Answer:
1. The Federal Reserve was established by the U.S. Constitution in the late 1700s
Classification: False
2. The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
Classification: True
3. All Federal Reserve actions are subject to veto by the executive branch.
Classification: False
4. The Federal Reserve determines monetary policy in the United States.
Classification: True
5. The Federal Reserve was created by the Federal Reserve Act of 1913.
Classification: True
Prepare journal entries for each transaction and identify the financial statement impact of each entry.
The financial statements are automatically generated based on the journal entries recorded.
Assume Adams Services began the year with the following balances: Cash, $41,000;
Accounts receivable, $11,200; and Common stock, $52,200.
Jan. 1 Leslie Adams invested $21,200 cash in the company in exchange for common stock.
Jan. 2 The company provided services to a client and immediately received $4,500 cash.
Jan. 3 The company received $11,200 cash from a client in payment for services to be provided next year.
Jan. 4 The company received $5,900 cash from a client in partial payment of accounts receivable.
Jan. 5 The company borrowed $11,000 cash from the bank by signing a note payable.
Answer:
Cash (Dr.) $21,200
Common Stock (Cr.) $21,200
Cash (Dr.) $4,500
Services to client (Cr.) $4,500
Cash (Dr.) $11,200
Unearned Revenue (Cr.) $11,200
Cash (Dr.) $5,900
Accounts Receivable (Cr.) $5,900
Cash (Dr.) $11,000
Notes Payable (Cr.) $11,000
Explanation:
Adams services may record these transactions as journal entries. The transactions may have some changes after they are recorded then adjusting entries will be prepared to reflect the correct effect of transaction on business activities.
Suppose the market price of corn is $5.50 per bushel. Which of the following is not one of the three conditions that will need to be satisfied for the corn market to be in equilibrium at this price? A. Both the buyers and sellers of corn could benefit by making small changes to their market behaviors. B. The cost to corn farmers of growing the corn must be less than $5.50 per bushel. C. The quantity of corn produced by corn farmers will equal the quantity purchased by buyers. D. The buyers of corn will only use it for activities that they feel are worth at least $5.50 per bushel.
Answer:
A
Explanation:
would you recommend that accountants wait until collections are made from customers before recording sales revenue
Answer: No
Explanation:
Accounting currently uses the Accrual basis and this is the best basis to use so far because it records revenue when they are earned not when the actual money comes in.
In doing this, the company is able to properly ascertain the revenue that it made in a particular period. If a company were to wait until collections were made, the company might wait for over one period to record their sales which would not be very helpful in calculating income for the period.
Also if companies waited to record only after sales, people not paying and becoming doubtful debts become a headache to record.
Mannix Corporation stock currently sells for $80 per share. The market requires a return of 10 percent on the firm's stock. If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock
Answer: $3.02
Explanation:
The Gordon growth method can help solve this:
Formula is:
Price of stock = (Most recent dividend * (1 + growth rate)) / (required return - growth rate)
80 = ( D * ( 1 + 6%)) / (10% - 6%)
80 = 1.06D / 4%
1.06D = 80 * 4%
D = 3.2 / 1.06
D = $3.02
For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is a. quality. b. advertising.
Answer:
There will be more options than 2 of them. Probably it was a brainly error.
For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is price.
The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Dr Cash $150
Cr Interest Revenue $150
Explanation:
Based on the information given ifnThe bank statement included a CREDIT MEMORANDUM in the amount of $150 for interest which means that the journal entry will be :
Dr Cash $150
Cr Interest Revenue $150
The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,000 per month
Depreciation $1,100 per month
Maintenance $2,940 per month
Maid service $24 per room
Other costs $46 per room
Required:
Determine the innâs break-even point in number of rented rooms per month.
Answer:
Results are below.
Explanation:
First, we need to calculate the total fixed cost and the total unitary variable cost:
Total fixed cost= salaries + utilities + depreciation + maintenance
Total fixed cost= 7,500 + 1,000 + 1,100 + 2,940
Total fixed cost= $12,540
Total unitary variable cost= 24 + 46
Total unitary variable cost= $70
As the unitary contribution margin is negative (65 - 70), the company will never break even. I will assume that the selling price is incorrect, and the room costs $85:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,450 / (85 - 70)
Break-even point in units= 830
True or False: The shape of the production function reflects the law of increasing marginal returns. True False
Answer: False
Explanation:
The statement that "The shape of the production function reflects the law of increasing marginal returns" is false. Rather, the shape of the production function simply reflects the law of diminishing marginal returns.
The slope of the production function is used in the measurement of the change in output for every unit of labor input that's added.
The specific pace and quota of work and tight surveillance indicate that company 1 has a(n) _______ culture.
Question options:
-traditional
-contingency
-androgynous
-mechanistic
-organic
Answer:
mechanistic
Explanation:
The mechanistic culture in an organization is one that works by strict rules, structure and guidelines. It is different from the organic culture that is more open and flexible. Mechanistic organizations are characterized by hierarchy and bureaucracy, specifying labour divisions for it's employees in a formal, close-knitted and "mechanistic" approach. mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc. Organic organizations can be found among newer organizations such as tech companies.
In a mechanistic culture-based organization, the specific pace, quota of work and tight surveillance are indicator that the company practice such culture.
The mechanistic culture is usually adopted by organization because its works by strict rules, structure and guidelines.
Mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc.
In conclusion, the specific pace and quota of work and tight surveillance indicate that company 1 has a mechanistic culture,
Read more about mechanistic culture
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Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $22,500 and the ending balance was $41,000. Raw materials purchases during the month totaled $68,000. Manufacturing overhead cost incurred during the month was $113,500, of which $2,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
Answer:
the direct material cost is $47,000
Explanation:
The computation of the direct material cost is shown below:
= Opening balance + purchase made - indirect material - closing balance
= $22,500 + $68,000 - $2,500 - $41,000
= $47,000
hence, the direct material cost is $47,000
The same should be considered and relevant too
Research on a Philippine company that filed for bankruptcy, what type of bankruptcy they filed, and its effect on the company?
Answer:
There are various reasons when a company files bankruptcy. When a company debtors raise above its assets, the company may claim bankruptcy. The business of a company will then seize when it files bankruptcy.
Explanation:
When a company files bankruptcy, its operations are closed and then analysts visit to identify worth of company's existing assets and analyze whether these assets are enough to pay off liabilities. Debtors are paid first and then with any left over amount investors are paid back.
What does a MRTS = mean? It means that if the input on the horizontal axis is increased by one unit, then the input on the vertical axis ▼ increases decreases by units and output will ▼ increase decrease not change .
Answer:
MRTS means that if the input on the horizontal axis is increased by one unit, then the input on the vertical axis decreases by units and output will not change.
Explanation:
The marginal rate of technical substitution (MRTS) can be described as the amount by which one input's quantity must be decreased when an additional unit of another input is used to keep output constant. MRST is also known as technical rate of substitution.
Therefore, MRTS means that if the input on the horizontal axis is increased by one unit, then the input on the vertical axis decreases by units and output will not change.
Calculate real rate if you have nominal rate is 12% and inflation rate is 7% Enter the answer in percentage format to two decimal place without the % sign -> 9.30 and not 9.3% or .093)
Answer: 5.00
Explanation:
The real interest rate is the difference between the nominal interest and the inflation rate.
Real interest rate will be:
= Nominal interest rate − Inflation rate.
= 12% - 7%
= 5.00
Therefore, the real Interest rate is 5.00.
Item65eBookItem 65When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of
Answer:
Planning.
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of planning.
The following data represents number of customers arriving at Quick Lube for an oil change between 9 and 11 AM over the past 6 days.
Day 1 2 3 4 5 6
Customers 34 33 35 36 36 37
Required:
Using the Naive Method, how many customers would you forecast for Day 7?
Answer:
37
Explanation:
The naïve technique of forecasting is a simple forecasting technique that is used among time series data. in this type of forecasting, we use the actual figure in the last period to make a forecast for the next period that follows it.
In this question, the last day is day 6, and the number of customer on this day is 37. With the explanation in the paragraph above, the forecast for day 7 is still going to be 37 customers, given that day 7 follows day 6, which was the last period.
How might a person in an information technology company have a lot of power even if he or she does not hold an executive title
Answer:
Even if individual doesn't even have an executive role, a person responsible of information technology for a corporation might wield tremendous authority. This is due to the fact that power is not necessarily linked to a position of authority.
Explanation:
A person with leadership qualities can advance to positions of power, allowing them to put their abilities and personality attributes to good use. A person in charge of information technology is also responsible for optimising the company's digital technologies owing to the nature of the role and responsibilities.
In an Information Technology company, an individual can have a lot of power regardless of whether or not they hold an executive position. This is because organizational power is not just linked to hierarchical position.
What are the responsibilities of an IT professional?An individual who works with Information Technology handles sensitive information about an organization and is responsible for information security and optimization.
Therefore, an IT professional is responsible for managing information in an organization, creating and distributing it across computer networks securely and to the right users.
Find out more about Information Technology here:
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The following information pertains to Sampson Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Accounts receivable (net) 25,000 Inventory 11,000 Property, plant and equipment 210,000 Total Assets $291,000 Liabilities and Stockholders' Equity Current liabilities $ 50,000 Long-term liabilities 90,000 Stockholders' equity—common 151,000 Total Liabilities and Stockholders' Equity $291,000 Income Statement Sales $ 120,000 Cost of goods sold 55,000 Gross profit 65,000 Operating expenses 30,000 Net income $ 35,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50 What is the inventory turnover for Sampson? Group of answer choices 3,2 times 5 times 10.9 times 0.20 times
Answer:
Sampson Company
The inventory turnover for Sampson is:
5 times.
Explanation:
a) Data and Calculations:
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 11,000
Property, plant and equipment 210,000
Total Assets $291,000
Liabilities and Stockholders' Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders' equity—common 151,000
Total Liabilities and Stockholders' Equity $291,000
Income Statement Sales $ 120,000
Cost of goods sold 55,000
Gross profit 65,000
Operating expenses 30,000
Net income $ 35,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share $0.50
Inventory Turnover = Cost of goods sold/Average Inventory
= $55,000/$11,000
= 5 times
Ride N Style Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Ride N Styles pursue instead?
a. Close the business until the cost of us decreases.
b. Pursue a diferented strategy.
c. Compete based on intergroup rivalry, not in group rivalry
d. Create a strateg group through mergers
Answer:
b. Pursue a diferented strategy.
Explanation:
A differentiation strategy permits that the product or service should be different in the market also it provides the edge over your rivalrs. Here you can select various kinds of offering that attaching with the service in which you permit to charge more from your clients
So as per the given situation, the option b is correct
Aaron and Michele, equal shareholders in Cavalier Corporation, receive $25,000 each in distributions on December 31 of the current year. During the current year, Cavalier sold an appreciated asset for $60,000 (basis of $15,000). Payment for the sale of the asset will be made as follows: 50% next year and 50% in the following year with interest payable at a rate of 6 percent. Before considering the effect of the asset sale, Cavalier's current-year E & P is $40,000 and it has no accumulated E & P.
Required:
How much of Aaron’s distribution will be taxed as a dividend?
Answer:
Cavalier Corporation
Aaron’s distribution that will be taxed as a dividend is:
= $25,000
Explanation:
a) Data and Calculations:
Amount received in distributions by Aaron and Michele each = $25,000
Proceeds from the sale of an appreciated asset = $60,000
Proceeds to be received 50% in the next year = $30,000
Proceeds to be received 50% in the second year = $30,000
Basis of asset = $15,000
Capital gains = $45,000 ($60,000 - $15,000)
Cavalier's current-year E & P = $40,000
Accumulated E & P = $0
When an organization assigns a new employee a mentor and takes an employee out to lunch to meet other members of the organization during their first week on the job, this would most strongly be an example of:
Answer:
Connection.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Generally, when a new employee working for an organization is assigned a mentor and given the opportunity to go out on a lunch to meet other members working in the organization during their first week on the job, this would most strongly be an example of connection.
Connection simply means creating a favorable and mutually beneficial meetings between two or more individuals such as the employees working in an organization. Thus, it avails the employees the opportunity to socialize and know each other better while stimulating a good work relationship.
LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividend and incurs 6.19% flotation costs. What is the cost of new preferred stock financing
Answer:
$10.66
Explanation:
Calculation to determine the cost of new preferred stock financing
Cost of new preferred stock financing=(100*10%)/(100*(1-0.0619))
Cost of new preferred stock financing=10/(100*(1-0.0619))
Cost of new preferred stock financing=10/(100*0.9381)
Cost of new preferred stock financing=10/93.81
Cost of new preferred stock financing=$10.66
Therefore the cost of new preferred stock financing is $10.66
Investors require an after-tax rate of return of 10% on their stock investments. Assume that the tax rate on dividends is 30% while capital gains escape taxation. A firm will pay a $2 per share dividend 1 year from now, after which the firm's stock is expected to sell at a price of $30.
Required:
a. Find the current price of the stock.
b. Find the expected before-tax rate of return for a 1-year holding period.
c. Now suppose that the dividend will be $3 per share. If the expected after-tax rate of return is still 10%, and investors still expect the stock to sell at $20 in 1 year, at what price must the stock now sell?
d. What is the before-tax of return? Why is it now higher than in part (b)?
Answer:
a. $28.5
b. 12.28%
c. $29.18
d. 13.09%
Explanation:
a. let current price = p
p*1.10 = 2(1-0.3)+30
= 1.4+30/1.10
= 31.4/1.10
= 28.5
the current price of the stock is approximately 28.5 dollars
b. (30+2 /28.5)-1
= 32/28.5 - 1
= 0.1228
= 12.28%
expected before tax rate is 12.28%
c. 3(1-0.3)+30 / 1.10
= 3*0.7+30/1.10
= $29.18
d. before tax rate of return
= (3$ + 30-29.18)/29.18
= 0.1309
= 13.09%
it is now higher here given that given that a greater dividend causes more tax burden.
Capital allocation line is _______________ Question 18 options: plot of risk-return combinations available by varying portfolio allocation between a risk-free rate and a risky portfolio None of the options are correct plot of risk-return combinations available by varying portfolio allocation between two risky assets plot of risk-return combinations available by equal weighting allocation between a risk-free rate and a risky portfolio
Answer:
plot of risk-return combinations available by varying portfolio allocation between a risk-free rate and a risky portfolio
Explanation:
The capital allocation line (CAL) is called as the capital market line tha developed on the graph for all the expected combinations related to the risk-free and risk assets. In this, the graph presented the return investor that expected earn by assuming the particular level of risk along with the investment
Therefore the first option is correct
Preparation of a statement of cash flows involves five steps:
(1) Compute the net increase or decrease in cash;
(2) compute net cash provided or used by operating activities (using either the direct or indirect method);
(3) compute net cash provided or used by investing activities;
(4) compute net cash provided or used by financing activities; and
(5) report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows. Noncash investing and financing activities are also disclosed.
Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
In a standard cost accounting system, the entry to record purchase of raw materials on account for $13500 when the standard cost is $12620 includes:______.
a. debit to Raw Materials Inventory for 12,750, debit to Materials Price Variance for $750 and credit to Accounts Payable for $13,500.
B. debit to Materials Price Variance for S7S0 and credit to Accounts Payable for $750.
c. debit to Raw Materials Inventory for $13,500 and credit to Accounts Payable of $13,500.
d. debit to Raw Materials Inventory for $12,750 and credit to Accounts Payable of $12,750.
Answer:
a. Debit to raw material inventory for $12,750, debit to material price variance $750 and credit to account payable for $13,500.
Explanation:
Date Journal Entry Debit Credit
Raw Material Inventory $12,750
Material Price Variance $750
Accounts Payable $13,500
uppose you invest, every month, in an annuity that pays 3% interest, compounded monthly. After 25 years, you have $550,000. How much money do you earn from interest
Answer: $180,046
Explanation:
First find the annuity that was invested monthly that yielded $550,000.
Interest rate = 3%/12 months = 0.25%
Period = 25 * 12 = 300 months
Future value of annuity = Annuity * ( ( 1 + rate) ^ no. of periods - 1) / rate
550,000 = Annuity * ( ( 1 + 0.25%)³⁰⁰ - 1 ) / 0.25%
550,000 = Annuity * 446
Annuity = 550,000 / 446
Annuity = $1,233.18
Without compounding, investing $1,233.18 per month would have yielded:
= 1,233.18 * 300 months
= $369,954
Money earned from interest is:
= 550,000 - 369,954
= $180,046
The following information is given about two fixed coupon bonds from Company A and Company B, both of which have several years left until maturity. Both bonds have a par value of $1,000. Based on this information, which of the following is most accurate?
Company A Company B
Coupon = 4% Coupon = 8%
Yield = 6% Yield = 6%
A. Company A’s bond is priced higher than Company B’s and Company B’s bond is traded at a premium
B. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a premium
C. Company A’s bond is priced higher than Company B’s and Company B’s bond is traded at a discount
D. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a discount
Answer: B. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a premium
Explanation:
Discount bond ⇒ Bond coupon rate is less than yield which leads to bond having a lower than par price.
Premium bond ⇒ Bond coupon rate is more than yield which leads to bond having higher than par price.
Company A therefore has a discount bond that has a low price compared to Company B which has a premium bond which means that its price is relatively high.
Company B's bond is therefore priced higher than Company A's bond.
Shawn Incorporated planned to produce 3,000 units of its single product, Megatron, during November. The standard specifications for one unit of Megatron include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Megatron. The accountant computed a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:_________
Answer: The actual cost of materials was less than the standard cost
Explanation:
Net materials cost variance = Favorable materials price variance + Favorable materials quantity variance
= 380 + (-120 unfavorable)
= 380 - 120
= $260 favorable
As the materials cost variance is favorable, it means that the actual cost of materials was less than what was budgeted for it or rather its standard cost.
On January 1, DogMart Company purchased a two-year liability insurance policy for $32400 cash. The purchase was recorded to Prepaid Insurance. How much would be the January 31 amount recorded to expense (use two decimals)?
Answer: $1,350
Explanation:
The insurance is for 2 years but has to be apportioned monthly on account of the Accrual basis in Accounting where expenses will only be recognized when they are incurred.
The expense to be recorded for the first month will therefore be:
= 32,400 / 24 months
= $1,350
1. Sharon, a newly engaged woman, saw an advertisement in a bridal magazine for a beautiful pearl necklace priced at $69.99 from Precious Jewelry. She thought the necklace would be a wonderful present for her bridesmaids, so she ordered 5 necklaces from Precious Jewelry. After a few weeks, Sharon received a letter, along with her returned check from Precious Jewelry. The letter stated that the jeweler was sorry they could not fill her order because they had been overwhelmed with so many requests that their supply of necklaces ran out very quickly.
a. List the 3 elements of an offer and describe each (in your own words).
b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?
c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.
Answer:
a. The three elements which make an offer valid are communication, commitment, and definite terms. The communication of an offer happens between the offeror and the offeree and not with the general public, as depicted by the ad. Commitment in an offer requires that Sharon and Precious Jewelry are identified as the involved parties and are committed to enter a valid contract. Definite terms require no ambiguity.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to treat. Sharon initiated the offer when she ordered for the jewelries. At this point, Precious Jewelry could accept or reject the offer, depending on its capacity.
c. If Sharon sues Precious Jewelry to force it to fill her order, she does not have the good standing required to enforce specific performance of a contract because there is no basis for the existence of a contract between her and Precious Jewelry. Moreover, Sharon’s offer was never accepted by Precious Jewelry and there was no consideration.
Explanation:
A valid contract will exist between Sharon and Precious Jewelry when the five elements of a contract are present. These include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including the capacity of the contracting parties).
