Classifying Liability-Related Accounts into Balance Sheet or Income Statement Indicate the proper financial statement classification (balance sheet or income statement) for each of the following liability-related accounts. Account Financial Statement a. Gain on Bond Retirement Answer Income statement b. Discount on Bonds Payable Answer Balance sheet c. Mortgage Notes Payable Answer Balance sheet d. Bonds Payable Answer Balance sheet e. Bond Interest Expense Answer Income statement f. Bond Interest Payable (due next period) Answer Balance sheet g. Premium on Bonds Payable Answer Balance sheet h. Loss on Bond Retirement Answer Income statement Check
Answer:
Income Statement:
Gains and expenses for the period go to the income statement so the accounts that go here include:
a. Gain on Bond Retirement
e. Bond Interest Expense
h. Loss on Bond Retirement
Balance sheet:
All liabilities go to the Balance sheet.
b. Discount on Bonds Payable
c. Mortgage Notes Payable
d. Bonds Payable
f. Bond Interest Payable (due next period)
g. Premium on Bonds Payable
To urban-dwelling, educated tech-savvy consumers, when they use Zipcar, car-sharing service, instead of owning a car, they save money while reducing their carbon footprint. What is effective about this position statement?
Answer: It addresses all five key elements of an effective position statement.
Explanation:
In this scenario, the most effective thing about this position statement is that it addresses all the five key elements of an effective position statement.
The target market is identified, the category of customers which are the prospective customers is identified as well. The company's differentiators as well as the mission and vision is also in effect.
Identify the simplifying assumptions usually made in net present value analysis.
a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
a
c
Explanation:
net present value analysis is a capital budgeting method
It is used to analyse the profitability of an investment
15. Ilang lalawigan ang bumubuo sa Gitnang Mindanao?
Answer:
6 region any meron SA mindanao
You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx of updated technology to its manufacturing plants, service industry and the medical field in the last three years. This change boosted the growth of the country’s productivity by 75%, yet you see that wages have been very slow to respond to this growth. As you begin to analyze the natural unemployment rate for this time frame, what do you most likely discover?
Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.
Explanation:
The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.
Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.
The cost of preferred stock
Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.
Characteristics Debt Equity
Dividends are fixed
Usually has no specified maturity date
Consider the case of Tamin Enterprises:
At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $11 per share. If the investors pay $97.95 per share for their investment, then Tamin's cost of preferred stock (rounded to four decimal places) will be:_____.
Answer:
Dividends are fixed ⇒ Debt
Preferred dividends are fixed much like the interest payments made on debt which makes this a characteristic of debt.
Usually have no specified maturity date ⇒ Equity
Equity does not have an expiration or maturity date and preferred shares share this same characteristic.
Cost of preferred stock.
The value of a Preferred stock is calculated by the formula:
Price = Dividend / Cost of preferred stock
97.95 = 11 / Cp
97.95 * Cp = 11
Cp = 11/ 97.95
= 11.23%
A rate-making method designed to adjust a premium to reflect the actual loss experience of an insured during the policy period is known as:_______.
a. retrospective rating,
b. experience rating,
c. premium discount,
d. all of the above
Answer:
a. retrospective rating
Explanation:
Retrospective Rating can be regarded as a rating plan which is able to give
adjustments to it's premium, this rating can be subjected to a certain minimum as well as maximum, the rating is able to reflect or state the current loss experience of the insured. This rating give combination of actual losses as well as graded expenses so that produce a premium that reflects the current experience of the insured accurately can be produced. It should be noted that retrospective rating is a rate-making method designed to adjust a premium to reflect the actual loss experience of an insured during the policy period
The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $5,400,000 $30,000,000 Commercial Division 6,250,000 25,000,000 Internet Division 1,800,000 12,000,000 a. Compute the return on investment for each division.
Answer:
Retail Division = 18 %
Commercial Division = 25 %
Internet Division = 15 %
Explanation:
Return on Investment = Net Income / Assets employed x 100
therefore,
Retail Division = $5,400,000 / $30,000,000 x 100
= 18 %
Commercial Division = $6,250,000 / $25,000,000 x 100
= 25 %
Internet Division = $1,800,000 / $12,000,000 x 100
= 15 %
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost of goods sold? Group of answer choices $7 million overstated $7 million understated no effect none of the above
Answer:
$7million understated
Explanation:
Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.
Joe is currently selling 873 hamburgers per month at $5 per hamburger for total monthly sales of $4,365. The restaurant manager feels that a $1,000 monthly advertising budget would increase monthly sales by $3,000 to a total of 1,473 hamburgers. Should Joe add advertising
Answer:
Yes
Explanation:
Yes, as long as Joe is able to recover the money that he has spent on advertising and still increase his profit, then he should advertise. In this scenario, he wants to spend a fixed $1000 monthly on ads. If these ads generate an increase monthly sales of $3,000 as expected, then this means that Joe's restaurant will increase their total profits by $2,000 after recovering what they spent on the ads. This is what ads are for.
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable Net Sales WalCo $ 1,625 $ 2,572 $ 303,427 TarMart 5,216 5,744 48,878 CostGet 439 475 49,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet
Answer:
1. Accounts Receivable Turnover
Walco 144.59 Times
Tarmart 8.9 Times
Costget 109.33 Times
Average collection period
Walco 2.52 Days
Tarmart 41.01 Days
Costget 3.34 Days
2. Walco
Explanation:
1. Calculation to determine the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet
ACCOUNTS RECEIVABLE TURNOVER
Using this formula
Accounts Receivable Turnover=Net Sales/Average Accounts receivable
Walco=$ 303,427/($ 1,625+2,572)/2
Walco=$ 303,427/$2,098.5
Walco =144.59 Times
Tarmart= 48,878/(5,216 + 5744)/2
Tarmart= 48,878/5480
Tarmart= 8.9 Times
Costget= 49,963/(439 + 475)/2
Costget= 49,963/457
Costget= 109.33 Times
Therefore the receivables turnover ratio is :
Walco 144.59 Times
Tarmart 8.9 Times
Costget 109.33 Times
AVERAGE COLLECTION PERIOD
Using this formula
Average collection period=Average Collection Period
365 /Receivables turnover ratio
Let plug in the formula
Walco= 365.00/144.59 Walco=2.52 Days
Tarmart= 365.00/8.9
Tarmart= 41.01 Days
Costget= 365.00/109.33
Costget=3.34 Days
2. Based on the above calculation the company that appears MOST EFFICIENT in collecting cash from sales is WALCO 144.59 Times.
process which is followed to monitor the movement of stock in a company
Answer:
it known as stock control
The following data for a production department relate to two accounting periods:
Activity(machine-hours)....... 17,000 18,500
Department costs................... $246,500 $251,750
The best estimate of fixed department cost is closest to:________.
Answer:
Fixed costs= $187,000
Explanation:
Giving the following information:
Activity(machine-hours): 17,000 18,500
Department costs: $246,500 $251,750
To calculate the fixed and variable cost, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (251,750 - 246,500) / (18,500 - 17,000)
Variable cost per unit= $3.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 251,750 - (3.5*18,500)
Fixed costs= $187,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 246,500 - (3.5*17,000)
Fixed costs= $187,000
Merchandise inventory: A. Is a long-term asset. B. Is a current asset. C. Includes supplies. D. Is classified with investments on the balance sheet. E. Must be sold within one month.
Merchandise Inventory is classified into the financial statements of a company as a current asset.
What is a current asset?The kind of asset whose benefits are fully utilized by the company within a year and do not last for more than a year in the company's financial statements are known as current assets.
Hence, option B states about current assets.
Learn more about current assets here:
https://brainly.com/question/14287268
#SPJ1
Narcissistic leaders tend to have which of the following traits that are positively associated with both leader emergence and effectiveness?
A. Agreeableness and creativity.
B. Extraversion and openness to experience.
C. Openness to experience and agreeableness.
D. Agreeableness and extraversion.
E. Creativity and extraversion.
Oliver's long-term care policy covers only services in a nursing facility and pays nothing for services provided at home or in the community. What kind of LTC policy does Oliver own?
Question options:
a. facility-challenged
b. substandard
c. tier 1
d. noncomprehensive
Answer:
d. noncomprehensive
Explanation:
Oliver has a noncomprehensive long term care(LTC). A non comprehensive long term care is policy that restricts services to the ones provided at a nursing facility, and so Oliver pays for the benefits of only the services of a nursing facility . It is different from a comprehensive long term care where services cover and can be provided at an adult day care, home, assisted living facilities, or at nursing facilities.
Oliver's policy which does not cover nursing facilities provided at home or in the community is known as a Non-comprehensive health insurance policy. So, the correct option is D.
A non-comprehensive policy is a type of policy that covers only expenses related to the health of the customer that are provided in the hospital in-house premises only.
It is to be noted that there are no nursing facility expenses reimbursed or paid to the policy holder in case of health issues faced, if any. There are several other types of policies which reimburse such expenses.In a non-comprehensive policy, the policy holder is entitled to receive health benefits of only core hospitalization and any other expenses like bedding, medications, out-house nursing facilities, etc.The premium to be paid on the non-comprehensive policy is less compared to a comprehensive policy as the benefits to be availed are also less and so the drill.Hence, the correct option is D that the non-comprehensive policy does not cover nursing facilities taken in-house or at the community.
To know more about health insurance policies, click the link below
https://brainly.com/question/8486170
By participating in _____, sellers can automate the fulfillment function of business-to-business (B2B) e-commerce.
Answer:
Buyer-side marketplaces
Explanation:
Contrary to popular opinion, CEOs of major U.S. companies come from a wide variety of private universities and state universities, not just a handful of well-publicized MBA programs. What does this fact tell you about sources of power and organizational politics
Answer: Power is earned
Explanation:
The fact that so many influential CEOs come from such a wide array of universities shows that they had to work to get to where they are today and were not simply handed positions because of the university they came from.
It shows that if one wants to succeed in business, their alma mater does not matter. They could be from an Ivy league college or from a state college in Mississippi, what matters is their determination to work hard and gain a good track record that will take them all the way to the top.
Suppose your client wishes to purchase an annuity that pays $50,000 each year for 5 years, with the first payment 4 years from now. At an interest rate of 10%, how much would the client need to invest now
Answer:
The amount the client would need to invest now is $182,143.58.
Explanation:
This can be calculated using the following two steps:
Step 1: Calculate the present value (PV) of the amount invested 4 years from now
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV4 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV4 = Present value of the amount invested 4 years from now = ?
P = Annual payment = $50,000
r = Interest rate = 10%, or 0.10
n = number of years the annual payment will be received = 5
Substitute the values into equation (1), we have:
PV4 = $50,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)
PV4 = $189,539.34
Step 2: Calculate the amount the client would need to invest now
This can be calculated using the present value formula as follows:
PV = PV4 / (1 + r)^n …………………………. (2)
Where:
PV = Present value or the amount the client would need to invest now = ?
PV4 = Present value of the amount invested 4 years from now = $189,539.34
r = Interest rate = 10%, or 0.10
n = number of years of PV4 from now = 4
Substituting the relevant values into equation one, we have:
PV = $189,539.34 / (1 + 0.01)^4
PV = $182,143.58
Therefore, the amount the client would need to invest now is $182,143.58.
Global Tek plans on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to 2.5 percent per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 17.4 percent
Answer:
2.02
Explanation:
year 1 dividend = 0.2 x 1.15 = 0.23
year 2 dividend = 0.2 x (1.15^2)= 0.26
year 3 dividend = 0.2 x (1.15^3) = 0.30
year 4 dividend = 0.2 x (1.15^4) = 0.35
divdend value in the second stage
0.35 x 1.025 / (0.174 - 0.025) = 2.41
Determine the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
year 1 dividend = 0.2 x 1.15 = 0.23
year 2 dividend = 0.2 x (1.15^2)= 0.26
year 3 dividend = 0.2 x (1.15^3) = 0.30
year 4 dividend = 0.2 x (1.15^4) = 0.35 + 2.41
i = 17.4
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $10,800. What is the maturity value of the note on March 1? (Use 360 days a year.)
a) $11,016
b) $10,800
c) $11,088
d) $11,232
e) $10,944
Answer: $11232
Explanation:
The maturity value of the note on March 1 will be calculated as thus:
Face value = $10800
Interest on note = $10800 × 12% × 120/360 = $432
Maturity value will now be:
= Face value + Interest on note
= $10800 + $432
= $11232
Rizio Co. purchases a machine for $9,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $192 discount. Transportation costs of $217 were paid by Rizio. The machine required mounting and power connections costing $664. Another $313 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $245 worth of repairs were made.
Required:
Compute the cost recorded for this machine.
Answer:
$10,642
Explanation:
Computation to determine the cost recorded for this machine.
Amount included in the cost of equipment
Invoice price of machine $9,600
Less: Discount (9600 x 2%) ($192)
Net purchase price $9,408
($9,600-$192)
Freight charges $217
Mounting and power connections $664
Assembly $313
Materials used in adjusting $40
Total cost to be recorded $10,642
Therefore the cost recorded for this machine is $10,642
A mutual fund sold $58 million of assets during the year and purchased $64 million in assets. If the average daily assets of the fund were $216 million, what was the fund turnover
Answer: 26.85%
Explanation:
Based on the information given in the question, the fund turnover will be calculated thus:
Funds sold = $58 Million
Average Daily Assets = $216 Million
Fund Turnover = Fund Sold / Average Daily Assets
Fund Turnover = $58 Million / $216 million
= 26.85%
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion. b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
Answer:
a-1. Amount of rise in government expenditure required = $6.25 billion
a-2. Tax multiplier = -3
b. The combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Explanation:
a-1. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion.
Spending multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 4
Amount of rise in government expenditure required = Change in aggregate demand / Spending multiplier = $25 / 4 = $6.25 billion
a-2. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion.
Tax multiplier = - MPC / (1 - MPC) = - 0.75 / (1 - 0.75) = -3
Amount of tax cut required = Change in aggregate demand / Tax multiplier = $25 / (-3) = $8.33 billion
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
The amount is the amount of the balanced budget, which has a multiplier of one. This indicates that spending and taxes need be increased by $25 billion each to boost GDP by $125 billion. Therefore, the combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Which of the following expressions correctly describes economic profits? A. Marginal revenuesexplicit costs. B. Total revenuesexplicit costs. C. Total revenuesimplicit costsexplicit costs. D. Marginal revenuesimplicit costsexplicit costs.
Answer:
C. Total revenuesimplicit costsexplicit costs.
Explanation:
The formula to compute the economic profits is shown below:
The economic profit is
= Total revenue - (explicit cost + implicit cost)
or
= Total revenue - explicit cost - implicit cost
So based on the above formula, the option c is correct
And, the rest of the options are incorrect
A firm is currently unlevered with 1,000,000 shares each price at $50. The firm is debating of changing its capital structure by taking $20 million in debt that matures in 4 years and repurchasing shares. It will pay down this debt by $5 million every year. If the tax rate is 21% and cost of debt is 7.5%, what is the firm value of the restructured firm
Answer:
its would be 50,000 dont really know
Promotional expenses at the maturity stage of the product life cycle are often designed to Multiple Choice maintain market share. create a sense of nostalgia. attract more price-conscious consumers. thwart the growing number of competitors that have entered the market. convince those who have abandoned the brand to try it again.
Answer:
maintain market share.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Maturity is the stage in which product experiences a peak in sales growth and then eventually slows as the product reaches more customers, and lastly price competition is fierce.
Promotional expenses that are incurred at the maturity stage of the product life cycle are often designed by marketers to maintain market share. This is usually achieved through further product differentiation and finding new buyers (consumers).
what is the primary benefit people receive in exchange for paying premiums to an insurance company
Answer:
The insurance company will pay for covered expenses
With premium rates from insurance companies, the overall protection is much more guaranteed than a regular, and perhaps the insurance will cover more than regular insurance.
A benefit that people receive in exchange for paying premiums is that insurance company B.will pay for covered expenses.
What is insurance?The insurance can be regarded as a process of insuring one's property or life in case of danger or any future problems.
The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
Therefore, option B is correct because, when people pay their premiums, the company will be available to covered expenses.
Learn more about insurance here,
https://brainly.com/question/16267577
#SPJ2
Acme Company is considering investing in a new machine that costs $126,594 and that has a useful life of 12 years with no salvage value. The machine will generate $19,500 annually in net cash inflows. The internal rate of return on the investment is: (Round your intermediate calculations to 3-decimals and your internal rate of return calculations to the nearest whole percent.)
Answer: 11%
Explanation:
The internal rate of return is the rate that will equate the cash inflows with the cost of investment.
It is therefore the discount rate used to find the present value of an annuity because the inflows are stable and are therefore annuities.
Present value of annuity = Annuity * Present value factor of annuity, 12 years, %?
126,594 = 19,500 * Present value of annuity factor
Present value of annuity factor = 126,594 / 19,500
= 6.492
Go to a present value of annuity factor table and find the interest rate that intersects with 12 years to give a factor of 6.492:
Rate is 11%
