This exchange rate regime is best described as a currency board.
A currency's exchange rate is the price at which it will be converted into another. The majority of the time, currencies are those of a particular country, but they can also be supra-national, like the euro, or sub-national, like that of Hong Kong. The exchange rate is another term for the relative worth of one currency to another. Currency boards are a blatant illustration of a defined exchange rate. A nation loses control over the amount of money in circulation and the exchange rate if it has a central bank. In most cases, a currency board is required to preserve both a predetermined exchange rate and reserves of the underlying foreign currency.
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Why is automation bad for the economy?
Automation has a bad influence on economic development, this is because many jobs have been replaced by machines. So that people lose their jobs and the economy can be hampered.
In this era, Automation generally can be defined as a wide range of technologies that reduce human intervention in processes. The key process of automation is by predetermining decision criteria, related actions, subprocess relationships, as well as embodying those predeterminations in machines. In the other side, automation has a biggest impact through the production process, but in other hand, it is also has a biggest negative impact.
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While creating its AFI strategy framework, Valdez Consultants decided what markets the firm should compete in. By doing this, what type of strategy did the company devise
Valdez Consultants determined what areas the company should compete in while developing its AFI strategy framework. Corporate strategy entails determining where a corporation should compete, which covers industry, markets, and location.
What takes place in the AFI framework's analytical phase?According to the AFI strategic framework, strategic analysis mainly entails assessing how internal factors and core capabilities may affect a company's ability to establish and maintain a competitive advantage.
What constitutes the framework for AFI strategic planning's main elements?Analyze the firm's performance, external and internal analyses, and the strategic management process. Marketing strategy, management consulting, and global strategy should be formulated. Implement governance, business ethics, strategic leadership, and organization design.
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holds that unhindered free-enterprise economic markets and individual enterprise can solve economic and social problems such as poverty
Conservatives believe that unhindered free-enterprise economic markets and individual enterprises can solve economic and social problems such as poverty.
What are Economic Markets?An economic system in which the majority of resources are owned by individuals rather than the government is known as a market economy. Capital, labor, and land are all part of this. In a market economy, individuals decide for themselves how to use these resources and how much they cost.
The following are characteristics of a market economy: The economic system is based on supply and demand. The demand and supply of a good or service determine the quantity produced. Traditional, command, market, and mixed economies are the four types of economies.
The economy can be divided into three main categories: command, free market, and mixed The following chart contrasts command and free-market economies; The two are combined in mixed economies. Economic decisions are made by both individuals and businesses on their own.
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The question as follows:
____ believes that unhindered free-enterprise economic markets and individual enterprise can solve economic and social problems such as poverty.
Agency theory examines the relationship between the Multiple Choice shareholders of the firm and the firm's investment banker. owners of the firm and the managers of the firm. board of directors and large institutional investors. shareholders and the firm's transfer agent.
The correct answer is option B i.e. owners of the firm and the managers of the firm. If a department is operating efficiently, a Manager or Supervisor supervises the team members inside that division.
What do managers mean?A manager is a qualified someone who leads an organization and oversees a group of personnel. Managers frequently oversee a certain department within their organization. There are many different kinds of managers, but they typically have responsibilities including making decisions and conducting performance reviews.
Why are managers crucial?Simply said, firms wouldn't succeed without managers. By creating growth with high-performing teams, managers play a significant role in the sector. Overall, managers will always be a key component of every organization because of their involvement in activities like hiring and training new personnel as well as decision-making.
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A listing of all accounts in numerical order is called a(n) ________.
A) Ledger
B) Journal
C) Income statement
D) Chart of accounts
A listing of all accounts in numerical order is called a Chart of accounts. Hence, option D is correct.
What is Chart of accounts?Chart of accounts is what gives clarity to different types of accounts in a firm's ledger. The account types which are seen in chart of accounts or shown in the firm ledger are assets, liabilities, revenue, expense, and shareholder equity.
In other words chart of account refers to the various types of accounts i.e revenue, expenditure, asset, liabilities and so on which depicts the number of accounts, the descriptions of account, nature of the account, and the categories in which they are lying.
Also, it is a financial, organizational tool that provides an index of every account in an accounting system. This provides an insight into all the financial transactions of the company.
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A $2.00 tax levied on the sellers of birdhouses will shift the supply curve a. downward by less than $2.00.
b. downward by exactly $2.00. c. upward by exactly $2.00. d. upward by less than $2.00.
The supply curve will rise upward by exactly $2 if sellers of birdhouses are subjected to a tax of $2.00.
A Supply Curve: What Is It?The correlation between the cost of a good or service and the quantity supplied over a given time period is depicted graphically in the supply curve. A typical illustration will show the price on the left vertical axis and the supplied quantity on the right horizontal axis.
How a Supply Curve Works ?The law of supply is expressed by a supply curve that moves upward from left to right: All other things being equal, the quantity supplied rises when a commodity's price rises.
Pay attention to the fact that this formulation suggests that quantity is the dependent variable and price is the independent variable. The independent variable typically appears on the horizontal or x-axis in most fields, with economics being an exception.
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development of regulatory mechanism in banking
Answer:
The development of regulatory mechanisms in the banking industry has been an ongoing process to ensure the stability and integrity of the financial system.
Explanation:
This includes the implementation of rules and guidelines for banks to follow, as well as the establishment of independent agencies to monitor and enforce compliance. Some examples of regulatory mechanisms in banking include the Basel Accords, which set international standards for bank capital and liquidity, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which introduced stricter regulations on banks in the wake of the 2008 financial crisis. The goal of these regulatory mechanisms is to protect consumers and investors, prevent financial fraud and abuse, and maintain the overall stability of the banking system.
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A town has a total assessed valuation of $32,000,000 and exemptions of $7,000,000. What is the tax base
Taxes are essentially forced contributions from the populace to the government; in this case, the tax base is $25,000,000.
A tax base example is what?The whole dollar amount of taxable income, in the case of the personal income tax, or the total dollar value of real estate, in the case of the real property tax, are two examples of tax bases that are often measured as a dollar amount to which a tax rate is applied.
To expand the tax base, what does that mean?When a tax base grows, more people and companies are contributing to the expenses of maintaining the community. The proportion of taxes that fall on an individual decreases as the tax base expands as a result of higher sales.
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Bjorn purchased a small duplex for use as a rental property. After the property was placed in service, he made some improvements, and later in the year, he made some repairs to the property. Which of the following statements regarding the treatment of the expenditures is CORRECT?
A)The improvements and repairs must be capitalized.
B)The improvements and repairs are currently deductible.
C)The improvements are currently deductible; the repairs must be capitalized.
D)The improvements must be capitalized; the repairs are currently deductible.
When these costs either extend the useful life of an existing asset or increase its productive capacity.
Are repairs and maintenance capitalized?When to Capitalize Maintenance and Repair Costs These expenses are instead regarded as capital expenditures when they either expand the productive capacity or lengthen the usable life of an existing asset.
To restore an asset's condition, repair and maintenance expenses are incurred. When utilising the accrual method of accounting, the correct way to account for these expenditures is to charge them to expense in the period in which they are incurred. When the accompanying supplier invoice is paid, the cost is recorded as an expense when utilising the cash foundation of accounting.
In either scenario, the Repairs and Maintenance Expense account will be charged. The charge is subsequently recorded as an expense on the income statement.
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Humberto is a salaried, nonexempt worker who earns $46,250 per year and has a standard 45-hour workweek. What is his hourly rate
$19.76 is his hourly rate at $46,250 per year who works a standard 45-hour workweek.
given data:
per year income = $46,250
total workdays = 45
Total hours per year = 45 x 52 weeks
=2,340
Annual salary = $46,250
Salary per hour =46,250 / 2,340
= $19.76 per hour
how much is charged, paid, or received for each hour worked: Instead of paying for the things the advisers offer you, you pay a set or hourly charge for their time. By adding up all hourly rates and dividing the sum by the number of rates, an average hourly wage (also known as a mean hourly wage) may be determined. Due to its stability, salaries are frequently beneficial for both employers and employees. The administration of finances is made simpler on both ends when you pay employees a specific sum every pay period based on their annual wage.
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Consider the following account starting balances and journal transactions involving these accounts. Use T-accounts to record the starting balances and organize the offsetting entries for the transactions. The starting balance of Cash is $9,900 The starting balance of Inventory is $3,800 The starting balance of Retained Earnings is $21,400 Date Accounts and Explanation Debit Credit Mar 9 Retained Earnings 3 Cash 3 Consumed good or service and paid expense with cash Mar 10 Cash 40 Inventory 32 Retained Earnings 8 Sold and delivered product to customer Mar 11 Cash 25 Retained Earnings 25 Sold, delivered, and received payment for service with no clear associated cost What is the final amount in Retained Earnings
The final amount in Retained Earnings is $21,430. Delivered, and received payment for service with no clear associated cost.
Cash Account
Date Amount Date Amount
Beginning balance $9,900.00 9-Mar $3.00
10-Mar $40.00
11-Mar $25.00 Ending Balance $9,962.00
Total $9,965.00 Total $9,965.00
Inventory Account
Date Amount Date Amount
Beginning balance $3,800.00 10-Mar $32.00
Ending Balance $3,768.00
Total $3,800.00 Total $3,800.00
Retained Earnings
Date Amount Date Amount
9-Mar $3.00 Beginning balance $21,400.00
10-Mar $8.00
Ending Balance $21,430.00 11-Mar $25.00
Total $21,433.00 Total $21,433.00
Final Amount in retained earnings = $21,430
Stock accounting is the body of accounting that offers to value and accounting for adjustments in inventoried assets. An organization's inventory commonly includes goods in three degrees of manufacturing: raw items, in-progress items, and completed goods that can be prepared for sale.
Stock refers to all the objects, goods, merchandise, and substances held via a business for selling in the marketplace to earn an income. example: If a newspaper supplier uses a vehicle to supply newspapers to the customers, handiest the newspaper can be considered stock. The automobile could be handled as an asset.
Inventory is a modern-day asset account determined on the balance sheet, which includes all raw substances, paintings-in-development, and finished items that an agency has collected.
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What are three rules of government in a mixed economy?
In a mixed economy, the three rules of government are to maintain the framework, provide public goods and services, maintain competition, redistribute income, and stabilize the economy.
What exactly is a mixed economy?
The term "mixed economy" refers to a system of economic organization in which the private sector's actions are combined with those of the public sector, which acts as a regulator and corrector of the former.
Most economic decisions in a mixed economy are resolved through the market interaction of sellers and consumers. However, the state plays an important supplementary role.
The government's main roles in the mixed economy are to maintain the social and legal framework, to provide public goods and services, to maintain competition, to redistribute income, and to stabilize the economy.
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Obed manages a large dry cleaning facility. Recently, he asked you how to make sure his facility has the best possible culture. What would you recommend to Obed in terms of choosing an organizational culture
A sizable cleaning equipment facility run by Obed. He just asked for advice on how to make sure the atmosphere at his institution is positive. What advice would you give Obed.
What precisely does "organizational culture" mean?Organizational culture refers to a company's beliefs, goals, and attitudes as well as how they influence how its employees behave. The corporate culture of a company affects how customers or suppliers engage with that company.
What examples of organizations are there?Whether a for-profit or nonprofit corporation, the structure, ideals, psychology, and sociology of the organization are all included in the concept of organizational culture. Philosophy, beliefs, expectations, and experiences are only a few components of company culture.
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True or False a new restaurant owner, is determining which products to offer on his menu, he is involved in the management function of planning.
True, Paul, a brand-new restaurant owner, engages in the management function of planning when he chooses which items to include on his menu.
The process of supervising a business, nonprofit, or governmental entity's operations is known as management (or managing). the practice and science of managing a company's resources. Setting an organization's strategy and organizing the work of its staff (or volunteers) to achieve its goals through the use of resources such as financial, natural, technological, and human resources are all included in management. The expressions "run the business" and "change the business" are used in management to distinguish between maintaining to deliver goods or services and adapting them to meet consumers' shifting wants. Another group of people who fit under the heading of "management" are managers.
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SS5H3 EXPLAIN How the Great Depression and New Deal affected the lives of millions of Americans. a. DISCUSS the Stock Market Crash of 1929, Herbert Hoover, Franklin Roosevelt, the Dust Bowl, and soup kitchens. b. ANALYZE the main features of the New Deal; include the significance of the Civilian Conservation Corps, Works Progress Administration, and the Tennessee Valley Authority.
People used credit to buy things in the 1920s. People had few savings, but almost everyone was in debt. People were unable to repay their bank debts during the Great Depression, and the banks suffered financial losses.
Banks had also lost a lot of money in the stock market. By 1932, the banking system had collapsed. By 1933, 15 million people, or more than one-quarter of those looking for work, were unemployed. Many shantytowns sprang up as a result of a lack of funds for housing. To provide hot food, charities established soup kitchens. People used to go door-to-door looking for food or work at this time.
The Civilian Conservation Corps (CCC) recruited single, unemployed men aged 18 to 25. The men were paid $30 per month to work in parks and forests and lived in camps. It had a workforce of 3 million people.
The federal government established the Tennessee Valley Authority (TVA) in 1933 to supply electricity to the Tennessee River basin and surrounding areas. The TVA was also in charge of flood control. The TVA generated electricity through hydroelectricity.
The Works Progress Administration (WPA) constructed buildings, bridges, and roads, including the Golden Gate Bridge in San Francisco, in 1935. It also gave birth to theater, art, and writing. It employed approximately 8.5 million Americans.
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The shorter the length of time between a present value and its corresponding future value,
O the higher the interest rate used in the discounting to the present value.
O the higher the present value, relative to the future value.
O the lower the present value, relative to the future value.
O None of these options
The greater the interest rate utilised in discounting to the present value, the shorter the period between a present value and its equivalent future value. So Option A is the correct answer.
The present value is the sum of money that must be spent today to achieve a certain future objective. The amount of revenue that, if invested, will increase over time is known as potential value. The present value of a person is the amount that must be invested in order to achieve their future value.
Business leaders and investors should only finance initiatives or sign into contracts that have a net present value that is in their benefit, according to the net current value rule (NPV). They should refrain from sponsoring projects that have a net present value of zero.
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George works for an automobile assembly plant. He was laid off six months ago when the economy weakened. He expects to return to work with the same company in a few months when economic conditions improve. What type of unemployment is George facing
The loss of work as a result of technical development is known as technological unemployment. This important category is structural unemployment.
Unemployment that occurs in cycles is one that results from insufficient overall expenditure (or by insufficient aggregate demand). The business cycle's recessionary period is what's to blame for the unemployment. Cyclical unemployment is a shortage of employment brought on by fluctuations in the business cycle of an economy. Only two instances of how changes in the economy might directly result in structural unemployment are a sector slump and a technological advancement. Disguise unemployment is defined as unemployment that has no effect on overall economic activity. It occurs when production is low and there are too many workers filling too few posts. Any segment of the population that is underutilised might be considered.
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project planning, an activity of a project manager, _____.
Project management activity: project planning includes identifying project tasks and estimating completion times and costs.
Software Project management involves a wide range of duties, such as task scheduling, project planning, determining the product's scope, cost estimation in several currencies, etc.
The project's needs, the idea behind it, measurable objectives, results, and deliverables, as well as the actions that can and cannot be taken to ensure its success, are all included in the project's scope.
A project manager creates the project roadmap during the project planning phase of project management, which also includes the work breakdown structure, project constraints, project scope, and risk analysis.
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Suppose a business earned a positive accounting profit, but a negative economic profit, then
A.
the firm will remain in business as long as its cash flow is sufficient.
B.
the firm will not be affected as long as accounting profit remains positive.
D.
it will be very unlikely for the firm to remain in business in the long run.
Option D is correct. It is highly unlikely that the company will continue to operate profit in the long term.
Earnings are one of the most commonly observed financial metrics when evaluating a company's financial health. Monetary profit or income derived from a business or investment activity in excess of all costs, taxes, and other charges. Simply put, profit is revenue minus costs. Business profit and accounting profit are two types of profit. Economic profit refers to sales minus the opportunity cost of all inputs. Book profit, on the other hand, represents the company's total revenue, including explicit expenses. Profit is a financial measure that indicates a company's financial profit or earnings from its business or investment activities.
Economic profit is the money you make after considering both explicit and implicit costs. Book profit is a company's net profit or sales minus expenses. Economic profit can be determined by subtracting the total cost from the total return or income of a business or investment.
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The substitution effect of a change in the price of bananas refers to the way in which a change in the Group of answer choices relative price for bananas changes demand for them price of bananas affects the ability to buy them price of a substitute affects the demand for bananas price of a substitute affects the quantity demanded of bananas the relative price of bananas changes the quantity demanded of bananas
The substitution effect of a change in the price of bananas refers to the way in which a change in the relative price of bananas changes the quantity demanded of bananas.
The substitution effect is the decline in sales of a product that results from customers switching to less expensive substitutes when the price of the product increases. Although there are numerous possible reasons why a product loses market share, the substitution impact is only a reflection of thriftiness. A brand's price increase may cause some customers to choose a less expensive substitute. Many consumers will eat more chicken if beef costs rise.
The substitution effect is the decline in sales of a product that results from customers switching to less expensive substitutes when the price of the product increases.
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What is the first month in which HBM Corporation's cumulative donation total exceeds the Gades Foundations' cumulative total
In the SIXTH (6TH) MONTH, the cumulative donations of the HBM Corporation first exceeded those of the Gades Foundations.
Each frequency from a frequency distribution table is added to the total of its predecessors to determine the cumulative frequency. Since all frequencies will have previously been added to the prior total, the final result will always be equal to the sum of all observations. It is employed to demonstrate how data summation changes over time (updated every time a new number is added to the sequence).
Gades:
f₁(x) = [(x - 1) * 100] + 250
f₁(x) = [100x - 100] + 250
f₁(x) = 100x + 150
HBM:
f₂(x) = 64 * 1.75ˣ⁻¹
Now, f₁(x) < f₂(x) when HBM surpasses Gades
When x equals 6, f₁(x) < f₂(x)
Consequently, the response is 6 months.
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Generally speaking, business-to-business sales teams are better at providing a convenient experience for their customers than sales teams who sell directly to consumers. T/F
Generally speaking, business-to-business sales teams are better at providing a convenient experience for their customers than sales teams who sell directly to consumers. This statement is false.
Business-to-business sales is just that, sales from one business entity to another, and therefore, requires persuasive communication and strong negotiation skills. However, mastering business-to-business sale is much more than just selling. Due to the complex scope and scale of the business-to-business model, salespeople must achieve a thorough understanding of a prospect’s needs, so they can adopt a consultative role.
A sales team is a group of people that market a company's products or services. They produce their own leads to contact potential clients and contribute to the growth of their firm. The size of a sales group is determined by the company's demands, however most teams consist of comparable jobs.
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Can I ask why my rental application was denied?
Yes, you can, however in the state, unless the transaction was for credit purposes, they are not required to tell you.
What is credit?An deal between a borrower and their lender constitutes credit, generally speaking. The term "credit" can also refer to someone or something's creditworthiness or credit score. In addition to reducing costs or increasing revenue, a credit may also raise liabilities or decrease assets.
What is a credit score?A credit score definition. A fico score is a statistical measurement based on credit history that assesses a consumer's creditworthiness. Credit scores are used by lenders to determine the likelihood that a borrower will pay back their debts.
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A firm has a cost of equity of 13%, a cost of preferred of 11%, an after-tax cost of debt of 5.2% and a tax rate of 35%. Given this, which one of the following will increase the firm's weighted average cost of capital? a. Redeeming shares of common share ob. Increasing the firm's tax rate Oc. Increasing the firm's beta
Increasing the firm's tax rate and Increasing the firm's beta will help in increasing the firm's weighted average cost of capital.
What is WACC?The weighted average cost of capital (WACC) is calculated by taking the weighted average of the cost of equity, cost of debt, and cost of preferred. The weights are determined by the proportion of each type of financing in the firm's capital structure.
To calculate the WACC, we first need to determine the weights for each type of financing.
Assuming that the firm's capital structure is made up of 60% equity, 10% preferred, and 30% debt, the weights would be:
Equity: 60%
Preferred: 10%
Debt: 30%
Now we can calculate the WACC using the following formula:
WACC = (Equity weight x Cost of equity) + (Preferred weight x Cost of preferred) + (Debt weight x After-tax cost of debt)
WACC = (0.60 x 13%) + (0.10 x 11%) + (0.30 x 5.2%)
WACC = 7.8%
To answer the question, we need to see which option will increase this WACC.
a. Redeeming shares of common share - This would decrease the equity weight in the capital structure, which would decrease the overall weight of the cost of equity in the WACC calculation. Therefore, redeeming shares of common shares would not increase the WACC.
b. Increasing the firm's tax rate -
This would increase the after-tax cost of debt, which would increase the overall weight of the after-tax cost of debt in the WACC calculation. Therefore, increasing the firm's tax rate would increase the WACC.
c. Increasing the firm's beta -
Beta measures a stock's volatility in relation to the market. An increase in beta would increase the perceived risk of the stock and therefore increase the cost of equity. This would increase the overall weight of the cost of equity in the WACC calculation. Therefore, increasing the firm's beta would increase the WACC.
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Which of the following is NOT a characteristic of a successful incentive pay plan?
a. complex and comprehensive rules
b. simplicity
c. consistency with the organization's existing goals
d. clear and realistic goals
e. regular communication with employees about the incentive plan
Option (a), A good incentive pay plan DOES NOT include complicated and extensive restrictions.
What qualities make an incentive program effective?For an incentive program to be effective, it must be both compelling and realistically attainable to keep participants motivated. According to general best practices, the aim should be set at the average success level, with 20% over that serving as a stretch goal having potential for earnings growth.
Systems of incentive payments may include what?Employees' pay is not always limited to their set salary. The corporation reserves the right to offer various individuals or groups bonuses to improve it. Examples are the seniority bonus, activity bonus, Macron bonus, and bonus for attendance.
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which trade organization is responsible for 90% of the worlds trade ?
The EU
ASEAN
The WTO
NAFTA
Answer: The WTO
Explanation:
Wheat germ Health food reported the following information Proceeds from issuance of notes payable $13,057 Additions to plant and equipment 5,379 Proceeds from owners 30,957 Proceeds from sales of plant and equipment 1,986 Payments of debt 80,323 Calculate the net cash flow from (a) financing and (b) investing activities for Wheat germ
The net cash flow from financing activities for Wheat Germ is -$36,309 and the net cash flow from investing activities is -$3,393
Net cash flow from financing activities is the difference between the cash inflows and outflows from financing activities. In this case, Wheat Germ Health Food has reported proceeds from the issuance of notes payable, proceeds from owners, and payments of debt.
Net cash flow from financing activities = Proceeds from issuance of notes payable + Proceeds from owners - Payments of debt
Net cash flow from financing activities = $13,057 + $30,957 - $80,323 = $(-36,309)
Net cash flow from investing activities = Proceeds from sales of plant and equipment - Additions to plant and equipment
Net cash flow from investing activities = $1,986 - $5,379 = $(-3,393)
So the net cash flow from financing activities for Wheat Germ is -$36,309 and the net cash flow from investing activities is -$3,393
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A commercial property has a depreciable basis of $2,225,000. Using the straight-line method, what is the allowable annual depreciation for the property
A commercial real estate has a depreciable base of $2,225,000. Using the straight-line technique, the permissible annual amortization for the building is 57051.28.
In accounting, depreciation refers to two facets of the same concept: initially, the actual decrease in fair value of an asset, like the decline in value of industrial machinery every year as it is used and wears, and second, the allocation of a original cost of the asset to periods in which the investments are used in accounting statements. Thus, depreciation is the drop in asset value as well as the mechanism used to redistribute, or "write down," the cost of a physical commodity throughout its usable life period. Long-term assets are depreciated by businesses for tax and accounting purposes. The drop in asset value affects the financial statement of a firm or corporation, as well as the method of depreciation.
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During a listing presentation a seller asked a salesperson to: give an opinion of the list price, not disclose the seller's pending divorce, contact the seller at least weekly and give an opinion of the validity of the title. Which of the following should the salesperson NOT do?
1 Give an opinion of the list price.
2 Suggest improvements to increase value.
3 Contact them at least weekly.
4 Give an opinion of the validity of the title.
The salesperson during the listing of presentation should do all except give them an opinion on the validity of the title.
Which of the following should the salesperson NOT do?Opinion regarding the validity of the title is a legal matter as the validity is determined by the advocate through legal jurisprudence and the salesperson should not have any opinion on this. A salesperson is an individua who is responsible for the sale of the product launched by any firm.
he should know all the details of the product like its use, benefits, cost and the why the product is better than other products available in the market.
He also has to report the firm about the number of sales he has done within a week, within a month and within a year. His salary totally depends on the number of sales he has done. He should also possess the knowledge about the target audience to whom he is going to sell the product.
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What do you think are the advantages of service business to the community
Answer:
Furthermore, service-based businesses are at an advantage because they can grow into other service offerings. Another critical advantage of service businesses is that they are less susceptible to economic downturns, which can be very common for retail and manufacturing companies.Service industries are an important part of society for a variety of reasons, including: Delivering essential services to the public: Often, service industries provide essential services to the public, such as healthcare, transportation and education.