Answer:
D. $8,250
Explanation:
Calculation for how How much is the correct cash balance at the end of the month
Using this formula
Correct cash balance= Bank balance - Outstanding checks + Deposits in transit (}+ Bank error
Let plug in the formula
Correct cash balance =$8,000 - $500 +$1,000 + $250
Correct cash balance=$8,250
Therefore the correct cash balance at the end of the month will be $8,250
What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet?
A. Expenses are increased.
B. Net income is reduced.
C. Total liabilities are reduced.
D. Net income is increased.
E. A liability (such as salaries payable) will be increased.
Answer: A. Expenses are increased
B. Net income is reduced
E. A liability (such as salaries payable) will be increased.
Explanation:
An accrued expense is an expense that is witten when it was incurred even before it's eventually paid. e.g wages payable.
The effect of an accrued expense such as salaries expense adjustment on the income statement and the balance sheet is that there'll ba na increase in expense. Also, there'll be an increase in liability such as the salaries payable. Since there is an increase in liability, thus will bring about a reduction in the net income.
Jake Shirt Co. used 5,300 square yards of polyester to produce 3,000 shirts. The standard quantity of material for the 3,000 shirts produced is 6,100 square yards. The standard price for direct materials is $4.00 per square yard. The entry to record the direct materials quantity variance would include a:_____________
a. debit to Direct Materials Quantity Variance for $3,200.
b. credit to Direct Materials Quantity Variance for $3,200.
c. debit to Direct Materials Quantity Variance for $12,000.
d. credit to Direct Materials Quantity Variance for $12,000.
Answer:
b. credit to Direct Materials Quantity Variance for $3,200.
Explanation:
Direct material quantity variance = Standard quantity - Actual quantity * Standard price for direct material
Direct material quantity variance = (6,100 - 5,300) * $4
Direct material quantity variance = 800 * $4
Direct material quantity variance = $3,200 Favorable
The entry to record the direct materials quantity variance would include a credit to Direct Materials Quantity Variance for $3,200
An issue of preferred stock is paying an annual dividend of $1.50. The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 7%?
a) $21.43
b) None of these options
c) $22.50
d) $30.00
Answer:
a) $21.43
Explanation:
Preferred stock price = Annual dividend / Required rate
Preferred stock price = 1.50/7%
Preferred stock price = 1.50/0.07
Preferred stock price = 21.42857142857143
Preferred stock price = $21.43
Waterway Industries received cash of $35400 on September 1, 2020 for one year’s rent in advance and recorded the transaction with a credit to Unearned Rent Revenue. The December 31, 2020 adjusting entry is:_____________
a) debit Cash and credit Unearned Rent Revenue, $23600.
b) debit Unearned Rent Revenue and credit Rent Revenue, $11800.
c) debit Rent Revenue and credit Unearned Rent Revenue, $11800.
d) debit Rent Revenue and credit Unearned Rent Revenue, $23600.
Answer:
Unearned rent revenue 11800 Dr
Rent Revenue 11800 Cr
Option b is the correct answer.
Explanation:
Under the accrual or matching principle, we are required to match the revenues with expenses and record them in the period to which they relate to. Thus, the rent revenue that relates to the period from September to December 31, 2020 should be recorded as rent revenue in that period. So, the adjusting entry will be as made above.
The rent revenue for 4 months is = 35400 * 4/12 = 11800
So, we record 11800 as rent revenue for the year at 31 December and debit the account of unearned rent by this amount.
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses
Answer:
c. variable selling and administrative expenses
Explanation:
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.
During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $204,505 instead of the correct amount of $166,687. The effect on the balance sheet and income statement would be:___________.
a. assets overstated by $37,818 retained earnings understated by $37.818, and not income statement understated by $37.818
b. assets overstated by $204,505; retained earnings understated by $166,687, and no effect on the income statement
c. assets, retained earnings, and net income all overstated by $37.818
d. assets and retained earnings overstated by $166,687; and net income understated by $204,505
Answer:
c. assets, retained earnings, and net income all overstated by $37.818
Explanation:
Given that
Inventory correct amount is $166,687
And, the Inventory wrongly recorded is $204,505
So
inventory was overstated by
= $204,505 - $166,687
= $37,818
As the ending inventory is overstated so the net income is also overstated and if the net income is overstated then the retained earnings would be overstated
hence, the correct option is c.
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be:________
a) 492,000 units
b) 545,000 units
c) 575,000 units
d) 515,000 units
Answer: d. 515,000 units
Explanation:
If they plan to sell 545,000 units then given those beginning and ending balances of finished goods, they will have to manufacture;
= Sales + Ending balance - Beginning balance
= 545,000 + 63,000 - 93,000
= 515,000 units
Monetary policy is BEST described as
A)
benefits received by employees in addition to wages and salaries.
B)
actions by the Federal Reserve System to expand or contract the money
supply.
a system that relies on supply and demand to determine the value of one
currency to another.
C)
D)
actions by the federal government to use spending and revenue collection
to influence the economy
Answer: B
Explanation:
1. If rs increases to 10%, what would be the value of the constant growth stock? (Note: D0 is $1.15 and the expected constant growth rate g = 4%.)
Answer: 19.93
Explanation:
The constant growth stock is $19.16. P = D/(r-g), where P is the current price, D is the next dividend to be paid, g is the expected dividend growth rate, and r is the required rate of return for the company.
What is a Constant growth rate?
A constant growth rate is defined as the average rate of return on investment over the time period required to achieve the total growth percentage that an investor seeks.
Given
Rate (r) = 10%
Growth (g) = 4%
Dividend (D) = $1.15
Required to calculate growth stock =?
growth stock P = D/(r-g)
growth stock = 1.15 / (10 - 4) = $19.16
Thus, the constant growth is $19.16. A constant growth rate is defined as the average rate of return on an investment during the time period required to achieve the total growth percentage desired by the investor.
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Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.
What was the firm's ROE?
a. 12.79%
b. 13.47%
c. 14.18%
d. 14.88%
e. 15.63%
Answer:
ROE = 0.14175 or 14.175%
Explanation:
The DuPont equation to calculate ROE or return on equity breaks the ROE into three components namely Net Income or Net Profit margin, Total assets turnover and equity multiplier. This is used to see what factor are affecting the Return on Equity generated by the business. ROE under DuPont can be calculated as follows,
ROE = NI Margin * Total Assets Turnover * Equity Multiplier
ROE = 0.0525 * 1.5 * 1.8
ROE = 0.14175 or 14.175%
What is
Variable cause
Answer:
The idea is that one variable is the effect of another variable or, to say it another way, that one variable precedes and/or causes another. The dependent variable is the variable to be explained (the 'effect”). The independent variable is the variable expected to account for (the “cause” of) the dependent variable.
I hope you helped^_^
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Explanation:
Connie’s employer provided her with a company vehicle that she is allowed to drive home.Connie is allowed to use the vehicle for personal use. What portion of the vehicle usage is taxable to Connie?
a) Connie’s business and personal use of the vehicle are taxable.
b) None of the vehicle usage is taxable to Connie.
c) Only the personal use portion that is not commuting to and from work is taxable.
d) Connie’s personal use of the vehicle is taxable.
Answer:
d) Connie’s personal use of the vehicle is taxable.
Explanation:
The IRS considers the following as personal use of a company's car:
commuting to and from work (it is your responsibility to get to work, not the company's)vacation useif a family member, friend or anyone else not employed by the company uses the carany trips that is not strictly for business purposes, and this includes trips for medical issuesPersonal use of a car company is considered a fringe benefit which is taxed as ordinary income.
Answer:
D
Explanation:
what are the essential skills of management
Answer:
deal with stress and be a leader
Explanation:
hope this answer helped
The formula for accounts receivable turnover is computed as _____ divided by average accounts receivable, net.
Answer:
revenue
Explanation:
Accounts receivable turnover is an example of activity ratios. It measures the efficiency by which accounts receivable are collected.
If you have to reject a job offer because it isn't what you wanted, what is the best step to take?
a.
Say no at the interview to save the employer time
b.
Do not call the interviewer back
c.
Call the interviewer back, thank them, and give a reason for your answer
d.
Call the interviewer and let them know you would never work for them
Answer:
Call the interviewer back, thank them, and give a reason for your answer
Explanation:
You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1 percent and the face value is $1,000. What is the current market price (assume annual coupons)?
Answer:
Zero-cupon bond= $73.33
Explanation:
Giving the following information:
Number of years (n)= 30
Face value= $1,000
YTM= 9.1%
To calculate the bond price, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.091^30)
Zero-cupon bond= $73.33
How should wildlife species like grouse or deer be valued, and how should that value be balanced against the economic interests of a company like Questar? What, if anything, should Questar be doing differently?
Answer:
The description is summarized in the clarification section below, according to the particular circumstance.
Explanation:
Mostly with rising economic company's best interest including Questar, maintaining wildlife species including grouse as well as deer protected has become much more important. It is not only just the economic gain but also the ecological advantage that would not affect wildlife animals. Preserving the natural environment seems to be the most fundamental way of evaluating animal habitats. The same as deer, animal species should be covered in their habitat. It may also become extinct by upsetting them. The ecosystem is, thus, an important one that should have been taken note that to value certain native wildlife. But because service providers like Questar, who are rocky mountain oil producers, have quite a several financial advantages by exploration in that field, however, this contributes to mining, etc. in something like a wide coverage of the region which destroyed the habitat.Companies should preserve the balance, such as invading the field which is far less occupied by endangered species, reexhibiting certain organisms to a safer location, or putting the region back into the very same old role.So quester should do these things completely differently, to protect the ecological balance.
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans
(b) wages, salaries and taxes
(c) wages, salaries taxes and zakat
(d) non of the above
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad
(b) Capital Consumption Allowances
(c) Depreciation
(d) None of these
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(a) 812.5
(b) 975
(c) 1030
(d) 980
(iv) What of the following does NOT enter GDP?
(a) Public Service
(b) Public education
(c) Life Expectancy
(d) National Defence
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income
(b) Private Income
(c) Personal Disposable Income
(d) None
Answer:
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans .
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad .
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(c) 1030 .
(iv) What of the following does NOT enter GDP?
(c) Life Expectancy.
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income.
Explanation:
1) Employee Compensation includes the salaries, wages, benefits, and other incentives paid to employees in exchange for their services to the company.
3) The Net factor income from abroad is the difference between the factor income earned from abroad by normal US residents and the factor income earned by non-residents (foreigners) in the US domestic territory.
4) The real GDP is the gross domestic product adjusted for the effect of inflation on prices. The real GDP for year 2 should be based on the prices of year 1 and is calculated as follows (110 * 5 + 80 * 6 = 1030).
5) Personal income is the sum of all kinds of income received by the individuals from all sources. It is used in the calculation of the US GDP. It is a subset of private income. Private income, which is broader than personal income, consists of personal income, profit tax, and undistributed profit.
What is a market failure?
A. A market failure is when the market fails to produce deadweight loss.
B. A market failure is when production occurs at high social cost.
C. A market failure is when consumption occurs at low social benefit.
D. A market failure is when the market fails to produce the efficient level of output.
E. All of the above.
Answer:
D. A market failure is when the market fails to produce the efficient level of output.
Explanation:
A market failure is when the market fails to produce the efficient level of output.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
Currently, Cathy's Shirt Shop sells 498 units a month at an average price of $98 a unit. The company thiks it can increase sales by an additional 140 units a month if it switches to a net 30 credit policy. The monthly interest rate is .45 percent and the variable cost per unit is $55. What is the incremental cash inflow of the proposed credit policy switch?
Answer:
$6,020
Explanation:
Calculation for the incremental cash inflow
Using this formula
Incremental cash flow=(Average price per units-Variable cost per unit)*Additional units
Let plug in the formula
Incremental cash flow = ($98 - $55)*140 units
Incremental cash flow=$43*140 units
Incremental cash flow= $6,020
Therefore the incremental cash inflow will be $6,020
Discarded materials
Allison Corp. has just issued nonconvertible preferred stock (cumulative) with a par value of $20 and an annual dividend rate of 4.25%. The preferred stock is currently selling for $18.75 per share. What is the annual yield or return (r) on this preferred stock
Answer:
4.5%
Explanation:
Calculation for the annual yield or return (r) on this preferred stock
Using this formula
PVper = PMT / r
Where,
PVper =$18.75
PMT =(4.25%*$20)=0.85
Let plug in the formula
$18.75 = 0.85 / r
r = 0.045*100
r= 4.5%
Therefore the annual yield or return (r) on this preferred stock will be 4.5%
Which factor of production brings together all the other factors of production? ______ brings together all the other factors of production.
Answer:
Entrepreneurship
Explanation:
Answer:
entrepreneurship
Explanation:
Watters Umbrella Corp. issued 15-year binds two years ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?
Answer:
YTM = 6.42%
Explanation:
current market value = $1,000 x 98% = $980
n = (15 - 2) x 2 = 26
coupon = $1,000 x 6.2% x 1/2 = $31
face value = $1,000
YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]
YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.95, what is the current share price
Answer:
P0 = $86.52419 rounded off to $86.52
Explanation:
Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rateg2 is the constant growth rate r is the required rate of returnP0 = 2.95* (1+0.25) / (1+0.1) + 2.95 * (1+0.25)^2 / (1+0.1)^2 +
2.95 * (1+0.25)^3 / (1+0.1)^3 +
[(2.95 * (1+0.25)^3 * (1+0.04) / (0.1 - 0.04)) / (1+0.1)^3]
P0 = $86.52419 rounded off to $86.52
Fifteen years ago, your parents opened an investment account with an initial deposit of $5,000. Today, that account is worth $38,563. What average annual rate of return did they earn on their investment?
A. 14.47%
B. 14.59%
C. 14.78%
D. 15.03%
Answer:
B. 14.59%
Explanation:
Nper = 15
PMT = 0
PV = -5,000
FV = 38,563
Type = 0
Using the Ms Excel
Rate of return = Rate(Nper, PMT, PV, FV)
Rate of return = Rate(15, 0, -5000, 38,563, 0)
Rate of return = 0.145900003
Rate of return = 14.59%
Research and development costs:____________
a. Generally pertain to activities that occur prior to the start of production.
b. May be expensed or capitalized, at the option of the reporting entity.
c. Must be capitalized and amortized.
d. None of these responses are correct.
Answer:
b. May be expensed or capitalized, at the option of the reporting entity.
Explanation:
The research and development cost is the cost that are incurred for researching and developing a new product, new process, new project
It may be expense or it may be capitalized. Its totally depend on the management of the firm decisions
Therefore the option b is correct and the same is to be considered
____ demonstrates that management has identified an acceptable risk level and provided resources to control unacceptable risk levels.
Answer:
Accreditation
Explanation:
Accreditation is usually known as voluntary process. It occurs when a private non-governmental organization or agency carry out an external review and gives recognition to a program of study or institution that meets certain pre-determined standards. Accreditation is usually carry out thoroughly and in an organized manner.
You purchase a $325,000 town home and you pay 25 percent down. You obtain a 30-year fixed-rate mortgage with an annual interest rate of 5.75 percent. What’s your monthly payment? After five years, what is the balance of your mortgage loan?
Answer:
kjhgkjhg
Explanation:
Firm A issued a $1,000,000 bond with a 20-year term at a discount. If the remaining amount of the discount on bonds payable is $100,000 after 10 years and firm A retires the bond at this point at 110 (or for cash of $1,100,000), then what is the loss/gain on this bond retirement?
Answer:
Loss of $200,000
Explanation:
Carrying value of bond = $1,000,000 - $100,000
Carrying value of bond = $900,000
Cash paid on bonds = $1,100,000
Loss on bond = Cash paid on bonds - Carrying value of bond
Loss on bond = $1,100,000 - $900,000
Loss on bond = $200,000