Answer:
Unadjusted financial statements could present a misleading and incomplete picture of the company's financial results. Adjustments ensure that the revenues earned and expenses incurred during the period are reflected in the income statement. Adjustments ensure that the balance sheet reports all of the economic resources the company owns and all of the obligations the company owes.Explanation:
The balance sheet is not meant to show how a company works, it is rather a picture of how the company works. If your balance sheet is a picture of your house, you can see the different characteristics of your house and even get an idea of how good or bad the weather is. But presenting an unadjusted balance sheet is like taking a picture of the wrong house. That is exactly the reason why even though almost 100% of the businesses use software for accounting purposes, the IRS gives them a few months before presenting their balances because adjustments are necessary.
Think about the income statement and remember that revenue is recognized only when the company has significantly completed the revenue earning process. If the company sells a lot during the holiday season and a big portion is sold as accounts receivable. If you had to present an unadjusted income statement on January 2, you would have to estimate what percentage of your sales are not going to be collected or are going to be collected late. But if you have a couple of months to adjust your income statement then you will know for sure exactly how much was your revenue.
Adjustments are important in preparing financial statements as they provide an accurate and complete picture of a company's financial health and performance. They ensure that the company's revenues, expenses, assets, and liabilities are correctly reported, facilitating effective financial management and informed decision-making.
Explanation:Adjustments are crucial in the preparation of financial statements because they ensure accuracy and completeness in reporting the company's financial condition and operations. Without these adjustments, the financial statements may present a misleading and incomplete portrayal of the company's financial results. Specifically, unadjusted financial statements may not accurately represent revenues earned and expenses incurred during the accounting period.
For example, if an expense has been incurred but not yet paid or recorded, an unadjusted financial statement may show a higher net income than actual. Furthermore, adjustments ensure that the balance sheet reports all of the economic resources the company owns (assets) and all the obligations the company owes (liabilities). Consequently, adjustments provide a comprehensive and true view of a company's financial health and performance.
Similar to how you create a budget to manage your personal finances and prevent overdrafts or insufficient fund fees, a company also needs to make adjustments to manage its resources effectively. Hence, making timely and accurate adjustments is integral for sound financial management and making informed business decisions.
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Mr. Brown transferred property, which had an adjusted basis to him of $40,000 and a fair market value of $50,000, to Corporation B in exchange for 100% of B’s only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain to be recognized by Mr. Brown?
Answer:
$0
Explanation:
The adjusted basis for any property or assets transferred to a corporation or a partnership in exchange for shares or property rights must be registered at fair market value.
In this case Mr. Brown transferred property with a fair market value of $50,000 and received in exchange stock worth $35,000 and $15,000 in cash. ($50,000 = $35,000 + $15,000)
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following except___________.a.rent on the restaurant building.b.hours worked by the servers.c.energy costs.d.hours worked by cooks.e.ingredients used in preparing food.
Answer:
.a.rent on the restaurant building.
Explanation:
Variable costs are costs that changes with the level of production.
If David extends opening hours, hours worked by the servers, energy costs, hours worked by cooks and ingredients used in preparing food would increase. Therefore, they are all variable cost.
Fixed cost are costs that do not change with production level.
If David extends opening hours, the rent paid isn't affected in any way.
I hope my answer helps you.
Final answer:
The variable costs of staying open later include hours worked by the servers and cooks, energy costs, and ingredients used in preparing food. The rent on the restaurant building is a fixed cost and not affected by the restaurant's hours of operation. The correct option is a.
Explanation:
Among the options provided, the correct answer is 'a. rent on the restaurant building.' Variable costs are expenses that change in proportion to the activity of a business. In the scenario where David is considering staying open later, the variable costs would include 'b. hours worked by the servers,' 'c. energy costs,' 'd. hours worked by cooks,' and 'e. ingredients used in preparing food,' since all these costs will vary depending on how long the restaurant is open and how much business it does.
However, 'a. rent on the restaurant building' is considered a fixed cost because it remains constant regardless of how long the restaurant stays open. Even if David decides to extend the business hours, the rent will not change, making it a fixed expense and not a variable one. It's important to distinguish between fixed and variable costs when making decisions about business operations, such as extending opening hours.
Suppose that McDonalds and Yum Brands are the sole producers of a quadruple-decker chicken and hamburger sandwich. The two firms currently charge the same price for their products. If neither firm reduces the price of its quadruple-decker chicken and hamburger sandwich, each firm earns $40 million in profit. If both firms reduce their prices, then each firm will earn $9 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million.
Assuming that collusion is not a possibility, the Nash equilibrium occurs when
Answer:
Both companies will reduce their prices.
Explanation:
Given that collusion is not possible between McDonald's and Yum, both companies will try to earn more money by reducing their prices and increasing their profits to $70 million. They will do this hoping that the other firm doesn't modify its pricing strategy.
The new classical critique of activist fiscal policy is theoretically different from the crowding-out critique. Crowding-out occurs when private spending __________ in response to government spending. Under the new classical critique, increased government spending leads people to __________ their current savings in order to help pay for higher taxes in the future.
A. decreases; decrease
B. increases; increase
C. decreases; increase
D. increases; decrease
Answer:
C. decreases; increase
Explanation:
Although both the crowding-out critique and the classical critique both argue that more public spending (activist fiscal policy) will lead to less private spending (thus less-than-expected increase in demand for the economy to grow), the reasons they put forward are subtly different.
Crowding-out happens because government spending reduces the money supply (hence raise interest rate - the price of money) or investment opportunities to the private sector, making it difficult for the private sector to spend , hence there's less private spending.
The classical critique argues that because people anticipate that goverment will increase tax in the future to cover for the fiscal deficit, they will save more to pay for tax, also leading to less private spending.
The transferring of business functions or processes to other companies has traditionally been known as ch12 Select one:
a. Joint venture.
b. Partnering.
c. Downsizing.
d. Outsourcing.
e. Subcontracting.
Answer: (D) Outsourcing
Explanation:
The outsourcing is the one of the type of agreement between the two companies in which the one organization or company transferring all the business function into the another company. In technically terms, one organization hires the another organization.
Then, the company handle all its services and operations by proper outsourcing. The main purpose of the outsourcing is that by using the efficient strategy the one company hires another for increasing the productivity.
Therefore, Option (D) is correct.
All of the following are tangible or intangible benefits of a new system except:
A. increased costs
B. increased job satisfaction
C. better decision making
D. greater management control
E. improved customer service
Answer:
A. increased costs
Explanation:
A new system should simplify tasks, improve the speed of delivery and make work more enjoyable. A business invests in a new system with the expectation of enhancing efficiency and reduction in wastage. Although a new system may be expensive to implement in the short-run, it has cost-saving benefits in the long-run.
Increased costs are not a benefit of a new system. Acquiring a new system is costly. To a business, increased costs are a disadvantage, not a benefit. The benefits of a new system outweigh its costs in the long-term.
Increased job satisfaction, better decision making , greater management control and improved customer service are benefits associated with new systems.
Starbucks is using its purchasing power to continue its quest to reduce its energy usage. Recently, the company announced plans to replace all of the traditional incandescent and halogen bulbs in its stores worldwide with more efficient light-emitting diode (LED) bulbs—a move the company claims will enable it to cut energy consumption in its stores by up to 7 percent. Starbucks would be considered a leader in____________.
Answer:
Sustainable procurement
Explanation:
Sustainable procurement is a purchasing and venture process that. considers the financial, ecological and social effects of. the substance's spending. Feasible acquirement permits associations. to address their issues for products, administrations, development works and utilities.
The primary focus reasonable obtainment is to incorporate natural and social contemplations into the procurement procedure, with the objective of lessening antagonistic effects upon well being, social conditions and the earth, in this manner sparing significant expenses for open segment associations and the network on the loose.
Which of the following depreciation methods allocates a varying amount of depreciation each year based on an asset's usage?A) the units-of-production methodC) the double-declining-balance methodB) the straight-line methodD) the annuity method
Answer:
Correct option is (A)
Explanation:
Depreciation is decrease in the value of asset over its useful life. Under, units of production depreciation method, an asset's value is estimated based in its usage or the the amount of units produced by it. During the initial years, asset performs better than later years. So, depreciation expense is higher during initial years and falls considerably during later years.
Depreciation expense or depreciation rate remains same for rest of the options like straight line method. double declining method and annuity method.
The units-of-production method is the depreciation method that allocates a varying amount of depreciation each year based on an asset's usage.
Explanation:The units-of-production method is the depreciation method that allocates a varying amount of depreciation each year based on an asset's usage.
Under this method, the asset's depreciation expense is determined by dividing the asset's cost minus its salvage value by the total estimated units of production over its useful life. The depreciation expense for each year is then calculated by multiplying the depreciation rate per unit of production by the number of units produced in that year.
This method is commonly used for assets that are expected to wear out or become obsolete based on their usage, such as manufacturing machinery or vehicles.
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Nanci needs to let Morgan know that the production line will be down until tomorrow and the items she needs to ship to the customer won't be ready on time. The information Nanci wants to share is called the_______________________.
Answer:
message
Explanation:
Based on the information provided within the question it can be said that the information Nanci wants to share is called the message. This is basically a voice, verbal, or written communication that is sent to or left for (if they can't be reached) an individual in order to relay important information. Which is what Nanci is doing in order to let Morgan know that the production line will be down until tomorrow.
The information that Nanci is sharing with Morgan is termed as a business communication or message. It pertains to the delay in a production line and the resultant late shipment, making it a crucial part of the business operation. Effective communication is pivotal to managing schedules and customer expectations.
Explanation:In the context of the question, the information that Nanci wants to share with Morgan can be called a business communication or message. It is a conveyance of information regarding the operations of the business, specifically referring to the delay in production line and its impact on shipment. This is a crucial aspect of business operations as it involves communicating changes in plans or schedules to relevant parties, in this instance, letting Morgan know about the postponement so that she can manage customer expectations. Thus, making effective business communication indispensable in ensuring smooth running of operations.
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On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value was $8,000, and the expected useful life was 6 years. On December 31, 2016, the Accumulated Depreciation account had a balance of $29,400. How much is the gain or loss on the sale?
Answer:
The loss on sales of equipment is : $850
Explanation:
Depreciation expenses per year for the equipment is: (Original cost - Salvage value ) / expected useful life = (50,000 - 8,000)/6 = 7,000
Depreciation expenses per month for the equipment is: Depreciation expenses per year for the equipment/12 = 7,000/12
3-month depreciation expenses for the equipment from December 31,2016 to 31st March 2017 = 3 x 7,000/12 =1,750
Accumulated depreciation as at April 1 2017 ( the time of equipment disposal) = Accumulated Depreciation account as at December 31st 2016 + 3-month depreciation expenses for the equipment from December 31,2016 to 31st March 2017 = 29,400 + 1,750 = 31,150
Net book value of the equipment = Original cost - Accumulated depreciation as at April 1 2017 = 50,000 - 31,150 = 18,850
Gain/ (loss) on equipment disposal = Selling price - Net book value of the equipment = 18,000 - 18,850 = $(850)
=> Thus, the loss on sales of equipment is $850.
Final answer:
To calculate the gain or loss on the sale of the equipment, subtract the book value from the selling price. In this case, the company has a gain of $4,400 on the sale.
Explanation:
To calculate the gain or loss on the sale of the equipment, we need to determine the book value of the equipment at the time of sale. The book value is the original cost minus accumulated depreciation.
On December 31, 2016, the Accumulated Depreciation account had a balance of $29,400.
The depreciation expense for one year can be calculated as (original cost - salvage value) / useful life.
In this case, it is ($50,000 - $8,000) / 6 = $7,000.
Therefore, the book value on April 1, 2017, is $50,000 - $29,400 - $7,000 = $13,600.
The gain or loss on the sale is the selling price minus the book value. In this case, it is $18,000 - $13,600 = $4,400.
Since the selling price is higher than the book value, the company has a gain of $4,400 on the sale.
market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases. Which of the following will happen to the market quantity as the market leaves and then returns to long-run equilibrium?
Answer:
There will be oversupply. Pressure will be exerted on price. Weak producers will leave. Supply will fall. Price will rise. A new long run equilibrium will be attained, albeit at a lower equilibrium quantity.
Explanation:
Change in demand or supply will cause the equilibrium position to change. Given a constant supply, a reduced demand would result in supply overshadowing demand. Identical cost structure means that the profit margin would be further reduced which would force weak players in the market to exit the market as well as reduce the incentive to produce more by the remaining players given the poor margin. As the producers exit the market, the market supply falls and price increases. Eventually, equilibrium price returns to its long run equilibrium but at a lower quantity of transaction in the market.
Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000). She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention. Andrea was talking on her cell phone while driving, and her car struck and killed a pedestrian in a crosswalk. The court ordered her to pay $750,000 to the spouse of the person she killed. How will this claim be settled?
Answer:
Auto insurance policy with Bodily injury liability limits = 250/500
personal umbrella policy with a limit = $1 million
Self-insured retention = $500
Here, total claim = $750,000
Amount paid by the auto insurance policy = $250,000
Remaining = $750,000 - $250,000
= $500,000
Remaining claim amount of $500,000 shall be paid by the umbrella policy.
For accounting errors, which of the below sentences is true?
a.They represent intentional sabotage of controls.
b.They are problems caused by failures in systems, procedures, and policies.
c.They represent fraud and normally result in legal action being taken.
d.They are primarily caused by lack of training.
Answer:
The correct option is C
Explanation:
Accounting error is the type of error in the accounting which was not done intentionally but when spotted, the error need to be fixed immediately. And when there is no immediate solution for the error, an investigation is conducted in order to find out who caused the error.
The statement which is true is that they represent the fraud which usually result in the legal action to be taken.
Phil has been working on a new version of his company's best-selling sales management software and now he'd like to ask several co-workers and a handful of the existing version's top users to perform an acceptance test. Phil is preparing for _________.
A. Gamma Testing
B. Beta Testing
C. Delta Testing
D. Alpha Testing
Answer:
The correct answer is (D)
Explanation:
Alpha Testing is characterised as a kind of programming testing performed to recognise bugs before clearing the item to genuine clients or general society. It is a sort of acknowledgement testing. Phil is as of now dealing with the main period of alpha testing where the principal testing is finished by in-house designers.The goal is to perform the tasks that a typical user might execute.
A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large number of materials ordered. This is an example of the advantage of __________ resulting from an alliance.
a. explicit collusion.
b. distribution opportunities.
c. economies of scale.
d. opportunistic behavior.
Answer:
The correct answer is c. economies of scale.
Explanation:
The situation in which a company reduces its production expenses by expanding is called economy of scale. It is a situation in which the more it occurs, the cost that the company has to manufacture a product is lower.
There is a greater benefit for every extra unit we produce. This reduction in the cost of unit manufacturing is not reduced because the price of raw materials goes down, but to take advantage of a material that we have already bought and in which we invested money in the past.
Therefore, it occurs especially in situations in which the company buys more facilities. If we buy a machinery, the way to take advantage of it is to produce more since it is the way that we get a greater benefit, by taking advantage of the same machinery to produce more products, the unit cost of each product is lower. And we will get more benefit the more we produce. This benefit will be greater since we will not have to increase manufacturing costs since we have already had it before.
This is a graphic representation of the quantity producers are willing to produce at different prices.
Answer:
The correct answer is: supply curve.
Explanation:
The supply curve is the graphical representation of the supply of a product. The supply of a product can be defined as the quantity of goods or services that a producer is willing to produce at a given time.
The supply schedule shows the quantity the producers are willing to supply at different prices. Its graphical representation is the supply curve.
The supply curve is an upward sloping curve indicating a positive relationship between the price level and the quantity supplied.
Brian is a salesperson for a payroll processing company. He has found that a few of his prospects raise objections even when it is clear that the solution he is presenting will work and is worth the price. The prospects feel comfortable with their current payroll processing systems, andare hesitant to adopt the new technique proposed by Brian. In this scenario, which of the following is most likely a reason the prospects raise objections?a.The prospects lack information.b.The prospects fail to recognize a need.c.The prospects resist change.d.The prospects want to avoid the sales interview.
Answer:
c.The prospects resist change.
Explanation:
It is in this changing scenario that the the management shall be adaptive to change. It shall not resist to change. As for the growth of a company the company shall adapt to change required in order with the changing scenario of environment.
In the given case, Brian the salesperson has a good scheme of operating and that he has the knowledge of practical scenario about what a company needs to change and now apply for better performance.
But still the company do not accept the policy as it resists for change and also the policy is beneficial but its mere application might cost the company a lot, and the management might be lazy and also have shortage of funds.
Merchandise that was purchased on the account was accepted by the Orion Company. As of December 31, Orion had recorded the transaction using the periodic method but did not include the merchandise in its inventory. What would be the effect of this on the financial statements for December 31?
Answer:
In the balance sheet the assets would be understated, merchandise inventory would be lower, which would unbalance the balance sheet. The transaction was already recorded, so accounts payable increased.
If the merchandise was not sold yet, then the income statement wouldn't be altered, but if the merchandise was sold then the COGS could have been understated, resulting in income overstating.
In many countries, people hold money as a cushion against unexpected needs arising from a variety of potential scenarios (e.g., banking crises, natural disasters, health problems, unemployment, etc.) that are not usually covered by insurance markets. Explain the effect of such a behavior on the precautionary component of the demand for money.
Explanation:
precautionary demand for money is classified as money that are held to cover for unforeseen occurrence e.g, an accident or illness.
It should also be noted that: The amount of money held for such purposes is broadly dependent on the level of income and expenditure.
With more income the precautionary demand will increase because there are more likely to be surprises in the timing or magnitude of the correspondingly high expenditures
A higher rate of interest represents a higher opportunity cost of holding money for any reason, including the precautionary reason, and so leads to lower precautionary holdings.
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing?
A. Avoiding government intervention
B. Supporting re-sellers and gaining their support
C. Customer retention and building profitable customer relationships
D. Preventing competition
E. Grabbing international market share
Answer:
The correct answer is A. Avoiding government intervention
Explanation:
The marketing mix is a concept that is used to define all the tools and variables available to the marketing manager. In the digital world, the marketing mix strategy consists of adapting the product, price, place and promotion to the digital context.
The Marketing Mix is about putting the right product, in the right place, at the right time and at the right price. The hard part is doing well, since you need to know all aspects of your business plan.
For its part, the marketing mix is predominantly associated with the 4P’s of marketing, the 7P’s of service marketing and the 4 Cs developed in the 1990s.
So the Marketing Mix is basically composed of four main pieces that create the image of a successful business.
The price, the place or place, the promotion and the product, known as «4 Ps», are the basis of what your company is about. After all, selling the right product at the right price is how it is done in good business.
Kirksand Airlines is well known for providing excellent customer service to its flyers. The staff members enquire and listen carefully to each flyer's wants and needs. If a flyer has any specific requests, the staff members ensure that they are immediately attended to. In this scenario, Kirksand Airlines has based its customer relationship management on the trend of _____.
A. technology
B. personalization
C. loyalty
D. mass marketing
Answer:
The correct answer is B. personalization.
Explanation:
At present, consumers no longer like the idea of being seen as simple numbers by brands and companies, this implies that those who seek to reach these individuals should work harder to change the way they relate and direct to this, and one of the most effective methods today is through personalization, which implies a better understanding of consumers to become more relevant to them. Salesforce notes that by 2021, 51 percent of consumers would be waiting for companies to anticipate their needs and make relevant suggestions before a contact is established.
Therefore, we can talk about personalization as an increasing tactic, which is being well perceived by businesses and consumers. Particularly in the case of business, the benefits have been significant, Monetate notes that 79 percent of organizations that exceed their revenue goals have a documented personalization strategy.
___________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.
Answer: Commercialization
Explanation:
The commercialization stage is the process in which the various types of new products and the services are developed in the market.
In the commercialization stage the new products are get launched and also promoted for increase the demand of the new products and services in the market.
The main key function of the commercialization stage is that achieve the various types of commercial success and also the customer support of the new products. It is mainly the process introduce the new products in the market.
Grouper Corp. retires its $640000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $663970. The entry to record the redemption will include a________
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $640,000
Premium on bonds payable A/c Dr $23,970
Loss on bonds redemption A/c $8,030
To Cash A/c $672,000 ($640,000 × 1.05)
(Being the redemption of bond is recorded and the remaining balance is debited to the Loss on bonds redemption account)
The Premium on bonds payable is computed below:
= Carrying value of the bonds - face value of the bond
= $663,970 - $640,000
= $23,970
Inventory managers at SYX Enterprises utilize an inventory coetrol system where materials are scheduled to arrive just as they are neoded on the production line. Thi is referred to as:
a restructuring.
b. force-feld control.
c. total quality management.
d. just-in-time inventory control.
e. none of these.
Answer:
d. just-in-time inventory control.
Explanation:
Just-in-time( JIT) inventory-management style is an approach where production materials are availed only when they are needed for the production process. The company does not hold any stocks in its stores. JIT keeps the cost of inventory management low as the company orders for what it needs at that moment.
Just-in-time seeks to increase efficiency by reducing wastage and damages associated with ordering and holding large quantities of stocks. JIT aligns customers orders with the production process. In other words, customers demand drives production.
The success of JIT depends on the management ability to forecast demand accurately and the availability of reliable suppliers.
Q 11.31: Tabitha and Gerald are discussing common stock that they hold. Tabitha states that she purchased hers through the New York Stock Exchange, but Gerald says that he purchased his by investing in his brother-in-law’s company. What is the difference between the investments of Tabitha and Gerald?
Answer:
Tabitha's stocks are from a publicly held corporation but Gerald's is from a privately held corporation
Explanation:
The main difference between Tabitha's and Gerald's investment seems to be the fact that Tabitha's stocks are from a publicly held corporation but Gerald's is from a privately held corporation. Public held corporation's stocks/shares can be bought by anyone on a stock exchange. On the other hand Privately held corporation's stocks/shares are only sold by the company to a select few investors. Which Gerald managed to buy solely because it is his brother-in-law's company.
In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2019, and received payment in full of $12,000. Round any division to four decimal places and If required, round your final answer to the nearest dollar. How much income does Chaya report from these transactions in 2019?
Answer:
Accrual shows face amount as revenue
revenue = $25,000
(12,000) (7/36)= $2,333 (regognized in 2017)
Total income reported in 2017 = $27,333
The next year she would show the remainder of 12,000 from 26 month contract
For tax purposes, max of 2 year deferral for payment recieved in advance.
A market in which firms can enter and leave so easily that firms in the market face competition from potential entrants is a _______ market.
A. potential
B. cooperative
C. contestable
D. perfectly competitive
Answer:
The correct answer is option D.
Explanation:
A perfectly competitive market is a market structure where there is no limitation or restriction on entry and exit of firms in the market. All potential firms can easily enter the market and all existing firms can easily exit.
There are a large number of sellers in the market that sell homogenous products. Because of free entry and exit, these firms face competition from potential entrants. Since there is a large number of firms, these firms are price takers.
Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of January follows: Total Units Unit Cost Beginning inventory, 1/1 8,000 $8.20 Purchases, 1/5 12,000 7.90 Sales 10,000 Rose has determined that at January 31, the replacement cost of its inventory was $8 per unit, and the net realizable value was $8.80 per unit. Rose’s normal profit margin is $1 per unit. Rose applies the lower-of-cost-or-market rule to total inventory and records any resulting loss. At January 31, what should be the net carrying amount of Rose’s inventory?
A. $79,000
B. $78,000
C. $80,000
D. $81,400
Answer:
C) $80,000
Explanation:
Since Rose uses the LIFO method for determining COGS, the 10,000 units sold should be recorded at $7.90 (purchase price 1/5).
10,000 units still remain in inventory (8,000 beginning + 2,000 last purchase). Using the LIFO costing method the inventory unit cost should be [(8,000 x $8.20) + (2,000 x $7.90)] / 10,000 = $8.14 per unit
If the replacement cost is $8 per unit, and Rose decides to use lower-of-cost-or-market rule, then she should use the lowest cost which is the replacement cost ($8 < $8.14).
So the ending inventory's total cost is $8 per unit x 10,000 units = $80,000
Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company B is a ________ in the supply chain of ice cream.
Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company B is a "intermediary" in the supply chain of ice cream.
Company B is an intermediary or a middleman in the supply chain of ice cream. It plays a critical role as a processor or manufacturer of corn syrup, which is a key ingredient in ice cream production.
By receiving corn from Company A and transforming it into corn syrup, Company B bridges the gap between raw materials and the final product offered by Company C.
This seamless integration helps streamline the supply chain, ensuring a consistent and reliable flow of corn syrup to Company C (the ice cream maker), enabling Company D (the retailer or seller) to access and offer ice cream products to consumers.
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Flux Corporation is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, Flux is subject to the direct corporate governance requirements of:_______
a) any other public company with which flux exchanges shares
b) any state in which flux does business
c) the federal government.
d) the state in which flux incorporated
Answer:
The correct answer is C) the federal government.
Explanation:
The Sarbanes-Oxley Act, also known as SarOx or SOA, is the law that regulates accounting and auditing financial functions and severely penalizes corporate and white-collar crime. Due to the multiple frauds, administrative corruption, conflicts of interest, negligence and bad practice of some professionals and executives who, knowing the codes of ethics, succumbed to the attractiveness of making easy money and through companies and corporations deceiving partners , employees and interest groups, including their customers and suppliers.
The application and interpretation of this law has generated multiple controversies, one of which is extraterritoriality and international jurisdiction, which has created panic in the global financial system, especially in banks with correspondents in the United States and multinational companies listed on the stock exchange. New York stock.