Answer:
•Variable service department costs are charged to operating divisions based on the budgeted rate and actual activity.
• Fixed service department costs are based entirely on budgeted data.
Explanation:
Out of the statements in the question, the correct statements are:
Fixed service department costs are based entirely on budgeted data and
Variable service department costs are charged to operating divisions based on the budgeted rate and actual activity.
It should be noted that fixed cost doesn't varies with production level but variable cost varies with production level.
A company issued rights to its existing shareholders without consideration. The rights allowed the recipients to purchase unissued common stock for an amount in excess of par value. When the rights are issued, which of the following accounts will be increased?
1. Common stock
2. Additional paid-in capital
a. Yes
Yes
b. Yes
No
c. No
No
d. No
Yes
Answer:
Option C.
1. No
2. No
Explanation:
The rights are unissued common stock yet hence no double entry would be passed. The double entry will only be passed when the rights are exercised.
The double entry when the rights are exercised would be:
Dr Bank A/c XX
Cr Common stock XX
Cr Additional paid-in capital XX
What term is used to describe spread-out or low-density development beyond the edge of services and employment
Answer:
Sprawl
Explanation:
Sprawl can be defined as the situation where an urban settlement expands into nearby country area at the edge of a city .
Factors that lead to sprawl are population and income growth, low cost of living , road network , unlimited use of auto, etc.
Urban sprawl is characterized by uncoordinated , haphazard,and poorly planned urban development. If not properly managed , these could lead to poor environmental conditions like air pollution ,ground level smog and car traffic.
A ________ is a formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date) to the lender.
Answer:
Corporate bond.
Explanation:
A corporate bond is a formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date) to the lender. It is basically, the debts issued by a business firm to bondholders, in order to raise capital.
Hence, bondholders such as creditors or investors do not have a claim to ownership in the business firm and as such are not eligible to receive dividends from the corporate bond issuer.
A home mortgage loan closed on July 1 for $765,000 at 5.5% interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the principal amount be after the monthly payment was made August 1?
Answer:
$763,808.48
Explanation:
The computation of the principal amount after considering the monthly payment is shown below:
But before that first we have to determine the annual interest i.e
= $765,000 × 5.5%
= $42075
Now the one month interest rate which is
= $42,075 ÷ 12 months
= $3506.25
And, the given interest rate per month is $4,697.77
So, now the principal amount is
= $765,000 - ($4,697.77 - $3506.25)
= $765,000 - $1,191.52
= $763,808.48
Deltra was willing to purchase a dozen cookies for $60 that Deirdre was willing to sell for anything more than $32. If they agreed on a price of $36, how much total value was created in this exchange?
Answer:
$28
Explanation:
The computation of the total value that would be created in the exchange is shown below;
The Deltra surplus is
= Purchase value - agreed price
= $60 - $36
= $24
And, the Deirdre surplus is
= Agreed price - willing to sell
= $36 - $32
= $4
Now the total value created is
= Deltra surplus + Deirdre surplus
= $24 + $4
= $28
Based on the information given the total value that was created in this exchange is $28.
First step is tom calculate Deltra value
Deltra value=$60-$36
Deltra value=$24
Second step is to calculate Deirdre value
Deirdre value=$36-$32
Deirdre value=$4
Third step is to calculate the total value
Total value=$24-$4
Total value=$28
Inconclusion the total value that was created in this exchange is $28.
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Which of the following statements is always true? A. Workers being paid based on commission...
Answer:
The statement that is always true is the b. Workers being paid on commission get paid based solely on their performance.
Explanation:
That is because the pay on commission is proportional to the results: the more you sell the more you earn. So, the earnings are reflection of the results that the employee reaches, i.e. his/her performance. Take into account that option c. "workers being paid on commission are stressed over the amount of earnings they will have" is true only some times, because if the employee has a comfortable finance position he/she will not necessarily be under stress.
The future value of a loan is the A. compounded value of the interest payments. B. value of the profits the firm will earn from investing the loan. C. present value plus the interest rate. D. amount of money the firm pays.
Answer:
A. compounded value of the interest payments.
Explanation:
let's assume you take out a loan of $50,000 at an interest rate of 5% annually for 2 years, the future value of the loan :
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$50,000(1.05)^2 = $55,125
We can see that the future value of the loan was determined by (1 + r)^n which is the compounded value of interest payments
Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered
Answer: Whether consent was voluntary
Explanation:
From the question, we are informed that Sondra thinks the new business contract she signed with her business partner is valid. We are further told that both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented.
The essential element of a valid contract has Sondra not yet considered is whether consent was voluntary. This is important as they je must not be forced to sign a contract.
Which one of the following statements is most likely to be correct? A) The use of forward contract increases the short-run exposure to exchange rate risk. B) An exposure to exchange rate risk can be the risk that a positive net present value (NPV) project could turn into a negative NPV project because of changes in the exchange rate between two countries. C) Investing U.S. dollars when a project is launched and using the investment proceeds to pay the invoice is the primary way of reducing exposure to exchange rate risk. D) A firm can record a profit on its income statement from a foreign subsidiary even when that subsidiary has no profit thanks to exchange rate risk. E) A U.S. importer typically eliminates exposure to exchange rate risk by exchanging funds on the spot market at the time an order is placed with a foreign supplier.
Answer:
D
Explanation:
The correct answer is option D.
A firm can record a profit on its income statement from a foreign subsidiary even when that subsidiary has no profit thanks to exchanging rate risk.
Foreign subsidiary
A foreign subsidiary is a company operating overseas that is part of a larger corporation with headquarters in another country, often known as a parent company or a holding company.
What is a foreign subsidiary strategy?
Setting up a foreign subsidiary establishes a legal entity in another country. Legal entities can market their products and services to the local population. They can also import and export goods.
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A seller agrees to sell the buyer the home theater center. What form or paragraph in the contract should the agent use?
The full question reads;
A seller of real estate property wishes to sell to a buyer for an additional price the home theater television. Which form or paragraph in the contract should be used?
Answer:
The Non-Realty Items Addendum
Explanation:
Considering the circumstances of such a contract, the seller is allowed to use the Non-Realty Addendum. A term or paragraph in a contract that applies to items that are not included in the sale of the home.
In this case, the item not included in the sale of the home was the home theater television.
"Which of the following statements are TRUE? I Accrued interest is added to the buyer's confirmation II Accrued interest is added to the seller's confirmation III Accrued interest is included in the buyer's cost basis IV Accrued interest is included in the seller's sale proceeds"
Answer: I. Accrued interest is added to the buyer's confirmation
II. Accrued interest is added to the seller's confirmation
Explanation:
Accrued interest is the amount of interest incurred on a loan at a particular date which has not been paid out yet. To the lender, it's a form of revenue and to the borrower, it's an expense.
Therefore, an accrued interest is added to the buyer's confirmation and also added to the seller's confirmation.
The people who participate in job analysis should include, at a minimum, the employee and the ________.
Answer: immediate supervisor
Explanation:
Job analysis is used by organizations to show what a job entails. Job analysis is done after the job design and when the worker that will be in charge of that particular aspect of the job has been trained.
The people who participate in job analysis should include, at a minimum, the employee and the immediate supervisor.
An appraiser used the cost approach to estimate a property’s value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
Answer:
$174,000
Explanation:
Calculation for the estimated cost of improvements
Using this formula
Estimated cost= Property’s value -Site value + Total depreciation
Let plug in the formula
Estimated cost=$220,000-$50,000+$4,000
Estimated cost=$174,000
Therefore the Estimated cost of improvements will be $174,000
Recently Anheuser-Bush, an American Corporation, and InBev, a Belgian Corporation, finalized a multibillion dollar merger to form the largest beer company in the world. Anheuser-Bush and InBev, prior to the merger, each sold beer in many countries around the world, including both Belgium and the United States. This merger is best described as a:
Answer:
Horizontal merger
Explanation:
An horizontal merger is a consolidation or merging of companies that are the same industry. Merging of companies in the same industry helps the companies to have a greater market share of the industry.
As seen in the question below, both companies are beer companies and are consolidating or merging to form the largest beer company in the world. This wold give them a global coverage as opposed to the few countries they were restricted to before the merger.
Cheers.
ERP systems can provide vital cross-functional information on business performance to managers in a very timely manner. This describes the key business benefit of:
Answer:
decision support.
Explanation:
This describes the key business benefit of decision support. These are systems used to support a manager's determinations, judgments, and courses of actions within an organization or business. By providing up to date and valuable information, it provides managers with a way of validating which of the options that are available would be the best course of action in order to provide the organization with the best overall benefits.
From the economic system’s point of view, the role of marketing intermediaries is to transform the ________ made by producers into the ________ wanted by consumers.
Answer:
Assortment of products; assortment of products.
Explanation:
From the economic system’s point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by consumers.
In marketing, the assortment of products typically refers to the collection (number and types) of goods and services that a producer makes readily available to the consumer of such goods and services at a particular time. The marketing intermediaries consist of retailers, wholesalers, agents, franchises, and distributors or dealers in the supply of goods and services to the customers.
The project team is ordering a server after discovering that it was missed in the original scope discovery of the project. There is an urgency to have it delivered quickly to minimize schedule slippage, but the project team does not want to spend money from dwindling reserves to pay for the additional shipping charges. What is the most accurate description of this situation?
Complete Question:
The project team is ordering a server after discovering that it was missed in the original scope discovery of the project. There is an urgency to have it delivered quickly to minimize schedule slippage, but the project team does not want to spend money from dwindling reserves to pay for the additional shipping charges. Which of the following is the most accurate description of this situation?
A. There is an attribute issue since fast shipping and low cost shipping are both characteristics associated with shipping.
B. There is a budget issue since there isn't extra money for shipping.
C. There is a mutual exclusivity issue since shipping fast and low cost do not correlate to each other.
D. There is a time issue since the server needs to arrive quickly
Answer:
C. There is a mutual exclusivity issue since shipping fast and low cost do not correlate to each other
Explanation:
The most accurate description of this situation is that there is a mutual exclusivity issue since shipping fast and low cost do not correlate to each other. If two events are mutually exclusive, they cannot occur concurrently.
Mutually exclusivity describes the characteristics of events, which makes it impossible for them to occur together (concurrently) or at the same time. This ultimately implies that the events or outcome of the sampling is disjointed.
In this scenario, there is an urgency to have the server delivered quickly (shipping fast) to minimize schedule slippage, but the project team does not want to spend money from dwindling reserves to pay for the additional shipping charges which is considered to be a high cost.
Y3K, Inc., has sales of $4,400, total assets of $2,985, and a debt-equity ratio of 1.20. If its return on equity is 16 percent, what its net income?
Answer:
$217.668
Explanation:
The computation of net income is shown below:-
ROE = Profit Margin × Total Asset Turnover × Equity Multiplier (Assets ÷ Equity)
ROE = (Profit Margin) × (Sales ÷ Total Assets) × (1 + Debt-Equity ratio)
16% = Profit margin × ($4,400 ÷ $2,985) × ( 1 + 1.20)
16% = Profit margin × 1.47 × 2.20
16% = Profit margin × 3.234
Profit margin = 16% ÷ 3.234
= 0.04947
Now as we know that
Profit margin = Net income ÷ Sales
0.04947 = net income ÷ $4,400
net income is
= $4,400 × 0.04947
= $217.668
A capital projects fund for a new city courthouse recorded a receivable of $300,000 for a state grant and a $450,000 transfer from the general fund. What amount should be reported as revenue by the capital projects fund
Answer:
$300,000
Explanation:
The grant of $300,000 happens not to have any restrictions mentioned alongside it in the question and as such will be declared or reported as revenue as an unrestricted grant. This is acceptable by the Governmental Accounting Standards Board, GASB.
Cheers
If a certain market were a monopoly, then the monopolist would maximize its profit by producing 4,000 units of output. If, instead, that market were a duopoly, then which of the following outcomes would be most likely if the duopolists successfully collude?
a. Each duopolist produces 4,000 units of output.
b. Each duopolist produces 1,500 units of output.
c. One duopolist produces 2,400 units of output and the other produces 1,600 units of output.
d. One duopolist produces 3,000 units of output and the other produces 1,500 units of output.
Answer:
A
Explanation:
A monopoly is when there are two firms operating in an industry.
A duopoly is when there are two firms operating in an industry. When the two firms collude, they become a monopoly.
If a monopoly maximises profit by producing 4000 units, the colluding duopolist would also maximise profit by producing 4000 units
The University of Dover and Dover University are bitter cross town rivals. They compete in everything from sports to academics. The schools, because of shrinking enrollment, make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action would be considered:______.a) a horizontal restraint violating the Sherman Act.b) a vertical restraint violating the Sherman Act.c) a tying agreement in violation of the Clayton Act.d) price discrimination in violation of the Robinson-Patman Act.
Answer:
a) a horizontal restraint violating the Sherman Act
Explanation:
The Sherman Act of 1890 prohibited those activities that are restricted to the interstate and the competition arises in the market place
Here in the given situation, it is mentioned that the due to enrollment shrinking, it made the agreement for all the incoming students to give the free tuition for one semester
So this represents the horizontal restraint that consist of agreement within the same type of business with the motive of decreasing the competition
Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called: .
Complete Question:
Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called
A. parameters.
B. the balanced scorecard method.
C. BPM.
D. KPIs.
E. benchmarks.
Answer:
D. KPIs.
Explanation:
Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called KPIs.
KPIs is simply an acronym for key performance indicators.
Compare and contrast the theories of Maslow, Alderfer, McClelland, and Herzberg. Then, choose ONE theory and apply it to your personal life.
Answer:
mcclelland herzberg
Explanation:
if the cross price elasticity between goods b and a is -2 and the price of good b increases by 5 percent the quantity demanded of good a will
Answer:
lead to a fall in quantity demanded by 10%
Explanation:
The cross price elasticity of demand measures the effect of the percentage in price of one good on the quantity demanded of another good.
Cross price elasticity = percentage change in quantity demanded of good A / percentage change in price of good B
2 = percentage change in quantity demanded of good A / 5%
percentage change in quantity demanded of good A = 10%
Because demand is elastic, the quantity demanded would fall by 10%
Elastic demand means that quantity demanded is sensitive to price changes. A small change in price would lead to a greater change in quantity demanded
Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $176,400. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2019, during its fifth year of service.
1. Record the depreciation expense as of July 1, 2019.
2. Record the sale of the machinery for $45,500 cash.
3. Record the total destruction of the machine in a fire with $25,000 cash insurance settlement.
Answer:
1.Journal 2019 Expense:
Depreciation Expense $12,600 (debit)
Accumulated Depreciation $12,600 (credit)
2.Journal : Cash Sale of $45,500
Cash $45,500 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $17,500 (debit)
Cost : Machine $176,400 (credit)
3.Journal : insurance settlement of $25,000
Cash $25,000 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $38,000 (debit)
Cost : Machine $176,400 (credit)
Explanation:
Depreciation Expense (Straight line) = (Cost - Salvage Value) ÷ Estimated Useful Life
= $176,400 ÷ 7
= $25,200
2015
Depreciation Expense = $25,200
2016
Depreciation Expense = $25,200
2017
Depreciation Expense = $25,200
2018
Depreciation Expense = $25,200
2019
Depreciation Expense = $25,200 × 6/12
= $12,600
Journal 2019 Expense:
Depreciation Expense $12,600 (debit)
Accumulated Depreciation $12,600 (credit)
Journal : Cash Sale of $45,500
Cash $45,500 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $17,500 (debit)
Cost : Machine $176,400 (credit)
Journal : insurance settlement of $25,000
Cash $25,000 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $38,000 (debit)
Cost : Machine $176,400 (credit)
Earnings management is a controversial practice in which corporations ________ or ___________ their earnings to "smooth out" dips and surges and keep investors calm
Answer: overstate; understate
Explanation:
Earnings management is a controversial practice in which corporations overstate or understate their earnings to "smooth out" dips and surges and keep investors calm.
This is a controversial practice because the true reflection of the corporation is not shown and it's an ethical issue in business.
An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,455. If Allowance for Doubtful Accounts has a $1,116 credit balance, the adjustment to record the bad debt expense for the period will require a
Answer: Debit to bad debt expense for $3,339
Explanation:
Given:
uncollectible accounts = $4,455
Allowance for Doubtful Accounts = $1,116 credit balance
Adjustment for Bad debts for the period= Total estimated uncollectible receivable - credit balance in allowance account
= $4,4,55- $1,116
= $3,339
Ans= Debit to bad debt expense for $3,339
The process by which invest on margin accounts are credited or debited to reflect daily trading gains or losses is referred to as the ____ process.
Answer:
marked to market
Explanation:
have a nice day
John completes a life insurance application on Bill and collects the initial premium. A conditional receipt is provided to the applicant. If underwriting approves the application without requiring a medical exam, when will coverage become effective?
Answer:
The date on the receipt
Explanation:
Life insurance is a form of insurance where the insurer or the insurance firm guarantees that death benefit will be paid to the beneficiaries of the life insurance policy holder on his death , while the policy holders pays a stipulated premium in his life time.
At the point of policy delivery , the policy holder is expected to sign a statement of continued good health to ensure that the risks of the insurer is minimized , a duty expected to be enforced by the underwriter. However , if the underwriting approves before requiring for a medical exam , the coverage becomes effective on the date on the receipt.
The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system, appear below: Sales $ 950,000 Variable expenses $ 380,000 Fixed manufacturing expenses $ 362,000 Fixed selling and administrative expenses $ 242,000 In the company's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $217,000 of the fixed manufacturing expenses and $178,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped
Answer:
Net operating profit will decrease by $175,000 if product H58S is dropped.
Explanation:
Sales $950,000
Variable expenses $380,000
Fixed manufacturing expenses $362,000
Fixed selling and administrative expenses $242,000
net loss -$34,000
non-avoidable manufacturing expenses = $362,000 - $217,000 = $145,000
non-avoidable S&A expenses = $242,000 - $178,000 = $64,000
total non-avoidable expenses = $209,000
Net operating profit will decrease by $209,000 - $34,000 = $175,000 if product H58S is dropped. Non-avoidable expenses will have to be allocated to other product lines, therefore, they will reduce the company's operating profit even if this product line is dropped.