Answer:
Reasonable - Yes Absolute - No
Explanation:
When conducting an audit, the auditor is responsible to perform the review and provide reasonable assurance that the financial statements are free of material misstatement.
Due to the type of audit evidence obtained and the attribute of the fraud, the auditor cannot provide absolute assurance that the financial statements are free from any material misstatement, whether due to fraud or error. The assurance provided by the auditor is reasonable and not absolute.
A company has free cash flow of $700 and cash flow to shareholders of $200. Interest expense for the year was $400. a.) What must be the net new borrowing, as reflected by the change in long-term debt
Answer:
the net new borrowing, as reflected by the change in long-term debt is $100
Explanation:
a. The calculation of the net new borrowing is given below:
Net new borrowing is
= cash inflow = cash outflow
= $700 - $200 - $400
= $700 - $600
= $100
Hence, the net new borrowing, as reflected by the change in long-term debt is $100
A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real world, this government is quite certain that it can achieve the same price and quantity either way. It wants to choose the method that will pull in more government tax revenue. Is selling allowances better for revenues or is setting a pollution tax better, or will both raise exactly the same amount of revenue
Answer: Both will raise the same amount
Explanation:
The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.
Both methods would therefore yield the same amount if the government uses either of them.
Which of the following is a consumer right for the consumer bill of rights?
1. Right to know
2. Right to return
3. It’s a profit
4. Right to sanity
Answer:
both numbers one and two
Tuscany Company estimated the following costs at the beginning of a particular year: Overhead $5,340,000 Direct labor cost $890,000 Tuscany uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost equals total direct labor hours worked multiplied by the wage rate.) The direct labor cost was $50,000 for the month of January. Determine the overhead applied for the month of January.
Answer: $300,000
Explanation:
As overhead is applied on the basis of direct labor cost, the overhead rate for the period is:
= Overhead / Direct labor cost * 100%
= 5,340,000 / 890,000 * 100%
= 600%
If direct labor cost is $50,000 then overhead applied will be:
= Direct labor cost * Overhead rate
= 50,000 * 600%
= $300,000
Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $42,400 and $24,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $29,300 in 2014 and $35,300 in 2015. Required:Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015.
Answer:
Amount of noncontrolling interest in consolidated income to be reported in 2014 = $2,718
Amount of noncontrolling interest in consolidated income to be reported in 2015 = $3,410
Explanation:
Percentage of the unsold inventory = One-fourth = 1 / 4 = 0.25, or 25%
Percentage of noncontrolling interest = 100% - 90% = 10%
Unrealized profit on inventory = Selling price of the merchandise * Percentage of the unsold inventory * (Markup / (100% + Markup)) ……………. (1)
Amount of noncontrolling interest in consolidated income to be reported = (Reported net income by Sloane - Unrealized profit on inventory) * Percentage of noncontrolling interest ……………. (2)
Using equation (1), we have:
Unrealized profit on inventory in 2014 = $42,400 * 25% * (25% / (100% + 25%)) = $2,120
Unrealized profit on inventory in 2015 = $24,000 * 25% * (25% / (100% + 25%)) = $1,200
Using equation (2), we have:
Amount of noncontrolling interest in consolidated income to be reported in 2014 = ($29,300 - $2,120) * 10% = $2,718
Amount of noncontrolling interest in consolidated income to be reported in 2015 = ($35,300 - $1,200) * 10% = $3,410
Frank decides that a social media campaign is the best way for him to attract new business to Slice of Life Pizza. After Frank identifies his strategies and goals, the next step in the campaign is
Answer: identify your target audience
Explanation:
Since Frank has identified his strategies and goals, then the next step in the campaign will be to identify the target audience.
The target audience refers to the consumers that are likely to attract new business to Slice of Life Pizza. This is vital for Frank to be able to reach out to more customers and make profit.
The short-run effects of an increase in the saving rate include a higher level of productivity.
a. True
b. False
False
The short-run effects of an increase in the saving rate include a higher level of productivity, a higher growth rate of productivity, and a higher growth rate of income.
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning work in process $0 $4,640 Materials 22,900 10,400 Labor 8,750 7,240 Overhead 32,000 27,300 Costs transferred in 55,000Journalize the April transactions.
Answer:
4/30
Dr Work in Process—Cooking $22,900
Dr Work in Process—Canning $10,400
Cr Raw Materials Inventory $33,300
4/30
Dr Work in Process—Cooking $8,750
Dr Work in Process—Canning $7,240
Factory Labor $15,990
4/30
Dr Work in Process—Cooking $32,000
Dr Work in Process—Canning $27,300
Cr Manufacturing Overhead $59,300
4/30
Dr Work in Process—Canning $55,000
Work in Process—Cooking $55,000
Explanation:
Preparation of the journal entries
4/30
Dr Work in Process—Cooking $22,900
Dr Work in Process—Canning $10,400
Cr Raw Materials Inventory $33,300
($22,900+$10,400)
4/30
Dr Work in Process—Cooking $8,750
Dr Work in Process—Canning $7,240
Factory Labor $15,990
($8750+$7,240)
4/30
Dr Work in Process—Cooking $32,000
Dr Work in Process—Canning $27,300
Cr Manufacturing Overhead $59,300
($32,000 +$27,300)
4/30
Dr Work in Process—Canning $55,000
Work in Process—Cooking $55,000
Suppose that the airline industry is in long-run equilibrium when the price of gasoline increases, raising the cost of operating airplanes. In the long run, the number of airlines in business should:________a. remain constant with lower profits.b. increase.c. decrease.d. remain constant with constant profits.
Answer: c. decrease.
Explanation:
If the cost of operating airplanes increases on account of gasoline prices rising, it means that running an airline service would be more expensive.
In the long-run, there is zero economic profit as companies keep entering and exiting the market. If costs increase as they have done here, there will be an economic loss. Several firms will therefore exit in order to avoid these costs which would lead to the number of airlines decreasing.
When they decrease, prices will then go up till the economic profit is zero once more.
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $360. In each town, some people enjoy fireworks more than others. In the town of Bayport, each of the residents values the public good as follows:
Resident Value (Dollars)
Musashi 50
Rina 100
Sean 300
he total benefit of the fireworks display to the town of Bayport is $: ___________
Answer:
$450
Explanation:
The benefit an individual derives from an activity can be described as the total satisfaction or utility that individual derives from carrying out a particular activity. It is the value an individual derives from a particular activity
Benefit can be measured in dollars or in utils
the higher the value of the dollar or util, the higher the benefit the consumer derives from an activity
A rational person would weigh the cost of an activity to the benefit that would be derived from the activity. The individual would carry out the activity only if benefit outweigh the cost.
For example, in this question, the total benefit of fireworks display is 450. this is greater than the cost. So, the town would carry out the firework display
Total benefit is the sum of individual value individuals would derive from an activity.
total benefit = $50 + $100 + $300 = $450
war never ends neither does My determination
Answer:
I shall be your eternal nightmare." "War never ends, neither does my determination." "Demons! Step forward if you have a death wish."
Marion is a great manager and he has a number of special skills. In particular, Marion has the ability to get his subordinates to do more than would be normally expected. Which of the following terms best describes Marion?
a. Transactional leader
b. Supportive leader
c. Charismatic leader
d. People-oriented leader
Answer: c. Charismatic leader
Explanation:
Charismatic leaders are people who are capable of motivating other people by using their great interpersonal and communication skills, ability to charm others and the ease with which they can persuade people.
When they motivate others, those people are willing to do more than they normally do in relation to what they were being motivated for. In this case, Marion is therefore a charismatic leader as he is able to get employees to do more than they normally do.
g A foreign factory has offered to supply with ready-made baskets for a price of $12 per basket. Assume that fixed costs are unavoidable, but that could use the vacated production facilities to earn an additional $8500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by ________.
Answer:
The answer is "$5500".
Explanation:
Analysis Differential:
Make Buy
Cost of variable [tex]800\times 7 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 5600[/tex]
Fixed- cost [tex]16000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 16000[/tex]
Purchasing cost [tex]800\times 12\ = 9600[/tex]
Cost of opportunity [tex]\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 9500[/tex]
Total relevant cost [tex]31100 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 25600[/tex]
Increasing operating income [tex]= 31100-25600 = 5500[/tex]
MC Qu. 111 Brush Industries reports the following... Brush Industries reports the following information for May: Sales$955,000 Fixed cost of goods sold 111,000 Variable cost of goods sold 261,000 Fixed selling and administrative costs 111,000 Variable selling and administrative costs 136,000 Calculate the operating income for May under absorption costing.
Answer:
Particulars Amount
Sales $955,000
Less: Fixed cost of goods sold $111,000
Less: Variable cost of goods sold $261,000
Gross Profit $583,000
Less: Fixed selling & admin. costs $111,000
Less: Var. selling & admin. costs $136,000
Operating Income $336,000
Which of the following is a consumer right per the consumer bill of rights?
1. Right to know
2. Right to return
3. Right to profit
4. Right to sanity
Answer:
1. Right to know.
Explanation:
The Consumer Bill of Rights refers to certain rights that are given to customers in a business transaction. These set of rights are given to customers or consumers and are made so that consumers will have equal rights to be protected against any unfair or false claims.
Among the given set of rights, the right to know is a consumer right according to the bill of rights. This right is one of the four sets of original rights as set in the consumer bill of rights. The other three are the right to safety, to be heard, and to choose.
Thus, the correct answer is option 1.
The gravity model offers a logical explanation for the fact that :________
A) trade between Asia and the U.S. has grown faster than NAFTA trade.
B) trade in services has grown faster than trade in goods.
C) trade in manufactures has grown faster than in agricultural products.
D) Intra-European Union trade exceeds international trade by the European Union.
E) the U.S. trades more with Western Europe than it does with Canada.
The Paw Patrol Smartphone lets kids learn about colors, numbers, and music. It has four Paw Patrol characters for the game plus numbers and colors. Before developing the Smartphone, Paw Patrol researched the market to see if this Smartphone would face stiff competition. Which step of segmenting the market does this example represent
Answer:
Profiling and analysing segments
Explanation:
Segmentation is the division of people into certain groups based on shared characteristics.
For example, In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors
Stages of segmenting a market
Selecting a product category to study - the product whose market would be segmented is chosen Choosing a basis for segmentation Selecting segmentation descriptors Profiling and analyzing segmentsCheck all answers that apply. Based on the model output, we can say that both the size of the move (CuFt) and number of large furniture moved are important considerations when estimating the total number of labor hours required. We can make this claim because __________.'
Answer:
P-value for slope coefficient of the size of the mode CuFt is0.00
Explanation:
The slope coefficient is change in probability when all other independent variables are held constant. The output is 93.3 which is due to the variation in labor hours. These variations are due to large number of furniture moved in cubic feet.
In what type of market transaction does the issuing corporation receive cash proceeds?
Answer:
In the primary market, companies issue new shares to investors in exchange for cash. The proceeds from such an offering are used to fund the business, make acquisitions.
Explanation:
In the world oil market, oil is supplied up to the point where: Select one: A. the marginal cost of the last barrel is at a maximum B. the marginal cost of the last barrel is the greatest distance from the price buyers are willing to pay for that last barrel C. the marginal cost of the last barrel is zero D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Answer:
D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Explanation:
In the case of the oil market that oil is to be supplied to the point where the marginal cost of the previous barrel should be equivalent to the price where the pruchaser want to pay for that previous barrel
So as per the given situation, the option d is correct
ANd, the rest of the options seems incorrect
The current account balance equals _______. A. net exports plus net foreign investment in the United States B. exports minus imports plus net interest and net transfers C. the capital and financial account balance minus the official settlements account balance D. net exports plus the official settlements balance
Answer:
a
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Current account = net export + net income + net transfers
Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.A) $5 per share.B) $ per share.C) $0. per share.D) $6 per share.
Answer:
A) $5 per share
Explanation:
Calculation to determine the earnings per share of the company.
Using this formula
EPS=Stock price/P/E ratio
Let plug in the formula
EPS = 50/10
EPS= $5 per share
Therefore the earnings per share of the company will be $5 per share
Use the DuPont system and the following data to find return on equity.(Do not round intermediate calculations. Round your answer to 1 decimal place.)
Leverage ratio 2.8
Total asset turnover 2.5
Net profit margin 5.3 %
Dividend payout ratio 35.2 %
Return on equity %
Answer:Return on Equity= 37.1%
Explanation:
According to the DuPont Analysis System,
Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover
Return on Equity = 2.8 x 5.3% x 2.5
Return on Equity=0.371
Return on Equity= 37.1%
Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to
Answer:
select a target market.
Explanation:
As we know that STP means segmenting, targeting and positioning.
Since the marget segmentation is conducted via allocating the market into different kind of segments that depend upon the same kind of needs so here the next step to choose the target market in which the suitable market segment should be selected that depend upon the evaluation process
The ABC Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $ 160,000 May $ 180,000 June $ 170,000 Budgeted cash collections in June would be:
Answer: $170500
Explanation:
Based on the information given in the question, the budgeted cash collections in June would be calculated thus:
= (45% × $160000) + (50% × $180000) + (5% × $170000)
= $72000 + $90000 + $8500
= $170500
Therefore, the budgeted cash collections in June would be $170500
In the Hausser Food Products case, which type of organizational structure might have prevented the Florida sales team from withholding information from other sales teams?
Answer: Functional structure.
Explanation:
In the Hausser Food Products case, the type of organizational structure that might have prevented the Florida sales team from withholding information from other sales teams is the Functional structure.
The functional structure refers to the structure whereby employees in an organization are grouped based on their specialized skills, knowledge or roles that they perform.
In this type of structure, there are different departments such as the sales department, finance department, customers services department etc. The specialized unit typically report to higher management as it's hierarchical.
These are selected account balances on December 31, 2020. Land (location of the office building) $97000 Land (held for future use) 152000 Corporate Office Building 675000 Inventory 182000 Equipment 457000 Office Furniture 135000 Accumulated Depreciation 427000 What is the total net amount of property, plant, and equipment that will appear on the balance sheet
Answer:
$937,000
Explanation:
Calculation to determine the total net amount of property, plant, and equipment that will appear on the balance sheet
Land (location of the office building) $97000
Add Office Building 675000
Add Equipment 457000
Add Office Furniture 135000
Less Accumulated Depreciation (427000 )
Total Net Amount $937,000
Therefore the total net amount of property, plant, and equipment that will appear on the balance sheet is $937,000
Your income is $10,000 over the cutoff for the next lowest tax bracket. Your average tax rate is 10%. Your marginal tax rate is 25%. You contribute $3,000 to a traditional IRA and your contribution is fully deductible, should you decide to go that way. You decide, in fact, to make this a traditional IRA. How much did your contribution actually cost you, in after-tax dollars
Answer:
"$2,250" is the appropriate answer.
Explanation:
Given values are:
Before tax cost,
= $3000
Marginal tax rate,
= 25%
or,
= 0.25
The after tax cost of contribution will be:
= [tex]Before \ tax \ cost\times (1-Marginal \ tax \ rate)[/tex]
By putting the values, we get
= [tex]3000(1-25 \ percent)[/tex]
= [tex]3000(1-0.25)[/tex]
= [tex]3000\times 0.75[/tex]
= [tex]2250[/tex] ($)
T/F If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20 billion in year 2, then we can say that in each of those two years, B receives annual FDI outflows of $20 billion, and A generates annual FDI inflows of $20 billion.
Answer: False
Explanation:
In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.
Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.
Margas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to:_____.a. $7,106.
b. $7,088.
c. $7,100.
d. $7,090.
Answer: c. $7,100
Explanation:
Supplies cost according to the flexible budget is to be calculated based on the actual level of activity.
The cost is:
= Fixed cost + (Variable cost * actual level of activity)
= 2,240 + (6 * 810)
= 2,240 + 4,860
= $7,100
