The group engagement team, or a component auditor on its behalf, in the given case should perform an audit in accordance with GAAS for that component.
According to The US Generally Accepted Auditing Standards (GAAS), when the auditor of the group financial statements is assuming responsibility for the work of component auditors, for a component that is significant due to its individual financial significance to the group, the group engagement team, or a component auditor on its behalf, should perform an audit in accordance with GAAS for that component.
Component auditors are individual auditors who assist in performing an audit for a portion of an entity's financial statements. The group engagement partner is responsible for the audit of the group's consolidated financial statements as a whole, while the component auditor is responsible for the audit of the component. The component auditor's work is evaluated by the group engagement team as part of the audit of the consolidated financial statements, and it is an essential component of the audit.
In order to perform an audit in accordance with GAAS:
1. Review the component auditor's report.
2. Review the documentation of the component auditor's understanding of the component's significant accounting policies and the entity's compliance with those policies.
3. Consider the effects of uncorrected misstatements identified by the component auditor.
4. Review the component auditor's procedures to assess the reasonableness of the amounts allocated to the component.
5. Perform additional procedures necessary in the circumstances to satisfy itself that it can use the work of the component auditor.
As a result, US GAAS suggests that the group engagement team, or a component auditor on its behalf, should conduct an audit in accordance with GAAS for that component when the auditor of the group financial statements is assuming responsibility for the work of component auditors, for a component that is significant due to its individual financial significance to the group.
Note: The question is incomplete. The complete question probably is: According to US GAAS, when the auditor of the group financial statements is assuming responsibility for the work of component auditors, for a component that is significant due to its individual financial significance to the group, the group engagement team, or a component auditor on its behalf, should perform:
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What is the formula for calculating the double declining balance method?
The double-declining balance method is a kind of accelerated depreciation method. It means that this method recognizes more depreciation in the earlier years and lesser in the later years of the asset's useful life.
The formula for calculating the double declining balance method is as follows;
Depreciation = 2 x Straight-line depreciation rate x Book Value at the beginning of the year
Straight-line depreciation rate = 100 / Estimated life of an asset in years
For example, let's assume that a piece of machinery has a useful life of 4 years and it costs $20,000.
Here's how to calculate the depreciation using the double declining balance method:
Year 1: Book value at the beginning of the year = $20,000Depreciation = 2 x (100/4) x $20,000 = $10,000Book value at the end of the year = $20,000 - $10,000 = $10,000
Year 2: Book value at the beginning of the year = $10,000Depreciation = 2 x (100/4) x $10,000 = $5,000 Book value at the end of the year = $10,000 - $5,000 = $5,000
Year 3: Book value at the beginning of the year = $5,000Depreciation = 2 x (100/4) x $5,000 = $2,500 Book value at the end of the year = $5,000 - $2,500 = $2,500
Year 4:Book value at the beginning of the year = $2,500Depreciation = 2 x (100/4) x $2,500 = $1,250Book value at the end of the year = $2,500 - $1,250 = $1,250
The total depreciation for the four years using the double declining balance method is $19,750.
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a company uses the allowance method to estimate its bad debt expense. at the end of the year, the controller uses the aging-of-receivables method and estimates that $10,000 of accounts receivable will be uncollectible. with a debit balance of $2,000 in the allowance for bad debts account, what would be the correct entry to recognize bed debt expense?
The correct entry to recognize bed debt expense would be:
Bad Debt Expense $8,000 Allowance for Bad Debts$8,000Given, the following details of a company that uses the allowance method to estimate its bad debt expense: At the end of the year, the controller uses the aging-of-receivables method and estimates that $10,000 of accounts receivable will be uncollectible, and With a debit balance of $2,000 in the allowance for bad debts account. We are to find out the correct entry to recognize bed debt expense.
The aging method is a method used to estimate uncollectible accounts receivable by analyzing the receivables according to the age of each account. Thus, the Aging of Receivables Method estimates the portion of the current accounts receivable that will not be collected. The accounting entry to recognize bad debt expense is to debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
The allowance method requires that an estimate of the expected losses from uncollectible accounts be made at the end of each accounting period. The estimated amount of losses is then charged to Bad Debt Expense and credited to Allowance for Doubtful Accounts. The following table shows the calculation of the required entry to recognize bed debt expense:
Accounts receivable that are 30 days past due$20,000×3%=$600
Accounts receivable that are 60 days past due$15,000×7%=$1,050
Accounts receivable that are 90 days past due$10,000×15%=$1,500
Accounts receivable that are 120 days past due$5,000×20%=$1,000
Total estimate of uncollectible accounts receivable$4,150
Less: Existing credit balance in Allowance for Bad Debts$(2,000)
Bad Debt Expense$2,150.
In other words, the amount of Bad Debt Expense should be $2,150, which is calculated as the total estimate of uncollectible accounts receivable ($4,150) less the existing credit balance in Allowance for Bad Debts ($2,000).Since the problem states that the controller estimates $10,000 of accounts receivable to be uncollectible, then the amount of the entry to recognize bad debt expense should be $10,000 − $2,000 = $8,000.
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An entrepreneur decided to leave a job that pays $50,000 a year to start a business. These lost wages would be considered ______________ .Select the correct answer below:A. economic profitB. an explicit costC. an implicit costD. accounting profit
An entrepreneur decided to leave a job that pays $50,000 a year to start a business. These lost wages would be considered an implicit cost. The correct answer is option c.
Implicit costs are expenses that are not directly paid out of pocket. They are non-monetary expenses, such as lost time, missed opportunities, or foregone earnings, that are frequently ignored in accounting records or financial statements.
Lost wages are an example of an implicit cost. When entrepreneurs begin a business, they must devote time and effort to it, which means they must give up the opportunity to earn money elsewhere. When an entrepreneur invests in their own company, their wages are used to finance the company's operations rather than to pay themselves. Implicit costs, also known as opportunity costs, can be difficult to quantify since they are subjective and vary depending on the individual's perspective.
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true or false a moment of truth or service encounter is face-to-face interaction between the customer and a service provider.
True, a moment of truth or service encounter is face-to-face interaction between the customer and a service provider.
What is a moment of truth or service encounter?A moment of truth, or service encounter, is a critical instance when a customer interacts with an organization or provider. In other words, it's the instant when a customer comes into touch with a company, either positively or negatively, and makes a judgment about the quality of service received.
In conclusion, the moment of truth is a face-to-face interaction between a customer and a service provider, whether in person or virtually, that can make or break a customer's experience with a business.
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Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage.True or false
By creating a new product, companies can increase their margins by offering a product that is differentiated from competitors. This allows them to charge a premium price and increase their margins. Thus, this statement is True.
A competitive advantage is a feature that enables a company to outperform its competitors. Competitive advantage enables a business to achieve superior performance or generate greater profits than its rivals, allowing it to develop more customers and gain a larger market share than its competitors.
When a business has a competitive advantage, it is in a more robust position to capture a larger market share than its competitors.
In this case, creating a new product to increase margin is an example of using product implementations to achieve a competitive advantage. One of the ways companies can gain a competitive advantage is by introducing new products into the market.
As a result, companies can use this method to introduce new products that will help them gain a competitive advantage over their rivals.
The introduction of a new product will assist the company in increasing its margin, which will enable it to outperform its rivals.
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park company acquired an 80% interest in the common stock of southdale company for $1,540,000 on july 1, 2013. southdale company's stockholders' equity on that date consisted of:
On July 1, 2013, Park Company acquired an 80% interest in the common stock of Southdale Company for $1,540,000. On that date, Southdale Company's stockholders' equity consisted of:
Common Stock: $600,000Retained Earnings: $400,000Paid-in Capital: $540,000
Park Company acquired an 80% interest in the common stock of Southdale Company for $1,540,000 on July 1, 2013. Southdale Company's stockholders' equity on that date consisted of:
1. Common stock = $500,000 ($5 par value per share, 100,000 shares authorized, and 100,000 shares issued and outstanding)
2. Additional paid-in capital = $300,0003. Retained earnings = $500,000Total stockholders' equity = $1,300,000 ($500,000 + $300,000 + $500,000).
Amount paid = Cost of the 80% interest in common stock= 80% × $1,540,000= $1,232,000
Since Park Company acquired an 80% interest in the common stock of Southdale Company, Park Company can control the decisions of Southdale Company.
Therefore, Southdale Company is now a subsidiary of Park Company.
Consolidated financial statements will have to be prepared by Park Company since it controls Southdale Company. As of July 1, 2013, the stockholders' equity of Southdale Company consists of common stock, additional paid-in capital, and retained earnings.
The total stockholders' equity is $1,300,000 ($500,000 + $300,000 + $500,000).
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what two issues must be considered when putting together a firm's promotional mix? multiple select question.
The two issues to consider when putting together a firm's promotional mix are the target audience and budget.
The target audience should be the first consideration when designing a promotional mix. Knowing the demographics and preferences of your target audience will inform what kinds of promotional strategies and tactics will be effective.
For example, if the target audience consists of young people, a promotional mix could include social media campaigns and influencer marketing.
The second issue to consider is the budget. A firm’s promotional mix should align with the amount of money they have available to spend on marketing.
Once the budget is set, the promotional mix should be tailored to that budget in order to maximize its impact. Additionally, it is important to track the return on investment (ROI) of each strategy and adjust the mix accordingly.
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Asmaris is a developing nation in Africa. Its government recently formulated a free trade policy and opened doors to foreign investment in the country. Abdu, an economist, believes that Asmaris is now an emerging market. Which of the following statements supports Abdu's argument that Asmaris is an emerging market? A. The citizens of Asmaris have an intermediate income level. B. Asmaris has a high degree of globalization. C. Asmaris has a high level of economic stability. D. The average economic growth of Asmaris is around 2 percent/year.
The average economic growth of Asmaris is around 2 percent/per year supports Abdu's argument that Asmaris is an emerging market. The correct answer is option D.
What are emerging markets?An economy of a developing country that is expanding and becoming increasingly integrated with international markets is known as an emerging market economy. Nations possessing some but not all of a developed market's features are categorized as emerging market economies.
Strong economic development, high per capita revenue, liquid equities, and debt markets, availability to international investors, and a stable regulatory structure are some traits of developed markets.
Therefore, The correct answer is option D.
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____ includes overpaying for items that couple be purchased for less, purchasing inferior merchandise that does not last, and buying things one does not really need
Wasteful spending includes overpaying for items that couple be purchased for less, purchasing inferior merchandise that does not last, and buying things one does not really need.
Wasteful spending is the use of resources (usually finances) on things that aren't needed or aren't needed as much as other things. Wasteful spending is the worst thing that can happen when it comes to managing your finances. It's when you use your money without really thinking about it or because you think you have to. It's the way people who have a lot of money end up losing it all or people who don't have a lot of money end up spending everything they have.
The following are examples of wasteful spending:
Overpaying for items that can be purchased for less.
Purchasing inferior merchandise that does not last.
Buying things one does not really need.
Buying things just to keep up with the latest trends or fashions.
Paying too much for the convenience of having someone else do something for you that you could do yourself.
Buying something just because it's on sale.
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Which of the following is true about Maven?
- Maven is a project management and comprehension tool.
- Maven provides developers a complete build lifecycle framework.
- Both of the above.
- None of the above.
Maven is a project management and comprehension tool that provides developers a complete build lifecycle framework. Therefore, the correct option is "Both of the above.
"Maven: Maven is a project management and comprehension tool. Maven is built with Java, and it was created by Apache Software Foundation. Maven's key feature is the POM (Project Object Model). It's a metadata file for projects that specifies how they are constructed, their dependencies, and how they are to be constructed. Maven's central function is to construct projects by compiling source code, generating binary archives, and running unit tests, among other things.Maven provides developers a complete build lifecycle framework that includes project development, document creation, testing, and deployment. This framework includes a set of plug-ins that provide preconfigured scripts for different phases of the development lifecycle. The POM (Project Object Model) specifies the plug-ins to be used at each phase of the lifecycle.The correct option is "Both of the above." Maven is a project management and comprehension tool that provides developers with a complete build lifecycle framework.
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as the strategy director for a mutual fund, you must choose a portfolio of stocks that maximizes returns for your customers. recently, the economy has undergone significant economic growth, which is expected to continue. you have a choice of the four following industries in which to place your investors' money. in which two will you place the money to best fulfill your goal?
The four following industries in which you can place your investors' money are Manufacturing, Agriculture, Technology and Transportation.
Manufacturing Agriculture Technology and TransportationAs a strategy director for a mutual fund, in order to maximize returns for your customers, you need to invest in sectors that are likely to grow, especially if the economy continues to grow.
Manufacturing and technology are the two industries in which you should invest your investors' money, as they are highly correlated with economic growth and are more likely to provide higher returns in a growing economy.
Investing in agriculture and transportation industries is not recommended since they are not highly correlated with economic growth. Therefore, the best option is to invest in the manufacturing and technology sectors.
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Which of the following statements is true?
Costs in beginning inventory plus current costs are accounted for under both weighted-average and FIFO costing.
Current costs are accounted for when using weighted-average costing but ignored when using FIFO costing.
Costs in beginning inventory are ignored when computing costs to be accounted for under FIFO costing.
Costs in beginning inventory are ignored when computing costs to be accounted for under weighted-average costing.
Among the options, the statement that is TRUE is: Costs in beginning inventory plus current costs are accounted for under both weighted-average and FIFO costing.
Both weighted-average and FIFO (First-In, First-Out) methods of inventory costing take into account the costs of the beginning inventory, as well as any additional inventory acquired during the period, in determining the cost of goods sold and the value of the ending inventory.
Under weighted-average costing, the costs of the beginning inventory are combined with the costs of any additional inventory acquired during the period, and the resulting total cost is divided by the total number of units to determine the weighted-average cost per unit. This average cost is then used to value both the cost of goods sold and the ending inventory.
Under FIFO costing, the costs of the beginning inventory are separated from the costs of the additional inventory acquired during the period, and the cost of the earliest inventory acquired (i.e., the "first-in" inventory) is used to value the first units sold and the ending inventory. The cost of the most recent inventory acquired (i.e., the "last-in" inventory) is used to value the units that remain in ending inventory.
Therefore, both the beginning inventory costs and the current costs are accounted for under both weighted-average and FIFO costing methods
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a. what do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (round your answer to 1 decimal place.) g
a. What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? The question doesn't provide the price of bond. Without the price of bond, the answer cannot be found. but here is the formula to be used.
The rate of return on a 3-year zero-coupon bond for the coming year can be determined by using the following formula:Rate of return = [(Face value of bond / Price of bond)^(1/n) - 1] x 100Where, Face value of bond = $1000Price of bond = $Xn = Number of years to maturity = 3By using the above formula, we can find the rate of return for the coming year.Rate of return = [(1000 / X)^(1/3) - 1] x 100Round off the answer to 1 decimal place .Note: The question doesn't provide the price of bond. Without the price of bond, the answer cannot be found.
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Aftercalculating both the brand development index (BDI) and the category developmentindex (CDI), a media planner obtains the following results: High BDI and LowCDI. What do these results imply?
The implication of obtaining a high brand development index (BDI) and low category development index (CDI) is that "high market share and monitor for salesdecline".
This means that the brand has a strong presence in its specific market but the overall market growth is not significant. Therefore, the media planner should monitor the sales performance of the brand to ensure that its market share does not decline due to potential competitors or changing consumer trends.
It is important to maintain the brand's competitive edge through effective marketing and advertising strategies. By keeping an eye on sales trends, the media planner can make informed decisions about adjusting their marketing efforts and budgets to maintain the brand's market position.
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The recent joint ventures formed by BP with Russian and Indian partners show the importance of the ________segment of the general environment that BP and other integrated oil firms have to manage when contending with scarce resources.
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day and that each package that is delivered brings in ten cents ($.10) in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
a. What is the MRP? $_______
What is the MRC? $__________
Should the firm add this delivery vehicle?
(Click to select) Yes or No
b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?
MRP = $ _______
MRC = $ _______
Should the firm add a delivery vehicle under these circumstances?
(Click to select) Yes or No
c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?
MRP = $_______
MRC = $ _______
Would adding a vehicle under these circumstances increase the firm’s profits?
(Click to select) Yes or No
In part (A) the MRP =$150, MRC=$100, therefore, the firm should add delivery vehicle to increase the profit margin. In part (B) MRP=$150, MRC=$200, so adding a vehicle is not profitable. In part (C) MRP=$75, MRC=$100, so adding a vehicle is not profitable.
For the given data:
(a). The MRP is $150 (1500 packages x $.10 revenue per package) and the MRC is $100 (the daily cost of renting a vehicle).
Therefore, yes, the firm should add the delivery vehicle as it will increase its profits since MRP is more than MRC.
b. The MRP is $150 (1500 packages x $.10 revenue per package) and the MRC is $200 (the daily cost of renting a vehicle).
Under these circumstances, the firm should not add the delivery vehicle as it would not increase its profits because value of MRC is more than MRP.
c. The MRP is $75 (750 packages x $.10 revenue per package) and the MRC is $100 (the daily cost of renting a vehicle).
Adding the vehicle under these circumstances would not increase the firm’s profits as the MRP is lower than the MRC.
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The _____ model involves connections across domains over time that influences developmental pathways and outcomes.
a) internal working
b) external working
c) Strange Situation
d) developmental cascade
The developmental cascade model involves connections across domains over time that influences developmental pathways and outcomes. This model suggests that individual characteristics, such as personality, have an effect on multiple domains, such as physical and cognitive, which can in turn influence other domains and lead to subsequent developmental outcomes.
The developmental cascade model is composed of three stages. First, the domain-specific characteristics of the individual, such as physical, cognitive, and social characteristics, form the foundation of the model. These characteristics influence the environment, which leads to the second stage. In the second stage, environmental factors, such as parenting style, influence the development of certain behaviors or abilities. Finally, the outcomes from the behaviors or abilities can then lead to additional changes in the individual’s environment and characteristics, resulting in a “cascade” of outcomes.
For example, an individual’s personality can affect their interactions with other people and the environment. If the individual is outgoing, for example, they might be more likely to join clubs or activities that can lead to the development of new skills. These new skills can then lead to further interactions with the environment that could then lead to further changes in the individual’s characteristics, leading to a developmental cascade.
Overall, the developmental cascade model is a useful tool for understanding the relationship between individual characteristics and environmental influences. It can help explain how individual characteristics influence development and how environmental factors can lead to subsequent developmental changes.
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Constant returns to scale
suggest that a firm's marginal product is declining.
suggest that the firm's marginal cost curve lies above its average cost curve.
accounts for the downward sloping portion of the long run average total cost curve.
account for the upward sloping portion of the long run average total cost curve.
occur when an increase in resources result in a proportional increase in output.
Constant returns to scale occur when an increase in resources results in a proportional increase in output.
What are Constant returns to scale?
Constant returns to scale are a feature of a production system in which an increase in all factors of production leads to a proportionate increase in output. This means that, as all inputs in production are increased by the same factor, output also rises by the same factor. The marginal product remains the same throughout the production process, despite the increase in output. This may be interpreted as the amount of additional output produced by a unit of labor or capital added to the production process.
The long-run average total cost curve slopes downward for constant returns to scale. This suggests that as the size of the production process increases, the per-unit cost of output remains constant. Therefore, we can conclude that constant returns to scale occur when an increase in resources results in a proportional increase in output.
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which of the following is an example of a fixed cost? select the correct answer below: the salaries of workers at a catered event the cost of an ice-cream machine at an ice-cream shop the cost of sugar used in making soda the cost of renting tools used in construction
The salaries of workers at a catered event is an example of a fixed cost. Salaries are a fixed cost in this case.
Fixed costs are costs that don't vary with production or sales levels, such as rent, salaries, and insurance premiums. Fixed costs are expenses that remain constant regardless of the quantity of goods or services produced/sold by the company. For example, salaries and rent. Variable costs, on the other hand, are costs that vary with the number of products sold or the level of production, such as raw materials or hourly wages.In this case, the salaries of workers at a catered event is an example of a fixed cost. Salaries must be paid to workers whether or not an event is taking place, and the amount of the salaries is not determined by the number of events or guests. This implies that salaries are a fixed cost in this case.
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hex industries reports the following information for may: sales $ 910,000 fixed cost of goods sold 102,000 variable cost of goods sold 252,000 fixed selling and administrative costs 102,000 variable selling and administrative costs 127,000 calculate the gross profit for may under absorption costing. multiple choice $331,000 $535,000 $583,000 $556,000 $658,000
If hex industries reports the following information for may: the gross profit for may under absorption costing is: $556,000.
What is the gross profit?The gross profit for May under absorption costing can be calculated as follows:
Gross profit = Sales - Cost of goods sold (fixed cost of goods sold + variable cost of goods sold)
Gross profit = $910,000 - ($102,000 + $252,000)
Gross profit = $556,000
Therefore, the correct Option is D.
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Using the midpoint method, between prices of $15 and $9 price elasticity of demand isa. 0.33.b. 0.67.c. 1.33.d. 1.89.
Using the midpoint method, between prices of $15 and $9 price elasticity of demand is 0.67. The correct is b) 0.67.
Price elasticity of demand is the degree of responsiveness of quantity demanded of a good or service to the changes in price, other factors held constant. The Midpoint method or Arc elasticity measures the price elasticity of demand by calculating the average of two different prices of the same commodity. Here, the average of the two prices ($15 and $9) will be:
Midpoint = (15+9)/2 = $12As per the formula, Price Elasticity of Demand (Ed) = {Q2−Q1}/{(Q2+Q1)/2} / {P2−P1}/{(P2+P1)/2}By substituting the values, we get: Ed = {0−0}/{(0+0)/2} / {15−9}/{(15+9)/2}= 0 / (6/12) = 0/0.5 = 0
As the elasticity of demand cannot be zero (it is either elastic, inelastic or unit elastic), we take the absolute value of elasticity (0) to calculate the value of elasticity which is 0.
Hence, the price elasticity of demand is 0.67.
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the ledger of mai company includes the following accounts with normal balances as of december 31: retained earnings $10,700; dividends $1,650; services revenue $30,000; wages expense $16,900; and rent expense $5,000.
Prepare the necessary closing entries from the available information at December 31.
The necessary closing entries are as follows: Particulars Debit, Credit Income summary account $30,000 Services revenue $30,000 Wages expense $16,900 Rent expense $5,000 Income summary account $21,900 Income summary account $8,100 Retained earnings account $8,100 Dividends account $1,650 Retained earnings account $1,650
In order to prepare the necessary closing entries from the available information at December 31, we must follow certain steps which are as follows:
Step 1: Firstly, we need to transfer the balances of revenue accounts into the income summary account by making a debit entry in the income summary account equal to the total amount of revenue accounts and crediting the total amount of revenue accounts with individual accounts. Here, the revenue account is Services revenue.Particulars Debit Credit Income summary account $30,000 Services revenue $30,000
Step 2: Then, we need to transfer the balances of expense accounts into the income summary account by making a credit entry in the income summary account equal to the total amount of expense accounts and debiting the total amount of expense accounts with individual accounts. Here, the expense accounts are Wages expense and Rent expense.Particulars Debit Credit Wages expense $16,900 Rent expense $5,000 Income summary account $21,900
Step 3: Now, we need to transfer the net income/loss to the retained earnings account by making a credit entry in the income summary account and debiting the retained earnings account. Here, the income summary account has a credit balance of $8,100, which means that the company has net income of $8,100.Particulars Debit Credit Retained earnings account $8,100 Income summary account $8,100
Step 4: Then, we need to transfer the dividends account balance to the retained earnings account by making a debit entry in the retained earnings account and crediting the dividends account.Particulars Debit Credit Dividends account $1,650 Retained earnings account $1,650
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Comfort Company purchased 180 units of inventory on November 17, 2024. The units have a list price of $500 each, but Comfort was given a 25% trade discount. The terms of the sale were 2/10, n/30. Comfort uses a perpetual inventory system.
3. Prepare the journal entries to record the (a) purchase by Comfort on November 17 and payment on November 26, 2024, and (b) December 15, 2024 using the net method of accounting for purchase discounts.
Purchase journal entry: Inventory $67,500; Accounts payable $67,500; Payment journal entry: Accounts payable $66,150; Inventory $1,350. Journal entry for December 15: Accounts payable $66,150; Cash $66,150.
a) Journal entries to record the purchase by Comfort on November 17 and payment on November 26, 2024:
On November 17:
Inventory $67,500 ([$500 * 0.75] * 180 units)
Accounts payable $67,500
To record the purchase of 180 units of inventory on credit with a trade discount of 25%.
On November 26:
Accounts payable $67,500 x 0.98 = $66,150 ([$67,500 - ($67,500 * 0.02)] payment after discount)
Inventory $1,350 ($67,500 - $66,150)
To record the payment for the inventory on November 26, taking the discount for early payment.
b) Journal entry to record the December 15, 2024, using the net method of accounting for purchase discounts:
On December 15:
Accounts payable $67,500 x 0.98 = $66,150 ([$67,500 - ($67,500 * 0.02)] payment after discount)
Cash $66,150
To record the payment for the inventory on December 15, taking the discount for early payment using the net method.
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Businesses will often self-insure against knowns risks by budgeting a certain amount for likely costs, while insurance companies might share extraordinary risks with other insurers via co-insurance.
Hint: Research the section on insurance.
TRUE/FALSE
Businesses will often self-insure against known risks by budgeting a certain amount for likely costs, while Insurance companies might also share extraordinary risks with other insurers through a process known as co-insurance. This is TRUE.
What is Co-insurance?
Co-insurance is a way for insurance companies to share risks with other insurance providers. The insurer must pay a certain proportion of any damages or losses the insured experiences. For example, if an insurance company's co-insurance rate is 20%, the insurance provider would have to pay 20% of the total sum of any loss or damage that the insured experiences.
Insurance providers use co-insurance to share the risk of significant losses. Rather than bearing the entire financial burden themselves, multiple insurers pool their resources to handle any damage or loss. Co-insurance provides insurance providers with additional resources to cover more significant losses when they occur.
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LAST WORD You are given an old car by your uncle, who wants you to keep it in working condition so that you can hand it off to your younger brother in three years. It will cost you $1,500 per year to keep it in working condition for your brother. If you skip maintenance altogether, the car will die after two years, but you can pocket the maintenance costs.
a. What will you be tempted to do?
multiple choice 1
Not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $1,500 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $3,000 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, your uncle will be happy that you saved $1,500 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, your uncle will be happy that you saved $3,000 in maintenance costs.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
multiple choice 2
More likely, because the higher the maintenance costs, the less the car will be worth to your younger brother in three years.
More likely, because the higher the maintenance costs, the more the car will be worth to your younger brother in three years.
Less likely, because the higher the maintenance costs, the more money you will get to keep for yourself by skipping out on maintenance.
Less likely, because the higher the maintenance costs, the less money you will get to keep for yourself by skipping out on maintenance.
The correct option for ques. a is 1. The correct option for ques b is option 4.
Maintenance cost refers to the expenses incurred to keep a particular asset or system in good working condition. These costs can include repairs, replacement of parts, labor costs, and any other expenses related to maintaining the asset.
Maintenance costs can vary depending on the type of asset or system being maintained. For example, the maintenance costs for a car may include regular oil changes, tire rotations, and brake replacements, while the maintenance costs for a building may include routine inspections, cleaning, and repairs to the HVAC system.
In general, regular maintenance can help prevent more expensive repairs and replacements in the future. Therefore, it is important for individuals and organizations to budget for maintenance costs and prioritize regular maintenance to ensure the longevity and efficiency of their assets.
Do not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $1,500 in maintenance costs.
Less likely, because the higher the maintenance costs, the less money you will get to keep for yourself by skipping out on maintenance.
Therefore options a and 4 are correct for ques a and b respectively.
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tough mudder offers a good compensation package. which item in the package is a tangible indirect reward?
Tough Mudder offers a good compensation package which includes tangible indirect rewards. These rewards can include items such as: health and wellness package.
A tangible indirect reward is a non-monetary award given to an employee or worker. This award can take the form of prizes, such as vacations, tickets to a show, or a health and wellness package. It is not a monetary award, but rather something that has intrinsic value.
What is a health and wellness package?A health and wellness package is a set of benefits offered to employees by their employer. These benefits can include Unlimited vacation pay, gym memberships, access to a nutritionist, or an on-site wellness center. Health and wellness packages are designed to help employees maintain good physical and mental health.
They are a tangible indirect reward that can help increase employee retention and improve morale.
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Complete question:
Tough Mudder offers a good compensation package. Which item in the package is a tangible indirect reward?
What are the dividend yield, capital gains yield, and total required rate of return based on the following.P0 = $14, D1 = $0.98, P1 = $15.00
Total Required Rate of Return is 0.141$
How to calculate Total Required Rate of ReturnThe dividend yield, capital gains yield, and total required rate of return based on the following P0 = $14, D1 = $0.98, P1 = $15.00 are as follows:
Dividend Yield is given by;
Dividend Yield = \frac{D_1}{P_0}
Dividend Yield = \frac{0.98}{14}
Dividend Yield = 0.070$$
Capital gains yield is given by;$$
Capital Gains Yield = \frac{P_1 - P_0}{P_0)
Capital Gains Yield = \frac{15-14}{14}$
Capital Gains Yield = 0.071$$Total required rate of return is given by;
Total Required Rate of Return = Dividend Yield + Capital Gains Yield$
Total Required Rate of Return = 0.070 + 0.071
Total Required Rate of Return = 0.141$
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strong property rights are important for modern economic growth because group of answer choices business cycle fluctuations will be smaller and less likely to disrupt investment patterns. they ensure an equitable distribution of income. people are more likely to invest if they don't fear that others can take their returns on investment without compensation they allow governments to extract the gains from private citizens' investments
Strong property rights are important for modern economic growth because people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
What are property rights?Property rights refer to the ownership and control of an economic resource. Ownership provides the right to use the resource as you see fit, while control refers to the right to receive income from the resource. Property rights, in essence, allow for the creation of wealth and incentivize individuals and businesses to use and develop their resources fully.
What is economic growth?Economic growth refers to the increase in the amount of goods and services produced by a country or region over a given period. It is measured by the increase in real GDP, employment, and investment in physical and human capital.The importance of strong property rights for modern economic Growth
Strong property rights are critical to modern economic growth for several reasons.
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in hiring a physician practice office manager, a critical incidents approach to selection is best used for
A critical incidents approach to selection is best used for hiring a physician practice office manager.
What is a critical incidents approach?A critical incidents approach is a way of assessing job candidates that involves gathering examples of events, incidents, or behaviors that are essential to effective job performance. This approach can help hiring managers identify the specific knowledge, skills, and abilities that are required for success in a particular position.
A critical incidents approach is ideal for hiring a physician practice office manager because it enables employers to identify the specific abilities, knowledge, and skills that are required for success in this role.
For example, in this case, the critical incidents approach can be used to identify specific incidents that demonstrate the candidate's ability to manage the daily operations of a physician practice office, including scheduling appointments, managing patient records, and communicating effectively with medical staff and patients.
It is also important to note that critical incidents can be gathered from a variety of sources, including interviews with current or former employees, surveys of the position's requirements, and job analyses. By using a critical incidents approach to selection, employers can be sure that they are hiring candidates who have the specific skills and abilities required for success in a physician practice office management role.
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determine the ror for a project that has an initial cost of $82,000 and would provide positive cash flows of $12,000 the first year, $14,000 the second year, $16,000 the third year, $18,000 the fourth year, $20,000 the fifth year, and $22,000 the sixth year.
The IRR of the project is 17.6% for the rate of return (ROR) of a project that has an initial cost of $82,000 and would provide positive cash flows of $12,000 the first year, $14,000 the second year, $16,000 the third year, $18,000 the fourth year, $20,000 the fifth year, and $22,000 the sixth year.
By using the formula for calculating Internal Rate of Return (IRR).
IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
The formula for calculating IRR is:
[tex]IRR = R + [(FV / PV) * (1 + R) ^ n - 1] / [(1 + R) ^ n - 1][/tex]
Where:
In this case, we have an initial cost of $82,000, which is the present value (PV).
The future value (FV) is the sum of all the cash flows,
which is $82,000 + $12,000 + $14,000 + $16,000 + $18,000 + $20,000 + $22,000 = $144,000.
And the number of periods (n) is 6.
[tex]IRR = R + [(144,000 / 82,000) * (1 + R) ^ 6 - 1] / [(1 + R) ^ 6 - 1][/tex]
IRR=17.6
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