Answer with Explanation:
Risk which can’t be mitigated: The risks that the share price would fall due to sudden political environment instability or events that effects the economy will definitely affect the business operations as well. Thus are the risks that can not be mitigated at all. Another example would be Corona virus implications on the operation of the company which is again a risk that can't be mitigated.
Risks, that aren’t worth the effort to reduce the exposure any further:
The part of the sentence talks about the risk exposure which says that if the company doesn't resides in an area which is not prone to seismic activity and the chances of earthquake in a country is below 0.000001% which is almost negligible but still it is worthless to purchase the earthquake insurance. As this risk is almost negligible hence it is not worth the effort to reduce the exposure any further.
Risks that wouldn't be addressed in short term due to other priorities:
The risks that will not occur in the next 12 month, can be addressed after 6 months and thus allowing the company to prioritize the risks that must be resolved first. This means that if their is a risk that one of our several products that would be launched after 12 months from now will not be winning customer market can be addressed after 6 months because it is dependent on our future action. If we don't launch our product, our product is not rejected by the customer. Hence situations like this allows us to prioritize our risks.
A promotion related to the movie Pacific Rim Uprising was seen in Target stores throughout the United States. The sales promotion was designed to maximize the consumer's attention to a DVD release and provide storage for the products. This type of sales promotion is referred to as a
Answer:
This type of sales promotion is referred to as a Dealer Sales Promotion (Trade Promotion).
Explanation:
The Dealer Sales Promotion, otherwise known as Trade Promotion, is aimed at Dealers, designed to maximize the attention of consumers, and provide storage for the products in Target stores throughout the United States. The promoters want Pacific Rim Uprising to be seen by consumers, so that their attention is galvanized, and to get Target stores to create the space for the DVD upon the film's release, through cooperative advertising. It is not aimed directly at consumers or salespersons, but dealers.
In your opinion, what are the forms of institutional advertising that are suitable for banks in Palestine with examples. Why??
Answer:
Institutional advertising for banks in Palestine should take into account the cultural sensibilities of the country.
As a muslim country, banks should take into account not only local Palestinian culture, but also general islamic culture when developing their advertising.
Palestine also has complex foreign relationships. Banks should also take this into account in order to create advertising that is effectively catered to the Palestinian people.
The profit-maximizing monopolist produces _____________ units and charges a price of _____________.
Answer: Q0; P3
Explanation:
The profit-maximizing monopolist produces Q0 units and charges a price of P3.
According to the exhibit graph, the monopolist will produce Q0 units. This is because a monopoly maximises profit at the point where Marginal Revenue equals Marginal Cost. Looking at the chart, the quantity of output where this happens is Q0.
The Monopolist will then charge a price of P3. After the profit-maximising output is realized, the way to find out the price the monopolist will sell at is the point where the output produced intersects with the Demand curve. At this point, the price listed is what people are willing to buy that amount of quantity for and so the Monopoly will sell at that price.
Data pertaining to the current position of Forte Company are as follows:
Cash $412,500
Marketable securities 187,500
Accounts and notes receivable (net) 300,000
Inventories 700,000
Prepaid expenses 50,000
Accounts payable 200,000
Notes payable (short-term) 250,000
Accrued expenses 300,000
Required:
Compute:
a. The working capital.
b. The current ratio.
c. The quick ratio.
Answer:
Forte Company
Computation of :
a. The working capital = Current Assets minus Current Liabilities
= $1,650,000 - $750,000
= $900,000
b. The current ratio = Current assets/Current liabilities
= $1650,000/$750,000
= 2.2 : 1
c. The quick ratio = (Current asset minus Inventory)/Current liabilities
= ($1,650,000 - 750,000)/$750,000
= $900,000/$750,000
= 1.2 : 1
Explanation:
a) Data and Calculations:
Cash $412,500
Marketable securities 187,500
Accounts and notes receivable (net) 300,000
Inventories 700,000
Prepaid expenses 50,000
Total Current Assets $1,650,000
Accounts payable 200,000
Notes payable (short-term) 250,000
Accrued expenses 300,000
Total Current Liabilities $750,000
b) Forte Company's working capital is the difference between the current assets and the current liabilities. In this case, it is very positive with a huge sum of $900,000.
c ) Forte Company's current ratio is an expression of the relationship between current assets and current liabilities. It shows how much of current liabilities that current assets can cover. The ability of the management of Forte Company to settle its current obligations from the current assets is worked out under this ratio.
d) Forte has a quick ratio of more than 1 : 1. It is similar to the current ratio but with the omission of the Inventory and Prepaid Expenses which are regarded as always taking longer to sell and recover respectively.
College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 009 comma 000 in September, $ 2 comma 240 comma 000 in October, $ 2 comma 379 comma 000 in November, and $ 2 comma 520,000 in December. College Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $ 425 comma 000 plus 15% of the next month's cost of goods sold.Required:Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November.
Answer:
College Logos
Cost of goods sold, inventory, and purchases budget for the months of October and November:
October November
Sales $ 2,240,000 $ 2,379,000
Cost of goods sold 60% 1,344,000 1,427,400
Gross profit, 40% of sales $896,000 $951,600
Inventory Budget:
Ending Inventory $626,600 $639,110
Beginning Inventory $606,810 $626,600
Purchases Budget:
Ending Inventory $626,600 $639,110
Cost of goods sold 1,344,000 1,427,400
Cost of goods available for sale $1,970,600 $2,066,510
less Beginning Inventory $606,810 $626,600
Purchases $1,363,790 $1,439,910
Explanation:
a) Data and Calculations:
September October November December
Sales $ 2,009,000 $ 2,240,000 $ 2,379,000 $ 2,520,000
Cost of goods
sold 60% 1,205,400 1,344,000 1,427,400 1,512,000
Gross profit $803,600 $896,000 $951,600 $1,008,000
Ending Inventory $606,810 $626,600 $639,110 $651,800
Beginning Inventory $606,810 $626,600 $639,110
Purchases:
Ending Inventory $606,810 $626,600 $639,110 $651,800
Cost of goods
sold 1,205,400 1,344,000 1,427,400 1,512,000
Cost of goods available
for sale $1,812,210 $1,970,600 $2,066,510 $2,163,800
less Beginning Inventory $606,810 $626,600 $639,110
Purchases $1,363,790 $1,439,910 $1,524,690
has a target debt−equity ratio of .50. Its cost of equity is 15 percent, and its cost of debt is 6 percent. If the tax rate is 34 percent, what is the company’s WACC?
Answer:
11.35%
Explanation:
The calculation of WACC is shown below:-
WACC = Cost of equity × (equity ÷ (Debt + Equity)) + cost of debt × (debt ÷ (Debt + Equity)) × (1 - tax rate)
= 0.15 × (1 ÷ 1.50) + 0.06 × (0.50 ÷ 1.50) × (1 - 0.34)
= 0.15 × 0.67 + 0.06 × 0.33 × 0.66
= 0.1005 + 0.013068
= 11.35%
Therefore for computing the WACC we simply applied the above formula.
Acme Company’s production budget for August is 17,700 units and includes the following component unit costs: direct materials, $6.0; direct labor, $10.2; variable overhead, $6.2. Budgeted fixed overhead is $34,000. Actual production in August was 18,630 units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, $9.60; variable overhead, $7.00. Actual fixed overhead was $35,700. The standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time.Required:Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
a. $1,700 U
b. $3,260 F
Explanation:
a. Fixed over head budget variance = Actual fixed overhead - Budgeted fixed overhead
Actual fixed overhead = $35,700
Budgeted fixed overhead = $34,000
Fixed overhead budget variance = $35,700 - $34,000
= $1,700 U
b. Fixed overhead volume variance = Budgeted fixed overhead - Standard fixed overhead
Standard fixed overhead application rate = $2 per machine hr × 1hr
= $2
Budgeted fixed overhead = $34,000
Standard fixed overhead = Standard hours for actual output × Budgeted rate
= (18,630 units × 1hr) × $2
= $37,260
Fixed overhead volume variance
= $34,000 - $37,260
= 3,260 F
On January 1, 2018, Frontier World issues $40.7 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. rev: 11_03_2016_QC_CS-68413 Required: 1-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Answer:
$44,728,243.62
Explanation:
face value $40,700,000
coupon rate 9%, semiannual 4.5%
maturity 20 years x 2 = 40 periods
market interest rate 8%
issue price?
present value of face value = $40,700,000 / (1 + 4%)⁴⁰ = $8,477,364.12
present value of coupon payments = $1,831,500 x 19.793 (PV annuity factor, 4%, 40 periods) = $36,250,879.50
market price = $8,477,364.12 + $36,250,879.50 = $44,728,243.62
Journal entry to record issuance of the bonds:
January 1, 2018, bonds are issued at a premium
Dr Cash 44,728,243.62
Cr Bonds payable 40,700,000
Cr Premium on bonds payable 4,028,243.62
according to the nist the process of identifying risk, assessing risk, and taking steps to reduce risk to an
Answer: Risk management
Explanation:
According to the nist, the process of identifying risk, assessing risk, and taking steps to reduce risk to an acceptable level is referred to as the risk management.
Risk management simply has to do with the identification of risks before they occur. In such scenarios, the business owners can either avoid the risk or minimize the impact of the risk.
Jamal lost his job as a shipbuilder. His plant closed down "temporarily" but never reopened and will not. Jamal's skills are very specialized and no longer in demand. His unemployment is best classified as .
Answer:
Structural unemployment
Explanation:
Since Jamal's specialized skills are no longer in demand, this is a clear example of structural unemployment.
Structural unemployment is a situation that exists when the skills one can offer and the available jobs are not matched. It is caused by changes in technology thereby causing the skills that one possesses to be old fashioned. Jamal would have to learn new skills that are in demand to be employable.
At the end of a particular operating period, suppose Brenda (the manager) sits down with Ethan (the employee) and they meet to determine how well Ethan's performance has met the objectives set by Brenda. Which step in the MBO process would this be?
Answer:
Evaluate performance
Explanation:
The mbo process is a time where an employee and manager work together and sets record for a particular period of time.
This step in the mbo process is evaluation of performance. Under this step, the manager reviews the work of the employee from the question, this is what Brenda is doing with Ethan. She is evaluating his performance.
An invoice of $600 for merchandise purchased is showing 3/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day after the invoice date, the amount to be paid is ________.
Answer:
Amount Payable or paid = $582
Explanation:
The terms of purchase state that the buyer will be entitled to a 3% cash discount if the payment for the purchases is made within 15 days of the purchase or invoice date.
Thus, if the payment is made on or within the fifteen days of invoice date, the cash discount that will be received is,
Discount = 600 * 0.03 = $18
So, the amount that will be payable for the merchandise will be,
Amount Payable or paid = 600 - 18 = $582
On March 15, a fire destroyed Sheridan Company's entire retail inventory. The inventory on hand as of January 1 totaled $5900000. From January 1 through the time of the fire, the company made purchases of $2032000, incurred freight-in of $242000, and had sales of $4140000. Assuming the rate of gross profit to selling price is 20%, what is the approximate value of the inventory that was destroyed
Answer:
the approximate value of the inventory that was destroyed is $4,862,000.
Explanation:
Use the Gross Profit percentage to find the value of the inventory that was destroyed.
Sales $4,140,000
Less Cost of Goods Sold
Opening Inventory $5,900,000
Add Purchases $2,032,000
Add Freight In $242,000
Available $8,174,000
Less Inventory Lost ($4,862,000)
Cost of Sales (3,312,000)
Gross Profit at 20% $828,000
Conclusion :
The Value of inventory that was destroyed is $4,862,000.
Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 and their market rate is 12% at the issue date.
Required:
Record the issue of bonds with a par value of $640,000 cash on January 1, 2017 at an issue price of $570,443.
Answer:
Debit Credit
Jan 1 2017
Cash 570,443
Discount on bond 69,557
Bond payable account 640,000
For the issue of bonds on discount
Explanation:
Legacy sold the bonds at a discount .A bond is said to be sold at a discount if it is sold at a price less that its face value. The difference is called the discount.
To record the issuance of a bond at discount, the following accounts would be used :
Cash account- to record the amount received from the issuanceDiscount on bonds- this a contra-liability account to record the discount on the issueBond payable account : Another liability account to record the face value or principal amount of the bond.Discount on bond = 640,000 - 570,443 = 69,557
Accounting entries:
Debit Credit
Jan 1 2017
Cash 570,443
Discount on bond 69,557
Bond payable account 640,000
For the issue of bonds on discount
Note that the cash account was debited to increase the asset value and the the bond payable account credit to recognize an increase in liability.
A market economy is regulated by the interactions between which two things?
Answer:
b is the answer
Explanation:
producers and consumers
how will a new front desk manager address a problem of lateness in a hotel.
Answer:
They will have a system like a lot book where they would take in the visitors details and then Mark in or out and time of arrival and leaving
Hope this helps :)
Explanation:
Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence on September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing:
Answer:
Bing can immediately sue for breach of contract
Explanation:
Based on the scenario that is being described, Bing can immediately sue for breach of contract. Breaching a contract is when one party in a binding agreement fails to deliver according to the terms of the agreement. When Dill made an anticipatory repudiation, he basically stated that he does not intend to live up to the obligations of the contract that he had agreed to, therefore breaching the contract and becoming liable.
Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $689,000 $598,000 $751,000 Credit purchases 302,000 282,000 338,000 Cash disbursements: Wages, taxes, and expenses 137,000 129,000 179,000 Interest 15,600 15,600 15,600 Equipment purchases 53,500 6,600 248,000 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, complete the following cash budget: April MAY JUNEBeginning cash balance 182,000 Cash receiptCash Collection from the credit saleTotal cash available Cash Disbursement Purchase $289,000 Wages, Taxes, and expenses Interest Equipment purchases Total cash Disbursement Ending cash balance
Answer and Explanation:
The presentation of the cash budget for the three months is shown below:
Particulars April May June
Beginning
cash balance $182,000 $264,650 $434,150
Add:
Cash receipts :
Credit sales
collections $577,750 $622,700 $621,650
Total cash
available $759,750 $887,350 $1,055,800
Less:
Cash disbursements
Purchases -$289,000 -$302,000 -$282,000
Wages, Taxes
and expenses -$137,000 -$129,000 -$179,000
Interest -$15,600 -$15,600 -$15,600
Equipment
purchases -$53,500 -$6,600 -$248,000
Total
cash disbursements -$495,100 -$453,200 -$724,600
Ending
cash balance $264,650 $434,150 $331,200
Working Notes:
Cash collection from credit sales
Particulars March April May June
Credit sales $561,000 $689,000 $598,000 $751,000
Cash collected :
35% cash collected
in month of sales $196,350 $241,150 $209,300 $262,850
60% cash collected
in following month
of sales $0 $336,600 $413,400 $358,800
Total cash
collected from sales $577,750 $622,700 $621,650
"he company’s beginning cash balance was $90 and its ending balance was $85. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year."
Answer:
1. Net cash provided by operating activities for the year = $130
2. Ending cash balance = $85
Explanation:
Note: This question is not complete. A complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation to the answer is now provided as follows:
1. Use the indirect method to determine the net cash provided by operating activities for the year.
Note: See the part 1 of the attached excel file for the calculation of the net cash provided by operating activities for the year.
Note: See the part 1 of the attached excel file for the calculation of the net cash provided by operating activities for the year.
Cash flows from operating activities refers to the section of the cash flow statement that shows the cash generated and provided by the ongoing regular business activities of a company in a particular period. Cash flows from operating activities normally comprise of net income from the income statement, adjustments to net income as well as changes in working capital.
2. Prepare a statement of cash flows for the year.
Note: See the part 1 of the attached excel file for the statement of cash flows for the year.
Statement of cash flow refers to the financial statement that presents the effect of changes in balance sheet accounts and income on cash and cash equivalents by breaking it down to operating, investing, and financing activities.
What element of the tourism and recreation industry has increased tenfold over the last fifteen years, bringing increased revenue to cities in the Coastal South such as Miami, Fort Lauderdale, and Tampa
Answer: A. The Cruise Ship Industry
Explanation:
The Cruise Ship Industry has been until recently (due to the Pandemic) one of the fastest growing elements of Tourism and Recreation in the United States having increased tenfold over the last 15 years.
Indeed in 2018, it was estimated that the industry added over $52 billion to the US economy as well as employing over 400,000 people.
This massive growth has benefitted port cities from which these Cruises take off and return to such as Miami, Fort Lauderdale, and Tampa immensely.
The Janjua Company had the following account balances at 1/1/18:
Common Stock $65,000
Treasury Stock (at cost) 13,400
Paid-in-Capital in Excess of Par 82,000
Investments in AFS Debt Securities 40,000
FVA (AFS) 1,500 credit
Retained Earnings 22,000
On that date, the Accumulated OCI account was at its proper balance.
There were no sales or purchases of Common Stock or Investments during 2018. Prior to any adjusting journal entries related to the investments, 2018 Net Income was $10,300. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/2018 was $41,500.
Required:
a. Prepare the 12/31/18 journal entry to adjust the investment to fair value.
b. Prepare the complete 12/31/18 Equity section of the balance sheet.
Answer:
a. Journal Entry:
Investments in Debt securities (Dr.) $1500
Fair Value of Debt securities(Cr.) $1500
b. Equity Section:
Common Stock $65,000
Retained Earnings $22,000
Treasury Stock $13,400
Revaluation of Debt securities $1,500
Explanation:
Investments in AFS Debt securities 40,000
Fair value of the investment on 12/31/2018 is $41,500
The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.
A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The Marginal Physical product (MPP) of the last unit of labor employed is 5 units per hour. The firm pays each worker an hourly wage of $15. a)What Marginal Revenue (MR) does the firm earn from sale of the output produced by the last worker employed? b)Does this firm sell its output in a perfectly competitive market?
Answer:
A.Marginal Revenue $3
B. No
Explanation:
A.Calculation for the Marginal Revenue (MR) that the firm earn from sale of the output produced by the last worker employed
Based on the information given we were told that the Marginal Physical product of the last unit of labor was 5 units per hour in which the firm pays each worker an hourly wage of $15. Now let calculate the Marginal Revenue using this formula
Marginal Revenue = Employees hourly wages/Marginal Physical product unit of labor
Where,
Employees hourly wages=$15
Marginal Physical product unit of labor =5 units per hour
Let plug in the formula
Marginal Revenue =$15/5
Marginal Revenue =$3
B. No reason been that the current profit-maximizing hourly output was 100 units in which we were told that the firm sells at a price of $5 per unit. While the Marginal Revenue gotten in (A) above was $3 which is lesser or lower than $5 per unit which simply means that the firm does NOT sell its output in a well perfectly competitive market .
Transactions that do not involve the original issue of securities take place in _________. A. primary markets B. secondary markets C. over-the-counter markets D. institutional markets
Answer:
B. secondary markets
Explanation:
The secondary market is the market in which the original issue of securities does not take place that means only existing securities are taken place i.e traded like purchase and sale of securities but not new one only existing one.
Therefore according to the given options, option B is correct
Hence, the other options are wrong
________________ allow(s) for more wealth because a larger market allows producers and consumers to benefit from lower costs.
Answer:
Global competition
Explanation:
Global competition is the competition in which the products and the services are provided by the companies that are competed and serve their products and services to international customers. In this the companies should faced a lot of challenges like taste and preferences, a lifestyle that occurs due to the difference in cultures also it generated the benefit from lowering the cost
Therefore according to the given scenario, global competition is the answer
Presence indicators _____.
a. are small digital badges that people can embed in emails and on websites to share their contact information and social affiliations.
b. are visual elements used to change the aesthetic of a web page.
c. are things that others create we feel are worth redistributing to our social networks.
d. are an option to have one's profile reflected back to them from the perspective of others.
e. enable users to project an identity more vividly to others within a community
Answer: enable users to project an identity more vividly to others within a community.
Explanation:
The small digital badges that people can embed in emails and on websites to share their contact information and social affiliations are referred to as identity cards.
Skin/themes are the visual elements that are used to change the aesthetic of a web page.
Identity reflectors are option to have one's profile reflected back to them from the perspective of others.
Presence indicator allow users to project an identity more vividly to others within a community.
Using the tables above, what is the present value of $6,000 to be received at the end of each of the next four years, assuming an earnings rate of 10%?
a. $20,790
b. $19,020
c. $14,412
d. $25,272
1. Option A
2. Option B
3. Option C
Answer:
b. $19,020
Explanation:
Note: This question is not complete. The complete question is therefore provided in the attached pdf file before answering the question. Please, see the attached file for the full question.
Also note that the "1. Option A 2. Option B 3. Option C" are not actually part of the question.
The explanation to the answer is now provided as follows:
Note: This is an example of annuity. An annuity can be described as a series of payments made or income received at equal intervals.
Therefore, the relevant table in the question is the second table, i.e. table for the present value of an annuity of $1 at compound interest.
To calculate the present value (PV), the following for formula is used:
PV = ACI * PVA10% ............................ (1)
PV = Present value = ?
ACI = Annual cash inflows = $6,000
PVA = Present value of annuity of $1 at 10% for 4 years = 3.170
Note that the PVA is obtained for year 4 at 10% from the second table as already explained above.
Substituting the values into equation (1), we have:
PV = $6,000 * 3.170
PV = $19,020
Therefore, the correct option is option b. $19,020.
Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows
Answer:
Internal rate of return
Explanation:
The internal rate of return is that return in which the net present value equivalent to zero
i.e.
Net present value = 0
That means
Initial investment = Present value of cash inflows after charging the discounting factor like 10% 12% etc
So as per the given situation, the internal rate of return is the correct answer
pryor frosted flakes company offers its customers a pottery cereal bowl if they send in 4 boxtops from flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2007, the company sold 500,000 boxes and costumers redeemed 220,000 boxtops receiving 55,000 bowls. if the bowls cost 2.50 each, how much liabilitiy for outstanding premiums should be recorded at the end od 2007?
Answer: $30,000
Explanation:
Company estimates that 60% of boxtops will be redeemed.
They sold 500,000 boxes
= 500,000 * 60%
= 300,000 boxtops will be sent in.
So far, 220,000 have been sent in. How many left;
= 300,000 - 220,000
= 80,000 boxtops are still to be sent in
4 boxtops are needed to receive a pottery bowl so with 80,000;
= 80,000/4
= 20,000 pottery bowls are due to be issued.
Each bowl costs $2.50 to make. Customers will send in $1 however so effectively it will cost the company;
= 2.50 - 1
= $1.50
With 20,000 still left to be issued, each costing $1.50, the total liabilitiy for outstanding premiums to be recorded at the end of 2007 is;
= 20,000 * 1.5
= $30,000
A cash equivalent is: Multiple Choice Another name for cash. Close to its maturity date but its market value may still be affected by interest rate changes.
Complete Question:
A cash equivalent is:
Group of answer choices
a) Generally is within 12 months of its maturity date.
b) Another name for cash.
c) An investment readily convertible to a known amount of cash.
d) Is not considered highly liquid.
e) Close to its maturity date but its market value may still be affected by interest rate
changes
Answer:
c) An investment readily convertible to a known amount of cash.
Explanation:
In Financial accounting, cash equivalents can be defined as any short term and highly liquid investments which can be easily converted or transformed to a known and standard amounts of cash and as such are subjective to little or no risk of changes in value.
This ultimately implies that, a cash equivalent is an investment readily convertible to a known amount of cash.
Under the statements of cash flow, cash equivalents can be classified broadly into three (3) categories and these are;
1. Operating activities.
2. Financing activities.
3. Investing activities.
Answer:
money
Explanation:
Say the marginal tax rate is 30 percent and that government expenditures do not change with output. Say also that the economy is at potential output and that the deficit is $200 billion.Required:a. What is the size of the cyclical deficit?b. What is the size of the structural deficit?c. How would your answers to a and b change if the deficit was still $200 billion but output was $200 billion below potential?d. How would your answers to a and b change if the deficit was still $200 billion but output was $100 billion above potential?
Answer:
a. The Cyclical deficit refers to the deficit arising from the difference between the potential output and the actual output.
The question assumes that the economy is producing at potential which means actual output equals potential output.
Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)
Cyclical Deficit = 0.3 * 0
Cyclical Deficit = $0
b. Structural deficit occurs even when the economy is at potential because it refers to Government deficits that happen when the economy is experiencing normal activity.
Structural Deficit = Actual deficit - Cyclical deficit
Structural Deficit = 200 billion - 0
Structural Deficit = $200 billion
c. Output is $200 billion below potential
Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)
Cyclical Deficit = 0.3 * 200
Cyclical Deficit = $60 billion
Structural Deficit = Actual deficit - Cyclical deficit
Structural Deficit = 200 billion - 60
Structural Deficit = $140 billion
d. Output is $100 billion above potential
Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)
Cyclical Deficit = 0.3 * -100 as actual is above potential
Cyclical Deficit = -$30 billion
Structural Deficit = Actual deficit - Cyclical deficit
Structural Deficit = 200 billion - (-30)
Structural Deficit = $230 billion
