menus for the RAID configuration. Therefore, the most likely problem is the B360 chipset does not support RAID.
For analysis purposes Jenny considers her restaurant to have three day parts. These three are breakfast, lunch and dinner. Last month Jenny s breakfast sales were $ 20,000. Lunch sales were 40% of total sales. Total sales were $200,000. What was the amount of sales contributed by the dinner day part?
Answer:
Amount of sale contributed by dinner was $100,000
Explanation:
If total sales were $200,000 and breakfast sales were $20,000 and lunch sales were 40% of totales sales ($200,000 x 0,4=$80,000) that woud be:
$200,000 total sales
-
$20,000 breakfast
-
$80,000 lunch
---------------
$100,000 dinner
The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital’s December 31, 2015, balance sheet reports $10,000 of accumulated depreciation on this equipment. What was the cost of the equipment when it was acquired on January 1, 2011?
Answer:
The cost of the equipment when it was acquired on January 1, 2011 is $10000
Explanation:
10000÷5=2000
2000*10=20000
20000 80%
X 100% X=25000
25000*20%= 5000 25000-20000=20000
2011 2000
2012 2000
2013 2000
2014 2000
2015 2000 10000
Relevant information for Material A is as follows:
Actual quantity purchased and used: 6,500 lbs.
Standard quantity allowed: 6,000 lbs.
Actual price: $3.80
Standard price: $4.00
What was the direct material quantity variance for Material A?
Answer:
Direct Material Quantity Variance = $2,000 Unfavorable
Explanation:
For the provided information we have,
Actual quantity used = 6,500 lbs
Standard quantity allowed for actual production = 6,000 lbs
Actual price = $3.80
Standard price = $4.00
Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) [tex]\times[/tex] Standard Price
= (6,000 lbs - 6,500 lbs) [tex]\times[/tex] $4.00
= - $2,000
As we can see that actual quantity used is more than the allowed standard quantity, thus, the variance is unfavorable.
Direct Material Quantity Variance = $2,000 Unfavorable
Fill in the blank: You had a successful team meeting where you were able to prove the ROI of your content marketing efforts. However, your boss wants more details on the content path that helped closed leads into customers. You could do this by creating a(n) __.- attribution report- referrals report- sales report- None of the above
Answer:
sales report is the correct one
Exxon employees knew the path to success required increasing sales each month even if the methods used were unethical. This understanding was so pervasive, it eventually brought the company down. We can say Exxon's culture was_________
Answer:
strong because the majority of employees behaved unethically despite knowing it was wrong
Explanation:
According to my research on different business strategies, I can say that based on the information provided within the question We can say Exxon's culture was strong because the majority of employees behaved unethically despite knowing it was wrong. Like mentioned in the question since the employees followed Exxon's rule and made unethical choices in order to increase sales it eventually led to the downfall of Exxon.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Sally Smith incurred expenses of $800 in June which she paid in July. She declared these expenses on her June income statement. By doing this she is following the accounting principle of:
Answer:
Accrual
Explanation:
The accounting principle of accrual means that you should register something when the fact that origins the right for the future payment/collecting occurs. It does not matter if the payment is done later, the fact that made you to pay was already done, so we apply accrual and say we already owe that money that we pay later.
In this example, Sally used the principle of accrual for the things in June that she later paid in July... but her expenses were origined in June, so they apply to June.
Sally Smith is adhering to the accrual basis of accounting and the matching principle by declaring June expenses on her June income statement despite paying them in July.
By declaring the expenses of $800 in June which she paid in July on her June income statement, Sally Smith is following the accrual basis of accounting. This approach is in line with the matching principle, one of the core principles of Generally Accepted Accounting Principles (GAAP). The matching principle dictates that expenses should be recognized in the period in which the related revenues are earned, regardless of when the cash transaction occurs.
In Sally's case, she has correctly matched her June expenses with the revenue of the same period to reflect the true financial activity. This practice provides a more accurate picture of Sally's financial performance for that period and is a common standard for financial reporting, especially in public organizations.
A service-based organization has adopted an expansionist strategy. It has taken on a number of big contracts from clients and is on a tight schedule to supply services by the deadlines promised. Which of the following statements, if true, will result in the staffing goals being best aligned to the organizational strategy?
A) Time taken to fill a position should be tracked for each recruiting source and the fastest possible source should be utilized.
B) Staffing should be done keeping in mind the costly training necessary for the job and only the best qualified applicants should be hand-picked.
C) Aggressive staffing should be done indiscriminately as a long training period guarantees that the applicants know how to do the job.
D) Compensation offered should be kept higher than the average market rate so that the maximum number of applicants is attracted
Answer:
Thee answer is: A) Time taken to fill a position should be tracked for each recruiting source and the fastest possible source should be utilized.
Explanation:
When adopting an expansionist strategy the company is trying to achieve a higher sales growth rate than before. Since it took several new big contracts it will probably have to hire several (or very many) new employees and they need to do it fast. Usually when this happens, the company will try to hire the best possible applicants from the fastest recruiting source.
Fishing Adventures rents small fishing boats to tourists for daylong fishing trips. Each boat can only carry 1500 pounds of people and gear for safety reasons. Assume the average weight of a person is 150 pounds. Each group will require 200 lbs of gear for the boat plus 10 lbs of gear for each person. Who want to rent a boat?
Answer:
Who want to rent a boat? 8 person
Explanation:
Carry 1500 pounds
Carry 200 pouns
Average 150 pound /person
Additional10 pounds/person
1500-200=150x +10x
1300=160x
x=1300÷160
x=8,12
8 person Aditional Gear
150 10
8 8
1200 80 200 1480
Which of the following are examples of opportunity costs? Check all that apply.
__ A firm cannot buy new treadmills for its on-site gym facility once it spends this money on new adjustable desks for employees.
__ The money spent on a movie ticket cannot buy a Blu-ray player.
__ The time spent preparing for a test cannot be spent playing computer games.
The answer is a and c I know this because if you spend time or money on on something you can not do the other and that is exactly what is happening.
The examples of opportunity costs among the given options are:
A firm cannot buy new treadmills for its on-site gym facility once it spends this money on new adjustable desks for employees.The time spent preparing for a test cannot be spent playing computer games.Opportunity cost refers to the value of the next best alternative forgone when making a decision. It represents the potential benefits or opportunities that are lost or sacrificed as a result of choosing one option over another.
In essence, it is the cost of what is given up in order to pursue a particular course of action. It involves considering the benefits or resources that could have been obtained if a different choice had been made.
Opportunity costs are essential in decision-making as they help evaluate trade-offs and weigh the benefits and drawbacks of different options.
Learn more about opportunity costs here:
https://brainly.com/question/31580865
#SPJ2
Suppose Maria prefers to buy a bond with a 7% expected return and 2% standard deviation of its expected return, while Jennifer prefers to buy a bond with a 4% expected return and 1% standard deviation of its expected return.Can you tell if Maria is more or less risk-averse than Jennifer?
Answer:
Maria is more risk-averse
Explanation:
By nature this question can be seeing as a coutien between the risk (standard deviation) and return so let's check the following formula:
Return per risk unit= return/standard deviation
So applying that formula to this particular case we have:
Maria's case=0.07/0.02
Maria's case=3.5
Jennifer's case=0.04/0.01
Jennifer's case=4
So the conclusion here is that even Maria has a higher standard deviation her risk per return is less than jennifer
Lake Charles Seafood makes 500 wooden packing
boxes for fresh seafood per day, working in two 10-hour shifts.
Due to increased demand, plant managers have decided to operate
three 8-hour shifts instead. The plant is now able to produce
650 boxes per day.
a) Calculate the company�s productivity before the change in
work rules and after the change.
b) What is the percentage increase in productivity?
c) If production is increased to 700 boxes per day, what is the
new productivity?
a)
Before the change: Productivity = 25 boxes/hour.
After the change: Productivity = 27.08 boxes/hour.
b) Percentage increase = 8.32%.
c) With 700 boxes/day: New productivity ≈ 29.17 boxes/hour.
a) Prior to the adjustment in work rules, Lake Charles Seafood's productivity was calculated as follows:
Initial Output: 500 boxes/dayInitial Input: 2 shifts * 10 hours/shift = 20 hoursProductivity before change = 500 boxes / 20 hours
= 25 boxes/hour
After the change in work rules:
New Output: 650 boxes/dayNew Input: 3 shifts * 8 hours/shift = 24 hoursProductivity after change = 650 boxes / 24 hours
= 27.08 boxes/hour
b) The resulting percentage increase in productivity is:
Percentage Increase = ((New Productivity - Old Productivity) / Old Productivity) * 100
Percentage Increase = ((27.08 - 25) / 25) * 100
= 8.32%
c) If production is further increased to 700 boxes per day:
New Output: 700 boxes/dayInput remains at 24 hours (3 shifts * 8 hours/shift)New Productivity = 700 boxes / 24 hours
= 29.17 boxes/hour
This demonstrates how the company's productivity further improves with an increased output of 700 boxes per day.
Learn more about Percentage here:
https://brainly.com/question/29000485
#SPJ12
Before the change, the company's productivity was 25 boxes per hour. After the change, the productivity increased to approximately 27.08 boxes per hour, resulting in a percentage increase of about 8.32%. If production is further increased to 700 boxes per day, the new productivity would be approximately 29.17 boxes per hour.
Explanation:To calculate the company's productivity before and after the change in work rules, we need to determine the number of boxes produced per hour in each scenario. Before the change, the company produces 500 boxes per 20 hours of work (two 10-hour shifts). So, the productivity is 500 boxes / 20 hours = 25 boxes per hour. After the change, with three 8-hour shifts, the company produces 650 boxes per 24 hours of work. So, the productivity is 650 boxes / 24 hours ≈ 27.08 boxes per hour.
To calculate the percentage increase in productivity, we can use the formula: ((New Productivity - Old Productivity) / Old Productivity) ×100%. ((27.08 - 25) / 25) ×100% ≈ 8.32%.
If production is increased to 700 boxes per day, the new productivity would be 700 boxes / 24 hours ≈ 29.17 boxes per hour.
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noncooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership. To do this, identify the definition for each term from the following list.
a) Actions taken by a firm to achieve a goal, such as maximizing profits.
b) The study of how people make decisions where attaining goals depends on interactions with others.
c) A table that shows the payoffs each firm earns from every combination of firm strategies.
d) An agreement among firms to charge the same price or otherwise not to compete.
e) A strategy that is the best for a firm, no matter what strategies other firms use.
f) A situation in which each firm chooses the best strategy, given the strategies chosen by other firms.
g) A game outcome in which players seek to increase their mutual payoff.
h) A game outcome in which players pursue their own self-interest.
i) A situation in which no player can make himself better off by changing his decision at any decision node.
j) A situation where one firm announces a price change, which is matched by other firms in the industry.
Answer:
Game theory is a branch of the economy that studies the decisions in which for an individual to succeed he has to take into account the decisions made by the rest of the agents involved in the situation.
The Nash equilibrium or Cournot equilibrium or Cournot and Nash equilibrium or fear equilibrium is, in game theory, 1 2 a "solution concept" for games with two or more players, 3 which assumes that:
Each player knows and has adopted their best strategy, and Everyone knows each other's strategies.Dominant strategies are considered better than other strategies, no matter what other players do. In game theory, there are two types of strategic domain:
a strictly dominant strategy is the strategy that always provides greater utility to one player, regardless of the strategy of the other player; a weakly dominant strategy is the strategy that provides at least the same utility for all other player's strategies, and strictly superior for some of their strategies.Answer: Game theory - "b) The study of how people make decisions where attaining goals depends on interactions with others."
Cooperative equilibrium - "g) A game outcome in which players seek to increase their mutual payoff."
Noncooperative equilibrium - "h) A game outcome in which players pursue their own self-interest."
Dominant strategy - "e) A strategy that is the best for a firm, no matter what strategies other firms use."
Nash equilibrium - "f) A situation in which each firm chooses the best strategy, given the strategies chosen by other firms."
Price leadership - "j) A situation where one firm announces a price change, which is matched by other firms in the industry."
Which of the following statements is correct? Buyers determine supply and sellers determine demand. Buyers determine demand and sellers determine supply Buyers determine both demand and supply. Sellers determine both demand and supply.
Answer: The statement "Buyers determine demand and sellers determine supply" is correct.
Explanation: Offer: It is the quantity of goods or services for sale that exists in the market by its bidder.
Demand: It is the amount of product demand that consumers want to acquire within an economy.
Answer:
Buyers determine demand, and sellers determine supply.
Explanation:
Supply is the amount of goods that sellers are willing to sell at various given prices. Demand is the amount of goods buyers/consumers are willing to buy at a given price. The market as an economic activity brings buyers and sellers together. Buyers determine demand for a particular product at various prices while sellers determine the supply of a particular product at various prices.
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for
a. product misuse.
b. fraud.
c. privity.
d. puffery.
Answer:
fraud
Explanation:
the company when making an action with knowledge knows that this product can cause great damage to the end customer and as such action does in the aforementioned products, it generates a fraud in quality, advertising and marketing, threatening the user
The market price of airline flights increased recently. Some economists suggest that the price increased because several airlines went out of business. They believe that, in the market for flights: supply decreased. supply increased. demand decreased. demand increased.
Answer:
The correct answer is supply decreased.
Explanation:
Suppose the market price for airline flights increased recently. This increase in price can be either because of an increase in demand or decrease in supply. Economists suggest that price increased because several airlines went out of business.
This means that the market supply of airline flights has decreased. This decrease in the supply of flights will cause a leftward shift in the supply curve. As a result, the new supply curve will intersect the demand curve at a higher point. This will further cause an increase in the price of airline flights.
The increase in airline flight prices suggests a decrease in supply due to airlines going out of business and possibly other factors like higher input costs or increased demand during holidays. This pricing provides essential cues that help both consumers and producers make decisions.
An increase in the market price of airline flights often indicates a change in supply and demand dynamics. When several airlines go out of business, there is typically a decrease in supply because fewer flights are available. In contrast, if more people are seeking to fly, for instance, during holidays, there would be an increase in demand. Changes in input costs, such as jet fuel, can also affect prices. Consumers respond to these price signals by deciding whether to purchase a product or wait for a potentially lower price in the future. Similarly, producers adjust their production based on the information they gather from price changes.
The market price of airline flights increased recently. Some economists suggest that the price increased because several airlines went out of business. They believe that, in the market for flights:
supply decreased.
supply increased.
demand decreased.
demand increased.
Allen is in the marketing department of a midsize firm that develops and sells communications systems. He is proud of the human resource area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all the following except
A. the company provides products with a high perceived value.
B. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing.
C. customers appreciate the kind of service that knowledgeable employees provide.
D. building customer loyalty depends on a committed workforce.
E. employees play a major role in the success of the firm.
Answer: Building customer loyalty depends on a committed workforce
Explanation: The duties of human resource department includes employing suitable individuals for different jobs and maintaining a positive culture within the work place, so that the employees feel comfortable. Also the training of employees and resolution of any conflict is also done by the HR department.
But customer loyalty is done by the marketing department of any organisation as they are responsible for building positive relationships with the existing and potential customers.
Hence, from the above we can conclude that the correct option is D.
Shareholder of c corporation receiving property distribution must recognize dividend income equal to the fair market value of the distributed property if the distribution corporation has sufficient earning and profit.True / False.
Answer:
True
Explanation:
The dividends to be recognized are always for the amount they are given in cash, but in case of property dividends, the dividends are to be recognized at fair value of the property distributed.
This is in accordance with GAAP.
There is no recognition based on book value or carrying value of the property distributed as do not represent the net exchange value of the property.
Therefore, the statement is TRUE
A zero-coupon bond pays no interest payments to the bondholder. It has a $1,000 par value and matures in 5 years. What is the value of this bond if the market rate of interest on similar risk bonds is 10%?
Answer:
$620.92
Explanation:
Present Value Paid at Maturity = Face Value / (Market Rate/ 100) ^ Number Payments
Present Value of Interest Payments = Payment Value * (1 - (Market Rate / 100) ^ -Number Payments) / Number Payments)
Present Value of Bond = Present Value Paid at Maturity + Present Value of Interest Payments
A zero-coupon bond pays no interest but is instead sold at a discount and repaid at maturity. Using the present value formula, the bond's value can be calculated. In this scenario, the bond would be worth approximately $620.92 with a market interest rate of 10%.
Explanation:A zero-coupon bond is a type of bond that pays no interest to the bondholder and is sold at a discount to its face value, with the full face value paid at maturity. In the given scenario with a market interest rate of 10%, the value of the bond can be calculated using the formula for present value of a bond.
The formula P = F / (1 + r)^n can be applied, where P is the bond's present value, F is the face value, r is the market interest rate, and n is the number of years to maturity. Plugging in the values ($1,000 as F, 10% as r, and 5 years as n) will give the bond's value.
In this case, the value of the zero-coupon bond would be approximately $620.92 when the market interest rate is 10%.
Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105. If inflation was 7 percent during the year the money was deposited, then Bob’s purchasing power has increased by 2 percent. true or false?
Answer:
False
Explanation:
Purchasing power increases by amount of deflation (negative inflation). So, while inflation lowers purchasing power, deflation increases purchasing power by amount of deflation.
Increase in purchasing power = 7%
Emma, the facilities director for a college of business, was very involved in the purchase process for remodeling the student lounge and computer labs. The Dean of the school made the final choice of contractor from among the choices Emma researched and negotiated the contract. Here, Emma performed what function in the buying center?
Final answer:
Emma served as an Influencer in the buying center for her college's remodeling project, where she 'researched and negotiated' with potential contractors, thus impacting the Dean's final selection.
Explanation:
In the scenario presented, Emma, the facilities director for a college of business, was very involved in the buying process for remodeling the student lounge and computer labs. Despite not making the final decision, Emma played an integral role in researching and negotiating with potential contractors before the Dean made the ultimate choice. Emma's role in the buying process is best described as the Influencer within the buying center.
A buying center is a group of individuals within an organization that participates in the buying process. They typically have roles assigned based on their experience, expertise, and the nature of the product or service being procured. In a buying center, individuals can assume roles such as users, buyers, influencers, deciders, gatekeepers, etc. An Influencer affects the buying decision, usually by providing information and helping to evaluate alternatives.
In summary, Emma collected information, evaluated options, and had a say in the negotiations, which significantly impacted the Dean's final choice of contractor. Hence, her role as an influencer in the buying center was critical to the decision-making process, even though she did not have the final say.
A construction firm cannot obtain the necessary permits to begin building a shoppingmall until it can show it either has or will have the necessary funding to complete the project. The firm may ask a bank for which of the following to allow it to obtain the permits?I.Commercial letter of creditII.Loan commitmentIII.Credit lineIV.Repurchase agreementA)I or IIB)II or IIIC)II or IVD)III or IVE)I or IV
Answer:
The answer is: B) II or III
Explanation:
A loan commitment is a bank’s (or any other type of lender) promise to offer a loan of a specified amount to a borrower.
A line of credit is an agreement between a bank (or other financial institution) and a customer for a maximum loan amount the customer can borrow.
Alpaca Corporation had revenues of $300,000 in its first year of operations. The company has not collected on $20,000 of its sales and still owes $25,200 on $75,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $23,000 in the business and $23,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year, and paid $6,800 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 9%.
Compute net income for the first year for Alpaca Corporation:
a) $ 183,092
b) $ 186,186
c) $ 225,000
d) $ 204,600
Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
Risk assessment procedures include :
A) a required discussion among the staff members of the audit and the client regarding material misstatements in the financial statement.
B) determination of the type of audit opinion to issue.
C) observation of the entity's operations.
D) assessing acceptable audit risk.
Answer:
The correct answer is C) observation of the entity's operations.
Explanation:
It is vitally important for the auditor to inspect the facilities of the plant and the offices of the company to be audited, in order to know their location, their operating conditions, the types of products that they distribute, the prevailing controls, etc.
During this phase, the auditor will observe the operations of the organization, emphasizing those of production and / or distribution in order to verify the way in which they are carried out to begin to enter the Internal Control knowledge and plan the methods of evaluation of it.
Lin manages a team of business consultants. During a meeting, Jack, a senior business consultant, puts forth a new idea to tackle the insufficient infrastructure at the workplace. Lin applauded Jack on his effort to come up with a solution. In this scenario, Lin performed the role of a(n) _____.
Answer:
supporter
Explanation:
The role of a supporter is to be a part of a project or a particular work and support the working of it. In the given case, Jack's idea is being appreciated by Lin. Here Lin is working as a supporter of Jack. He applauded Jack with the efforts he had already made and asked him to move to the other level. This is the work of a supporter. A supporter guides the person at each of the level and approves the efforts.
Kiddy Toys produced beautifully made stuffed animals that many customers wanted. However, the product was so expensive that most potential customers could not afford it. Which of the following applies to this scenario?Multiple Choice
a. high efficiency and high effectiveness
b. high efficiency and low effectiveness
c. low efficiency and high effectiveness
d. low efficiency and low effectiveness
Answer:
The answer is: C) Low efficiency and high effectiveness.
Explanation:
The company Kiddy Toys made a great product (High effectivness) but they couldn´t produce it a reasonable cost, so it was very expensive to sell (Low efficiency). As a result they had a great toy that very few customers could afford to buy.
Sometimes a company is able to manufacture a great product, they had a terrific idea that lots of people will like and want. The problem is that if they can not manufacture that product at a low cost then they will never have high sales volumes. This is the very exact reason why most toys nowadays are created in the US but mass produced in China.