Answer:
Active fund
Explanation:
Active funds refer to the fund in which the expertise and a lot of research are required with respect to whether the investment should be hold or not. It could be changed in terms of performance, and the market conditions
Therefore according to the given situation, since the current stock price do not display the underlying value with respect to the assets, earnings, cash flow, etc
So this represents the active fund
Advertisements for hygiene products like toothpaste and soap tend to feature doctors as spokespersons endorsing the products.Consumers perceive these doctors to possess a substantial knowledge on health and hygiene.Which of the following characteristics of the message source is represented by this example?A) ExpertiseB) CongruityC) VisibilityD) AttractivenessE) Simplicity
Answer: A.) Expertise
Explanation: The endorsement usually offered by doctors during advert placement on products in the hygiene category such as soap, toothpaste and sanitary products is used to denote expertise. Doctors are well known and highly revered in areas of medicine including hygiene and health, there endorsement of such products is much likely to lead to higher approval rate among consumers and thus success of the product than endorsement offered by non-health or hygiene professional such as a banker.
The primary result of a stock split or stock dividend is: Group of answer choices an increase in the number of common shares outstanding an increase in the common equity account an increase in the market value of common shares a decrease in the number of common shares outstanding an increase in the P/E ratio
Answer:
an increase in the number of common shares outstanding
Explanation:
A stock split is when a company increases the number of its shares outstanding.
for example if a company has 10 million shares outstanding at a price of $20, earning per share is $10 and dividend per share is $0.50. this company announces a 2 for 1 split :
the number of outstanding shares becomes 2 x 10 million = 20 million
stock price becomes = $40 / 2 =$20
earning per share = $10 / 2 = $5
dividend per share = $0.5 / 2 = $0.25
p/e before split = $40 / $10 = 4
P/E after split = $20 / $5 = 4
so stock per share, earning per share and dividend per share decreases. P / E remains unchanged
In its first year of operations, Roma Company reports the following. Earned revenues of $57,000 ($49,000 cash received from customers). Incurred expenses of $31,500 ($24,450 cash paid toward them). Prepaid $9,750 cash for costs that will not be expensed until next year.Compute the company's first year net income under both thecash basis and the accrual basis of accounting.
Answer:
Computation of expenses under Cash basis
Particulars Amount$
Expenses paid $24,450
Add: Prepaid expenses paid $9,750
Total expenses paid $34,200
Computation of the Net Income
Particulars Cash basis Accrual basis
Revenue $49,000 $57,000
Less: Expenses $34,200 $24,450
Net Income $14,800 $32,550
Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019. For the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement. What amount did Vaughn debit to the appropriate account in 2020 to write off actual bad debts?
Answer: $19000
Explanation:
From the question, we are informed that Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019 and that for the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement.
The amount that Vaughn debited to the appropriate account in 2020 to write off actual bad debts will be:
= $31000 - ($190000 - $178000)
= $31000 - $12000
= $19000
On january 1, 2017, finch company issued $89,000 of five-year, 8% bonds when the market interest rate was 12%. the issue price of the bonds was $73,000. finch uses the effective-interest method of amortization for bond discount. semiannual interest payments are made on june 30 and december 31 of each year. how much interest expense will be recorded when the first interest payment is made? (round your answer to the nearest dollar number.)
Answer:
$4,380
Explanation:
The calculation of the interest expense recorded in the first year is given below:
= Issued price of the bond × market interest rate ÷ semi annual period
= $73,000 × 12% ÷ 2
= $73,000 × 6%
= $4,380
Therefore, the interest expense would be recorded when the interest payment is made is $4,380
We simply used the above formula
All of the following statements regarding technical analysis are correct except A) technical analysts use terms such as trendline, support, and resistance in analyzing stocks. B) technical analysts rely on charts to predict the future prices of stocks. C) technical analysts rely heavily on financial ratios in their analysis of stocks. D) technical analysts attempt to predict the future movement of stock prices based on past trends.
Answer:
C
Explanation:
Technical analysis is a trading tool used to evaluate investment and trading opportunities by gathering and analyzing trends from trading activities , thereby it is able to predict future prices of stocks based on past trends.
The analyst does not rely on financial ratios in the analysis of stocks as financial ratio is mostly used by fundamental analyst in financial performance evaluation and not by technical analysts in predicting changes in stock movements
The optimal capital structure: A) will vary over time as taxes and market conditions change. B) will remain constant over time unless the company changes its primary operations. C) will be the same for all companies within the same industry. D) places more emphasis on operations than on financing. E) is unaffected by changes in the financial markets.
Answer:
A) will vary over time as taxes and market conditions change.
Explanation:
The capital structure is a combination of the debt and equity and if this is the optimum capital structure so it would be the best combination. Also, the equity financing maximize the market value of the company while at the same time it reduced the cost of capital
Therefore it will vary with respect to the taxes and the change in the market conditions
The following per unit cost information is available: direct materials $36, direct labor $24, variable manufacturing overhead $18, fixed manufacturing overhead $40, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30. Compute its markup percentage using a total-cost approach
Answer:
Mark−up percentage = 18.75%
Explanation:
Total manufacturing cost= Direct material + Direct labor + Variable overhead + Fixed overhead
= $36 + $24 + $18 + $40
= $118
Hence, the total manufacturing cost is $118.
Total selling cost = Fixed selling cost + Variable selling cost
Total selling cost = $28 + $14
Total selling cost = $42
Hence, the total selling cost is $42
Total cost = Total Manufacturing cost + Total selling cost
Total cost = $118 + $42
Total cost = $160
Mark−up percentage = ROI / Total cost * 100
Mark−up percentage = $30 / $160 * 100
Mark−up percentage = 0.1875 * 100
Mark−up percentage = 18.75%
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,800 (that had cost...
Levine Company uses the perpetual inventory system.
Apr. 8 Sold merchandise for $8,800 (that had cost $6,503) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
12 Sold merchandise for $8,600 (that had cost $5,573) and accepted the customer's Continental Card. Continental charges a 2.5% fee.
Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Date General Journal Debit Credit
Apr 8 Cash $8,448
Credit card expenses $352
(8,800 * 4%)
Sales $8,800
(Sales of merchandise, receipt of cash
and credit card charges recorded
Apr 8. Cost of Goods sold $6,503
Merchandise Inventory $6,503
(Cost of goods sold recorded)
Apr 12. Cash $8,385
Credit card expense $215
(8,600 * 2.5%)
Sales $8,600
(Sales of merchandise, receipt of cash
and credit card charges recorded
Apr 12 Cost of goods sold $5,573
Merchandise Inventory $5,573
(Cost of goods sold recorded)
Assume that divisional income from operations amounts to $215,000 and top management has established 15% as the minimum rate of return on divisional assets totaling $1,000,000. The residual income for the division is
Answer:
$65,000
Explanation:
The computation of the residual income is shown below;
Residual income = Operating income - target income
where,
Operating income is given in the question
And, the target income could be calculated by
= Average invested assets × required rate of return
= $1000,000 × 15%
= $150,000
So, the residual income is
= $215,000 - $150,000
= $65,000
Analyse how fiscal policy measures could reduce inflation.
Answer:
In order to control the demand-pull inflation, the Government undertakes some monetary measures and incorporates certain changes to the fiscal policy.One of the commonly used measures to control inflation is controlling the money supply in the economy. If the Government decreases the supply of money, then the demand will fall, leading to a fall in prices. Therefore, the Government may decide to withdraw certain paper notes and/or coins from circulation. This decreases the money supply.
Explanation:
only a monopolistically competitive firm operates at its efficient scale. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production. neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost. only a perfectly competitive firm operates at its efficient scale.
Answer:
Correct Answer:
only a monopolistically competitive firm operates at its efficient scale.
Explanation:
In a given market, a given organization or firm could operate either in a monpolistically competitive or perfectively competitive at its efficient scale. However, in the long run, only a monopolistically competitive firm operates at its efficient scale.
Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ______.
Answer: accepting partial performance
Explanation:
From the question, we are informed that Grace found herself in a breach of contract situation where the other party met some of the terms but not others and she thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good.
The above scenario is an example of accepting partial performance. This is a partial performance because there's a breach of contract as not all the terms that were involved are met.
PIOs should A. request additional assistance through the National Public Information Support Network. B. seek media release approval from the Communication Unit Leader. C. compile a go kit to allow for lengthy deployments to a long-term incident. D. report to the Finance/Admin Section Chief when arriving at an incident.
Answer:
B. seek media release approval from the Communication Unit Leader.
Explanation:
A PIO (public information officer) is responsible for managing communications with the media, public and other agencies regarding information on incidents. Before media releases the PIO is to first obtain approval from the incident commander as well as limits on the information to the released. PIO are also responsible for interviews and briefings regarding briefings, manage media and public inquiries, monitor information being reported so as to ensure accuracy
Roberta is a real estate licensee representing the buyer. The buyer asks to see homes in a specific neighborhood. Roberta refuses to show any homes in that neighborhood to the buyer and tells the buyer, Nobody from your country lives in that neighborhood. Has Roberta violated any fair housing laws?
Answer:
Yes.
Explanation:
The fair housing law act is a law prohibits discrimination in the process of renting , buying or selling a house. This discrimination may be based on race , skin , color , sex , nationality ,or any other characteristic towards a protected group,
Declining the buyer the opportunity to inspects home in a particular neighborhood because nobody form his country lives in that area is an act that violates fair housing laws as the process seems to be biased towards a group of people from a particular country.
EarthShapers Inc., a manufacturer of heavy construction equipments based in U.S.A., maintains large sales and support operations overseas. Before sending new employees to its operations in Japan, it requires the employees to take courses in Japanese history and culture so that they can adjust more easily to living in Japan. This training focuses on the _____ component of international competence training.
Answer:
Cognitive.
Explanation:
In this scenario, EarthShapers Inc., a manufacturer of heavy construction equipments based in U.S.A., maintains large sales and support operations overseas. Before sending new employees to its operations in Japan, it requires the employees to take courses in Japanese history and culture so that they can adjust more easily to living in Japan. This training focuses on the cognitive component of international competence training.
The rn.ost popularstrategy for entering new businesses and accomplishing diversification is A. forming a joint venture with another company to enter the target industry. B. internal startup. C. acquisition of an existing business already in the chosen industry. D. forming a strategic alliance with another company to enter the target industry. E. None of these-strategic alliances and joint ventures are equally popular and rank well ahead of acquisition and internal start-up in terms of frequency of use.
Answer:
C
Explanation:
Entering a new business and accomplishing diversification could be a risky move considering the degree of uncertainties that the investor may likely encounter. For this reason , an investor has to be strategic while making the move of entering a new business .
The safest and the most popular strategy is the acquisition of an existing business in the chosen industry as the business would have exceeded the risks related to the initial start up, making it easier to continue and sustain,
An existing business in a chosen industry also gives the privilege of inherited customers and business policies that can be improved on on taking over.
"A customer contributed $20,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $35,000. The customer is now age 60, and takes a lump-sum distribution of $20,000 to pay for expenses. Which statement is TRUE?"
Answer: C. $15,000 of the distribution is taxable and $5,000 is not taxable
Explanation:
The options to the question are:
A The entire $20,000 distribution is not taxable
B $5,000 of the distribution is taxable and $15,000 is not taxable
C $15,000 of the distribution is taxable and $5,000 is not taxable
D The entire $20,000 distribution is taxable
It should be noted that variable annuity contributions are typically not tax-deductible. Since the customer contributed $20,000 to a variable annuity contract and the account value has grown over the years and the NAV is now $35,000; when the customer takes a lump-sum distribution of $20,000. From the $20,000, $15,000 of the distribution is taxable and $5,000 is not taxable.
Executive pay at Ashance Inc., a manufacturing company, includes bonuses based on the year’s profits or other measures related to the organization’s goals. Sometimes, to gain tax advantages, the bonus is made part of executives’ retirement plans. Which of the following is being exemplified in this scenario?A. long-term incentivesB. balanced scorecardsC. piecework plansD. employee stock ownership plansE. short-term incentives
Answer:
Short-term incentive
Explanation:
The reason is that long term incentives are based on achiving goals that take more than a year and short term goals achievement duration is less than 12 months. This means that the profit maximization benefit is short term goal and the incentive on short term goal is short term incentive.
The company has gained the tax advantages by including the payment of the bonus in thier retirement plans which is an example of short term incentive.
ABC Construction enters into a contract to build two homes for brothers Jack and John. The contract specifies that the homes must be completed by April 1. ABC finishes the homes on March 30. This is an example of ______ of the contract.
Answer:
performance
Explanation:
This is an example of performance of the contract. In the context of Law, this refers to the act of doing exactly what was required by the contract that the party has agreed to, which effectively discharges the individual bound to do the act from any future contractual liability. Which in this scenario, since ABC Construction finished building the homes before the due date, they met their obligations and are free from the contract.
On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, 2017, and the second payment was made on December 31, 2018. The present value at the inception of the lease for the 10 lease payments discounted at 10% was $676,000. The lease is appropriately accounted for as a capital lease by Ball.Required:1. Compute the December 31, 2018, amount that Ball should report as a lease liability after the first payment has been made. 2. What portion of this total liability should be classified as a current liability?
Answer:
Explanation:
A capital lease is a lease arrangement in which the lessor agrees to transfer the ownership of an asset to the lessee at the completion of the lease period. During the leasing contract , the lease is treated like an asset in the company's balance sheet
Lease liability at inception = 676,000
Annual payment made on December 2017 =(100,000)
Balance lease liability on 2017 = 576,000
Lease liability on December 2018
Balance on 2017 =576,000
Factor in 10% discount on lease payment
100,000 - (576,000*10%)= 100,000-57,600 = (42,400)
Balance on lease liability = 533,600
The current liability portion =
Factoring in the 10% discount =
100,000 - (533,600*10%) = 100,000 - 53,360 = 46,640
self-employed cash basis taxpayer, took out a loan to use in her business. The loan principal is to be repaid on November 30 of Year 3. Jones prepaid the entire interest of $12,000 on December 1 of Year 1. What amount of interest was deductible on Jones' Year 2 income tax return?
Answer: $6,000
Explanation:
Interest is deductible from Income tax but when interest to be paid is more than 12 months, the interest would need to be evenly spread over the period that they apply to. The total interest is $12,000 but the repayment period is 2 years. This means that the interest would need to be spread out over the 24 months involved at a rate of;
= 12,000/24
= $500
In Year 2 therefore, the relevant amount that can be deducted will be for 12 months;
= 500 * 12
= $6,000
Yvonne authorizes Warren to act as her agent and sell her vehicle. Yvonne tells Warren her vehicle has never been in an accident, and Warren, despite knowing Yvonne had been in an accident a year ago in the car, passes this information on to the buyer. Is Warren liable for the misrepresentation:__________
Answer:
no
Explanation:
because he does something that he don't know what will happen ..and do not research for someone who want to hers car
Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. He has the option of renting out the coffee shop for $80,000 per year, and he has three outside offers from competitors to work as a senior barista at Starbucks (for an annual salary of $30,000), at Simon's coffee house (for an annual salary of $40,000), and at Peet's coffee shop (for an annual salary of $60,000). He can only hold one job at a time. What should Chad do?
Answer:
Explanation:
Option 1
Revenue from coffee -300,000
Cost of sales - 60,000
Salaries - 60,000
Net income 180,000
Option 2
Rental income - 80,000
Option 3
Rental income - 80,000
Salary at Starbuck- 30,000
110,000
Option 4
rental income 80,000
Salary at Simon 40,000
120,000
Option 5
Rental income 80,000
salary at Peet 60,000
140,000
Looking at all the options before Chad , his highest income compared to others options would come form running his own coffee shop,which is 180,000 . Therefore , it is advised that he should continue to run his own shop.
Arbitrageurs may be unable to exploit behavioral biases due to I) fundamental risk. II) implementation costs. III) model risk. IV) conservatism. V) regret avoidance.
Answer: I, II, and III
Explanation: Arbitrageur is one who engages in arbitrage ( a market activity in which security, commodity, currency, or other tradable item is bought in one market and sold simultaneously in another, in order to profit from the price differences between the markets), such as a financial broker, or an investment bank. Arbitrageurs may be unable to exploit behavioral biases due to fundamental risk, implementation costs, and model risk.
Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360. Cole discovers that he needs to do an additional $200 worth of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100. What should Cole do
Answer:
Cole should complete the additional work and sell the cabinet for $360.
Explanation:
If Cole sells the cabinet now for $100 and taken into account that he has already spent $180, this means that:
$100-$180= -$80
He would be losing $80.
On the other side, if he completes the additional work, he would sell the cabinet $360. However, his expenses would be:
$180+$200= $380
Now, you have to subtract the costs from the selling price:
$360-$380= -$20
This means that he would lose $20.
According to that, Cole should complete the additional work because he would be lose less money.
To satisfy their economic wants, people ______ goods and services.
Answer:
a) Consume
Explanation:
These are options for the question;
a)consume
b) regulate
c) produce
In the concept of economics, consumption which is reffered to as sole purpose of production is the utilization of goods and services for the satisfaction of consumers. It should be noted that consumer conclude on what to consume in order to get their economic want is satisfied.
Human economic wants are numerous, and their is purchasing power by the consumer to get what they want.
Therefore, for people to satisfy their economic wants, people consume goods and services.
Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire
Answer: Food brokers
Explanation: Food brokers may also be regarded as a type of sales agent who negotiates product sales from manufacturers and sells to consumers including wholesale resselllers, retailers chain or independent suppliers. However, in the case of food brokers, they own their businesses and have pool of clients. When Producers sell though food brokers, they do not have to start sourcing for markets as this is handled by the food brokers who works with both the producer and the wholesale outlets thereby eliminating the need for producers to start sourcing for market to see their products.
Strikes are much more disruptive in pro sports than in mainstream business because A. players have unique talents and cannot be replaced with temporary replacement workers. B. professional athletes' salaries are so much higher than the average worker. C. sports are seasonal, thus have less time to realize revenue. D. All of these are correct.
Answer:
A. players have unique talents and cannot be replaced with temporary replacement workers.
Explanation:
The reason for disturbing strikes in pro sports as compared with the mainstream business is due to unique talents in players that cannot be easily found also it should not be replaced with the temporary workers.
As due to unique talents of players the win chances of games could be high
Therefore the correct option is a.
What is the value of a company's current assets if the company has \$5500$5500dollar sign, 5500 in inventory, \$1500$1500dollar sign, 1500 in prepaid expenses, \$8000$8000dollar sign, 8000 in current liabilities and a quick ratio of 0.70.70, point, 7
Answer:
The company's current assets value is $12,600
Explanation:
Quick Assets ratio = (Current Assets – Inventories – Prepaid Expenses) / Current Liabilities
=> Current Assets = Quick Assets ratio x Current Liabilities + Inventories + Prepaid Expenses = 0.7 x $8,000 + $5,500 + $1,500 = $12,600
