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
Assume the expected return on the market is 6 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 2.00
Answer: 8%
Explanation:
This can be calculated using the Capital Asset Pricing Model. The formula of which is:
Expected return of stock = Risk free rate + Beta * (Expected return on market - Risk-free rate)
= 4% + 2 * (6% - 4%)
= 4% + 4%
= 8%
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 240,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 45,000 Depreciation 28,500 Maintenance 30,000 173,500 Net operating income $ 66,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
Harry has worked as a general manager at Gringard, a supply chain management firm, for eleven years of his professional life. Gringard is a company that still follows a traditional business model and has not significantly changed its human resource management and talent development processes. Harry is now joining Alivron Inc., a company that focuses on a customer-driven supply chain approach. Which of the following is a change Harry should expect to find in his new company?
a. He should expect Alivron to emphasize strong operational skills rather than cross-functional collaboration skills.
b. He wil most likely need to move from following an agile approach to an analytical approach.
c. He will most likely need to work variable shifts so that he can connect with all his team members.
d. He should expect Alivron's distribution centers to run only two shifts Monday through Friday.
Answer:
C. He will most likely need to work variable shifts so that he can connect with all his team members.
Explanation:
He will most likely need to work variable shifts so that he can connect with all his team members.
In his new company, he will most likely need to work variable shifts so that he can connect with all his team members.
Variable shifts is called rotating shifts because it is different from the conventional workdays.
The Variable shifts are programmed to schedule the employees to cover 24 hour a day, 7 days per week operations.
Hence, In the new company, he will most likely need to work variable shifts so that he can connect with all his team members.
Therefore, the Option C is correct.
Read more about Variable shift
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the common sources of secondary data in tourism research are
Explanation:
Secondary data sources, such as industry statistics, surveys/censuses, and big data indicators, cover a wide array of topics that can be leveraged in tourism research..
pls Mark brainliest if it was helpfull
Other things equal, compared to using the first-in-first-out (FIFO) inventory cost method, using the last-in-first-out (LIFO) method in a rising price environment will result in a higher:____________
A. quick ratio.
B. inventory turnover ratio.
C. gross profit margin.
Answer:
B. inventory turnover ratio.
Explanation:
My best guess is that the inventory turnover ratio will be greater when LIFO is used during rising price environment because COGS will be higher and the inventory costs will be lower under LIFO than under FIFO.
Hope its correct.
This article seems to agree to some extent: https://smallbusiness.chron.com/impact-inflation-inventory-turnover-66227.html
A corporation sold 11,000 shares of its $10 par value common stock at a cash price of $14 per share. The entry to record this transaction would include:___________
Answer:
A credit to Common Stock for $110,000. A further explanation is provided below.
Explanation:
Given:
Corporation sold,
= 11,000
Common stock per value,
= $10
Cash price,
= $14 per share
The entry record would include,
= [tex]Sold \ corporation\times Common \ stock[/tex]
= [tex]11000\times 10[/tex]
= [tex]110,000[/tex] ($)
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:
Answer:
Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.
Explanation:
The given problem seems to be incomplete. Find the attachment of the complete question below.
Given:
Direct material,
= $8.70
Direct labor,
= 24.70
Overhead,
= 43.50
Now,
If the offer is accepted, the cost per unit will be:
= [tex]44.45 + (43.50\times 70 \ percentage)[/tex]
= [tex]44.45 + 30.45[/tex]
= [tex]74.90[/tex] ($)
Thus the above is the correct answer.
what is the primary benefit people receive in exchange for paying premiums to an insurance company
Answer:
The insurance company will pay for covered expenses
With premium rates from insurance companies, the overall protection is much more guaranteed than a regular, and perhaps the insurance will cover more than regular insurance.
A benefit that people receive in exchange for paying premiums is that insurance company B.will pay for covered expenses.
What is insurance?The insurance can be regarded as a process of insuring one's property or life in case of danger or any future problems.
The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
Therefore, option B is correct because, when people pay their premiums, the company will be available to covered expenses.
Learn more about insurance here,
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A firm is currently unlevered with 1,000,000 shares each price at $50. The firm is debating of changing its capital structure by taking $20 million in debt that matures in 4 years and repurchasing shares. It will pay down this debt by $5 million every year. If the tax rate is 21% and cost of debt is 7.5%, what is the firm value of the restructured firm
Answer:
its would be 50,000 dont really know
Other things equal, diversification is most effective when Group of answer choices Securities returns are uncorrelated. Securities' returns are high. Both securities' returns are positively correlated and securities' returns are high. Securities' returns are positively correlated. You hold equal proportions of each security in a portfolio.
Answer:
Securities returns are uncorrelated.
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
Correlation is a statistical measure used to measure the relationship that exists between two variables.
1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases.
For example, there should be a positive correlation between quantity supplied and price
When there is a positive correlation, the graph of the variables is upward sloping
2. Negative correlation : it mean that the two variables move in different direction. If one variable increases, the other variable decreases.
For example, there should be a negative correlation between quantity demanded and price
When there is a negative correlation, the graph of the variables is downward sloping
3. Zero correlation : there is no relationship between the variables
In order to achieve the highest benefit of diversification, there should be no relationship between the assets in the portfolio
Classifying Liability-Related Accounts into Balance Sheet or Income Statement Indicate the proper financial statement classification (balance sheet or income statement) for each of the following liability-related accounts. Account Financial Statement a. Gain on Bond Retirement Answer Income statement b. Discount on Bonds Payable Answer Balance sheet c. Mortgage Notes Payable Answer Balance sheet d. Bonds Payable Answer Balance sheet e. Bond Interest Expense Answer Income statement f. Bond Interest Payable (due next period) Answer Balance sheet g. Premium on Bonds Payable Answer Balance sheet h. Loss on Bond Retirement Answer Income statement Check
Answer:
Income Statement:
Gains and expenses for the period go to the income statement so the accounts that go here include:
a. Gain on Bond Retirement
e. Bond Interest Expense
h. Loss on Bond Retirement
Balance sheet:
All liabilities go to the Balance sheet.
b. Discount on Bonds Payable
c. Mortgage Notes Payable
d. Bonds Payable
f. Bond Interest Payable (due next period)
g. Premium on Bonds Payable
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $10,800. What is the maturity value of the note on March 1? (Use 360 days a year.)
a) $11,016
b) $10,800
c) $11,088
d) $11,232
e) $10,944
Answer: $11232
Explanation:
The maturity value of the note on March 1 will be calculated as thus:
Face value = $10800
Interest on note = $10800 × 12% × 120/360 = $432
Maturity value will now be:
= Face value + Interest on note
= $10800 + $432
= $11232
ng 40\%; \$4.400 A company is considering the purchase of a new machine for $ 63,000 . Management predicts that the machine can produce sales of $ 17,500 each year for the next 10 years . Expenses are expected to include direct materials , direct labor , and factory overhead totaling 6,500 per year including depreciation of per year . Income tax expense is per year based on a tax rate of What the payback period for the new machine
Answer:
3 years and 8 months
Explanation:
The payback period is the length of time that it takes for the cashflow of a project to equal the initial investment of the project.
Initial investment = $ 63,000
Cash flow :
Sales $ 17,500
Less Expenses ($6,500)
Add Depreciation ($ 63,000 ÷ 10) $6,300
Annual Cash flow $17,300
thus,
It takes 3 years and 8 months ($11,100/$17,300 x 12) for the cashflow of a project to equal the initial investment for the new machine.
By participating in _____, sellers can automate the fulfillment function of business-to-business (B2B) e-commerce.
Answer:
Buyer-side marketplaces
Explanation:
Joe is currently selling 873 hamburgers per month at $5 per hamburger for total monthly sales of $4,365. The restaurant manager feels that a $1,000 monthly advertising budget would increase monthly sales by $3,000 to a total of 1,473 hamburgers. Should Joe add advertising
Answer:
Yes
Explanation:
Yes, as long as Joe is able to recover the money that he has spent on advertising and still increase his profit, then he should advertise. In this scenario, he wants to spend a fixed $1000 monthly on ads. If these ads generate an increase monthly sales of $3,000 as expected, then this means that Joe's restaurant will increase their total profits by $2,000 after recovering what they spent on the ads. This is what ads are for.
A cash register tape shows cash sales of $3180 and sales taxes of $210. The journal entry to record this information is
Answer:
Debit cash $3,390
Credit sales revenue $210
Cales tax payable $3,180
Explanation:
Preparation of the journal entry to record the information given.
Journal entry
Debit cash $3,390
($3,180+$210)
Credit sales revenue $210
Cales tax payable $3,180
At December 31, 2020, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2020.
Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
Part E14 is used by M Corporation to make one of its products. A total of 19,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 4.10 Direct labor $ 8.70 Variable manufacturing overhead $ 9.20 Supervisor's salary $ 4.60 Depreciation of special equipment $ 3.00 Allocated general overhead $ 8.20 An outside supplier has offered to make the part and sell it to the company for $29.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part E14 could be used to make more of one of the company's other products, generating an additional segment margin of $31,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part E14 from the outside supplier should be:
Answer: ($24100)
Explanation:
The annual financial advantage (disadvantage) for the company goes thus:
The relevant cost to produce will be:
= ($4.10 × 19,000) + ($8.70 × 19,000) + ($9.20 × 19,000) + ($4.60 × 19,000) + $31,000
= $77900 + $165300 + $174800 + $87400 + $31000
= $536,400
The relevant costs to buy will be:
= 19,000 × $29.5
= $560,500
Since the relevant cost to buy is more than the relevant cost to produce, then the financial disadvantage will be:
= $560500 - $536,400
= $24,100
The answer is ($24,100)
Pace Company has the following plan information available for 2019: Month Total Sales January $166,000 February $150,000 March $136,000 April $182,000 May $152,000 June $135,000 July $110,000 The normal pattern of cash collections on sales is 10% in the month of the sale, 50% in the month following the sale and 40% in the second month following the sale. The expected total cash collections for May should be
Answer:
the expected total cash collections for May is $160,600
Explanation:
The computation of the expected total cash collections for May is given below
= 10% of $152,000 + 50% of $182,000 + 40% of $136,000
= $15,200 + $91,000 + $54,400
= $160,600
Hence, the expected total cash collections for May is $160,600
The same should be considered
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are indirect materials, $50,000; Indirect labor, $23,000; factory rent $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cahs in April.
Costs of the three jobs worked on in April follow:
Job 307 Job 307 Job 308
Balances on March 31
Direct materials $29,000 $35,000
Direct labor 20,000 18,000
Applied overhead 10,000 9,000
Costs during April
Direct materials 135,000 220,000 $100,000
Direct labor 85,000 150,000 105,000
Applied overhead
Status on April 30 Finished (sold) Finished (unsold) In process
a. Materials purchases on credit
b. Direct materials used in production
c. Direct labor paid and assigned to Factory Overhead
d. Indirect labor paid and assigned to Factory Overhead
e. Overhead costs applied to Work In Process Inventory
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory
h. Cost of goods sold for Job 306
i. Revenue from the sale of Job 306
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account, (the amount is not material).
Required:
Prepare journal entries for the month of April to record the above transactions.
Answer:
Marcelino Co.
Journal Entries:
Debit Raw materials $500,000
Credit Accounts Payable $500,000
To record the purchase of raw materials on credit.
Debit Factory payroll $363,000
Credit Cash $363,000
To record payment for factory payroll.
Debit Work in Process:
Job 307 $135,000
Job 307 $220,000
Job 308 $100,000
Credit Raw materials $455,000
To record direct materials used in production
Debit Work in Process:
Job 307 $42,500
Job 307 $75,000
Job 308 $52,500
Credit Factory overhead $170,000
To record overhead applied.
Debit Factory overhead $175,000
Credit Raw materials $50,000
Factory payroll $23,000
Factory rent $32,000
Factory utilities $19,000
Factory equipment depreciation $51,000
To record actual factory overhead costs.
Debit Finished Goods Inventory $828,500
Credit Work in Process:
Job 306 $321,500
Job 307 $507,000
To record the cost of finished goods transferred.
Debit Cost of goods sold $321,500
Credit Finished goods inventory $321,500
To record the cost of goods sold.
Debit Cash $635,000
Credit Sales Revenue $635,000
To record the receipt of cash for sales.
Debit Cost of Goods Sold $5,000
Credit Factory overhead $5,000
To record underapplied overhead.
Explanation:
a) Data and Calculations:
Raw materials inventory, March 31 = $80,000
Raw materials $500,000 Accounts Payable $500,000
Factory payroll $363,000 Cash $363,000
Overhead costs incurred in April :
Indirect materials $50,000 Raw materials $50,000
Indirect labor $23,000 Factory payroll $23,000
Factory rent $32,000 Cash $32,000
Factory utilities $19,000 Cash $19,000
Factory equipment depreciation $51,000 Accumulated depreciation $51,000
Total overhead incurred = $175,000
Predetermined overhead rate = 50% of direct labor cost
Sale of Job 306 for cash = $635,000
Job 306 Job 307 Job 308 Total
Balances on March 31
Direct materials $29,000 $35,000 $64,000
Direct labor 20,000 18,000 38,000
Applied overhead 10,000 9,000 19,000
Costs during April
Direct materials 135,000 220,000 $100,000 $455,000
Direct labor 85,000 150,000 105,000 340,000
Applied overhead 42,500 75,000 52,500 170,000
Total costs $321,500 $507,000 $257,500 $1,086,000
Status on April 30 Finished (sold) Finished (unsold) In process
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was $58,000
Accounts payable increased by $18,600
Accounts receivable decreased by $25,600
Inventories increased by $6,200
Depreciation expense was $31,800
Net cash provided by operating activities was:_________.
Answer:
Net cash provided by operating activities was $127,800.
Explanation:
Net cash provided by operating activities can be calculated as follows:
Net cash provided by operating activities = Net income for the year + Increase in accounts payable + Decrease in accounts receivable - Increase in inventories increased + Depreciation expense = $58,000 + $18,600 + $25,600 - $6,200 + $31,800 = $127,800
Therefore, net cash provided by operating activities was $127,800.
Promotional expenses at the maturity stage of the product life cycle are often designed to Multiple Choice maintain market share. create a sense of nostalgia. attract more price-conscious consumers. thwart the growing number of competitors that have entered the market. convince those who have abandoned the brand to try it again.
Answer:
maintain market share.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Maturity is the stage in which product experiences a peak in sales growth and then eventually slows as the product reaches more customers, and lastly price competition is fierce.
Promotional expenses that are incurred at the maturity stage of the product life cycle are often designed by marketers to maintain market share. This is usually achieved through further product differentiation and finding new buyers (consumers).
describe five ways in which contract management might adds value after the contract award stage of the sourcing process.
Answer:
The five ways for contract management are:
1 - how buyer and supplier work after contract has been awarded.
2 - Key decisions made.
3 - Risk of misunderstanding and disagreement.
4 - Identify opportunities and improve performance.
5 - Performance evaluation against KPIs.
Explanation:
Contract management is essential for any business to succeed. There are five ways in which contract management will add value after contract award stage. Usually value addition is achieved by the response of buyer and seller towards the services after the contract has been awarded. There should be right individuals involved in decision making process. The performance should be evaluated against the KPI mentioned in the contract. If both supplier and buyer work with mutual understanding there is very less chance for disagreement and value will be added to the contract performance.
When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in its self-darkening windshield. The type of information the marketing team was using is referred to as Multiple Choice surveys. focus groups. primary data. secondary data.
Answer:
secondary data.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Secondary market research can be defined as a method designed to determine the demographics of a particular target market.
A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.
In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.
In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials$35,000 $60,000 Work in process 9,000 20,900 Finished goods 67,000 34,300 Activities and information for May Raw materials purchases (paid with cash) 171,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 8,000 Indirect labor 46,000 Other overhead costs 108,000 Sales (received in cash) 1,300,000 Predetermined overhead rate based on direct labor cost 55% Compute the following amounts for the month of May using T-accounts. Cost of direct materials used. Cost of direct labor used. Cost of goods manufactured. Cost of goods sold\.\* Gross profit. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead.
Answer:
Lock-Tite Company
Cost of direct materials used = $138,000
Cost of direct labor used = $154,000
Cost of goods manufactured = $364,800
Cost of goods sold = $397,500
Gross profit = $902,500
Overapplied or underapplied overhead = $77,300
Explanation:
a) Data and Calculations:
April 30 May 31
Inventories
Raw materials $35,000 $60,000
Work in process 9,000 20,900
Finished goods 67,000 34,300
Activities and information for May
Raw materials purchases (paid with cash) 171,000
Factory payroll (paid with cash) 200,000
Factory overhead
Indirect materials 8,000
Indirect labor 46,000
Other overhead costs 108,000
Sales (received in cash) 1,300,000
Predetermined overhead rate based on direct labor cost 55%
T-accounts:
Raw materials
Date Account Titles Debit Credit
April 30 Beginning balance $35,000
May Cash 171,000
May Work in Process $138,000
May Manufacturing overhead 8,000
May 31 Closing balance $60,000
Payroll Expenses
Date Account Titles Debit Credit
May Cash $200,000
May Manufacturing overhead $46,000
May Work in Process $154,000
Work in process
Date Account Titles Debit Credit
April 30 Beginning balance $9,000
May Raw materials 138,000
May Payroll expenses 154,000
May Overhead 84,700
May Finished goods $364,800
May 31 Closing balance $20,900
Finished goods
Date Account Titles Debit Credit
April 30 Beginning balance $67,000
May Work in process 364,800
May Cost of goods sold $397,500
May 31 Closing balance $34,300
Income Summary
Date Account Titles Debit Credit
May 31 Sales revenue $1,300,000
May 31 Cost of goods sold $397,500
May 31 Gross profit $902,500
Manufacturing Overhead
Date Account Titles Debit Credit
May Raw materials $8,000
May Payroll expenses 46,000
May Other overhead 108,000
May Work in Process $84,700 ($154,000 * 55%)
May Underapplied overhead 77,300
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost of goods sold? Group of answer choices $7 million overstated $7 million understated no effect none of the above
Answer:
$7million understated
Explanation:
Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.
The following general ledger accounts and additional information are taken from the records of Wolfe Corporation at the end of its fiscal year, December 31, 2019 Additional information:
a. The prepaid insurance is for a one-year policy, effective July 1, 2019.
b. A physical count indicated that $500 of supplies is still on hand.
c. $50 of December rent expense has not been recorded.
101 Unused Supplies 173 Advertising Exp. 610 Bal 700 Bal. 200 Cash Bal 2,700 Accounts Receivable110 Bal. 2,000 Common Stock Bal 320 3,800 Salaries Expense 656 Bal. 4,500 161 654 Prepaid Insurance Bal. 1,200 Repair Revenue Bal 450 7,750 Rent Expense Bal. 250
Required:
1. Record all necessary adjusting entries in general journal format including general ledger account numbers. Assume the following account numbers: Insurance Expense: 631; Supplies Expense: 668.
2. Post the adjusting entries to T-accounts and calculate balances.
3. Prepare all closing entries in general Journal format. Include general ledger account numbers.
4. Post the closing entries to the applicable general ledger accounts.
Answer:
a. Prepaid insurance (Dr.) $600
cash (Cr.) $600
b. Supplies expense (Dr.) $200
Unused supplies (Cr.) $200
c. Rent expense (Dr.) $50
Cash (Cr.) $50
Explanation:
Insurance expense : $1,200 * 6 / 12 = $600.
Cash balance $2,700 - $600 - $50 = $2,050
Which of the following expressions correctly describes economic profits? A. Marginal revenuesexplicit costs. B. Total revenuesexplicit costs. C. Total revenuesimplicit costsexplicit costs. D. Marginal revenuesimplicit costsexplicit costs.
Answer:
C. Total revenuesimplicit costsexplicit costs.
Explanation:
The formula to compute the economic profits is shown below:
The economic profit is
= Total revenue - (explicit cost + implicit cost)
or
= Total revenue - explicit cost - implicit cost
So based on the above formula, the option c is correct
And, the rest of the options are incorrect
If the amount of beachfront land in Malibu supplied to the market remains the same even when the price of beachfront land in Malibu increases, the:_________.
a. demand for beachfront land in malibu must be perfectly inelastic,
b. supply of beachfront land in Malibu must be perfectly elastic.
c. demand for beachfront land in Malibu must be perfectly elastic.
d. supply of beachfront land in Malibu must be perfectly inelastic.
Answer:
D
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Supply is perfectly inelastic if a small change in price has no effect on quantity supplied
