Answer:
By a process of elimination, the answer is:
B. provide liquid assets to lenders and long-term financing to borrowers.
Explanation:
A. have customer deposits as its primary asset and loans to borrowers as their primary liability. ⇒ WRONG, IT IS THE OTHER WAY AROUND
C. are types of mutual funds. ⇒ WRONG, MUTUAL FUNDS ARE DIFFERENT THAN BANKS
D. have customer deposits as its primary asset and that provide liquid assets to lenders. ⇒ WRONG, DEPOSITS ARE LIABILITIES
E. increase transaction costs to both borrowers and depositors. ⇒ WRONG, BANKS DECREASE TANSACTION COSTS
Personally, I believe that a better description would be that banks have customer deposits as its primary liabilities and loans to borrowers as their primary assets.
Which of the following statements best describes the difference between net income and gross profit?
a. Gross profit considers operating expenses while net income does not
b. Net income considers operating expenses while gross profit does not.
C.Gross profit deducts taxes while net income does not
d. Net income deducts taxes while gross profit does not.
Answer:
Option B
Explanation:
Gross profit is only gotten after subtracting cost of goods and distribution while net income is a company's profits after deducting all its expenses from revenue
Middle managers usually: Group of answer choices manage the employees on the assembly line set overall goals and objectives act as representatives to other firms carry out plans and policies of top management act as figureheads for the company
Answer:
carry out plans and policies of top management
Explanation:
A downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
This ultimately implies that, when downward communication are effectively and properly used in an organization, it helps them to achieve their aims, goals and objectives successfully.
Hence, middle managers usually carry out plans and policies of top management through the use of downward communication.
Generally, middle managers are saddled with the responsibility of carrying out plans and policies that have been formulated or designed by the top (executive) management of a business firm or company. Therefore, middle managers act as an intermediary between the top managers and the lower employees.
Nunavut has no trees but plenty of fisheries and gold mines. Nunavut residents would like to improve their lot and gain access to more goods and services. What could help them accomplish their goal
Answer:
a. specialize in mining and fisheries and engage in trade.
Explanation:
In the case when the Nunavut contains no trees but there are many fisheries and gold mines also they would like to improve in lot and gain access to many goods and services so if you are specialized in mining and fisheries so it could help in achieving the goal via exporting them and also engage in trade and the remaining of the world could import other goods & services
Therefore the option a is correct
Since the people of Nunavut want to gain access to more goods, they should specialize in mining and fisheries and engage in trade to accomplish their goal.
In Nunavut, there are no trees, but there are many fisheries and gold mines which can be utilized for economic purpose.
Hence, the people of Nunavut should specialize in mining and fisheries and engage in trade to accomplish their goal.
Therefore, the Option A is correct.
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All of the following are weaknesses of the payback period: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply it uses cash flows, not income,unanswered it is easy to use.unanswered it ignores all cash flows after the payback period.unanswered it ignores the time value of money.
Answer:
it ignores all cash flows after the payback period.
it ignores the time value of money.
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
example of the payback method.
10,000 is invested in a project. The cash flows in year 1 is 10,000. The cash flow in year 2 and 3 is 5000.
The payback period is 1 year because 10,000 is recovered in the first year.
The cash flows in year 2 and 3 are ignored in this calculation.
The payback method using cash flows and not income is an advantage.
The payback method ignores the time value of money but the discounted cash flow method doesn't
when investors doubt the creditworthiness of a borrower, what should happen to the price and yield of a bond
Answer:
Prices go down, yield go up
Explanation:
As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield
So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up
hence, the same is to be considered
Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $3 per cone. Fixed costs are $2,500 per month. What is Dairy Days' contribution margin ratio
Answer:
0.25 or 25 %
Explanation:
Contribution Margin ratio is defined as contribution expressed as a percentage or decimal of the sales revenue.
Where
Contribution = Sales - Variable Cost
= $4 - $3
= $ 1
Therefore,
Contribution Margin ratio = Contribution ÷ Sales
= ($4 - $3) ÷ $3
= 0.25 or 25 %
Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the number of years to maturity. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is NOT valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average. a. 10.35% b. 7.29% c. 8.91% d. 9.00% e. 9.27%
Answer:
the rate of return that expected on one year treasury security is 9.00%
Explanation:
The computation of the rate of return that expected on one year treasury security is as followS
= Risk free rate + average expected future inflation rate + maturity risk premium
= 3.00% + 5.90% + 0.10%
= 9.00%
Hence, the rate of return that expected on one year treasury security is 9.00%
Therefore the correct option is d.
And, the rest of the options are wrong
Carlos recognizes that if he visits his aunt on Saturday, he'll miss his brother's football game. The economic principle best embodied by this story is:
Answer: Opportunity cost
Explanation:
The economic principle best embodied by this story is the opportunity cost. Opportunity cost is the cost of what one forgoes when one takes an alternative decision.
In this case, the opportunity cost of him visiting his aunt will be the lost opportunity which he could have used to watch his brother play.
Milden Company is a merchandiser that plans to sell 29,000 units during the next quarter at a selling price of $57 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $27 per unit sold Advertising expense $177,000 per quarter Sales commissions 6% of sales Shipping expense $75,000 per quarter + $4.00 per unit sold Administrative salaries $87,000 per quarter Insurance expense $9,700 per quarter Depreciation expense $57,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Answer:
1. Contribution format income statement for the next quarter.
Sales ( 29,000 units x $57) $1,653,000
Less Variable Costs
Cost of Sales ( 29,000 units × $27) $783,000
Sales commissions (6% x $1,653,000) $99,180
Shipping expense : Variable ($4.00 x 29,000 units) $116,000 ($998,180)
Contribution $654,820
Less Fixed Costs
Advertising expense ( $177,000)
Shipping expense : Fixed ($75,000)
Administrative salaries ($87,000)
Insurance expense ($9,700)
Depreciation expense ($57,000)
Net Profit $249,120
2. Traditional format income statement for the next quarter.
Sales ( 29,000 units x $57) $1,653,000
Less Cost of Sales ( 29,000 units × $27) ($783,000)
Gross Profit $870,000
Less Expenses
Sales commissions (6% x $1,653,000) ( $99,180)
Shipping expense : Variable ($4.00 x 29,000 units) ($116,000)
Advertising expense ( $177,000)
Shipping expense : Fixed ($75,000)
Administrative salaries ($87,000)
Insurance expense ($9,700)
Depreciation expense ($57,000)
Net Profit $249,120
Explanation:
A contribution format income statement calculates Contribution. This is arrived at by deducting Variable Costs to Provide a Sale from Sales Revenue. All the other costs (Fixed Costs) are treated as Period Costs and are Expensed in the Income Statement.
Where as traditional format income statement calculates Gross Profit. This is arrived at by deducting Cost of Sales from Sales Revenue. All other expenses are placed in the Income Statement.
Describe how each of the following would affect the U.S. production possibilities frontier: (a) an increase in the number of illegal immigrants entering the country, (b) a war that takes place on U.S. soil, (c) the discovery of a new oil field, (d) a decrease in the unemployment rate, and (e) a law that requires individuals to enter lines of work for which they are not suited.
Answer:
A. The production possibilities frontier would shift outward. As a result of the increase in the number of illegal immigrants entering the country, there would be more labour available. As a result, production would increase shifting the PPC outward.
B. The production possibilities frontier would shift inward. A war would lead to the diversion of resources to the war. Also, production facilities might be destroyed as a result of the war. This would lead to an inward shift of the PPC
C. The production possibilities frontier would shift outward. The discovery would increase the resources that can be used in production. This would lead to an outward shift of the PPC
D. The production possibilities frontier would not change. This is because production was below the PPC as a result of unemployment. The decrease in unemployment will increase production back to a level on the PPC
E. production would take place at a point inside the production possibility frontier. This law would lead to an under-utilization of resources. This would lead to production taking place at a point inside the PPC
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised
An employer is concerned that her workplace has only a few African-Americans, Hispanics, and women in upper-level management and skilled labor jobs. Most unskilled-labor and clerical positions are held by women and minorities. The employer decides to institute a program that will increase the numbers of minorities and women in management and skilled-labor positions. Is this permissible
Answer:
This is not permissible
Explanation:
This is not permissible because giving them any forms of special treatments is going to be considered to be discriminatory to other people.
Discrimination on the basis of gender, age, color, religion is illegal in the united states and considered a criminal offense.
So even though management has good intentions they have to consider;
1. If these group of people have the required qualifications
2. If there are openings to accommodate these groups given that they are qualified.
3. Filling up every job with this group is going to be regarded as reverse discrimination.
Describe a decision that you or your company made that involved opportunity costs that should have been considered. Why did your company make the decision
Answer:
Explanation:
My E-Commerce business has two main decision-makers. As a team, we had a budget of $1000 USD which we decided to use on marketing. We ultimately decided on placing banner ads on 2 popular sites that matched our products. Doing this we missed out on other opportunity costs such as adding another product line and marketing sample products to popular influencers. Both of which should have been considered because they could have just as easily brought as many or even more customers than having placed the ads.
6. Last month seven homes sold in the 91106 zip code and the median home price was $725,000. Did a home actually sell for $725,000
Answer:
Yes
Explanation:
As we know that the median is the middle value so there is 7 months
Now the mid value would be
= (7 + 1) ÷ 2
= 8 ÷ 2
= 4th home
Also the median would be the actual price of the house
So in the given case, the home would be actually sell for the $725,000
Hence, the given statement is true
Firms are organizations that A) take advantage of the public. B) transform resources into products. C) transform outputs into inputs. D) demand consumer outputs
Answer:
B
Explanation:
A firm is an organisation that is created to make profit. They transform resources into products
They include :
corporations limited liabilitiespartnershipsWhich of the following best describes a team? A. Two or more people with a shared commitment and collaboration towards a common goal B. Two or more people with a similar skill set working towards the completion of a predetermined goal C. All employees who report to the same supervisor D. A defined unit within a division or department, within an organization E. Two or more people with a common goal
Answer:
A. Two or more people with a shared commitment and collaboration towards a common goal
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective. This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
Hence, the statement which best describes a team is, two or more people with a shared commitment and collaboration towards a common goal.
Additionally, one of the advantages of working as a team is that the team members get to know each other better in the course of brainstorming, interaction and sharing of ideas.
Brainstorming is a creativity and problem-solving technique adopted by individuals or group of people by spontaneously gathering ideas through intensive thinking.
I know that Stephen has a lot of money. His parents drive Mercedes. His dogs wear cashmere sweaters, and he paid cash for his Hummer. The conclusion of the argument is ____________
Answer: I know that Stephen has a lot of money.
Explanation:
The whole point of the reasoning behind this thought by the speaker was to prove that Stephen had a lot of money.
This is why the speaker explained why they believed that Stephen had a lot of money. They talked about the car his parents drove, the cashmere sweaters his dogs wear and his use of cash to pay for his Hummer all to come to the conclusion that Stephen has a lot of money.
Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2009 2008 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pre-tax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 Luther's Operating Margin for the year ending December 31, 2008 is closest to:
Answer:
the operating margin for the year ended is 5.4%
Explanation:
The computation of the operating margin for the year ended is shown below;
Operating Margin = Operating Income ÷ Sales
= $31.3 / $578.3
= 5.4%
By dividing the operating income or earning before interest and taxes from the sales we can get the operating margin
hence, the operating margin for the year ended is 5.4%
Which statement about work is not true
Full Question:
Which statement about work is not true:
Employers measure the value of work in terms of employee satisfaction.
The economic value of work is greater than just putting cash in your pocket.
Employers measure the value of work in terms of productivity
Recognizing the value of work in a career will help you choose a career that is right for you.
Answer:
Employers measure the value of work in terms of employee satisfaction.
Explanation:
The value of work generally measured by consumers' satisfaction, not the employees'.
Companies generally see employees as a mean to generate income. Most companies will sacrifice employees' satisfaction as long as it led to an increase in their overall profit.
Currently, work satisfaction itself is not necessarily guaranteed by the Occupational Safety and Health Administration. But we currently start to see a gradual increase in companies who made additional effort to ensure employees' satisfaction (by providing a more friendly work environment, providing professional councils to help alleviate stress, etc)
Most professional organizations in the accessory design field are defined by:
ОА.
the region of the United States where the accessories are popular.
OB.
those that work with minerals and those that do not.
C.
how long one has been in the accessory design business.
OD
the type of accessory made.
Answer:
the type of accessory made
Explanation:
Accessories, are hard to hard produce. This difficulties exist in product that relied a lot on its artistic sense to determine their value.
Because of this, a lot of professional organizations in the accessory designed field relied a lot on brand awareness of the consumers to increase the value of their product in the market.
By focusing on one specific type of accessory, a company can associate the name of their brand with that specific type of items. This will create a niche segmentation in the consumers' head that make them remember the company every time they felt that they're seeking for that one specific type of accessory.
On December 31, 2020, Patel Company purchased debt securities as trading securities. Pertinent data are as follows: Security Cost Fair Value at 12/31/21 A $132,000 $119,000 B 172,000 186,000 C 288,000 263,000 On December 31, 2021, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2021
Answer:
the loss on the securities that should be included in the income statement is -$24,000
Explanation:
The computation of the total amount or gain or loss that included in the income statement is shown below;
Security Fair value cost Gain or loss
A $119,000 $132,000 ($13,000)
B $186,000 $172,000 $14,000
C $263,000 $288,000 ($25,000)
Net loss ($24,000)
Hence, the loss on the securities that should be included in the income statement is -$24,000
The total amount of loss that will be included in Patel's income statement for the year ended Dec 31st 2021 will be $24000. This loss will be transferred to the P and L accounts of Patel.
Patel has incurred this loss on trading of investments like A, B and C as the differences between the cost of purchase and realizable value is in a deficit of total $24000 after calculations.
Patel Co. standings on investments in A stood as 132000 cost price and realizable value of 119000 which leads to a loss of 13000 on investments realized after sale. So, A equals to (13000)Whereas there is a gain of 14000 on investments in B as the cost of purchase was 172000 and realized value was 186000 after the sale of investments in B. So, B equals 14000.However, investments in C had a variably higher losses as the cost of purchase of C was 288000 and it was realizable at a value of 263000 leading to loss of 25000. So, C equals to (25000).
Hence after adding the values of A+B+C i.e., (-13000)+ 14000 + (-25000) we can conclude that the total loss on sale of securities to be included in Patel Co. will be $24000.
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Microeconomics and macroeconomics are: Multiple Choice not related because they are taught as separate courses. virtually identical, though one is much more difficult than the other. interrelated because both are taught by the same teacher. interrelated because what happens in the economy as a whole is based on individual decisions.
Answer:
interrelated because what happens in the economy as a whole is based on individual decisions.
Explanation:
Generally, Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
In conclusion, microeconomics and macroeconomics are interrelated because what happens in the economy as a whole is based on individual decisions.
one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is the forward
Answer:
the forward discount is 1.84%
Explanation:
The computation is shown below:
As we can see that the spot rate is more than the forward rate so it is a forward discount
So the forward discount is
= (Spot rate - forward rate) ÷ (spot rate)
= ($1.63 - $1.60) ÷ $1.63
= 1.84%
Hence, the forward discount is 1.84%
Indirect labor includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply labor of employees working directly on the product.unanswered labor of the maintenance employees.unanswered labor of the clerical staff.
Answer:
labor of the maintenance employees
labor of the clerical staff.
Explanation:
As we know that the labor cost would be classified into two cost i.e.
1. Direct labor cost where the cost is directly include in the production process like payment made to assembly worker
2. The indirect labor cost where the cost is not directly include in the production process like salaries made to admin staff
So the above represents the answer
Prior to the launch of its financial service, Mint made extensive use of ______ which helped search engines view this business as a credible authority for personal financial topics
Answer:
Blogs
Explanation:
Blogs are information websites that provides relevant information for a target group in a diary style arranged according to date.
The most recent posts appear first in the website.
Mint has used blogs to provide relevant information to users.
Search engines analyse the contents of websites to determine of they are relevant sources of information.
Mint's blogs have help search engines identify the company as a relevant source of personal financial topics
At the beginning of the year, Rocket Racer Company's liabilities equal $149,000. During the year, assets increase by $35,000, and at year-end assets equal $215,000. Liabilities decreased $50,000 during the year. What are the beginning and ending amounts of Stockholders’ Equity? Group of answer choices
Answer:
Beginning Equity is $31,000
Ending Equity is $116,000
Explanation:
First, we need to determine the available value
Beginning company's liabilities = $149,000
Ending Company's Asset = $215,000
Increase in Asset during the year = $35,000
Decrease in liabilities during the year = $50,000
Now we need to determine the beginning Assets value
Ending Company's Asset = Beginning company's Assets + Increase in Asset during the year
$215,000 = Beginning company's Assets + $35,000
Beginning company's Assets = $215,000 - $35,000
Beginning company's Assets = $180,000
Now calculate the beginning equity of the company
Beginning Equity = Beginning company's Assets - Beginning company's Liabilities = $180,000 - $149,000 = $31,000
Now calculate the ending comapnies liabilities
Ennding comapnies liabilities = Beginning company's Liabilities - Decrease in liabilities during the year = $149,000 - $50,000 = $99,000
Now calculate the ending equity of the company
Ending Equity = Ending Company's Asset - Ennding comapnies liabilities = $215,000 - $99,000 = $116,000
A rise in the price of Pepsi that causes a household to shift its purchasing pattern toward Coke and away from Pepsi is the ________ effect of a price change. A) income B) substitution
Answer:Substitution ---B
Explanation:
When goods are closely related together such that they both give similar purpose , they are called Substitute goods.
Therefore when any of the substitute goods prices rises, Consumers will go for the cheaper alternatives which will provide more value for thier money.
Here, the rise in the price of Pepsi caused consumers to shift to a cheaper alternative which is Coke. Other substitute goods that can have the Substitution effect include beef and chicken, butter and margarine etc
Which of the following statements regarding uncertainty in liabilities is not correct? Group of answer choices Liabilities can involve uncertainty in whom to pay. A company can have an obligation of a known amount to a known creditor, but not know when it must be paid. A company can only record a liability when it knows whom to pay, when to pay, and how much to pay. A company can be aware of an obligation, but not know how much will be required to settle it.
Answer: A company can only record a liability when it knows whom to pay, when to pay, and how much to pay
Explanation:
A liability is simply defined as the amount that a particular company owes. Liabilities consist of loans, accrued expenses, defered revenue, and accounts payable.
We should note that liabilities can involve uncertainty in whom to pay. Also, a company can have an obligation of a known amount to a known creditor, but not know when it must be paid.
Based on the options given in the question, the answer will be "a company can only record a liability when it knows whom to pay, when to pay, and how much to pay".
7. The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a TV now, and wait a year to pay (with no interest). So, if you take home a $1000 TV today, you will owe them $1000 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today?
Answer:
$961.54
Explanation:
we need to find out the present value of $1,000 in one year:
present value = future value / (1 + interest rate)ⁿ
future value = $1,000interest rate = 4%n = 1present value = $1,000 / (1 + 4%) = $1,000 / 1.04 = $961.54
this is an example of the financial principle of time value of money, i.e. one dollar today is worth more than one dollar tomorrow
Distinguish between a plant, a firm, and an industry. Con- trast a vertically integrated firm, a horizontally integrated firm, and a conglomerate. Cite an example of a horizontally integrated firm from which you have recently made a purchase.
Answer: A plant is a subsection of a firm and a firm is subsection of an industry, an industry is a collection of similar or diverse kind of firms
Explanation:
Plant - is an institution that performs more than one function relating to the production of goods and services
Firm - is an organization that uses diverse resources for the production of goods and services to earn a profit. They operate more than one plant
Industry - is a collection of firms that in into similar or diverse kind of goods and services.
Who will get the better loan rate from the banker and why
Answer:
d. on t4l
Explanation:
harold pays his bills on time.