Answer: Accounts Payable
Explanation:
The General Ledger has a record of all the financial transactions that take place in the company. It therefore has an Accounts Payable account that records payables that the company has incurred.
The firm will also have an Accounts Payable Ledger that will also record the payables that the firm has incurred. When the entries have been made in this ledger and also in the General Ledger, the balances should be equal to reflect proper record keeping.
If the balances are not equal then an accounting error has been made that needs to be found and rectified.
What is the maximum amount a 45-year-old taxpayer and 45-year-old spouse can put into a Traditional or Roth IRA for 2016 (assuming they have sufficient earned income, but do not have an income limitation and are not covered by another pension plan)?
Answer:
$5,500 USD
Explanation:
Since traditional Roth IRA accounts cannot be owned jointly, then both individuals must have their own account. That being said they can still contribute to each other's Roth IRA accounts on behalf of their spouse. You can contribute a total of 100% of your earned income up to a limit of $5,500 USD. Pensions are not allowed as contributions. Individual's over the age of 50 have a limit of $6,500
Which of the following would not be indicated by analyzing various business segments?
A. Whether a special sales promotion is needed in a specific geographic region
B. Whether company-wide fixed overhead is being utilized fully
C. Whether some segments should be reduced or consolidated
D. What the contribution margin is of a particular segment
E. None of the above
Answer:
ineed help too
Explanation:
Porter’s attractiveness test for evaluation whether diversification into a particular industry or country is likely to build shareholder value involves:_________
A. Determining whether it is likely that the firm’s earnings per share will rise after the acquisition has been made
B. Determining whether the corporation can bring some competitive advantage to the new business it enters or whether the new business offers added competitive advantage potential to the corporation’s other businesses
C. Guessing whether the company’s stock price will go up or down when the diversification move is announced
D. Determining whether conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment
E. Evaluation the value of strategic fits between the value chains of the company’s present businesses and the value chain of the target industry.
Answer:
D.
Explanation:
This test mainly involves determining whether conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment, most notably that the profits and ROI are equal to or better than that of the company's present businesses. Therefore evaluating if diversifying into such an industry is even worth the risk for the investor's portfolio.
A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of return on the market is 14%. (Round your answer to 2 decimal places.)
Expected selling price $
Answer:
The expected price of the stock is $122.03
Explanation:
To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.
The required rate of return is calculated as,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free raterM is the return on marketr = 0.05 + 1 * (0.14 - 0.05)
r = 0.14
We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,
P0 = D1 / (r - g)
115 = 9 / (0.14 - g)
115 * (0.14 - g) = 9
16.1 - 115g = 9
16.1 - 9 = 115g
7.1 / 115 = g
g = 0.0617 or 6.17%
Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.
P1 = 9 * (1+0.0617) / (0.14 - 0.0617)
P1 = $122.03
Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?
A. A project's IRR increases as the WACC declines.
B. A project's NPV increases as the WACC declines.
C. A project's MIRR is unaffected by changes in the WACC.
D. A project's regular payback increases as the WACC declines.
E. A project's discounted payback increases as the WACC declines
Answer: B. A project's NPV increases as the WACC declines.
Explanation:
NPV is calculated by discounting the future cashflows at the Weighted Average Cost of Capital. This means that if the WACC is lower, the NPV will be higher because cash flow will not be discounted as much and if the WACC keeps going lower, the NPV keeps rising.
For instance, assume a company invested $10,000 and will get cash inflows of $10,000 for 2 years. What is the NPV at 10% and 15%.
NPV at 10% WACC = -10,000 + 10,000/1.1 + 10,000/1.1²
= -10,000 + 9.090.90 + 8,264.46
= $7,355.36
NPV at 15% WACC = -10,000 + 10,000/1.15 + 10,000/1.15²
= -10,000 + 8,695.65 + 7,561.44
= $6,257.09
Notice how NPV dropped when WACC increased.
Two investors, Drew and Sidney, are investing in fixed income assets. Drew has a fixed income portfolio worth $5000 with a duration of 10 years. Sidney has a fixed income asset portfolio worth $8,000 with a duration of 5 years. Interest rates just jumped up by five basis points today. Which investor’s portfolio saw a larger loss?
Answer:
I would have to say Drew
Explanation:
Summary posting from the sales journal normally would be completed in which of the following orders? a.Sales, Sales Tax Payable, and Accounts Receivable columns b.Sales Tax Payable, Sales, and Accounts Receivable columns c.Accounts Receivable, Sales, and Sales Tax Payable columns d.Accounts Receivable, Sales Tax Payable, and Sales columns
Answer: d.Accounts Receivable, Sales Tax Payable, and Sales columns
Explanation:
The Sales journal is used to record sales made on credit to the firm's customers. In posting in the sales journal, the proper format is to;
Post the amount including the sales tax in the Accounts Receivables Debit ColumnPost the Sales tax to the Sales Tax Payable Credit columnThe lastly post the Sales figure net of tax to the Sales Credit Column.d. Accounts Receivable, Sales Tax Payable, and Sales columns
The following information should be considered:
The Sales journal is applied to record sales made on credit to the customers. In posting in the sales journal, the proper format is to;Post the amount that involved the sales tax in the Accounts Receivables Debit Column
Then Post the Sales tax to the Sales Tax Payable Credit column
And, at last post the Sales figure net of tax to the Sales Credit Column.
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Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.
a. True
b. False
Answer: True
Explanation:
The statement that net income is shown on the end-of-period spreadsheet in the income statement debit column and the balance sheet credit column is true.
It should be noted that a net loss also shows on end-of-period spreadsheet in debit side of balance sheet. The debit side must always be equal to the credit side at the end of the balance sheet.
Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity 2.5 kilos per unit Standard price $5 per kilo The company produced 6,600 units in November using 16,850 kilos of the material. During the month, the company purchased 18,900 kilos of the direct material at a total cost of $90,720. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:
Answer:
Materials quantity variance = $1,750(U)
Explanation:
Standard quantity(SQ) = $2.5 * 6600 = 16500 Kg
Standard Price( SP) = $5
Actual quantity(AQ) = 16,850 Kg
Actual Price( AP) = $90,720 / 18,900 kg = $4.8
Materials quantity variance = SP * (SQ - AQ)
Materials quantity variance = 5 * ( 16500 - 16,850 )
Materials quantity variance = 5 * (350)
Materials quantity variance = $1,750(U)
A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products: Blackberry syrup Blackberry jam Joint costs allocated $10,000 $12,000 Number of units produced from joint process Selling price at splitoff point $1.75 Selling price after processing further $2.00 Cost of processing further Blackberry syrup can be sold asis (at the splitoff point) for per unit, or it can be processed further into a specialty blackberry juice and then sold for per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
Answer: C. $ 2,750 net increase in operating income
Explanation:
Income if Blackberry syrup is sold as is;
= Sales price * No. of units
= 2.90 * 1,900
= $5,510
Income if Blackberry Syrup is processed further;
= (Sales price * No. of units) - Processing costs
= ( 5.4 * 1,900) - 2,000
= 10,260 - 2,000
= $8,260
Difference;
= 8,260 - 5,510
= $2,750
What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?
Answer:
FV = $16126.99655 rounded off to $16127
Explanation:
To calculate the future value of a sum of money, we simply multiply the present value by (1 + interest rate) for the period of time that we require the amount to be compounded. Thus, the formula for the future value of a sum of amount with annual compounding is,
FV = P * (1+i)^t
Where,
FV is future valuePV is present valuei is the interest ratet is the period of timeFor semi annual compounding, we simply divide the annual i by 2 and multiply the t by 2. So, Future value of an amount with semi annual compounding will be,
FV = P * (1 + i/2)^t*2
FV = 12000 * (1 + 0.06/2)^5*2
FV = 12000 * (1+0.03)^10
FV = $16126.99655 rounded off to $16127
When reimbursing the petty cash fund: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. No expenses are recorded.
Answer: Appropriate expense account are debited
Explanation:
Here is the complete question:
When reimbursing the petty cash fund:
a. Cash is debited.
b. Petty Cash is credited.
c. Petty Cash is debited.
d. Appropriate expense accounts are debited.
e. No expenses are recorded
Petty cash funds are simply the little funds that is used by an organization or company to settle its minor expenses. Examples include expenses on postage stamp or snacks during meetings.
It should be noted that when reimbursing the petty cash fund, the appropriate expense account has to be debited.
Describe the process of coding a questionnaire. Is precoding a questionnaire a good idea? Why or why not?
Answer:
Survey coding is the process of taking the open-end responses and categorizing them into groups. Once coded, they can be analyzed in the same way multiple response questions can be. The results can vary from person to person depending on what code you use for the open-ended comment. I don't know the second part sorry. But I hope this helps! =)
Finley wants to make as many people happy as possible. He steals from a greedy CEO in order to give money to a large number of poor people. Which philosophy of ethics is applicable
Answer:
Utilitarianism
Explanation:
It is an ethical theory that deals in right from the wrong condition by thinking off the outcomes or results arisen. It is the most ethical selection that generates the best goods for the largest number of peoples.
Here in the given situation, it is mentioned that the Finley wants to happy as more and more people due to this he steals from a greedy CEO in order to provide the money to a large number of poor people
So this represents the Utilitarianism
When you purchased a car, you borrowed $20,000 from the bank and agreed to make monthly payments of $423.17 for 5 years. What rate of interest is the bank charging you
Answer:
4.88%
Explanation:
The formula to calculate the rate of interest is:
r=(FV/PV)^1/n-1, where
r=rate of interest
FV= future value= 423.17*(12*5)=423.17*60=$25,390.2
PV= present value= $20,000
n= number of periods of time= 5
Now, you can replace the values in the formula:
r=(25,390.2/20,000)^1/5-1
r=1.048-1
r=0.0488→4.88%
According to this, the answer is that the bank is charging an annual rate of interest of 4.88%.
If there is an increase in the number of workers than all else equal the effect on capital per worker will be: _________
Answer: b. Negative
Explanation:
If there is more labor being employed while Capital remains the same then it would mean that the amount of Capital due to each worker will keep dropping i.e be negative.
This can present a problem because it will lead to less real wages for workers as well as less productivity for firms. Workers will typically seek to move to areas with high capital to labor rates as they seek to earn higher wages.
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $34,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $154,000, Cost of Goods Sold - $94,000, Depreciation Expense - $50,000, Long-Term Capital Gains - $19,000, Qualified Dividends - $6,400, and Municipal Bond Interest - $3,400. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?
a) ($24,000).
b) $200.
c) $3,600.
d) $10,000.
None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Answer:
e) None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Explanation:
Kim's share on the partnership:
$34,000 per year in guaranteed payments
1/3 profits and capital
net operating income = $154 - $94 - $50 = $10,000 - $35,000 = -$25,000 ordinary loss
Bright Line, LLC, will report an ordinary loss of $25,000 (Form 1065). 1/3 of the $25,000 loss = $8,333 will be included in Kim's Schedule K-1 for X4. Everyone who has a partnership interest must file a Schedule K-1 tax form on an annual basis and include their share of the partnership's gains or losses.
"if a firm were simply concerned with minimizing costs of incremental financing, then the straightforward choice would be"
Answer: D) retained earnings
Explanation:
Incremental cost of Financing refers to the additional cost incurred when additional finance is raised.
If management is concerned with minimizing this cost then they should use their retained earnings. Retained earnings are the firm's own profits and as such using them would not have any fees attached like debt and new equity issues which a firm would have to pay interest and dividends on respectively.
You buy 105 shares of Tidepool Co. for $45 each and 205 shares of Madfish, Inc., for $11 each. What are the weights in your portfolio?
Answer:
67.96% , 32.31%
Explanation:
105 shares of Tidepool is bought for $45 each
205 shares of Madfisg is bought for $11 each
The first step is to calculate the total value in the portfolio
= 105×$45
= $4,725
= 205×$11
= $2,255
Total value of the portfolio= $4,725+$2,255
= $6,980
Therefore, the weights in the portfolio can be calculated as follows
Tidepool corporation
= 105 × $45/$6980
= $4725/$6980
= 0.6796×100
= 67.96%
Madfish incorporation
= 205 × $11/$6980
= $2255/$6980
= 0.3231×100
= 32.31%
Hence the weights in the portfolio are 67.96% and 32.31%
Sixty years ago, your mother invested $3,800. Today, that investment is worth $430,065.11. What is the average annual rate of return she earned on this investment
Answer:
8.2%
Explanation:
As we know that:
r = (Future Value / Present Value)^(1/Time) - 1
Here
Future Value is $430,065.11
Present Value is $3,800
Time is 60 years
By putting values, we have:
r = ($430,065.11 / $3,800)^(1/60) - 1
r = (113.16)^(1/60) - 1
r = 1.082 - 1 = 8.2%
In its first year of operations Acme Corp. had income before tax of $450,000. Acme made income tax payments totaling $116,000 during the year and has an income tax rate of 30%. What is the balance in income tax payable at the end of the year?
a) $ 19,000 debit.
b) $ 19,000 credit.
c) $135,000 credit.
d) $116,000 credit.
Answer:
b) $ 19,000 credit
Explanation:
Calculation for the balance in income tax payable at the end of the year
Since we were told that the income before tax was $450,000 and the income tax rate was 30% the first step will be to find the 30% of $450,000
30%×$450,000
=$135,000
Second step
Since we were told that the income tax payments $116, 000 during the year this means that the balance in income tax payable at the end of the year will be calculated as
$135,000-$116,000
=$19,000
Therefore the balance in income tax payable at the end of the year will be $19,000 credit
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.Sales (4,200 units) $155,400Variable expenses 100,800Contribution margin 54,600Fixed expenses 42,400Net operating income $ 12,200If the company sells 4,600 units, its total contribution margin would be:___________A) $54,600B) $59,800C) $69,400D) $13,362
Answer:
B. $59,800
Explanation:
We can get the total contribution margin by;
= [ Contribution margin / Sales (units) ] × Sales sold by the company
= ( $54,600 / 4,200 ) × 4,600
= $59,800
Select the correct answers from the drop-down menus.
The workplace is busy with many conflicting priorities. When communicating with a coworker face-to-face,
it is important to
When communicating with supervisors, it is recommended to
A good rule for communicating with anyone in the workplace is to
When communicating in writing, it is important to be focused, brief, and
DONEV
Answer:
The workplace is busy with many conflicting priorities. When communicating with a coworker face-to-face, it is important to be clear and get to the point quickly.
When communicating with supervisors, it is recommended to be more formal.
A good rule for communicating with anyone in the workplace is to treat people as you want to be treated.
When communicating in writing, it is important to be focused, brief, and factually accurate.
Explanation:
Communication in the workplace comprises of discussions and exchange of ideas verbally or non-verbally. The exchange of ideas and information takes place among people with different positions and departments. This communication takes place with a more formal tone and mode. Mails, text messages, conferences, meetings, and discussions are some of the types of communication in the workplace. More stress is levied on the tone, authenticity, and reliability of the communication.
Answer:
the answer is A. in public
Explanation:
i took the test
You must evaluate a proposal to buy a new milling machine. The base price is $135,000 and shipping and installation costs would add another $8,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $94,500. The applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in Appendix 12A. The machine would require a $5,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $52,000 per year. The marginal tax rate is 35%, and the WACC is 8%. Also, the firm spent $4,500 last year investigating the feasibility of using the machine. 1. How should the $4,500 spent last year be handled? 2. What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? 3. What are the project’s annual cash flows during Years 1, 2, and 3? 4. Should the machine be purchased? Explain your answer.
Answer & Explanation:
A.The 4,500 dollars spent can be considered as a sunk cost, which means it has been incurred but cannot be recovered and cannot be considered as a cash flow.
B.The initial investment outlay is the total cost of the machine's based price, the shipping and installation, and the additional working capital which all equals to $148,000
C.Year 1 - $49,584
Year 2 - $52,000
Year 3 - $100,720
D.Yes, the machine should be bought, the 8% WACC generates a positive net present value.
Which of the following statements are TRUE when comparing a corporation and a limited partnership?I A corporation is a taxable entityII A partnership is a taxable entityIII A corporation allows for the flow through of gain and lossIV A partnership allows for the flow through of gain and loss
Answer: I. A corporation is a taxable entity.
IV. A partnership allows for the flow through of gain and loss
Explanation:
A corporation is referred to as a legal entity that is created by stockholders, individuals, or shareholders, with the main aim of profit making while a limited partnership occurs when there are two or more partners that go into business together, it should be noted that either one partner or more will be are liable only to their investment amount
When comparing a corporation and a limited partnership, the options that are true are:
• A corporation is a taxable entity.
• A partnership allows for the flow through of gain and loss
The following selected events were experienced by either Smith Eldercare Services, Inc., a corporation, or Tony Smith, its major stockholder. Requirement:State whether each eventâ (1) increased,â (2) decreased, orâ (3) had no effect on the total assets of the business. Identify any specific asset affected. If noâ effect, indicate the reason. Account affected or Transaction Asset effect why assets are not affected A. Paid $400 cash on accounts payable B. Made a cash purchase of land for a building site for the business, $89,000. C. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000) D. Received $15,400 cash from customers on account. E. Purchased medical equipment and signed a $90,000 promissory note in payment
Answer:
A. Paid $400 cash on accounts payable
Assets Effect :- Decrease in Total assets of the business
Assets Effect and Reason for no effect :- Cash decrease by $400.
B. Made a cash purchase of land for a building site for the business, $89,000
Assets Effect :- No effect in Total assets of the business
Assets Effect and Reason for no effect :- As land purchase for cash, cash decrease and land increase with the same amount.
C. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000)
Assets Effect :- No effect in Total assets of the business
Assets Effect and Reason for no effect :- The land was sold, so land decrease and cash increase with the same amount
D. Received $15,400 cash from customers on account
Assets Effect :- No effect in Total assets of the business
Assets Effect and Reason for no effect :- Cash increases and Accounts receivable decreases for the same amount
E. Purchased medical equipment and signed a $90,000 promissory note in payment
Assets Effect :- Increase in Total assets of the business
Assets Effect and Reason for no effect :- Equipment Increase
Match the following Question 2 options: Alfred Chandler, Jr. First mover advantage Planned obsolescence Thorstein Veblen Alfred Marshall The rule of reason Economies of throughput ('economies of speed') 1. Economist who observed that 'invention is the mother of necessity' 2. Economist whose Principles of Economics marked the theoretical separation of politics and economics 3. Economic historian who wrote The Visible Hand: The Managerial Revolution in American Business 4. Realizing lower costs by maintaining a high speed and volume of flow from raw materials to finished goods 5. The competitive edge a business gets from being the first to adopt a new technology which will become the standard 6. Designing a product to have a limited useful life in order to encourage future sales 7. The rule developed by the Supreme Court to make the Sherman Act workable in an era in which businesses were organizationally and technologically compelled to restrain trade
Answer:
1. Thorstein Veblen.
2. Alfred Marshall.
3. Alfred Chandler, Jr.
4. Economies of throughput ('economies of speed').
5. First mover advantage.
6. Planned obsolescence.
7. The rule of reason.
Explanation:
1. Thorstein Veblen: Economist who observed that "invention is the mother of necessity."
2. Alfred Marshall: Economist whose Principles of Economics marked the theoretical separation of politics and economics.
3. Alfred Chandler, Jr.: Economic historian who wrote, The Visible Hand: The Managerial Revolution in American Business.
4. Economies of throughput ('economies of speed'): Realizing lower costs by maintaining a high speed and volume of flow from raw materials to finished goods.
5. First mover advantage: The competitive edge a business gets from being the first to adopt a new technology which will become the standard.
6. Planned obsolescence: Designing a product to have a limited useful life in order to encourage future sales.
7. The rule of reason: The rule developed by the Supreme Court to make the Sherman Act workable in an era in which businesses were organizationally and technologically compelled to restrain trade
__________ prices in the short run allow the Federal Reserve to control the real interest rate.
a. Constant
b. Flexible
c. Sticky
d. Stable
Answer: sticky
Explanation:
Sticky prices in the short run allow the Federal Reserve to control the real interest rate. Due to the sticky prices, the Federal Reserve will be able to control the short-term interest rates.
This can be done by adjusting inflation due to the fact that prices of goods are sticky and doesn't change immediately.
you want to have $57,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.9 percent interest, what amount must you deposit each year
Answer:
$2,271.50
Explanation:
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
57,000=Annuity[(1.079)^10-1]/0.079
57,000=Annuity[(1.079)^9]/0.079
57,000=Annuity * 1.9824/0.079
57,000=Annuity * 25.093671
Annuity=57,000/25.093671
Annuity = 2271.489094
Annuity = $2,271.50 appr.
You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your investment. Which investments could you choose?
Answer: B. Corporate Bonds and T-Bills
Explanation:
As you want to be 95% certain, this would require a 95% confidence interval.
With the given returns and standard deviations, the range of returns expected will be computed by;
Upper limit = Return + 2*SD
Lower limit Return - 2*SD
Stocks
Upper Limit = 18.37% + 2 (38.79%)
= 96.0%
Lower Limit = 18.37% - 2 (38.79%)
= -59.2%
S&P 500
Upper Limit = 11.84% + 2(20.01%)
= 51.9%
Lower Limit = 11.84% - 2(20.01%)
= -28.2%
Corporate Bonds
Upper Limit = 6.47% + 2(6.98%)
= 20.4%
Lower Limit = 6.47% - 2(6.98%)
= -7.5%
T-Bills
Upper Limit = 3.46% + 2(3.14%)
= 9.7%
Lower Limit = 3.46% - 2(3.14%)
= -2.8%
The lower limit show the lowest return achievable given a 95% confidence level.
Only Corporate Bonds and T-Bills will give a minimum that is above 8% so they should be chosen.