Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
A gain or a loss is the excess or deficit in the difference of the costs or the base value and the selling price of the goods or services. The gain or loss incurred by a business becomes part of the Income Statement.
The accurate statement for the recording of the gain or loss is:
Option B. A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
As per the dual entry bookkeeping system, all the revenues and gains have a general credit balance while the normal balance of the expenses and losses is a debit balance.
The income statement is the financial statement that records the incomes, gains, expenses, and costs occurred in the particular financial year.
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he difference between an L3C (low profit limited liability company) and other types of businesses is that:
Answer: L3Cs explicitly take on a social mission as well as profit-seeking
Explanation:
The options are:
a. L3Cs do not pursue profit, but instead seek social goals.
b. L3Cs cannot accept government funding of any kind.
c. L3Cs explicitly take on a social mission as well as profit-seeking.
d. L3Cs are chartered by the government and all profits are retained by the government.
An L3C is a limited liability company (LLC), which has both attributes of profit and non profit. It is usually set up in such a way that private investiors can be attracted and also provide social objectives.
The owners are not responsible for the debt of the organization and they usually participate in management. Therefore, the answer to the question is that L3Cs explicitly take on a social mission as well as profit-seeking
When determining the markup to be used in a cost-plus pricing formula, many companies base the markup on a target: return on investment. capital turnover. sales margin. earnings per share. debt-to-equity ratio.
Answer:
return on investment
Explanation:
At the time of calculating the markup that used for the formula of cost plus pricing many companies would base the markup on the target return on investment as the return on investment considered the net operating income as it takes after considering all the other type of cost
Therefore as per the given situation the first option is correct
If disposable income increases from $912 billion to $1092 billion and Savings increased by $180, then the consumption will increase by
Answer: $0 billion
Explanation:
Money spent for consumption is the difference between Disposable income and Savings.
Disposable income increase:
= 1,092 - 912
= $180 billion
Savings increased by $180 billion which is equal to the change in Disposable income.
Change in consumption = Change in disposable income - change in savings
= 180 - 180
= $0 billion
Product recall is an example of: Select one: a. prevention costs b. appraisal costs c. internal failure costs d. external failure costs
Answer:
External failure costs
Explanation:
A recall of a process is determined as a recommendation for a good or service to be returned, exchanged or replaced after a retailer or consumption watch group uncovers deficiencies that could impede performance, cause frustration or cause producers legal problems.
Build a model that shows the details of the 20-year mortgage when the loan amount, APR, and loan date are given. Assume that payments are made on the third workday of each month (disregarding federal holidays).
Answer:
The model is very simple.
We have a mortgage, which is our total payment or principal. The APR is the interest rate. The term is 20 years.
With this information, we can build an amortization schedule, with the following elements:
Period: the period of the payment. The first payment corresponds to the first period, the second payment corresponds to thes second period, and so on.
Principal: the amount of money from the payment that goes to the principal.
Interest: the amount of money from the payment that goest to interest.
Payment: principal + interest of the period added.
Balance: total payment minus the principal payment of the period.
With this model, a simple amortization shcedule can be built, either manually, or on a computer spreadsheet like EXCEL.
If actions of the Nepalese government caused a shortage of domestic currency, then the government fixed exchange rate would be
Answer:
D) below the market equilibrium and rupee per dollars will tend to rise.
Explanation:
In the case when the nepalese government taken an action that result in shortage of the domestic currency so the government exchange rate i.e. fixed would be below the market equilibrium and the dollars per rupee would increase as if there is a shortage so the government fixed the currency i.e. below the equilibrium due to which the currency would become stronger
Hence, the correct option is d.
According to the eTextbook, ______ is the lot size (Q) that will minimize total annual inventory cost.
Answer:
EOQ (Economic Order Quantity).
Explanation:
As the acronym goes EOQ, it is economic order quantity which is seen to reduce or hold the amount of raw material been ordered. This is seen by experts as a formula in production that intels the most optimum and economic purchase pattern in purchase of goods or materials to be used in production. Therefore this will directly be seen to have a big effect in the total size if an order; thereby causing a reduction in its annual inventory cost.
Marco Manager supervises three employees at a bank. Several times over the last three months, money has been missing from a specific employee’s till at the end of the shift. Marco Manager has worked with this employee for five years and considers this employee a friend. What ethical dilemmas does this present for Marco Manager?
Answer:
The ethical dilemma that Marco Manager is facing having to choose between trying to keep an existing friendship (at least he believes that they are friends) or doing the right thing as a manager, which would involve investigating why the money is missing and most certainly firing the employee.
Matthew. Inc.. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1 2021, the balance in the investment in Lindman account is $335,000. Amortization associated with this acquisition is $9.000 per year. In 2021, Lindman earns an income of $90,000 and declares cash dividends of $30.000. Previously, In 2020, Lindman had sold inventory costing $24,000 to Matthew for $40.000. Matthew consumed all but 25 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $28,000 to Matthew for $50,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022 a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman
Answer:
the amount of equity method is $16,560
Explanation:
The computation of the amount of equity method income recognized in the year 2021 is shown below:
= Accrual equity income - amortization + intra entity profit recognized - intra entity profit deferred
= ($90,000 × 30%) - $9,000 + ($40,000 × 0.25 × 0.3 × 0.4) - ($50,000 × 0.4 × 0.44 × 0.3)
= 27,000 - $9,000 + $1,200 - $2,640
= $16,560
The 0.4 comes from
= $16,000 ÷ $40,000
= 0.4
And, 0.44 comes from
= $22,000 ÷ $50,000
= 0.44
hence, the amount of equity method is $16,560
Questions: a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? 16,560
b. What is the equity method balance in the Investment in Lindman account at the end of 2021? 342,560
A) 30%*90,000=27,000
Less: annual amortization (given) -9,000
Add: Gross Profit from previous yrs
40,000*((40,000-24,000)/40,000)*25%*30%=1,200
Less: unrecognized Gross Profit for current yr. -50,000*((50,000-28,000)/50,000)*30%*40%= -2640
27,000-9,000+1,200-2,640= 16,560
-----------------------=========---------------------
B) 90,000*30%=27,000
40,000-24,000=16,000*30%=4,800*30%=1,440
50,000-28,000=22,000*40%=8,800*30%=2,640
27,000+1,440-9,000-2,640=16,800
335,000+16,560-(30,000*30%)=342,560
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Jay owns 100% of Kaye Company. Jay (an individual) is in the 37% tax bracket. Assume that Kaye Company is a corporation and distributes $50,000 cash to Jay as a dividend. How much tax must Jay pay on this $50,000 dividend
Answer:
$10,000 as qualified dividends
Explanation:
As this is in the form of dividends we assume the business is a corporation therefore their dividends are taxed as well.
As Jay is the sole owner of Kaye Company we have to assume their dividends are qualified as were held during the entire 121-days period
Therefore are subject to his capital gains rate rather than his rate of 37%
According to the IRS table for the year 2020:
Income Tax Bracket Income Tax Rate Capital Gains Rate
$0 – $9,875 10% 0%
$9,876 – $40,000 12% 0%
$40,001 – $40,125 12% 15%
$40,126 – $85,525 22% 15%
....
$518,401+ 37% 20%
Thus the $50,000 qualified dividends will be taxes at 20%
50,000 x 20% = 10,000
Which of the following circumstances lends itself to the direct organization approach? A. Telling your client that you are running behind schedule B. Giving your client the statistics showing the workload on your team and asking for a later deadline C. Informing your client that you have technical issues that are hampering the project D. Sending your client a business referral E. Informing the client about the attrition resulting in slow work
Answer:
D. Sending your client a business referral
Explanation:
The alternative that corresponds to the circumstance that lends itself to the direct approach of the organization is the sending of a business reference to the client.
The direct approach is used when the main message of a document is described before the argument, that is, before explaining the arguments arising from the idea, the company first presents the central idea, is usually present at the beginning of a document, and immediately after there is the text that provides further clarification of the idea. This strategy is used by companies when there is evidence that the message contained in the document will cause positive or neutral reactions.
Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 98,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity: Issued 39,000 shares of common stock at $5.80 per share. Issued 19,000 shares of common stock at $8.30 per share. Reported a net income of $109,000. Paid dividends of $50,000. What is total Paid-in capital at the end of 2018
Answer:
$383,900
Explanation:
Calculation for the total Paid-in capital at the end of 2018
Total Paid-in capital=(39,000 shares of common stock *$5.80per share)+(19,000 shares of common stock * $8.30 per share)
Total Paid-in capital=$226,200+$157,700
Total Paid-in capital=$383,900
Therefore the total Paid-in capital at the end of 2018 is $383,900
Hocus Pocus Smoked Ribs has only one location and wants to exploit its competitive advantage, a very popular recipe for smoked meats. This means that it wants to: a.form multiple business-level strategies. b.create a single business-level strategy. c.implement a cooperative strategy. d.establish a global strategy.
Answer:
b.create a single business-level strategy
Explanation:
Analyzing the information above, it is correct to say that the company wants to create a unique business-level strategy.
This strategy occurs when the company has a competitive advantage and wants to exploit it, as in the case of Hocus Pocus Smoked Ribs, which has a very popular recipe for smoked meat.
So the company seeks to improve its production, marketing and development strategies to focus on its central differential, which is its meat recipe.
This is a strategy that can be advantageous because it strengthens the product delivered by the company, but it can also be risky because it presents inherent risks, such as the price of ingredients going up or missing, which can harm the entire competitive advantage of the business.
Helen owns 10.0% of the stock of the Median Corporation. If Median makes a dividend payment of $29 million paid proportionally to its shareholders, how much of this amount would Helen receive, disregarding tax
Answer:
$2,900,000
Explanation:
Calculation for how much of this amount would Helen receive, disregarding tax
Using this formula
Amount to receive=Stock percentage*Dividend
Let plug in the formula
Amount to receive=0.10 × $29,000,000
Amount to receive=$2,900,000
Therefore how much of this amount would Helen receive, disregarding tax is $2,900,000
Acme Global has five factories. Three in the United States, one in Germany, and one in India. Each factory is a separate independent business facility owned by Acme Global. It appears Acme Global is in the ________ stage of corporate globalization.
Answer: multinational
Explanation:
From the information given in the question, we can see that Acme Global is in the multinational stage of corporate globalization.
A multinational corporation is typically a corporation that is large and is usually incorporated in a particular country but has branches and sells its products in other countries. The parent company controls its activities worldwide.
Acme Global is in the multinational or international stage of corporate globalization.
Acme Global is in the international stage of business globalization, based on the facts provided in the inquiry.
A multinational firm is usually a major corporation that is incorporated in one nation but has subsidiaries and markets its products in other nations.
The parent company is in charge of all of the company's operations around the world.
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If the Bank of Uchenna is not meeting its reserve requirement, what action can it take to meet the reserve requirement without calling in loans or selling property
Answer:
In this situation, the Bank of Uchenna has two options:
It can borrow extra funds to meet the reserve requirements in the interbank market. These funds would be borrowed at the federal funds rate if the bank is the U.S., or at the specific interbank rate applying to the area where the bank is located.
Or it can borrow those extra funds from the central monetary authority, in other words, the central bank (the fed in the case of the U.S.), since one of the main functions of a central bank is acting as lender of last result for financial institutions when these institutions are in need.
In this situation, Uchenna Bank has two options that can be done by the bank without calling in loans or selling property :
Additional funds can be borrowed to meet the reserve requirement requirements of the interbank market.These funds are borrowed at the federal funds rate if the bank is based in the United States, or at a specific interbank rate applicable to the area in which the bank is located.
They can borrow these additional funds from Central bank.The central bank's main functions is to act as a lender to the central bank, you can borrow these additional funds from the central bank, the central bank (FRB in the United States).
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Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.
Answer:
Floating exchange rate
Explanation:
The floating exchange rate is the rate in which the price of the currency would be determined by the forex market that depend on the supply and the demand as compared with the other types of currencies.
So as per the given situation, the markets of the currency that operates under a system is known as the floating exchange rate
So the same is relevant
Oriole Corporation acquired two inventory items at a lump-sum cost of $123000. The acquisition included 3090 units of product LF, and 6180 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Oriole sells 1030 units of LF, what amount of gross profit should it recognize?
Answer:
$6,304
Explanation:
Calculation for what amount of gross profit should it recognize
First step is to calculate the total value sales
Total value sales
3090 units* $30 per=92,700
6180 units *$10 per unit=61,800
Total value sales=154,500
Second step is to calculate the cost per unit
Cost per unit=(92,700/154,500)*$123000/3090
Cost per unit=0.6*123,000/3090
Cost per unit=73,800/3090
Cost per unit=23.88
Now let calculate gross profit using this formula
Gross profit=Sales -Cost
Let plug in the formula
Gross profit=1,030*(30-23.88)
Gross profit=1,030*6.12
Gross profit=$6,304
Therefore the amount of gross profit that should it recognize is $6,304
An investor company owns 30% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $500,000 as of the end of the previous year. During the year, the investor received dividends of $60,000 from the investee. The investee reports the following income statement for the year:
Answer:
Note: The full question is attached as picture below
a. Equity income that the investor should report in its income = Net income * Investor share = 400,000 * 30% = $120,000
b. Particulars Amount
Equity investment opening 500,000
Add: Equity income 120,000
Less: Dividend paid 60,000
Equity investment at end of year 560,000
c. The fair value of the Investee company will remain at adjusted cost. and the investment is not adjusted to fair value
subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02. How many PKR does the MNC need to obtain the $US 1 million needed
Answer:
50,000,000 PKR
Explanation:
The amount needed in this case is the Pakistani rupees (PKR) equivalent of $US 1 million using the current exchange rate of $.02 to 1 Pakistani rupees (PKR) as computed thus:
Amount needed in Pakistani rupees (PKR)=funds required in USD/exchange rate
funds required in USD=$US 1 million
exchange rate= $.02/1 Pakistani rupees (PKR)
Amount needed in Pakistani rupees (PKR)=$1,000,000/ $.02
Amount needed in Pakistani rupees (PKR)=50,000,000 PKR
On January 1, 2021, Reston Company purchased 25% of Ace Corporation's common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston's investment account was $1,170,000 at December 31, 2021. Ace reported net income of $700,000 for the year ended December 31, 2021, and paid cash dividends on common stock totaling $280,000 during 2021. How much did Reston pay for its 25% interest in Ace
Answer:
initial investment in Ace Corporation = $1,065,000
Explanation:
initial investment in Ace Corporation = December 31st balance - (25% x net income reported) + (25% x distributed dividends)
initial investment in Ace Corporation = $1,170,000 - (25% x $700,000) + (25% x $280,000) = $1,170,000 - $175,000 + $70,000 = $1,065,000
When using the equity, reported net income increases the investment account while dividends decrease it.
8. The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. If the required return on this investment is 8%, how much will you pay for the policy
Answer:
the present value is $250,000
Explanation:
The computation of the amount that pay for the policy is as follows;
Present Value is
= PMT ÷ required return
= $20,000 ÷ 8%
= $250,000
By dividing the pMT from the required rate of return we can easily determine the present value
hence, the present value is $250,000
What is the incremental cost incurred if the company increases production and sales from 11,000 to 11,001 units
Answer:
Marginal Cost
Explanation:
The cost for increasing the output one unit is know as Marginal Cost
It will be the sum of all variable cost related to that sale from cost of goods sold (manufacturing department) to sales commisions (sales department) to collection cost (adminsitrative deparment) It considers the company as a whole not just the manufacturing deparment.
The difference between the Marginal cost and the sales price is now as contribution margin and both are used in Managerial accounting and economics.
How is efficiency related to the number of firms in an industry characterized by strong economies of scale
Answer: C. In industries with a strong economies of scale, efficiency tend to increase as the number of firms decrease. As each firm increases its output, it's cost per unit fall. This means that fewer firms each producing higher output leads to greater efficiency than more firms each producing lower output.
Explanation:
Economies of scale refers to the cost savings made as a result of more production occurring. In other words, efficiency leads to costs decreasing as production increases.
In an industry with strong economies of scale therefore, efficiency will increase as the number of firms decreases because this will allow the remaining firms to increase their production and enjoy economies of scale.
Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 17,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
See preparation below
Explanation:
Particulars Make Buy
Net income increases or decreases
Variable manufacturing
(17,000 × $4) $68,000. $68,000
Fixed manufacturing
(17,000 × $3) $51,000 $51,000
No effect
Purchase price
(17,000 × $5). - $85,000
- $85,000
Total annual cost $119,000 $136,000
-$17,000
From the above, the total annual cost is less in making decision when compared to buy decision so Manson should make the part.
Many of the proponents of price ceilings argue that government-mandated maximum prices simply reduce producers' profits and do not affect the quantity supplied of a good on the market. What must the supply curve look like if the price ceiling does not affect the quantity supplied
Answer:
the supply curve must be vertical
Explanation:
A horizontal supply curve is perfectly inelastic. This means that the price of a good or service will not affect the quantity supplied. In other words, the quantity supplied is not affected by an increase or a decrease of the good's price. This type of situation is basically theoretical, or may exist for a very short period of time where the availability of a good is very low. But in the real world, it cannot hold for significant periods of time.
Describe how the ethical codes of your company support or inhibit how these individual characteristics impact employee morale and organizational performance.
Explanation:
Codes of ethics are essential in every organization to be a parameter of employees' moral conduct. Through the code of ethics, the organization induces its people to take actions and behaviors that are positive for the organizational environment and the company's culture, as well as encouraging employees to act in accordance with the company's identity and moral values and also from society.
In a globalized environment, work environments have become multicultural, which should be understood in the code of ethics, which when effective and aligned with organizational objectives will positively impact on motivation and organizational performance, since the organization will have the image and the positioning of a company that preserves individual values, morals and positive development practices in society.
g In the current business environment, companies cannot survive without a long-term strategy. What exactly should an effective strategy include
Explanation:
The organizational strategy to be effective, must understand the organizational structure, that is, it must be aligned with the company's interests, aligned with its values and with the set of policies, procedures and business approaches that will result in long-term success.
It is essential that the strategy understands the organizational systems as a whole, and uses its resources effectively so that the objectives and goals are achieved.
Consider the following statements, and indicate which variable is an independent variable and which variable is a dependent variable; moreover, determine whether there is a positive or a negative relationship between two variables. a. More educated employees typically have higher income than less educated employees.
Answer and Explanation:
A. When the employees are more educated and have the higher income as compared with the less educated employees so here education would be indepedent variable and the income is dependent variable. Also the relationship between these two variables i.e. education and income is positive
Therefore the same is relevant
"Based on historical figures, how much would you LOSE by putting your money in a savings account compared to investing in the stock market? "
Answer:
4.5% annual interest.
Explanation:
Assuming that we are talking about a specific Savings Account then we can say that the average APY on a savings account such as HSBC savings is 2.5% per year. On the other hand, the stock market has an average APY of 7% annually. Therefore, in order to find how much you would lose by putting your money in a savings account, we would need to subtract the savings account APY from the stock market APY.
7% - 2.5% = 4.5%
We can see that what you would lose in opportunity cost is 4.5% annual interest.