Answer:
The correct answer is option A (government debt owed to individuals in foreign countries).
Explanation:
This applies to interest earned from some kind of creditor or outside nation, this must be repaid throughout the commodity these were invested in. External debt may be collected through foreign banking institutions, from global banking organizations including the World Bank, respectively., as well as from sovereign governments.Some other alternatives given don't apply to the cases in question. So answer A is a good one.
Exercise 7-4 Direct write-off method LO P1 Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.
Answer:
Date Account Titles and Explanation Debit Credit
March 11 Bad debt Expenses $45,000
Account Receivables $45,000
(To record uncollectible accounts receivables)
Date Account Titles and Explanation Debit Credit
March 29 Account Receivables $45,000
Bad debt Expenses $45,000
(To record reversal of written off accounts receivables)
Date Account Titles and Explanation Debit Credit
March 29 Cash $45,000
Accounts Receivables $45,000
(To record receipt of cash from customers)
Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows -$1,100 $325 $325 $325 $325 $325
Answer:
IRR = 14.59%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = -$1,100
Cash flow in year 1 = $325
Cash flow in year 2 = $325
Cash flow in year 3 = $325
Cash flow in year 4 = $325
Cash flow in year 5 = $325
IRR = 14.59%
To find the IRR 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 IRR button and then press the compute button.
A broker arrives to present a purchase offer to a disabled woman and finds her son and his wife also present. In the presence of the broker, both individuals persistently urge the woman to accept the offer, even though it is much lower than the price she has been asking for her home. If the woman accepts the offer, she may later claim that
Answer:
she was under undue influence from her son and daughter in law and therefore the contract is voidable
Explanation:
Since in the question it is mentioned that the broker made a purchase offer to a disabled woman also his wife and her son are present. The price is very much lower and in the case when the women accept the offer and later she said due to pressure she accepted the offer.
As she is a disabled person and the people who are disabled, blind, are not capable to enter into a contract
Therefore the contract is voidable
Which of the following is NOT a person as defined by the Uniform Securities Act?
A) A small unincorporated investment club.
B) Guelph, a small city outside of Toronto, Ontario, that maintains an investment account at a brokerage house to invest surplus funds.
C) A child prodigy for whom his mother, as custodian, opened an account at a major securities firm.
D) XYZ Dry Cleaners, Inc., whose shareholders all work on the premises and also offer financial advice to customers who request it.
Answer:
C) A child prodigy for whom his mother, as custodian, opened an account at a major securities firm.
Explanation:
The Uniform Securities Act is statute that guides state on how they design their securities laws. The Security and Exchange Commission set up these guides to protect investors from securities fraud at the state level
According to the Uniform Securities Act a person is an individual, trust, corporation, unincorporated company, government, or a division of government that enters into a legal contract.
A child is not able to enter into a legally binding contract, so they are not considered to be a person according to the Uniform Securities Act.
An adult can be the only individual considered as a person. They can open the account on behalf of the child
Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as
Answer:
Resource allocator.
Explanation:
Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as resource allocator.
A resource allocator can be defined as an individual who is saddled with the responsibility of assigning and management of available or scarce resources to effective use.
This is a strategic process which helps a business entity or organization to achieve its goals, objectives and success by efficiently avoiding wastage.
Olin, a professional artist and art teacher, convinces Plato, who has no artistic ability, that he has considerable talent and induces him to pay Olin $10,000 for art lessons. When Plato realizes the truth, he files a suit against Olin. Plato is most likely to recover on the basis of
Answer:
Fraud
Explanation:
Fraud can be defined as a criminal deception or deceit that is aimed at resulting in financial gain.
From the above question, Olin defrauded Plato of $10,000 despite knowing that Plato had no talent. This is fraudulent and as such can help Plato's case against olin.
Cheers.
Margarita, age 30, used to work 80 hours a week as a corporate lawyer. this year she quit her job to take care of her five-month-old daughter. she is currently not looking for a job. the survey conducted by the bureau of labor statistics will count margarita today as choose one:
a. not in the labor force.
b. not in the working-age population.
c. a discouraged worker.
d. employed.
e. unemployed.
Answer: a) Not in the labor force
Explanation:
The category of people not in the labour force are those who either have no interest in working for someone, have retired, or has resigned(with no intentions to work for anyone). This category of persons have no interest in taking up job positions as they want to either rest, face another aspect of their life or can't work again due to their age. Margarita is in the category of those not in the labour force as she looks towards taking care of her daughter and won't be in for any job at the moment.
South Korea has developed amazingly, with huge corporations making vast amounts of money and giving everyone there a high standard of living, while the vast majority of people in the Central American nation of Guatemala are plagued by extreme poverty, violence, and poor living conditions. This is an example of:
Answer: Uneven Development
Explanation:
South Korea is one of the success stories of the last century. After the Korean War devastated large parts of the Korean peninsula, foreign aid poured in and the people embraced development fully. This led to the development of large corporations such as Samsung making vast amounts of money and giving everyone there a high standard of living.
Guatemala on the other hand has been ravaged by poverty and poor living conditions for a long time resulting from a bloody civil war that lasted for decades. This led to gangs been formed to compete for resources as well as illegal activities being carried out such as drug trafficking. This only made things worse.
These are 2 countries are a prime example of how countries in the world are experiencing Uneven Development. How in one nation the standards of living are high and people are safer but on the same planet and in another nation people are living in abject poverty and fearing constantly for their lives.
Quality data gathering, analysis, and reporting $59,000 Testing and inspection of incoming materials $48,000 Final product testing and inspection $27,000 Depreciation of test equipment $30,000 Cost of field servicing and handling complaints $52,000 Disposal of defective products $13,000 Downtime caused by quality problems $52,000 Technical support provided to suppliers $18,000 Returns arising from quality problems $39,000 Eagle Company's quality cost report is to be based on the data shown. What would be the total appraisal cost appearing on the quality cost report? Question 17 options: A) $78,000 B) $75,000 C) $105,000 D) $100,000
Answer:
$75,000
Explanation:
Calculation for What would be the total appraisal cost appearing on the quality cost report
Total Appraisal cost= Addition of
Testing and inspection of incoming materials and Final product testing and inspection
Hence ,
Total Appraisal cost =Testing and inspection of incoming materials $48,000 + Final product testing and inspection $27,000
Total Appraisal cost =$75,000
Therefore the Total Appraisal cost appearing on the quality cost report will be $75,000
Adams is selling his property to Katter for $94,000, and Katter is assuming an existing mortgage at 4-1/2% interest per annum with the unpaid balance of $9,200. Mortgage payments are due the first of each month and include interest up to but NOT including the day of payment. The last payment was made March 1, and settlement is to be March 26. Compute the interest proration that will be credited to the buyer using a 365-day year, and holding the buyer responsible for the day of closing.
Answer:
$69.53
Explanation:
loan's balance = $94,000
interest expense per year = $94,000 x 4.5% = $4,230
interest expense per day = $4,230 / 365 = $11.5890411
the seller is responsible for 25 days of interest = 25 x $11.5890411 = $289.73
the buyer is responsible for 6 days of interest = 6 x $11.5890411 = $69.53
At January 1, 2016, Bonita Industries has beginning inventory of 1500 surfboards. Bonita estimates it will sell 6000 units during the first quarter of 2016 with a 12% increase in sales each quarter. Bonita’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2016
Answer: $1,128,960
Explanation:
The budgeted sales revenue is the financial estimate of the amount that a company is expecting to make for a particular period of time.
Based on the information given in the question, the budgeted sales revenue for the third quarter of 2016 will be:
= 6000 × (1 + 12%) × (1 + 12%) × $150
= 6000 × (1 + 0.12) × (1 + 0.12) × $150
= 6000 × 1.12 × 1.12 × $150
= $1,128,960
When it is time for Margaret to provide performance appraisals, she organizes her subordinates in a list from best employee to worst employee. Which method does Margaret most likely use
Answer:
Ranking method
Explanation:
Ranking method for performance appraisal is the oldest, and it involves the use of rankings in evaluating the performance of employees. Employees are usually organized depending on their worth; they are ranked in different categories from the highest performance to the lowest performance or from the best employee to the worst employee. This type of method compares between employees.
Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also with the local elections just around the corner, management sent out reminders about political contributions and confidentiality of company information. All of these policies can be found in Olympia Marketing's
a) employee handbook
b) policies and procedures manual
c) moral rights
d) approach C
Answer:
b) policies and procedures manual.
Explanation:
A company's policies and procedures manual is essential for establishing norms and rules that will guide the company's operation.
Through corporate policies, it is possible to determine actions, conducts, practices and values that the company adopts in order to achieve its objectives and goals, and demonstrate what are its fundamental values that give this organization its own identity and the foundations that will make it different from other companies in the competitive market.
James,the marketing manager for an automobile manufacturer,observes frequent conflicts between two of his subordinates,Jeff and Kevin.He asks the human resource department to help,and the department's training manager,Kelly,investigates.She tells James that the two subordinates lack interpersonal communication skills,but would be likely to improve with proper training.This scenario suggests that Kelly has conducted a(n)_____.A) institutional analysisB) market analysisC) person analysisD) organization analysisE) instructional analysis
Answer: Person analysis
Explanation:
Based on the scenario that have been given in the question, the scenario suggests that Kelly has conducted a person analysis.
A person analysis is a phase which helps to identify the individuals that are in an organization who lacks certain skills and should therefore be trained.
A person analysis helps to show the individuals that aren't meeting the organization's desired performance.
The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.1. Refer to the above data. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will inchude:______.a) a credit to Cash for $700. b) a debit to Cash for $700. c) a debit to Cash for $7. d) a debit to Bank Service Charge Expense for $7. 2. Refer to the above data. What is the total amount of the oustanding chocks a Tone 30?A) $1,513. B) $1,486.C) $1,507.D) Some other amount.
Answer:
1. d) a debit to Bank Service Charge Expense
2.d) Some other amount.
Explanation:
1. No journal entries are prepared to record deposits in transit and outstanding checks because these items have already been recorded in the books. Therefore, only one journal entry will be required to record the bank service charge of $7. The bank service charge is an expense and will be recorded by debiting bank service charge expense account and crediting cash by $7.
2. Total amount of outstanding checks = Balance per bank statement + Deposit in transit - Balance per books - Bank service charge
Total amount of outstanding checks = $3,900 + $700 - $3,100 - $7
Total amount of outstanding checks = $1,493
Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000. The company estimated that the machine has a salvage value of $5,700. The machine is expected to be used for 70,000 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to 0 decimal places, e.g. 5,275.)
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $66,000
Salvage value= $5,700
Useful life= 6
First, we need to calculate the annual depreciation using the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (66,000 - 5,700) / 6= 10,050
2017:
Annual depreciation= (10,050/12)*3= $2,512.5
2018:
Annual depreciation= $10,050
A broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them. The broker has taken advantage of the written agreements between the states for real estate licensing. This is an example of:
Answer:
A mutual recognition agreement between the states of Florida and Nebraska, created for real estate licensing.
Explanation:
A mutual recognition agreement is defined as a situation where 2 more countries recognise conformity examination results of each other. So a person that writes an examination and passes in one location can get a liscence in another country based on his exam results.
In the given scenario a broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them.
After passing the exam he is able to obtain a real estate liscence in Florida.
This is an example of Mutual recognition agreement between Nebraska and Florida.
Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflows from operating activities are:
Answer:
$520,000
Explanation:
Kela corporation reports a net income of $450,000
The depreciation is $70,000
A cash of $50,000 was borrowed on a 5-year note payable
Therefore, the total cash inflows from operating activities can be calculated as follows
= Net income+depreciation
= $450,000+$70,000
= $520,000
Hence the total cash inflow from operating activities is $520,000
You are interested in purchasing a digital camera and find one priced extremely low. As you are about to purchase the camera, you discover that it does not come with a power cord, memory card, or battery. You purchase all of these separately. The total cost surpasses what you would have paid at another store that listed the camera at a higher price, but included all the accessories. You have been a victim of the _______ technique.
Answer:
low-ball technique
Explanation:
Based on the scenario being described it seems that you have been a victim of the low-ball technique. This is a persuasion tactic in which an item is marked at a very tempting low price in order to get customers to commit to the purchase, but when they do commit the price is increased in one way or another. Which in this case was by requiring extra components to be able to use the camera.
On March 1, Lincoln sold merchandise on account to Windsor Company for $29,200, terms 1/10, net 45. On March 6, Windsor returns merchandise with a sales price of $2,700. On March 11, Lincoln receives payment from Windsor for the balance due. Prepare journal entries to record the March transactions on Lincoln’s books.
Answer:
Journal entries
Date Account title and explanation Debit Credit
Mar 1 Account receivable $29,200
Sales revenue $29,200
Mar 6 Sales return and allowance $2,700
Account receivable $2,700
Mar 11 Cash $26,235
($26,500 * 99%)
Sales discount $265
Account receivable $26,500
($29,200 - $2,700)
Palencia Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The current stock price is P0 = $22.00. The last dividend was D0 = $3.00, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations.
Answer:
cost of common equity is 18.64%.
WACC is 15.93 %.
Explanation:
Cost of Equity is the return that is required by providers of Capital in form of Common Stocks.
This can be determined using the Growth Model as the information permits use of such method.
Cost of Equity = Current Dividend / Current Market Price + Expected Growth Rate
= $3.00 / $22.00 + 0.05
= 0.1864 or 18.64%
WACC = Ke × (E/V) + Kd × (D/V) + Kp × (P/V)
where,
Ke = cost of equity
= 18.64%
E/V = Weight of Equity
= 75%
Kd = cost of debt
= Interest × (1 - market rate)
= 0.13 × (1 - 0.40)
= 0.078 or 7.80 %
D/V = Weight of Debt
= 25%
Therefore,
WACC = 18.64% × 75% + 7.80 % × 25%
= 15.93 %
Which of the following was the first emission control device?
A.Muffler
B.Catalytic converter
C.PCV Valve
D.HO2S Sensor
Answer:
The answer is A. The Muffler
Explanation:
The first muffler for cars was designed in 1897.
The function of the car muffler is to slow down the speed of movement of the exhaust gases, which helps to smooth the movements of the engine, reduce the temperature of the gases and reduce the emissions of substances that are harmful to the environment.
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. Businesses make investment plans many months in advance. The current tax system acts as an automatic stabilizer. Changes in government purchases and taxation must be passed by both houses of Congress and signed b
Answer: Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Explanation:
The Active Stabilization policy calls for the Government to actively try to reduce fluctuations in an economy by using monetary and fiscal policy tools.
Arguments for this policy believe that fluctuations in the economy are caused by excessive optimism and pessimism amongst market participants. In cases therefore where there is excessive pessimism, the Government should expand money supply and lower interest rates to spur investment and remove the pessimistic mood of the market.
John manufactures household furniture. His start-up costs, including tools, plans, and advertising, total \$5000$5000dollar sign, 5000. Labor and materials for each piece of furniture total \$350$350dollar sign, 350, and his production costs are the sum of his start-up costs plus the cost of labor and materials. If John makes fff pieces of furniture, what will be his production costs, ccc, in dollars
Answer:
$5,000 + $350f
Explanation:
The computation of the production cost in dollars is shown
Here we use the equation form
The start up cost is $5,000
Labor, material cost $350
Now if he makes f pieces of furniture so, his production cost would be
= Startup cost + labor, material cost
= $5,000 + $350f
Hence, this is the answer and the same is to be provided
"I am extremely disappointed with the performance on our account over the last month. Lead volume has dropped, yet the total monthly spend is consistent with previous months. Why? Are you guys even paying attention to what is going on? Also, you still haven’t provided any suggestions on how to reduce the overall cost per lead as well as drive more traffic to our site. We need to remedy this so we can move forward."
Answer:
In order to drive more traffic to our site we need to consider the problems visitors face when they visit our site, an issue could be that our site is not responding quick, or there is lacking of an essential feature, or the website is not properly marketed to the relevant persons who are interested in our products and or services.
In order to reduce the cost per leads we may need to find a different supplier of marketing our website, or may be we can target specific audience which may lower the cost per lead. Also we can market our website by other means for example providing web address on the sales receipt.
Explanation:
In order to drive more traffic to our site we need to consider the problems visitors face when they visit our site, an issue could be that our site is not responding quick, or there is lacking of an essential feature, or the website is not properly marketed to the relevant persons who are interested in our products and or services.
In order to reduce the cost per leads we may need to find a different supplier of marketing our website, or may be we can target specific audience which may lower the cost per lead. Also we can market our website by other means for example providing web address on the sales receipt.
Paris Corporation has 17,000 shares of $60 par common stock outstanding. On August 2, Paris Corporation declared a 3% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $82 per share on August 2.
Journalize the entries required on August 2, September 15, and October 8. If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" and leave the amount boxes blank.
Aug. 2 Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock
Sept. 15 No entry required
No entry required
Oct. 8 Stock Dividends Distributable
Common Stock
Answer:
Date General Journal Debit Credit
Aug 2. Stock Dividend $41,820
(17,000 * 3% * $82)
Stock Dividend Distributable $30,600
(17,000 * 3% * $60)
Paid-in-Capital in Excess of Par- $11,220
Common stock
Sept. 15 No Entry required
Oct. 8 Stock Dividend Distributable $30,600
Common Stock $30,600
To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R
Answer:
The answer is "The result of the standard deviation of request and a 'z' rating over a certain possibility of operation".
Explanation:
When we have determined 10 units per day for standard deviation with supply, while the period to ordering in 5 days. Its standard 5-day duration is or the equation 17.8, which is multiplied by the z-score, which is the equation 17.9 has as long as per day is selected based, that's why the result of normal volatility of request as well as a 'z' score over a certain possibility of service is correct.
Century Real Estate’s primary broker is John Kerr. John is licensed as the broker of that company and he is licensed as a broker sales associate in his brother-in-law’s firm of Boch Real Estate, where John only works once a week or so. In this case:
Answer:
The broker is doing two different jobs; so it is okay to have two different licenses.
Explanation:
In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.
In terms of market efficiency, short selling most likely: Group of answer choices leads to excess volatility, which reduces market efficiency. has little effect on market efficiency because short sellers face the risk of unlimited losses. promotes market efficiency by making assets less likely to become overvalued.
Answer:
promotes market efficiency by making assets less likely to become overvalued.
Explanation:
Market efficiency can be defined as a measure of the degree to which prices in a market reflect all available and significant information at a specific period of time. A market is said to be efficient when all information has been incorporated into the prices of goods and services, and as such it is impossible to "beat" the market because there are no overvalued or undervalued stock.
In terms of market efficiency, short selling most likely promotes market efficiency by making assets less likely to become overvalued, because stocks are usually not allowed to be overpriced before selling them.
Part 1 Using the refusal skills sequence, complete the case scenario by indicating how you would refuse to be involved in the situation. Include all eight steps of the refusal sequence, and use the format indicated below for each step. (List the step then the action) Example: 1. What are they asking me to do and why? They are asking me to participate in an activity that is illegal and against my personal values. (Double space after each answer.) Case Study Number ____________ 1. What are they asking me to do and why? 2. Label what they are asking you to do (i.e. illegal, dangerous, etc.). 3. Determine the consequences if you get caught or if you participate in this activity. 4. Communicate my refusal. 5. Say no. 6. Use "I" statements. 7. Suggest an alternative. 8. Leave the scene and avoid questionable places.
Incomplete question.
Full Question and Explanation:
1. What are they asking me to do and why?
They are asking me to do things both illegal and sexual that I do not believe in doing.
2. Label what they are asking you to do (i.e. illegal, dangerous, etc.).
It is Illegal, sexual, and dangerous
3. Determine the consequences if you get caught or if you participate in this activity.
I could get infected with a disease or even get arrested by law enforcement agents.
4. Communicate my refusal.
I do not do such things and I will not follow others in their wrongful course.
5. Say no.
No matter what you say, I say no!
6. Use "I" statements.
I feel that you do not consider my feelings when you try to force me because I don't want to do these things.
7. Suggest an alternative.
No, lets go and watch a movie at the movie theater.
8. Leave the scene and avoid questionable places.
My mom must be waiting for me by now, I'll have to go home.
