Estimating warranty expenses at 2%, when past history suggests they have experienced 5%, results in an overstatement of expenses and an understatement of liabilities.A. True
B. False

Answers

Answer 1

Answer: option B: False

Explanation:

Liabilities and Expenses will both be understated

Answer 2

Answer:

False

Explanation:

Warranty accruals will be accounted for when incurred through the following entries,

Debit Warranty expense

Credit Warranty accrual

Using the history as a basis for accrual estimating the  warranty expenses at 2% instead of 5% would result in an understatement of the two accounts stated above.

These are the expense and accrual accounts. As such the answer is false


Related Questions

The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018.

a. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 9, 2018. An elementary school student buys the chocolate bar on December 24. -------- 2018 GDP (Included/Excluded)
b. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2018. Athleticus imports the pair of sneakers into the United States on May 18, 2018. -------- 2018 GDP (Included/Excluded)
c. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 25, 2018. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) -------- 2018 GDP (Included/Excluded)
d. Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 14, 2018. It sells the hamburger to a customer that same day.
-------- 2018 GDP (Included/Excluded)
e. An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019. -------- 2018 GDP (Included/Excluded)

Answers

Answer:

a= Included

b= Excluded

c= Included

d= Included

e= Excluded

Explanation:

a=  The product (Chocolate was produced and sold in same year i-e, 2018)

b=  Goods produced by companies having manufacturing plants in foreign countries doesn't count in the company's home country's GDP. Refer to the definition which says clearly that production of final goods within a country.

c=  Yes, as they are produced and if the house was also sold in the same year than only the house would have been counted in the GDP. Because we can't count same thing twice.

d=  As the final product was produced and sold in same year, it would be counted.

e=  No GDP as definition implies includes only final goods, tax returns doesn't count in GDP.

Comly Communications issues a $600,000, 10%, 20-year mortgage note on January 1. The terms provide for annual installment payments of $69,932, exclusive of real estate taxes and insurance. After the first installment payment, the principal balance is:________

a. 530,068.
b. $600,000.
c. $590,068.
d. $565,034

Answers

Answer:

The correct answer is C

Explanation:

The amount would be:

Amount = Issued Amount × Interest rate

= $600,000 × 10%

= $60,000

So, the interest would be $60,000, this amount to be paid on year end.

But the installment payment is of $69,932

Balance amount = $69,932 - $60,000

= $9,932

The first installment is of amount $60,000. So, the principal balance would be:

Principal balance = Amount - Balance amount

= $600,000 - $9,932

= $590,068

The fact that there is a criminal investigation pending against Johnson and Johnson suggests that regulators feel that the company is not meeting its obligations at _________ level of corporate responsibility.


A) a discretionary

B) a legal

C) an economic

Answers

Answer: B. A legal

Explanation: at a legal level of corporate responsibility, businesses are obligated to obey the law. It is the most important level of corporate social responsibility as described by Archie Carroll in the “Pyramid of Corporate Social Responsibility” in 1991. It indicates how companies are meant conduct their business in the marketplace in areas bordering competition, employment, health and safety, tax regulation etc.

20. Which of the following best describes the utility of the "roof" in the quality function deployment (QFD) matrix? A. The roof relates the customer attributes (CA) to the engineering characteristics (EC). B. The roof compares engineering characteristics (EC), which enables the study of any trade-offs among the EC. C. The roof provides the relative importance of the customer attributes (CA). D. The roof provides a competitive evaluation of the engineering characteristics (EC).

Answers

Answer:

The answer is B. The roof compares engineering characteristics (EC), which enables the study of any trade-offs among the EC.

Explanation:

Misk Co. purchased the following securities during 2018 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the purposes of reselling in the near future. II. U.S. Treasury bonds that Misk intends and is able to hold to maturity. III. An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?a. I and II onlyb. I and III onlyc. III onlyd. None of the above

Answers

Answer:

C. III only

Explanation:

Option III states An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?

The choice of this option alone is based on the reasoning that Available for Sale (AFS) Securities are usually presented based on their fair values. As such an increase in investment will be needed when the Fair value exceeds is more than the cost of the securities.

The other effect of the transaction of Misk Co is that it will lead to an increase in other comprehensive income.

Final answer:

Securities purchased by Misk Co. are classified based on their intent and ability to sell. Debt securities held for quick turnover are trading securities, Treasury bonds held until maturity are held-to-maturity securities, while a stock investment planned for long-term holding but not until maturity is classified as available-for-sale securities. Hence, 'III. An investment in a stock that Misk does not intend to sell in the near future is classified as available-for-sale securities.

Explanation:

The securities purchased by Misk Co. can be classified into held-to-maturity securities, trading securities, and available-for-sale securities based on their intent and ability to sell.

I. Debt securities bought and held for the purposes of reselling in the near future. These are classified as trading securities because they are bought with the intention of reselling them in the near future to earn profit from price changes.

II. U.S. Treasury bonds that Misk intends and is able to hold to maturity. These are deemed as held-to-maturity securities because the investor intends to and is capable of holding these until their maturity date.

III. An investment in a stock that Misk does not intend to sell in the near future. These are termed available-for-sale securities because they are neither intended to be sold in the near term (like trading securities) nor held until maturity (as with held-to-maturity securities). They can be sold if necessary, but that is not the primary intention.

Therefore, based on the above classification, the answer to the question, 'Which of the above securities purchased by Misk should be classified as available-for-sale securities?' is (c.) III only.

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A bond that pays interest forever and has no maturity date is a perpetual bbond, also called a perpetuity or a consol. In what respect is a perpetual bond similar to 1) a no-growth common stock and 2) a share of preferred stock?

Answers

Answer: A perpetual bond is similar to a no growth stock and a share of preferred stock as they all derive their values from a series of cash inflows.

Explanation: A perpetual bond is a bond with no maturity date. Issuers pay COUPONS on them forever. This represents the cash inflows.

In the same vein, both a no-growth stock and share of preferred stock derive their values from a series of cash inflows called DIVIDENDS.

Final answer:

A perpetual bond is similar to no-growth common stock and preferred stock because they provide consistent returns without growth prospects; their valuation also reflects a constant yield. For both types of stocks and perpetual bonds, present value calculations consider these consistent payment streams.

Explanation:

A perpetual bond, also known as a perpetuity or consol, is a bond that pays interest forever without a maturity date. This financial instrument is similar to 1) a no-growth common stock because neither the perpetual bond nor the no-growth stock will increase in value from growth; they both provide a consistent stream of income indefinitely. 2) A share of preferred stock often has a fixed dividend, which is similar to the fixed interest payment of a perpetual bond, also known as coupon payments.

Moreover, the valuation of a perpetual bond can be described using the formula V = 1/r, assuming the rate of return (r) is constant. This formula highlights the similarity between perpetual bonds and certain stocks with constant payments. In the case of no-growth common stocks, the expectancy of dividends to remain the same reinforces their resemblance to a consol's fixed interest payments. Preferred stock comparisons arise from the nature of preferred dividends, which, like consol payments, are typically fixed and paid out prior to any common stock dividends.

You are planning your retirement and you come to the conclusion that you need to have saved $1000000million in 30 years. You can invest into an retirement account that guarantees you a 12% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?

Answers

Answer:

Annual deposit= $4,143.66

Explanation:

Giving the following information:

You need to have saved $1,000,000 in 30 years. You can invest in a retirement account that guarantees you a 12% annual return.

To calculate the annual deposit needed to achieve the objective, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,000,000*0.12)/ [(1.12^30)-1]= $4,143.66

The cash price of this machine was $54,500. Related expenditures included: sales tax $2,050, shipping costs $100, insurance during shipping $110, installation and testing costs $80, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Whispering Winds estimates that the useful life of the machine is 5 years with a $4,100 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.

Answers

Answer:

Under striaght line the depreciation wil be of 10,548 dollar per year.

Explanation:

the accouting will enter the asset as the sum of all necessary cost to aquire it and leave it ready for use:

price       54,500

taxes         2,050

shipping       100

insurance      110

installation    80    

total        56,840‬

depreciation per year:

(cost - salvage value ) / useful life

(56,840 - 4,100) / 5 = 10.548‬

Common-size statements: Multiple Choice
Reveal changes in the relative importance of each financial statement item to a base amount.
Do not emphasize the relative importance of each item.
Compare financial statements over time.
Show the dollar amount of change for financial statement items.
Reveal patterns in data across successive periods.

Answers

Answer:

Reveal changes in the relative importance of each financial statement item to a base amount.

Explanation:

In the common-size statements, the items would be displayed in the percentage form that is based on the base value rather than the absolute values.  

The preparation of this statement is to do the proper analyses of each item with period to period of the similar company so that proper decisions should be taken. In addition, it would also create its importance with respect to the item mentioned in the financial statement

Esthelt, an automobile manufacturing company, has a shortage of engineers who are capable of operating computer-controlled machinery used for the production of various critical car parts. Although Esthelt has created job vacancies for this position, production has slowed down drastically due to the shortage of engineers. Due to the urgent requirement for production to gain pace, the company is looking for somebody with the necessary _____ so that he or she would not require training on Computer Numerical Control. Group of answer choices
a. human skills
b. planning skills
c. technical skills
d. conceptual skills

Answers

Answer:

c. technical skills

Explanation:

Technical skills -

It refers to the knowledge or the information necessary to perform a particular task , is referred to as the technical skill .

The knowledge of scientific activities , mathematics , technology , mechanical information , is important to be learn technical skills  .

Hence , from the given scenario of the question,

The  correct option is c. technical skills .

A company issues $500,000 of 6%, 10-year bonds dated January 1, 2017 that mature on December 31, 2026. The bonds pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records:________

Answers

Answer:

cash 500,000 debit

 bonds payable 500,000 credit

Explanation:

as the bond are sold at par the present value of the coupon payment and maturity discounted will give the same value as the face value of the bond:

Proof:

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 15,000.000

time 20

rate 0.03

[tex]15000 \times \frac{1-(1+0.03)^{-20} }{0.03} = PV\\[/tex]

PV $223,162.1229

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity   500,000.00

time   20.00

rate  0.03

[tex]\frac{500000}{(1 + 0.03)^{20} } = PV[/tex]  

PV   276,837.88

PV c $223,162.1229

PV m  $276,837.8771

Total $500,000.0000

Which of the four external processes in the consumer’s culture do you think have been the most important to the success of Dove’s Campaign for Real Beauty? Why?

Answers

Answer and explanation:

Dove's campaign for "Real Beauty" used the values, personality and lifestyle features to drive its advertisements to success. Dove achieved that purpose promoting the idea that there is no set definition of beauty and spreading the point of view that women are beautiful on their own.

Dove tore down the stereotype of conventional beauty by targeting its products to women of different ages, races, sizes, and social classes which helped to broaden the company's market segment since most women identified themselves with Dove's advertisements.

Final answer:

The success of Dove's Campaign for Real Beauty can largely be attributed to the external consumer cultural processes of socialization or learning and need recognition, as the campaign addressed a relevant social issue and effectively recognized the needs of its audience.

Explanation:

The four external processes in the consumer's culture that have been key to the success of Dove's Campaign for Real Beauty are socialization or learning, need recognition, information search, and purchase decision. Of these, I believe that socialization or learning an need recognition have been most important. The campaign targeted a social issue, promoting self-esteem and rejecting unrealistic beauty standards, thus fostering socialization among its audience. Additionally, the campaign effectively created need recognition by highlighting that many women deal with low self-esteem and body dissatisfaction, positioning Dove as a brand that understands and addresses these needs.

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One characteristic of Internet recruiting is:_________ Select one: a. Screens out job "browsers" b. Produces a wider applicant pool c. More expensive than newspaper advertising d. Delays applicant responses

Answers

Answer:

The correct answer is letter "B": Produces a wider applicant pool.

Explanation:

Nowadays most job positions are offered online. It is easier for companies to publish their openings on a web page and wait for applicants to massively submit their resumes. This process serves as a screening of the recruiting process since the most prospective individuals can be selected and all those whose profile does not match with what the company is looking for can be discarded.

Final answer:

Internet recruiting is characterized by its ability to produce a wider applicant pool, making job postings accessible to a global audience and increasing candidate diversity.

Explanation:

One characteristic of Internet recruiting is that it produces a wider applicant pool. Unlike traditional methods such as newspaper advertising, the internet makes it possible for job postings to reach a global audience, thereby increasing the number and diversity of applicants. Additionally, platforms like LinkedIn facilitate networking and make it easier for job seekers to find and apply for jobs, thus broadening the pool of candidates from which employers can select. Online recruiting provides access to extensive job market information, allows for faster communication, and makes it easier for employers to find suitable candidates, potentially reducing the time and costs associated with the hiring process.

In many universities, graduate students are employed to teach introductory undergraduate courses, even though the full professors at these universities have more experience and could potentially teach these courses better. Which of the following best explains why universities choose to hire graduate students instead of full professors to teach their introductory courses?A. The opportunity cost of teaching an introductory course is higher for graduate students than for full professors.B. The opportunity cost of teaching an introductory course is higher for full professors than for graduate students.C. Graduate students are cheaper.D. Introductory classes are the best place for graduate students to build their teaching skills.

Answers

Answer:

The correct answer is letter "A": The opportunity cost of teaching an introductory course is higher for graduate students than for full professors.

Explanation:

Opportunity cost represents the return of the choice taken compared to the return of the option left behind. For a university professor, the opportunity cost of giving an undergraduate class is lower than the opportunity cost that reflects teaching the undergraduate class to graduate students. This is because graduate students are starting to obtain experience but professors have it already.

Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima, whom Manuel has wanted to date for a long time, asks him to a concert. Manuel would prefer to go to the concert with Poornima and forgo the movie, but he doesn't want to waste the $10 he spent on the movie ticket.

From the perspective of an economist, if Manuel decides to go to the movie, what has he just done?

1. Incorrectly allowed a sunk cost to influence his decision
2. Made an optimal choice
3. Correctly ignored a sunk cost

Answers

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

Final answer:

From an economist's view, Manuel should focus on the marginal costs and benefits of current and future options, rather than the sunk cost of the movie ticket.

Explanation:

From the perspective of an economist, if Manuel chooses to attend the movie instead of going to the concert with Poornima, he is allowing a sunk cost to improperly influence his decision. The $10 he spent on the movie ticket is a sunk cost, which means it has already been incurred and cannot be recovered. His decision should be based on the comparative benefits of the current options he has: either the experience of watching the movie or the enjoyment and potential relationship benefits of going to the concert. Since he prefers to go on the date with Poornima, going to the movie would not be an optimal choice. The economist's advice would be to ignore the sunk cost of the movie ticket and attend the concert, as that would provide greater utility to Manuel.

If the print media is taken over by the electronic media, thereby causing employees in the print media industry to be permanently laid off, ________ unemployment would increase.
Group of answer choices:
O FrictionalO CyclicalO StructuralO Seasonal

Answers

Answer:

Structural

Explanation:

Structural unemployment occurs as a result of a mismatch between the skills of unemployed labour and the skills demanded for by the jobs available. It usually occurs as a result of technological change.

Frictional unemployment occurs when when Labour is moving from one job to another.

Cyclical unemployment is when employment level changes with the business cycle. When there's a downturn in the economy, unemployment rises and falls when there's a boom.

Seasonal unemployment is when employment level falls or rises during certain seasons.

I hope my answer helps you

Final answer:

Structural unemployment would increase if print media is replaced by electronic media, leading to permanent layoffs in the print industry due to fundamental industry changes.

Explanation:

In the given scenario, if print media is taken over by the electronic media and employees of the print media industry are permanently laid off, this would cause an increase in structural unemployment. Structural unemployment occurs when an industry undergoes fundamental changes forcing workers out of work because their skills no longer match available jobs.

Structural changes can include technological changes, introduction of automation, outsourcing, advances in efficiency or shifts in consumer demand. In this scenario, print media is taken over by electronic media, which suggests a fundamental shift in the media industry, thus leading to a structural unemployment situation where print media employees would need retraining and adjustment time to adapt to the new changes.

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When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.a.market-penetrationb.new-market segmentc.geographical-expansiond.niche identificatione.

Answers

Answer: (B) New market segment

Explanation:

 The new market segment strategy is one of the type business strategy that helps in increase the growth of an organization by developing the various types of market segments with some unique characteristics and features for the products and the services.

The main objective of the new market segment strategy is that it helps in variation in the marketing process, products and in the distribution process.

According to the given question, the Starbucks is introduced the Tazo tea in their menu and the main aim of the company is to bring the new customer. Therefore, The Starbucks is using the new market segment strategy.

Therefore, Option (B) is correct answer.      

A marketing manager targeting Generation Y should be aware that this group is turned off by:A) the "soft sell".B) overt branding practices.C) cool events.D) online buzz.E) unconventional sports.

Answers

Answer:

B) overt branding practices

Explanation:

Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.

Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.

On top of that ., They value the type of  advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.

Governments often use a sales tax to raise tax rev- enue, which is the tax per unit times the quantity sold. All else the same, will a specific tax raise more tax revenue if the demand curve is inelastic or elas- tic at the original price?

Answers

Answer:

Yas tax revenue depend on elasticity of demand curve.

Explanation:

first of all we need to understand that inelastic demand curve means in which increase or decreases of price don't change consumption pattern  of consumer, however elastic demand meant in which increases or decreases price effect consumption behavior, this depend whether commodity or good is necessity  or luxurious good. so if demand is inelastic government can impose and earn more revenue from that good on other hand to impose tax on elastic commodities government cannot earn profit and there is less margin.  

Calculate​ (a) MAD and​ (b) MSE for the following forecast versus actual sales​ figures: a. Forecast 100 110 120 130 b. Actual 95 108 123 130 ​a) MADequals nothing ​(round your response to one decimal​ place).

Answers

Answer:

MAD = 2.5

MSE = 9.5

Explanation:

MAD and MSE are 2 of the 3 the approaches to calculate forecasting errors.

MAD formula and solution is provided in the picture attached, with table 1 mentioned on it.

Step by Step Calculation of MAD:

Calculate the Forecast Error by subtracting Forecast from Actual Sales.Sum all the forecast errors.Divide the sum with the number (n) of periods. MSE formula and solution is provided in the picture attached, with table 2 mentioned on it.

Step by Step calculation of MSE:

Calculate the Forecast Error by subtracting Forecast from Actual Sales.Square all forecast errors and sum those squared values.Divide the sum with the number (n) of periods.

An international student goes to work for a Brazilian MNE in Brazil where he has been studying. He is a Answers: A. parent-country national (PCN) B. host-country national (HCN) C. third-country national (TCN) D. not enough information

Answers

Answer:

c. third-country national (TCN)

Explanation:

Third-country national (TCN) -

It refers to the migration process , where the person migrates to any foreign country , and tries to apply for visa of the particular company , somewhere he or she has not originated , is referred to as the third - country national (TCN) .

Hence , from the scenario of the question,

An international students goes to study and work in Brazil , which is not his native country , is referred to as the third - country national ( TCN ) .

The existence of ending Work In Process Inventory necessitates the use of the 5minusstep process costing procedure. true or false

Answers

Answer:

The statement is: True.

Explanation:

The Work In Progress (WIP) Inventory represents the sources needed during the production of a good. While calculating costs for those sources it is necessary to follow the 5-steps of process costing which are the following:

1)  Determine the flow of units generated.

2) Adjust the inventory to calculate the equivalent units.

3) Identify the total cost.

4) Calculate the average cost per equivalent unit.

5) Record these costs to finished units and Work in Process units.

Which of the following statements is true concerning stock splits? a.The total number of shares outstanding does not change after the stock split. b.Each shareholder will own the same total par amount of stock before and after the split. c.Stock splits require journal entries to be recorded. d.None of these choices are correct.

Answers

Answer:

d.None of these choices are correct.

Explanation:

The stock split is the way to increase the outstanding number of shares.  

Take an example

The current shares are 50,000 and the stock split ratio is 2 for 1 share

So, now the new shares are  

= 50,000 × 2

= 100,000 shares

The first statement is false as it changes the outstanding shares after the stock split.  

The second statement is also incorrect because the par amount is also changed

And, the third statement is also incorrect because no journal entry is required for the stock split

A landlord is renting out an apartment and has three prospective tenants. The first tenant is willing to pay $1200/month, the second tenant is willing to pay $3000/month, and the third tenant is willing to pay $2000/month. Each potential tenant knows the valuations of the other tenants. Of the following methods of renting the apartment, which would generate the greatest revenue?
a. A sealed first-price auction
b. A sealed second-price (Vickrey) auction
c. A fixed price of $1900/month
d. A fixed price of $2200/month

Answers

Answer:

d. A fixed price of $2200/month.

Explanation:

A landlord is an owner of the house or property which is rented to a person called Tenant on lease or rent. The landlord in the question is renting an apartment. He has 3 Potential Tenants who are willing to rent his property. The greatest revenue will be generated if the apartment is rent out to the second tenant who is willing to pay $3000 per month. The revenue of the landlord will maximize if he uses option D to rent out his apartment. A fixed price of $2200 will generate greatest revenue.

The method that would generate the greatest revenue for the landlord is a sealed first-price auction, which could yield a revenue slightly below $3000/month.

The question asks which method of renting an apartment would generate the greatest revenue for a landlord with three prospective tenants with different valuations. The options are: a sealed first-price auction, a sealed second-price (Vickrey) auction, a fixed price of $1900/month, and a fixed price of $2200/month.

In a sealed first-price auction, each tenant would bid according to their valuation, and the highest bidder would win at the price they bid. Here, the second tenant would likely win by bidding slightly above $2000 (the next highest valuation), generating a revenue close to $3000/month for the landlord.

In a sealed second-price (Vickrey) auction, the highest bidder wins but pays the second-highest bid. Since the tenants know each other's valuations, the second tenant might bid their true valuation, $3000, and win at the third tenant's bid of $2000/month.

A fixed price of $1900/month would result in the second tenant renting the apartment, generating less revenue than the potential $2000 in the Vickrey auction. A fixed price of $2200/month would be above two tenant's valuations, and likely result in no transaction as none would be willing to rent at that price.

After generating financial statements for your client, Doug, you list each line item on the income statement as apercentage of total income and each item on the balance sheet as a percentage of total assets. Which comparative financial statement tool are you utilizing?
a.Monte Carlo Analysis.
b.Horizontal Analysis.
c.Vertical Analysis.
d.Sensitivity Analysis.

Answers

Answer:

c.Vertical Analysis.

Explanation:

Vertical analysis is a proportional analysis used in financial statements. Each line item is represented as a percentage of another item on the financial statement.

On income statement items are usually represented as a percentage of income or gross sales.

On the balance sheet line items are represented as a percentage of total assets.

Answer:

The correct answer is letter "C": Vertical Analysis.

Explanation:

Under Vertical Analysis each line item is viewed as a percentage of a larger number in a company's financial statement. On the Balance Sheet, each line item in the Asset section is presented as a percentage of total assets. In the Liability and equity section, each line item is presented as a percentage of total liabilities and equity which equals total assets based on the accounting equation.

list the various elements of fraud within the organization. give several examples of each

Answers

Answer:

MotiveRationalizationOpportunity

Explanation:

Fraud is a point of concern in the business world and creates a trust deficit. There are 3 elements of fraud and one may identify each of them in every fraud situation.

Motive: Each person has an individual needs and desires which they want to be fulfilled but some people can't make it up because of the current role they have, so they go for the second or illegal option to solve their problems. Take an example of a cashier, he wants to have a car and a house but for that, he has to work 24/7 till 20 years continuously so which is difficult to do, so he chooses to steal the owner's money.Rationalization: It gets hard when some people think that whatever they are doing is not wrong although it is. For example, a stockbroker may think that it's not illegal to deceive an investor however it is. Opportunity: The 2 elements mentioned above can't be controlled by an organization for they are personal and an individual's choices, but this is in the control of the organization and it occurs when an organization loses control. So whenever an employee finds an opportunity to fraud he will. For example, an employee in the customer services centre works hard when the boss is looking but watches tv shows when he is not around.

Arthur crafts miniature chocolate dollhouses which he sells for $23 each. Arthur has calculated the breakeven level of revenues for his business at $1,460 of sales. The dollhouses have a variable cost of $8 to produce per unit.What are Arthur's fixed costs?

Answers

Answer:

Arthur's fixed costs are $952

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed costs/(Selling price per unit-Variable cost per unit)

Fixed costs = Break-even point in units x (Selling price per unit-Variable cost per unit)

In Arthur, Break-even point in units = $1,460/$23

Fixed costs = $1,460/$23 x ($23 - $8) = $952

The fixed cost for Arthur's crafts miniature chocolate dollhouses is $952.

What is the break-even point?

The break-even point is regarded as the level at which production costs tend to be equal to the revenues for the product.

What is the computation of the break-even point?

[tex]BE=\frac{FC}{SP-VC}[/tex]

Now, the fixed cost would be calculated as:

[tex]BE*(SP-VC)[/tex]

Therefore, the fixed cost would be:

[tex]\frac{1460}{23} * (23-8)\\=952[/tex]

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If a taxpayer is filing H/H and qualifies for the Retirement Savings Contribution Credit, what percent of the contribution would qualify if the AGI is $29,000?

Answers

Answer:

10%

Explanation:

Adjusted gross income (AGI) is the amount arrived at after some specific allowable deductions have been deducted from the total gross income.

The Retirement Savings Contributions Credit now called the Savers Credit provides a special tax break to those who are saving for retirement and in the low-income and moderate-income taxpayers category.

The amount to deduct depends on the AGI and how regularly the individual files tax returns. The rate of tax credit which is not refundable is 10%, 20% or 50% of the first $2,000 the parson contributed to a retirement account during the year.

The table for 2019 AGI shows that a single filler with the income range of $20,751-$32,000 can have a 10% savers credit.

Since the tax payer is a single filler, he is therefore qualified for 10% of his AGI of $29,000 which $2,900.

Your venture has net income of $600,000 taxable income of $1,000,000 operating profit of $1,200,000 total financial capital including both debt and equity of $9,000,000 a tax rate of 40%, and a WACC of 10%. What is your venture’s EVA?

Answers

Answer:

EVA = -$180,000

Explanation:

given data

net income = $600,000

taxable income of $1,000,000

operating profit = $1,200,000

total financial capital = $9,000,000

tax rate = 40%

WACC = 10%

solution

we get here EVA that is express as

EVA = NOPAT - Invested Capital × WACC   ..................1

and here

NOPAT = EBIT × ( 1 - Tax Rate )  .........2

put here value

NOPAT = operating profit × (1 - Tax Rate)  

NOPAT =$1,200,000 × (1 - 0.40)  

NOPAT =$720,000

so put in equation 1 we get

EVA = NOPAT - Invested Capital × WACC

EVA = $720,000 - $9,000,000 × 10%

EVA = -$180,000

Sean, a new graduate at a telecommunications firm, faces the following problem his first day at the firm: What is the average rate of return for a project that costs $200,000 to implement and has an average annual profit of $30,000

Answers

Answer:

The average return of the project is 15%

paybakc 6.67 years

Explanation:

Sean should divide the anual profit over the project cost ot get the average return

[tex]\frac{income}{investment} = $rate of return[/tex]

30,000 / 200,000 = 0.15

0.15 = 15%

Sean may also want to know the payback period:

so we do investment / income:

200,000 / 30,000 = 6.67

The firm will recover the cost of 200,000 after 6.67 years

Final answer:

The average rate of return for Sean's telecommunications firm project, which costs $200,000 and has an average annual profit of $30,000, is 15%.

Explanation:

To calculate the average rate of return for a project, we divide the average annual profit by the initial investment cost and then multiply by 100 to get a percentage. For Sean's telecommunications firm project, the average rate of return is calculated as follows:

Determine the average annual profit: $30,000.Determine the initial cost of the project: $200,000.Calculate the average rate of return: ($30,000 / $200,000) × 100 = 15%.

Therefore, the average rate of return for the project is 15%.

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