Answer:
true
Explanation:
got it from quizlet.
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $143,495. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $6,934 before adjustment on August 31. Required: Journalize the adjusting entry for uncollectible accounts as of August 31. Refer to the chart of accounts for the exact wording of the account titles. KNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. KNOW journals will automatically indent a credit entry when a credit amount is entered.
Answer:
Date Account titles and Explanation Debit Credit
31 Aug. Bad debt expense $136,561
($143,495 - $6,934)
Allowance for doubtful accounts $136,561
(To record computed allowance)
"How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate?"
Answer:
the demand and supply curve shift outward / to the right
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
1. A change in the price of input
2. A change in the number of suppliers
3. Government regulations
If the demand curve for a good shifts outward as a result of an increase in demand. Equilibrium price and quantity would increase.
If the supply curve for a good shifts outward as a result of an increase in supply, equilibrium price decreases and quantity increases.
Taking these two effects together, there would be an increase in equilibrium quantity while the equilibrium price change is indeterminate
The Wisconsin Lottery will pay a lottery winner a lump sum payment of $19,046,180 as the final payment of her winnings in four years. If the appropriate discount rate for the payment is 8.6% what is the present value of the payment?
a. $5,191,977.
b. $5,408,309.
c. $116,741.
d. $17,899,197.
e. $17,899,197.
Answer: $13,692,683.93
Explanation:
Present value = Amount / (1 + rate) ^ number of periods
= 19,046,180 / (1 + 8.6%)⁴
= $13,692,683.93
Options are most probably for a variant of this question.
The Smelting Department of Kiner Company has the following production and cost data for November. Production: Beginning work in process 2,100 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 9,100 units; and ending work in process 7,100 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
Answer:
A. 16,200
B. 11,940
Explanation:
Computation for the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
A. Equivalent units of production for materials Materials
Total equivalent units= 9100 + (7100*100%)
Total equivalent units= 9100+7100
Total equivalent units= 16,200
B.Equivalent units of production for conversion costs
Total equivalent units= 9100+ (7100*40%)
Total equivalent units=9100+2840
Total equivalent units= 11,940
Therefore the equivalent units of production for (a) materials is 16,200 and (b) conversion costs for the month of November is 11,940
Complete each sentence by selecting the correct term using the drop-down list.
Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special attention. Decide how each item would be handled for Abbey Company's inventory.
items Activities
Goods transit shipped to Abbey (purchaser) FOB Destination
Goods in transit shipped to Abbey (purchaser) FOB Shipping Pont
Goods transit shipped by Abbey (seller) FOU Destination
Goods in transit shipped by Abbey (seller) FOB Shipping Pont
Answer:
FOB destination means "Free on Board Destination.
1. Goods transit shipped to Abbey (purchaser) FOB Destination
Answer: Exclude from inventory
2. Goods in transit shipped to Abbey (purchaser) FOB Shipping Point
Answer: Include in inventory count
3. Goods transit shipped by Abbey (seller) FOB Destination
Answer: Include in inventory
4. Goods in transit shipped by Abbey (seller) FOB Shipping Point
Answer: Exclude from inventory
The following firms in the widget industry have the following market shares:
Spacely Sprocket Widgets 12 %,
Cogswell Cog Widgets 13 %,
Intel Widgets 14 %,
Compaq Widgets 15 %,
IBM Widgets 16%,
Apple Widgets 17 %, &
Microsoft Widgets 13 %.
Required:
Based on this information, what is the Herfindahl Hirschmann Index (HHI) for the Widget Industry ?
Answer: 1,448
Explanation:
The Herfindahl Hirschman Index (HHI) is used to show how concentrated an industry is. A lower score indicates that the industry is not very concentrated because there are multiple firms involved.
A higher score shows that the industry is concentrated and controlled by a few firms.
HHI = ∑ square of every firm market share
= 12² + 13² + 14² + 15² + 16² + 17² + 13²
= 1,448
This industry is relatively competitive.
In the value chain, what is the term of the activities that are required but not directly add value to the company's products or services sold to the customers
Answer:
In the value chain analysis, the term of the activities that are required but not directly add value to the company's products or services sold to the customers is:
Support or Secondary Activities.
Explanation:
Support or secondary activities are the indirect services that improve the primary activities of the value chain. The secondary or support activities include procurement of input resources, human resources management, infrastructure (accounting, legal, and administrative), and research and development (technology). These support the primary value chain activities, according to Porter's Value Chain, including In-bound logistics, Operations, Outbound logistics, Marketing and Sales, and Customer Services.
ABC company manufactures two products in one process. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:
Product X Product Y Total
Allocated joint processing costs $16,800 $16,800 $33,600
Sales value at split-off point $24,000 $24,000 $48,000
Costs of further processing $15,000 $18,700 $33,700
Sales value after further processing $35,500 $45,100 $80,600
What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point?
a. ($3,500)
b. $27,700
c. $20,500
d. $3,700
Answer:
a. ($3,500)
Explanation:
Particulars for Product X Amount
Sales value after further processing $35,500
Less: Sales value at split-off point $24,000
Total incremental revenue $11,500
Less: Total incremental processing costs $15,000
Financial (disadvantage) of further processing ($3,500)
So, the financial disadvantage for the company of processing Product X beyond the split-off point is $3,500.
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 170.00 Variable expense per unit $ 66.30 Fixed expense per month $ 127,490 The break-even in monthly dollar sales is closest to:
Answer:
1229.4
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$ 127,490 / ( $ 170 - $ 66.30) = 1229.4
Suppose that the equilibrium exchange rate (Euro/$) is .90 and the The Federal Reserve decides to fix the exchange rate at .70. What will the Federal Reserve have to do in order to maintain this fixed exchange rate
Answer:
C. The Federal Reserve will need to have official reserves of euros to purchase dollars in the foreign exchange market.
Explanation:
Federal Reserve required to have a euros reserves as it can applied it also at the case when the exchange rate is move upward or downward
For the other things, the fed could restrict the supply with respect to the dollar in the foreign exchange market in order to get it stable that opposed with euro
Therefore the option c is correct
Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well-being of sellers. d. sellers' willingness to sell.
Answer:
c. the well-being of sellers.
Explanation:
A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Hence, an export subsidy will increase producer surplus.
In conclusion, producer surplus directly measures the well-being of sellers.
For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows, and the future value of the same annuity will be greater than the sum of the cash flows.
a. True
b. False
a. Sold merchandise for cash (cost of merchandise $28,797). $ 51,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $360). 600 c. Sold merchandise (costing $4,750) to a customer on account with terms n/60. 10,000 d. Collected half of the balance owed by the customer in (c). 5,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.
Answer:
I guess that you need the journal entries:
a.
Dr Cash 51,200
Cr Sales revenue 51,200
Dr COGS 28,797
Cr Inventory 28,797
b.
Dr Sales revenue 600
Cr Cash 600
Dr Inventory 360
Cr COGS 360
c.
Dr Accounts receivable 10,000
Cr Sales revenue 10,000
Dr COGS 4,750
Cr Inventory 4,750
d.
Dr Cash 5,000
Cr Accounts receivable 5,000
e.
Dr Sales allowances
Cr Accounts receivable
Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do?
Calculate his debt to equity ratio
Calculate his net working capital
Calculate his total assets
Calculate his total liabilities
Answer: Calculate his net working capital
Explanation:
The net working capital shows a company's ability to pay off its short term obligations using its current assets.
It is calculated by subtracting the current liabilities of a company from its current assets. When net working capital is high, a company has enough to ensure that it can grow in the short run but when the net working capital is little or negative, the company will have a hard time paying off short term obligations which will affect its financial health.
A monopolist that practices perfect price discrimination:_________.
A. charges each consumer the rnaximum price the consumer is willing to pay.
B. drives consumer surplus to zero
C. produces the perfectly competitive level of output.
D. All of the above are correct.
E. Only A and B are correct.
Answer:
D. All of the above are correct.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
Hence, a monopolist that practices perfect price discrimination:
A. Charges each consumer the maximum price the consumer is willing to pay.
B. Drives consumer surplus to zero
C. Produces the perfectly competitive level of output.
Answer:
D. All of the above are correct.
Explanation:
Hope this helps
Carpenter Inc. had a balance of $89,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $454,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.9 million. What was the balance in the warranty liability account as of December 31, 2021
Answer:
$44
Explanation:
Calculation to determine what
was the balance in the warranty liability account as of December 31, 2021
Warranty liability account as of December 31, 2021=(1%*89,000)+(40,900,000*.01)-(1%*$454,000)
Warranty liability account as of December 31, 2021=89+(40,900,000*.01)-454
Warranty liability account as of December 31, 2021=$44
Therefore the balance in the warranty liability account as of December 31, 2021 was $44
Selected sales and operating data for three divisions of different structural engineering firms aregiven as follows: Division A Division B Division C Sales $ 6,900,000 10,900,000 10,000,000 Average operating assets 1,725,000 5,450,000 2,500,000 Net operating income 414,000 1,090,000 325,000 Minimum required rate of return19.00 % 20.00 % 16.00 % A. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. B. Compute the residual income (loss) for each division.
Answer and Explanation:
The computation is shown below:
A.
Return on investment = Margin × Turnover
Now
= (Net operating income ÷Sales) × (Sales ÷ Average operating assets)
Division A = ($414,000 ÷ $6,900,000) × ($6,900,000 ÷ $1,725,000)
= 6% × 4
= 24.00%
Division B = ($1,090,000 ÷ $10,900,000) × ($10,900,000 ÷ $5,450,000)
= 10% × 2
= 20.00%
Division C = ($325,000 ÷ $10,000,000) × ($10,000,000 ÷ $2,500,000)
= 3.25 × 4
= 13.00%
B.
Residual Income = Net operating income - (Minimum required rate of return × Average operating assets)
Division A = $414,000 - (19% × $1,725,000)
= $414,000 - $327,750
= $86,250
Division B = $1,090,000 - (20% × $5,450,000)
= $1,090,000 - $1,090,000
= $0
Division C = $325,000 - (16% × $2,500,000)
= $325,000 - $400,000
= ($75,000)
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $20 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 35%. What is the initial investment outlay
Answer:
the initial investment outlay is $23,000,000
Explanation:
The computation of the initial investment outlay is given below:
Initial Investment Outlay = New Equipment Cost + Requirement of Working Capital
= $20,000,000 + $3,000,000
= $23,000,000
hence, the initial investment outlay is $23,000,000
We simply added the above two items
The treasurer of a large corporation wants to invest $43 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.47 percent; that is, the EAR for this investment is 3.47 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 77 days, what are the bond equivalent and discount yields on this investment? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Bond equivalent yield %
Discount yield %
Answer and Explanation:
The computation is shown below:
Given that,
EAR = 3.47%
1.0347 = (1+R ×77 ÷ 365)^365 ÷ 77
Now Take 365/77th root both sides
So,
1+R × 77 ÷ 365 = 1.00722
1+R × 0.2109 = 1.00722
R × 0.2109 =0.00722
R = 0.03423
Thus, Bond Equivalent Yield = 3.423%
Now
Discount Yield = (360 × 0.03423) ÷ (365+77 × 0.03423)
= 12.3244 ÷ 367.6361
= 0.03352
Thus, Discount Yield = 3.352%
Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. The company uses effective-interest amortization. Interest expense reported on the 2017 income statement will total
Answer:
$1,568,498
Explanation:
First calculate the Amont of discount
Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855
Now prepare the bond amortization
The Bond Amortization schedule is attached with this answer, please find it.
Now calculate the interest expense for 2017
Interest Expense 2017 = $784,165.80 + $784,332.43
Interest Expense 2017 = $1,568,498.23
Interest Expense 2017 = $1,568,498
One advantage of countercultures is that they:_____.
a. ensure that corporate mergers occur without any culture clashes.
b. prevent organizations from developing a corporate culture.
c. maintain surveillance over and critically review the company's dominant culture.
d. rarely exist in real organizations.
Answer:
c. maintain surveillance over and critically review the company's dominant culture.
Explanation:
Counterculture is a sociopolitical term that represent the dissent point lies between the dominant and alternative value system in order to develop the collective voice for considering the minority
Also the employees who have the counter culture belief so it shows the goods source for checking out over and above to the dominant one
Therefore the option c is correct
Which of the following sentences apply correct number style?
a. More than $5,000,000.00 has been allocated to technology infrastructure upgrades.
b. Twenty-seven percent of our entry-level employees have majored in accounting.
c. Dan Yannotti, Director of Health Initiatives, turns 32 this year.
Answer:
The sentence that applies the correct number style is:
c. Dan Yannotti, Director of Health Initiatives, turns 32 this year.
Explanation:
Sentence A's number style should have been formatted like: "More than $5 million ..." Alternatively, it could be formatted as "Five Million Dollars."
Sentence B's number style should have been formatted like: "27% of our ...."
This leaves sentence C as the sentence that applies the correct number style.
Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October:
a. All materials are added at the beginning of the process.
b. Beginning work in process had 81,200 units, 20 percent complete with respect to conversion costs.
c. Ending work in process had 16,100 units, 20 percent complete with respect to conversion costs.
d. Started in process, 104,500 units.
Required:
Prepare a physical flow schedule.
Answer:
Middelton Company
Physical flow schedule:
Units
Beginning work in process 81,200
Started in process 104,500
Units in process 185,700
Ending work in process 16,100
Units completed 169,600
Explanation:
a) Physical flow schedule:
Degree of Completion
Units Materials Conversion
Beginning work in process 81,200 100% 20%
Started in process 104,500
Units in process 185,700
Ending work in process 16,100 100% 20%
Units completed 169,600 100% 100%
An aging of a company's accounts receivable indicates that $8400 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $4820 credit balance, the adjustment to record bad debts for the period will require a
Answer: Debit to bad debt expense for $3580.
Explanation:
Based on the information given, the bad debt expense will be:
= Desired balance - Actual balance before adjustment
= $8400 - $4820
= $3580
Based on the above, the journal entry will be:
Debit Bad debt expense $3580
Credit Allowance for uncollectible $3580
3. When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant. B. Contradicted the Heckscher-Ohlin theory as the United States was relatively labor-abundant. C. Was never duplicated by other studies and has thus been labeled a paradox. D. Fit the predictions of the Heckscher-Ohlin theory concerning the trading patterns of a capital-abundant country.
Answer:
A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant.
Explanation:
When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: "Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant."
This is because Heckscher-Ohlin theory states that countries usually export commodities, and resources they have in excess, while in return, they import the commodities and resources they need.
However, given that the United States is a country that was relatively capital-abundant, Wassily Leontief's finding is considered to be a contradiction.
The Marketing Dept. needs to maximize consumer interest in the company's new financial services by sending marketing emails, targeted ads, and texts at prescribed intervals throughout the initial process of attracting and building a relationship with a customer. Riad's team has a large amount of data from previous marketing campaigns that they can analyze to develop a recommended schedule, taking into account a large variety of factors about different types of customers. What kind of technique will this task force need to employ in order to make these recommendations?
Answer:
Simulation
Explanation:
From the question we are informed about The Marketing Dept. Which needs to maximize consumer interest in the company's new financial services by sending marketing emails, targeted ads, and texts at prescribed intervals throughout the initial process of attracting and building a relationship with a customer. Riad's team has a large amount of data from previous marketing campaigns that they can analyze to develop a recommended schedule, taking into account a large variety of factors about different types of customers. In this case, the kind of technique this task force will need to employ in order to make these recommendations is Simulation.
Simulation can be regarded as imitation of particular operation of a real-world process, real world system within some specific period of time. Most times computers can be used in Execution of the simulation. Simulation can be used in different aspects such as in marketing, education, performance tuning.
On January 2, 2016, Rafa Company purchased a franchise with a useful life of 10 years for $50,000. An additional franchise fee of 3% of franchise operating revenues also must be paid each year to the franchisor. Revenues during 2016 totaled $400,000. In its December 31, 2016, balance sheet, what net amount should Rafa report as an intangible asset-franchise
Answer:
$45,000
Explanation:
Calculation to determine the net amount should Rafa report as an intangible asset-franchise
Acquisition Cost P $50,000
Less: Franchise Amortization $5,000
(P$50,000/10)
Intangible asset-franchise - December 31, 2016 P$45,000
($50,000-$5,000)
Therefore the net amount should Rafa report as an intangible asset-franchise is $45,000
Barney Company makes and sells stuffed animals. One product, Michael Bears, sells for $28 per bear. Michael Bears have fixed costs of $100,000 per month and a variable cost of $12 per bear. How many Michael Bears must be produced and sold each month to break even
Answer:
6,250 units
Explanation:
The computation of the number of units that should be sold and produced in order to break even is shown below:
as we know that
Break even point = Fixed cost ÷Contribution margin per unit
Here
Contribution margin per unit = Selling price - Variable costs
= $28 - $12
= $16
So, the breakeven is
= $100,000 ÷ $16
= 6,250 units
How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance
Answer:
In simple words, Enterprise apps are created to bring together a variety of activities and procedures. To facilitate coordination and decision-making, enterprise systems combine a company's major internal business operations into an unified software platform . Supply chains administration software assists a company in managing its relationships with vendors in order to improve product planning, procurement, production, and supply of commodities.
3.How does the theory of efficient production apply to managers of government bureaus or departments that are not run for profit
Answer:
The theory of efficient production applies to managers of government bureaus or departments that are not run for profit in the following way:
1. The theory helps them to ensure that production resources are optimally allocated to generate value.
2. The theory emphasizes that wastages must be minimized.
3. Efficiency also ensures that processes, policies, and programs are carried out at the right time on each occasion.
Explanation:
Government bureaus or departments require to make decisions about the resources that they require for government services and the value of the output of these services to the public. The managers ensure that costs are not so much greater than the value created from deploying scarce resources. The best allocation of resources must always be decided to achieve value for money.
