In drafting the current year's auditor's report, Crain, CPA, the successor auditor, should not name Jewel as the predecessor auditor.The answer is option A: I and II only.
What is a predecessor auditor?
A predecessor auditor is an auditor who has reported on the financial statements of an entity in the prior period when there was no change of auditors. The predecessor auditor may be a CPA firm, an independent auditor, or an internal auditor.When a successor auditor reports on the financial statements of a client whose financial statements were audited by the predecessor auditor in the preceding period, he or she must follow a few reporting requirements in the auditor's report. In such a case, the successor auditor must refer to the predecessor auditor's report and obtain the relevant information to understand the nature of the client's business and its accounting practices.According to the PCAOB standards, the successor auditor must do the following things:The successor auditor must identify the predecessor auditor in the report on the current period's financial statements.The successor auditor must identify the type of report given by the predecessor auditor on the prior period financial statements.The successor auditor should not include Jewel's report or indicate the substantive reasons for Jewel's qualification. Therefore, options I and II only are correct.The answer to the question is option A: I and II only.
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In an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has a comparative advantage in car washing, and who has a comparative advantage in lawn mowing?a. Mateo in car washing, Tyler in lawn mowingb. Tyler in car washing, Mateo in lawn mowingc. Mateo in car washing, neither in lawn mowingd. Tyler in car washing, neither in lawn mowing
The ones that have comparative advantage are: Mateo in car washing, Tyler in lawn mowing. (option a)
To determine who has a comparative advantage in car washing and lawn mowing, we need to compare the opportunity costs of each person. The opportunity cost is the cost of forgoing one option to pursue another option.
For Mateo, the opportunity cost of washing 2 cars is mowing 1/2 of a lawn (since he can only mow 1 lawn in an hour). For Tyler, the opportunity cost of washing 3 cars is mowing 1/3 of a lawn (since he can only mow 1 lawn in an hour).
Comparing the opportunity costs, we see that Mateo's opportunity cost of washing 2 cars is lower than Tyler's opportunity cost of washing 3 cars. This means that Mateo has a comparative advantage in car washing.
On the other hand, Tyler's opportunity cost of mowing 1 lawn is lower than Mateo's opportunity cost of mowing 2 lawns (since Mateo can only mow 1 lawn in 2 hours). This means that Tyler has a comparative advantage in lawn mowing.
Therefore, the answer is option (a) Mateo in car washing, Tyler in lawn mowing.
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the long run elasticity of the demand for oil is estimated to be -0.5. which of the following statements is/are correct. choose all that apply. group of answer choices A. if oil prices rise by 4%, the quantity of oil demanded will fall by 8%. B. oil is an inferior good. C. if oil prices fall by 10%, quantity of oil demanded will rise by 5%. D. if oil prices rise, oil companies will enjoy higher revenues. E. if oil prices rise, oil companies will lose revenues. F. if oil prices fall, oil companies will enjoy higher revenues. G. if oil prices fall, oil companies will lose revenues. H. the demand for oil is inelastic.
The statement that is/are correct regarding the long run elasticity of the demand are: A. If oil prices rise by 4%, the quantity of oil demanded will fall by 8%, C. If oil prices fall by 10%, the quantity of oil demanded will rise by 5%,
Elasticity is the degree to which supply, or demand varies in response to price changes. Elasticity is used to determine how much buyers and sellers change their behavior in response to a price change in economics. When demand or supply is sensitive to price changes, we say it is elastic.
The quantity of goods or services that buyers are willing and able to acquire at a given price is referred to as demand. Demand is determined by a variety of factors, including consumer preferences, prices, and consumer income. When the price of a good or service changes, the amount demanded changes as well.
Therefore, the correct option is A and C.
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T/F: a two-for one stock split would the number of shares outstanding, whereas a 10% stock dividend will increase the number of shares outstanding by only 10%.
True.
A two-for-one stock split would double the number of shares outstanding, whereas a 10% stock dividend would only increase the number of shares outstanding by 10%.
What is a stock split?
A stock split is a business practice in which a business divides its current shares into several new ones. A company might undertake a stock split to make the shares more appealing to prospective shareholders.
They can also do it to increase trading activity and/or to give current shareholders additional shares, which can be used to vote on future corporate matters or sold for profit.
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which of the following groups are worse off as a result of the union action in the western state? check all that apply. all workers in the western state workers who find new jobs in the eastern state employers in the western state the original workers in the eastern state
The groups that are worse off as a result of the union action in the western state are: All workers in the western state, employers in the western state, the original workers in the eastern state.
A union is an organization of workers who come together to achieve shared goals such as better working conditions and higher pay. Union action is the term used to describe the measures taken by a union to achieve these goals. The impact of union action on workers varies depending on the specific measures taken by the union. In some cases, union action can lead to better pay, improved working conditions, and other benefits for workers. However, in some cases, union action can have negative consequences for workers, such as the loss of jobs or reduced wages. In the case of the union action in the western state
The workers who were worse off as a result of the union action are:
All workers in the western state - As a result of the union action, all workers in the western state may face job losses or reduced wages. Employers in the western state - Employers in the western state may face higher labor costs as a result of the union action, which could lead to layoffs or reduced investment in the state. The original workers in the eastern state - If workers in the western state are able to secure higher wages or better working conditions, it could make it more difficult for workers in the eastern state to secure similar benefits, as employers may be less willing to invest in those workers.Learn more about union action https://brainly.com/question/13755302
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the five key components of the business environment are the economic environment, technological environment, social environment, global environment, and what? group of answer choices social environment e-commerce environment competitive environment demographic environment strategic environment
The five key components of the business environment are the economic environment, technological environment, social environment, global environment, and strategic environment.
The business environment is a combination of external and internal factors that impact an organization's performance. These factors may be political, social, economic, technological, and demographic in nature.
The five components of the business environment are:
Economic Environment: Economic factors, such as income levels, inflation, and unemployment, all contribute to the economic environment.
Technological Environment: The technological environment involves the use of technology in business operations.
Social Environment: The social environment is related to the attitudes and beliefs of a society, including demographics, values, and customs.
Global Environment: The global environment refers to the international conditions that affect businesses, such as trade policies, regulations, and cultural differences.
Demographic Environment: The demographic environment includes characteristics such as age, race, gender, income, and education level, which all have an impact on consumer behavior and purchasing decisions.
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Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are spades, your friend will pay you $49. Otherwise, you have to pay your friend $5. If this same bet is made 519 times, how much would you expect to win or lose? Round your answer to two decimal places. Losses must be expressed as negative values.
The expected value of this bet is $-0.10, meaning that if you were to make this bet 519 times, you would expect to lose $51.80. This is because the probability of drawing two spades from a standard deck is 0.0258, so for every 519 bets, you would expect 13 of them to be successful (0.0258 * 519). The expected value for each successful bet is 49, and for each unsuccessful bet, the expected value is -5. Therefore, the overall expected value is (13 * 49) + (-506 * 5) = -0.10.
In general, expected value is used to calculate the average winnings (or losses) of a bet over a large number of trials. It is calculated by multiplying the probability of a given outcome by the reward (or penalty) associated with that outcome, and then summing those values for all possible outcomes.
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A period of economic decline that follows the highest point in a business cycle is called a(n)
answer: contraction
Contraction refers to the period of economic recession that follows the peak of a business cycle.
What exactly is economic contraction?There are two sides to the economy: recession and boom. Reccession means that the majority of businesses are losing money, causing people to have low purchasing power. On the other hand, a thriving economy means that all businesses are doing well, and as a result, people's purchasing power is higher. The business cycle has four faces: expansion, peak, contraction, and trough. Contraction is a component of the business cycle. In economics, contraction refers to a phase in the business cycle whereby the economic growth as a whole is in downturn. A contraction usually occurs after the real economy has peaked but before it begins to decline.
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A strategy of diversifying into unrelated businessesa. concentrates on diversifying into businesses where a company can exploit use of well-known and competitively potent brand name, earn the highest profit margins, and have the greatest number of attractive market opportunities.b. generally offers more competitive advantage potential than related diversification because of the ease of capturing valuable cross-business resource fits.c. is aimed chiefly at broadening a company’s present product line and offering customer a bigger choice of models, styles, and product versions.d. is the best way for a company to lower its overall business risk, achieve consistently good profitability, and earn a sustainable competitive advantage over rival companies.e. involves entering any industry and operating any business where senior managers see opportunity to realize consistently good financial results – there’s no deliberate effort to diversify only into businesses with valuable cross-business strategic fits.
Diversification is the process of allocating capital to reduce exposure to a particular asset or threat. This is variant B.
A strategy of diversifying into unconnected means generally offers lesser eventuality for competitive advantage than linked diversification due to the ease of acquiring precious cross-industry means.
Diversification is a growth strategy where you enter a new request or assiduity that your company isn't presently in while developing a new product for that new request.
Independent diversification is a business strategy aimed at expanding a company's operations into new and strange business areas. Unlike chapter diversification, which involves expanding into businesses that partake analogous parallels with an being business, unconnected diversification involves diversifying into businesses that have no cooperation with an being business.
Question:
diversification strategy in independent companies
a) focuses on diversifying into business areas where the company can profit from a strong, well- known and competitive brand, induce the loftiest profit perimeters and have the most seductive request openings.
b) generally offers lesser eventuality for competitive advantage than the diversification it brings because of the ease of acquiring precious cross-industry asset matches.
c) is primarily intended to expand the company's being immolation and give guests with a lesser choice of product models, styles and performances.
d) is the stylish way to reduce the company's overall business threat, achieve constantly good profitability, and gain a sustainable competitive advantage over contending companies.
e) involves entering any assiduity and running a business where elderly operation sees an occasion to constantly achieve good fiscal results There's no conscious trouble to diversify only into businesses with precious cross-industry strategic alignments.
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The Martins' household income is $123,000 per year. However, this family estimates that they have $45,000 available to spend on nonessentials such as vacations and entertainment. The $45,000 represents the Martins' _____.
The $45,000 represents the Martins' disposable income.
Disposable income is an economic term that refers to the amount of money that households have left after paying taxes. Disposable income is a critical measure for economic analysis since it offers insights into household spending patterns and economic activity. The disposable income of a household is determined by subtracting mandatory taxes (including payroll, property, sales, and state and local taxes) from household income.
Disposable income refers to the amount of money that remains after paying mandatory taxes. It does not include expenses such as mortgages, rent, utilities, or any other essential expenses, but rather the amount of money that households have left to spend or save as they see fit.
A nonessential spending refers to spending money on goods and services that are not required for survival, such as vacations, movies, entertainment, or eating out. While nonessential spending is not essential, it can help households achieve a better quality of life, increase happiness and well-being, and promote economic growth by driving consumer spending. Therefore, $45,000 represents the Martins' disposable income.
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select all that apply implementing activity-based costing . multiple select question. should be done by a cross-functional team should be done using existing, historical data that can be verified requires substantial resources requires taking employees away from other tasks
The options that are true for implementing activity-based costing include:
a) Should be done by a cross-functional team.
b) Should be done using existing, historical data that can be verified.
c) Requires substantial resources.
d) Requires taking employees away from other tasks.
What is activity-based costing?Activity-based costing (ABC) is a cost accounting approach that examines an organization's activities to determine its expenses. It is based on the theory that activities consume resources, and that the cost of a product or service is directly linked to the amount of activities that go into creating it. ABC is a relatively new method of costing, but it has gained popularity in recent years.
ABC is primarily used in manufacturing businesses, but it may also be used in service-oriented organizations. ABC is used to evaluate the cost of items and services, as well as to assess the profitability of each item or service.
ABC is significant for the following reasons:
ABC helps to identify costs that are less visible in conventional cost accounting.ABC is based on the concept that each item or service has a different set of costs.ABC improves the accuracy of cost information by assigning costs to activities.ABC can help with strategic planning and decision-making since it provides more precise information about the cost of a product or service.Learn more about Activity based costing at
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The concept of hiring employees for an indefinite period of time and discharging them without cause at anytime is called the __________.a.) Workers Termination Policyb.) Worker Adjustment and Retraining Notification (WARN) Actc.) Fair Labor Standards Actd.) Labor-Management Relations Acte.) Employment-At-Will Doctrine
The concept of hiring employees for an indefinite period of time and discharging them without cause at any time is called the Employment-At-Will Doctrine. Hence, option E. is correct.
What is Employment-At-Will Doctrine?Employment-at-will refers to a legal principle under which an employer can dismiss an employee at any time and for any reason.
It signifies that, unless there is a contractual agreement specifying otherwise, both employer and employee are free to terminate the employment at any time, without notice or reason, and it can occur for any cause, whether fair or unfair, such as performance or conduct issues, staff reduction, or change of ownership.
The Fair Labor Standards Act, the Labor-Management Relations Act, the Worker Adjustment and Retraining Notification Act, and the Workers Termination Policy are all laws that regulate employment.
Hence, option E. Employment-At-Will Doctrine is correct.
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Krasel Corporation exchanges old equipment for new equipment. The original cost of the old equipment was $90,000, and its accumulated depreciation at the date of exchange was $70,000. The new asset received had a fair value of $50,000 and a book value of $45,000. The journal entry to record this exchange will include which of the following entries?Credit equipment $90,000Debit accumulated depreciation $70,000Debit equipment $50,000Credit gain on exchange of asset $30,000
The journal entry to record the exchange of old equipment for new equipment will include the following entries, such as Credit equipment of $90,000, Debit accumulated depreciation of $70,000, Debit equipment of $50,000, and Credit gain on the exchange of asset of $30,000.
The credit gain entry represents the gain or profit that is realized from the exchange of assets. The credit gain entry is based on the difference between the fair value of the new asset and the book value of the old asset.
It is the amount by which the fair value of the new asset exceeds the book value of the old asset.
To record the exchange of old equipment for new equipment for Krasel Corporation, the journal entry will include the following entries:
1. Credit equipment $90,000 - This represents the original cost of the old equipment being removed from the books.
2. Debit accumulated depreciation of $70,000 - This is the accumulated depreciation of the old equipment being removed from the books.
3. Debit equipment $50,000 - This represents the fair value of the new equipment being added to the books.
4. Credit gain on the exchange of asset $30,000 - This is the credit gain calculated as follows: ($90,000 - $70,000) - ($50,000 - $45,000) = $30,000.
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what are potential negatives with respect to splitting a task when planning/assigning project resources?
When planning or assigning project resources, there are potential negatives to splitting a task. These negatives may include the following: Inefficient Communication, Duplication of Work, Delay in Schedule, Lack of Coordination, etc
When a task is divided, it can result in a bad communication among the project team members. It can be improved by working on communication skills. This can lead to a situation where one team member is unaware of the progress of another team member's work. Another point is the duplication of work. If team members are assigned tasks that are too similar, they may end up duplicating each other's work.
If team members are assigned tasks that are too large, they may not be able to complete them within the given time frame. This can result in a delay in the project schedule and can negatively impact the project timeline. Finally, dividing tasks can also lead to a lack of coordination among the project team members. If team members are assigned tasks that are too complex, they may not be able to coordinate effectively.
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does having the largest reserve mean that the county will also be the largest supplier of this fossil fuel?
No, having the largest reserve doesn't always mean that the country will also be the largest supplier of fossil fuel.
The country needs to have proper technology and resources to extract and process fossil fuels to become the largest supplier.
Fossil fuel refers to any combustible organic substance formed from the remains of dead plants or animals. Coal, petroleum, and natural gas are examples of fossil fuels. Because of their high energy content, ease of transportation, and relative abundance, fossil fuels have become the world's most important source of energy. There are advantages and disadvantages to using fossil fuels as an energy source. A reserve is a mineral deposit that has been identified and analyzed but is not yet developed or extracted.In other words, it is a mineral deposit that has the potential to be developed and extracted profitably with existing technology and under current economic conditions.Reserves are also classified based on the amount of certainty surrounding their location, size, and quality. Reserves are important because they represent a future supply of essential minerals and fossil fuels.
Suppose the marginal benefit of writing a contract is $70, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is:
Instruction: Enter your responses rounded to two decimal places.
a. MC(L) = 40 + 2L.
b. MC(L) = 20 + 5L.
c. What happens to the optimal contract length when the marginal cost of writing a contract declines?
(Click to select) It stays the same. It increases. It decreases.
When the marginal cost of writing a contract declines, the optimal contract length increases.
The given marginal benefit of writing a contract is [tex]$70[/tex], independent of its length. We are to determine the optimal contract length when the marginal cost of writing a contract of length L is MC(L) = [tex]40 + 2L[/tex] or MC(L) = [tex]20 + 5L.[/tex]
Also, we are to determine what happens to the optimal contract length when the marginal cost of writing a contract declines. Given that the marginal benefit of writing a contract is [tex]$70[/tex], independent of its length. We know that the optimal contract length is where the marginal cost of writing a contract is equal to the marginal benefit of writing a contract. i.e.
MC(L) = MB = [tex]$70[/tex]
Now, MC(L) = [tex]40 + 2L[/tex](Option A)
We have, [tex]40 + 2L = 70[/tex] (As MC(L) = MB)
L = 15
The optimal contract length is 15.
Now, MC(L) = [tex]20 + 5L[/tex] (Option B)
We have,[tex]20 + 5L = 70[/tex] (As MC(L) = MB) [tex]5L = 50L = 10[/tex]
The optimal contract length is 10.
Hence, we have determined the optimal contract length for the given MC(L) options. Now, we need to determine what happens to the optimal contract length when the marginal cost of writing a contract declines.
When the marginal cost of writing a contract declines, the optimal contract length increases.
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trevor mills produces agricultural feed at its only plant. materials are added at the beginning of the process. information on work-in-process in december follows: beginning inventory, 54,000 partially complete units, 10 percent complete with respect to conversion costs. units started in december, 115,000 units. units transferred out in december, 111,000 units. ending inventory, 58,000 units, 62 percent complete with respect to conversion costs. required: compute the equivalent units for materials and conversion costs for december using the weighted-average method.
The equivalent units for materials and conversion costs for December using the weighted-average method are 84,440 units.
The equivalent units of the material are the work in progress of the material and the completed units' equivalent number. Therefore, to calculate the equivalent units of the material for December, we need to follow the formula given below:
Equivalent units of material = Beginning Inventory units (10% complete) + Units added during the period (100% complete) - Ending inventory units (62% complete)Where, Beginning inventory units = 54,000 units; Units added during the period = 115,000 units; Ending inventory units = 58,000 units.
Now, putting these values in the above formula,
Equivalent units of material = 54,000(10%) + 115,000(100%) - 58,000(62%) = 5,400 + 115,000 - 35,960 = 84,440
Therefore, the equivalent units of the material for December are 84,440 units.
Conversion costs are the work in progress for conversion costs and the completed units' equivalent number. Therefore, to calculate the equivalent units of the conversion cost for December, we need to follow the formula given below:Equivalent units of conversion cost = Beginning Inventory units (10% complete) + Units added during the period (100% complete) - Ending inventory units (62% complete)
Where, Beginning inventory units = 54,000 units; Units added during the period = 115,000 units; Ending inventory units = 58,000 units.
Now, putting these values in the above formula,
Equivalent units of conversion cost = 54,000(10%) + 115,000(100%) - 58,000(62%) = 5,400 + 115,000 - 35,960 = 84,440
Therefore, the equivalent units of the conversion cost for December are 84,440 units.
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peet company provides free on-site day care for employees with preschool children. required: determine the pretax value of the care for each of the following employees: ms. udolf has a 32 percent marginal tax rate and pays $10,785 annually for day care for three children. mr. zuo has a 12 percent marginal tax rate and pays $3,740 annually for day care for one child.
The pretax value of the day care Ms. Udolf receives is $15,813.50. This is calculated by taking her annual day care costs of $10,785, subtracting her marginal tax rate of 32%, and then multiplying the remaining amount by 1.32.
The pretax value of the day care Mr. Zuo receives is $4,220. This is calculated by taking his annual day care costs of $3,740, subtracting his marginal tax rate of 12%, and then multiplying the remaining amount by 1.12.
The pretax value of day care for each employee is based on their marginal tax rate and annual day care costs. The higher the marginal tax rate, the higher the pretax value of day care. This is due to the fact that the greater the marginal tax rate, the greater the amount of savings that can be gained from utilizing the on-site day care.
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If a foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firm is managing political risk with ________.
If a foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firm is managing political risk with financial risk.
What is Financial Risk?The risk of losing money on an investment, transaction, or lending is referred to as financial risk. Financial risk management includes identifying and analyzing potential losses, as well as implementing measures to avoid or reduce them. The most popular method for managing financial risk is diversification, which reduces risk by spreading investments across several asset classes or sectors.
A foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firm is managing political risk with financial risk. In order to minimize political risk, a firm may acquire political risk insurance, form joint ventures with local firms, or conduct research to assess the likelihood of changes in laws or regulations that may have an impact on its operations in a particular country.
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Bob and April own a house at the beach. The house was rented to unrelated parties for 8 weeks
during the year. April and the children used the house 12 days for their vacation during the year.
After properly dividing the expenses between rental and personal use, it was determined that a loss
was incurred as follows:
Gross rental income $4,000
Less: Mortgage interest and property taxes $3,500
Other allocated expenses 2,000 (5,500)
Net rental loss ($1,500)
What is the correct treatment of the rental income and expenses on Bob and April's joint income tax
return for the current year assuming the IRS approach is used if applicable?
A. A $1,500 loss should be reported.
B. Only the mortgage interest and property taxes should be deducted.
C. Since the house was used more than 10 days personally by Bob and April, the rental expenses
(other than mortgage interest and property taxes) are limited to the gross rental income in excess
of deductions for interest and taxes allocated to the rental use.
D. Since the house was used less than 50% personally by Bob and April, all expenses allocated to
personal use may be deducted.
E. Bob and April should include none of the income or expenses related to the beach house in their
current year income tax return.
Based on the information provided in the question, the correct option is (E) "Bob and April should include none of the income or expenses related to the beach house in their current year income tax return".
This is because the beach house was rented out for 56 days and used for personal purposes for 12 days, which does not meet the IRS safe harbor test for rental property. Therefore, a special allocation of expenses is required, and the rental expenses (other than mortgage interest and property taxes) are limited to the gross rental income in excess of deductions for interest and taxes allocated to rental use. Since the net rental loss is $1,500 and the expenses are limited to $500, the net rental loss cannot be reported on their tax return. So, option C is the correct answer.
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If an employee's tips combined with the cash wage is inconsistent with the minimum hourly wage, ______.
A. the employee is entitled to work for a reduced number of hours
B. the employer must make up the difference with certain conditions
C. the federal government must make up the difference
D. the employee is entitled to be paid for the inconvenience caused along with the difference, with certain conditions
E. the employer is not liable to pay the difference if he or she reduces the number of working hours for the employee
Answer:
B. the employer must make up the difference with certain conditions.
Explanation:
If an employee's tips combined with the cash wage is inconsistent with the minimum hourly wage, the employer must make up the difference so that the employee receives at least the minimum wage for all hours worked. This is known as the "tip credit" provision of the Fair Labor Standards Act (FLSA) in the United States.
Under the tip credit provision, employers can pay a lower hourly wage to tipped employees, such as servers or bartenders, as long as the employee's tips bring their total earnings up to at least the minimum wage. However, if the employee's tips are insufficient to meet the minimum wage, the employer must make up the difference.
The FLSA also sets certain conditions for the use of the tip credit, including informing employees of their rights and maintaining accurate records of all tips received and wages paid.
In summary, if an employee's tips combined with the cash wage are inconsistent with the minimum hourly wage, the employer is required to make up the difference to ensure the employee receives at least the minimum wage.
salinas corporation has net income of $15 million per year on net sales of $90 million per year. it currently has no long-term debt but is considering a debt issue of $20 million. the interest rate on the debt would be 7%. salinas currently faces an effective tax rate of 40%. what would be the annual interest tax shield to salinas if it goes through with the debt issuance?
The Annual interest tax shield to Salinas if it goes through with the debt issuance would be $0.56 million.
The annual interest tax shield to Salinas Corporation if they go through with the debt issuance is $560,000.
This is calculated by multiplying the effective tax rate of 40% by the amount of the debt issuance of $20 million, and then multiplying that by the interest rate of 7%.
Interest Tax Shield = (Effective Tax Rate x Debt Issuance) x Interest Rate
= (40% x $20 million) x 7%
= $560,000
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Problem 4-5 Income statement presentation: Restructuring costs: Discontinued operations; Accounting error
The preliminary 2018 income statement of Alexian Systems, Inc. is presented below ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ( sin millions, except earnings per share) Revenues and gains: Net sales $ 432 Interest 10 Other income 133
Total revenues and gains 575
Expenses: Cost of goods sold 277
Selling and administrative 158
Income taxes 42
Total expenses 477
Net Income 98
Earnings per share 3.50
Additional Information: 1. Selling and administrative expenses include $33 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining S13 million is from the gain on sale of investments 3. Cost of goods sold was increased by $10 million to correct an error in the calculation of 2017's ending inventory. The amount is material Required: Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format Assume that an income tax rate of 30% applies to all income statement items, and that 28 million shares of common stock were outstanding throughout the year (Enter your answers in millions except earnings per share. Round EPS answers to 2 decimal places.)
ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 (in millions, except earnings per share)
Revenues and Gains:
Net sales $432
Interest 10
Other income 33
Total revenues and gains 475
Expenses:
Cost of goods sold 287
Selling and administrative 191
Income taxes 57
Total expenses 535
Net Loss (60)
Loss per share (2.14)
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explain the significance of sin tax
Syntaxes are extremely important for a society.
What exactly are syntaxes?Sin taxes are intended to deter people from engaging in socially harmful actions. The goal is to make harmful products more expensive to obtain, thereby reducing or eliminating their consumption. They also provide government with a source of revenue.
A sin tax is a fee imposed on products or services deemed hazardous or expensive to society. Tobacco, alcohol, sugary drinks, and gambling are typical types of goods and services.
The primary goals of imposing cigarette taxes are to minimize the use of harmful goods while increasing government revenue. According to research, the sin taxations on both alcohol and cigarettes actively discourage their consumption. The reduction in tobacco and alcohol consumption leads to a reduction in medical problems linked to the use of harmful substances.
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tail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify (No answer)the source of payment.the quantity.the terms of payment.
Retail Company and Sales Wholesale Corporation have entered into a contract for a sale of beach toys for $5,000. In order to be enforceable, the contract should be in writing and identify the price and quantity. Therefore, the correct options are B and D.
A contract is a legally binding agreement between two or more parties that creates an obligation to perform a specific task. A contract can take the form of a written or oral agreement. A contract specifies the terms of the deal, such as the cost, quality, delivery date, and other conditions.
To make it enforceable, the contract should be in writing and identify the price and quantity of goods. This is known as the quantity and price terms. Payment terms should be included in the contract as well. It's also essential to include the delivery date and any other critical terms or obligations. The terms of payment are not required to be stated, but it can be an essential clause in a contract.
The correct options for the given statement are: B) the price and D) the quantity. Therefore, the contract must have a price and quantity specified in it to be enforceable.
Note: The question is incomplete. The complete question probably is: Retail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify: A) the source of payment. B) the price. C) the terms of payment. D) the quantity.
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Please complete that statements below to indicate how GDP and living standards are affected in each scenario. a. If unpaid housework were formalized in GDP, GDP woould ___, and living standards would ___
b. Given improved production technologies, GDP would ___ and living standards would ___
c. Suppose the black market shrinks because firms shift to the formal sector, but production remains the same. GDP would ____ and living standards would ___
d. If workers worked less but produced the same amount, GDP would ___ and living standards would ___
e. If volanteers cleaned a river used for swimming, GDP would ___ and living standards would and living ___
f. Assume people dislike inequality. If income inequality decreases, GDP would ___ and living standards would ___
If unpaid housework were officially included in GDP, GDP would rise and it would appear that living standards would improve. GDP would rise as a result of more advanced production technology, and living standards may possibly rise.
What is the most accurate metric to use when comparing standards of living around the globe?We use a metric known as GDP per capita to evaluate the standard of living in each nation. By creating and offering items and services for sale, people earn their living.
What signs of a high standard of living are there?A society's standard of life is determined by easy-to-quantify factors like income, employment opportunities, the price of goods and services, and poverty. Life expectancy, the rate of inflation, and the number of paid vacation days that people receive each year are also included on the list.
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when a fortune 500 business lays off workers, some displaced employees may decide to start their own businesses. they are best described as a. welfare profiteers. b. corporate entrepreneurs. c. reluctant entrepreneurs. d. corporate refugees.
When a Fortune 500 business lays off workers, the displaced employees who may decide to start their own businesses are best described as C) reluctant entrepreneurs.
What is a reluctant entrepreneur?Reluctant entrepreneurship refers to entrepreneurship that is a last resort due to a lack of other employment options, whether it is the outcome of unemployment, underemployment, or an unsatisfactory career situation.
Reluctant entrepreneurs often lack the psychological or economic characteristics that are traditionally associated with the entrepreneurial spirit. They may be lacking in self-confidence, interpersonal skills, or even creativity.
What is the Fortune 500?The Fortune 500 is a yearly ranking list of the top 500 US public and private companies, ranked by total revenues for their fiscal years. It has been published by Fortune magazine annually since 1955, except for 2020.
The list includes publicly traded businesses as well as privately held businesses that submit financial statements to the SEC or a government agency, with revenues of at least $5.4 billion.
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which of the following is not one of the three key roles that prices play in markets? prices are signals. prices aggregate information. prices have purchasing power. prices create incentives.
The correct response is (C): Of all the functions mentioned above, price does not indicate purchasing power.
How do prices function in markets?Prices dictate who will purchase the goods, what commodities will be created and in what quantities, how the items will be produced, and who will manufacture them. Price serves as both an informational cue and a measure of sacrifice in consumers' assessments of alternative products.
How do prices affect supply and demand?Generally speaking, supply is thought to slope upward; as the price increases, suppliers are prepared to produce more. The widespread consensus is that demand slopes downward because customers buy less when prices are greater.
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Suppose a municipality votes to reduce the combined pollution introduced by three local companies. Presently, each firm creates 4 units of poisution in the ares, for a total of 12 pollution units. The government can reduce total pollution in the area to 6 units by choosing between the following two methods: The costs faced by each firm are different, so it is more difflicult for some firms to reduce pellution than others. The following table shows the cost faced by each firm to eliminate each unit of pollution. Assume that the cost of eliminating all 4 units of pollution (that ie, reducing polliution to zero) if protibitively expensive for all three firms. Next, suppose that two govemment offciais proposed alternative plans that would reduce pollution by 6 untes. The first government employee suggests reducing pollution through regulation. To meet the pollution goal, the government requires each firm to reduce its pollution by 2 units. Complete the following table with the total cost to each firm of reducing its pollution by 2 units. Method 2: Tradable Permits Meenwhilic, the other employee proposes using a different strategy to achieve the government's goal of reducing poilutian in the area from 12 units to 6 units. This employee suggests that the government issue two pollution permits to each firm. For each permit a firm has in its possession, it can emit 1 unit of pollution. Firms are free to trade pollution permits with one another (that is, buy and sell them) as long as both firms can agree on a brice, For example, if firm A sgrees to sell a permit to firm B at an agreed-upon price, then fitm B would end up with three permits and would need to reduce its pollution by only 1 unit while firm A would end up with only one permit and would have to reduce its pollution by 3 units. Assume the negotiation and exchange of permits are costless. Because firm 8 has high pollution-reduction costs, it thinks it might be better off buying a permit from firm C and a permit from firm
A
so that it doesn't have to reduce its own pollution emissions. At which of the following prices are both firm C and firm A willing to sell one of theic permits to firm B? Check all that apply. Because firm
B
has high pollution-reduction costs, it thinks a might be better off buying a permit from firm
C
and a permit from firm
A
so that it: doesn't have to reduce its own pollution emissions. At which of the following prices are both firm C and firm A willing to sell ane of their permits to firm B? Check all that apply.
$124
$165
$200
$364
5475 Suppose the the government has set the trading price of a permit at \$147 per permit. costs each firm to reduce pollution to the necessary level. If a firm is willing to buy fwa permits, assuree that it bovs one permit from each of the other forms. (Mint: Do not include the prices paid for permits in the cost of reducing potition.) Determine the total cost of eliminating six units of polfution using both methods, and enter the amounts in the following table. (Hint: You might need to get information from previous tasks to complete this table.) In this case, you can conclude that eliminoting pollution is costly to society when the government distributes tradable permits than when if regulates each firm to eliminate a certain amount of pollution.
Method 1: Regulation
The total cost for each firm to reduce pollution by 2 units is given in the table.
What is pollution?Pollution is the introduction of contaminants into the environment that have negative effects on the health and wellbeing of living organisms. It can come in many forms, including air, water, and land pollution. Air pollution is the presence of hazardous substances in the atmosphere, which can cause illnesses and death, as well as damage to agriculture, ecosystems, and buildings.
Firm A: $200
Firm B: $364
Firm C: $125
Method 2: Tradable Permits
The price of a permit has been set at $147. Therefore, firm B will have to buy two permits, one from each of firm A and firm C at a total cost of $294.
Total Cost
The total cost of reducing 6 units of pollution using regulation is $689. The total cost of reducing 6 units of pollution using tradable permits is $494. Therefore, it is more cost-effective to eliminate pollution using tradable permits than when the government regulates each firm to eliminate a certain amount of pollution.
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Method 1: Regulation The total cost for each firm to reduce pollution by 2 units is given in the table.
What is pollution?Pollution is the introduction of contaminants into the environment that have negative effects on the health and wellbeing of living organisms. It can come in many forms, including air, water, and land pollution. Air pollution is the presence of hazardous substances in the atmosphere, which can cause illnesses and death, as well as damage to agriculture, ecosystems, and buildings.
Firm A: $200
Firm B: $364
Firm C: $125
Method 2: Tradable Permits
The price of a permit has been set at $147. Therefore, firm B will have to buy two permits, one from each of firm A and firm C at a total cost of $294.
Total Cost
The total cost of reducing 6 units of pollution using regulation is $689. The total cost of reducing 6 units of pollution using tradable permits is $494. Therefore, it is more cost-effective to eliminate pollution using tradable permits than when the government regulates each firm to eliminate a certain amount of pollution.
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marketers that are interested in identifying the characteristics and trends among ultimate consumers such as age or ethnic background are likely to start with which source of data? multiple choice question. questionnaire results u.s. census bureau reports in-depth interviews neuromarketing studies
Answer: The best source of data for marketers that are interested in identifying the characteristics and trends among ultimate consumers such as age or ethnic background is U.S. Census Bureau reports. These reports provide data on population demographics, including age and ethnic background, as well as economic indicators.
Explanation: Marketers that are interested in identifying the characteristics and trends among ultimate consumers such as age or ethnic background are likely to start with U.S. Census Bureau reports.
The U.S. Census Bureau is the country's principal statistical agency. It gathers information on the population and the economy, as well as measures poverty, demographics, and housing. It is one of the US Department of Commerce's oldest departments, dating back to 1790, and it provides data that shape the country's understanding of its population and economy.
Trends and Characteristics: Marketing departments use a variety of tactics to identify market trends and consumer characteristics, including surveys, questionnaires, interviews, and neuromarketing studies. A marketing department can learn more about the target audience by breaking down demographic data from sources such as the U.S. Census Bureau.
Census data, for example, can provide a wealth of knowledge about age and ethnic background, which is particularly useful for companies selling niche products or for targeting ads to a particular group. An understanding of a target audience's age, gender, and education level can help a marketer develop effective messaging and segmentation strategies. This knowledge can also help a marketing department choose which promotional strategies to employ in order to reach their target audience effectively.
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mayhem is a character depicted in allstate insurance commercials. he reminds buyers of possible catastrophic problems on the road or in their homes and the need for adequate coverage. this is an example of using a(n) blank appeal.
Mayhem is a character depicted in Allstate insurance commercials. He reminds buyers of potentially catastrophic problems on the road or in their homes and the importance of adequate coverage. This is an example of using a fear appeal.
A fear appeal is a persuasive message that encourages the recipient to avoid a threatening situation by taking the recommended action. The fear appeal is a marketing strategy in which an individual is persuaded to take action by arousing fear of the negative consequences of not acting.
The Allstate insurance commercial's character Mayhem is a perfect example of using the fear appeal. In marketing, the fear appeal is used to persuade people to purchase a product or take a course of action that they might not otherwise do. Fear appeals often portray the consequences of failing to take action as being severe, emphasizing danger, loss, and uncertainty.
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