Answer:
Centrality
Explanation:
By going on strike at a critical time in business cycle the contingency of power is centrality. Centrality is the degree and nature of power of interdependence that exists between between the the person holding power and others. Centrality determines the number of people who are affected by the decisions made by the person holding power.
In the _____ stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
Answer: maturity
Explanation:
The product life cycle is the time used by a product from the day the product is introduced into the market till the day it's withdrawn. The four stages of the product life cycle are the introduction stage, the growth, the maturity stage and finally the decline stage.
In the maturity stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
What is the relationship between total surplus and economic efficiency?
Answer: When total surplus gets maximized, then economy meet economic efficiency.
Explanation:
Economic efficiency is described as a thinking that there is one possible way to make situation better by imposing a cost on another.
Total surplus is described as the sum of producer and consumer surplus.
It gets maximized in a perfect competition (hit free-market equilibrium).
i.e. It gets maximized when both consumer and producer surplus is maximum, and then the economy meet economic efficiency.
The ending finished goods inventory for each month equals 50% of next month's sales in units . How many units must be produced in February?
Answer: 15,751.5 units
Explanation:
Units produced in February are calculated as;
Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales
Ending finished goods inventory for each month equals 50% of next month's sales in units.
Ending finished goods for February
= 50% * 15,581
= 7,790.5 units
Ending finished goods for January is beginning for February
= 50% * 15,922
= 7,961
Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales
= 7,790.5 - 7,961 + 15,922
= 15,751.5 units
Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,080,000 investment in equipment with a useful life of five years and no salvage value. Holston Company’s discount rate is 17%. The project would provide net operating income each year for five years as follows:
Sales $3,400,000
Variable expenses 1,450,000
Contribution margin 1,950,000
Fixed expenses:
Advertising, salaries, and other fixed
out-of-pocket costs $670,000
Depreciation 828,000
Total fixed expenses 1,498,000
Net operating income $452,000
Required:
a. Compute the project's net present value.
b. Compute the project's simple rate of return.
c. Would the company want Derrick to pursue this investment opportunity?
d. Would Derrick be inclined to pursue this investment opportunity?
Answer:
a. Project's net present value is $1,015,163.09
b. Simple rate of return is 15%
c. Yes. The reason is that the project has a positive net present value of $1,015,163.09.
d. No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.
Explanation:
a. Compute the project's net present value.
To compute this, we first calculate the annual cash inflow as follows:
Annual cash inflow = Net operating income + Depreciation = $452,000 + $828,000 = $1,,280,000
Now, the project's net present value can be calculated using the formula for calculating the present of an ordinary annuity as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of the annual cash flow = ?
P = Annual cash inflow = $1,280,000
r = Discount rate = 17%, or 0.17
n = Equipment useful years = 5
Substitute the values into equation (1) to have:
PV = $1,280,000 * [{1 - [1 / (1 + 0.17)]^5} / 0.17]
PV = $4,095,163.09
Project's net present value = PV - Project's initial investment = $4,095,163.09 - $3,080,000 = $1,015,163.09
b. Compute the project's simple rate of return
This can be computed as follows:
Simple rate of return = Net operating income / Initial investment = $452,000 / $3,080,000 = 0.15, or 15%
c. Would the company want Derrick to pursue this investment opportunity?
Yes. The reason is that the project has a positive net present value of $1,015,163.09.
Note that had it been the net present value of the project was negative, the company would not want to Derrick to pursue this investment opportunity since the decision of the company is based on whether the project's NPV is positive or negative.
d. Would Derrick be inclined to pursue this investment opportunity?
No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.
Pursuing this investment opportunity will therefore reduce the Overall ROI of the division and Derrick will not get annual pay raises if this happens.
On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The merchandise was shipped and invoiced on December 10, 20X3. Chow paid the invoice on January 10, 20X4. The spot rates for euros on the respective dates were
Answer:
$4,000 gain
Explanation:
Some information was missing:
the spot rates for euros were:
November 15, 20X3 $0.4955 per €1 December 10, 20X3 $0.4875 per €1December 31, 20X3 $0.4675 per €1January 10, 20X4 $0.4475 per €1In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?
the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3
the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3
Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.
A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______
Answer:
$1,700
Explanation:
Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.
It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.
Keith, an employee of Sunbeam, Inc., has gross salary for May of $15,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICAOASDI Tax of 6.2% and FICAMedicare Tax of 1.45%.) (Round the final answer to the nearest dollar.)
Answer:
there are no options listed, but the journal entry to record Keith's salary should be:
May 31, wages expense
Dr Wages expense 15,000
Dr FICA taxes expense 1,147.50
Dr FUTA taxes expense 900
Cr Federal income taxes withheld payable 3,000
Cr FICA OASDI taxes withheld payable 930
Cr FICA Medicare taxes withheld payable 217.50
Cr FICA OASDI taxes payable 930
Cr FICA Medicare taxes payable 217.50
Cr Wages payable 10,852.50
I didn't include SUTA taxes or any other discount (e.g. health insurance, IRA contributions, union contributions, etc.) because sometimes they do not exist, but the previous ones always exist.
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $4,000,000 % $3,600,000 % Cost of goods sold (2,280,000) % (1,872,000) % $ % $ % Selling expenses $(600,000) % $(648,000) % Administrative expenses (520,000) % (360,000) % $ % $ % $ % $ % Income tax expense (240,000) % (216,000) % $ % $ % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 5 percentage points, while selling expenses by 3 percentage points, and administrative expenses by 3 percentage points. Thus, net income as a percent of sales by 5 percentage points.
Answer:
Innovation Quarter Inc.
a) Comparative Vertical Analysis of Income Statement
Current Year % Previous Year %
Sales $4,000,000 100% $3,600,000 100%
Cost of goods sold 2,280,000 57% 1,872,000 52%
Gross profit $1,720,000 43% $1,728,000 48%
Selling expenses 600,000 15% 648,000 18%
Administrative expenses 520,000 13% 360,000 10%
Income tax expense 240,000 6% 216,000 6%
After Tax Income $360,000 9% $504,000 14%
b. The vertical analysis indicates that the cost of goods sold as a percent of sales increased by 5 percentage points, while selling expenses decreased by 3 percentage points, and administrative expenses increased by 3 percentage points. Thus, net income as a percent of sales decreased by 5 percentage points.
Explanation:
Data and Calculations:
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
Current Year Previous Year
Sales $4,000,000 $3,600,000
Cost of goods sold 2,280,000 1,872,000
Selling expenses 600,000 648,000
Administrative expenses 520,000 360,000
Income tax expense 240,000 216,000
Innovation Quarter Inc. can use this vertical analysis to express the relationship between each line item and the sales revenue. The vertical analysis helps in ascertaining the percentage increases in each variable. With the analysis, the management of Innovation Quarter Inc. can undertake further investigations to learn the causes of the different performances and learn ways to control them.
Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months?
a. Purchasing power parity
b. Transaction exposure
c. Economic exposure
d. Translation exposure
e. Currency speculation
Answer: Transaction exposure
Explanation:
Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.
It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.
What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 15%
Answer:
The expected return on stock is 30%
Explanation:
Growth rate = Return on Equity * Retention ratio
Growth rate = Return on Equity * (1- Payout ratio)
Growth rate = 25% * (1 - 0.40)
Growth rate = 0.25 * 0.60
Growth rate = 0.15
Growth rate = 15%
Hence, Expected return = Dividend return + Growth rate
Expected return = 15% + 15%
Expected return = 30%
Therefore, the expected return on stock is 30%
Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him one of the 10 toughest bosses in the United States. Pearson was singled out for the relentless demands that he put on his people. As one employee put it, Pearson's talents were often "brutally abrasive." Every year, without hesitation, he fired the least productive 10% to 20% of his workforce. Pearson used a(n) _____ leadership style.
Answer:
authoritarian leadership style
Explanation:
In simple words, An authoritarian form of leadership relates to the leadership style where a leader determines strategies and practices, defines what objectives are to be accomplished, and manages and monitors all operations without substantive involvement by subordinates. An authoritative style of management can be highly successful in some cases, but also has negative consequences on community participants or staff.
An investment adviser representative (IAR) asks a customer for a loan of $5,000. The customer agrees, and both the customer and the IAR document the loan by signing a written agreement. Under the provisions of the Uniform Securities Act, the IAR:
Answer:
D. Has not committed an unethical act since the loan was documented in writing.
Explanation:
Section 102 of the Uniform Securities Act of 1956 specifies that it is unlawful and unethical for an investment adviser representative to enter into a contract with a client except it is provided in writing that he does not stand to gain any financial profit, that no assignment of the contract would be made without the consent of the other party, and that if there is any change in the membership of the contract, the other party would be notified.
So, if the contract was documented between the investment adviser and the client, then it would not be unethical conduct.
In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.
Answer: fall, reducing, fall below
Explanation:
the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will __________ , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by __________ the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to __________the natural level of output in the short run.
"Rihanna Company is considering purchasing new equipment for $379,200. It is expected that the equipment will produce net annual cash flows of $48,000 over its 10-year useful life. Annual depreciation will be $37,920. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)"
Answer:
Cash payback period is 7.9 years
Explanation:
Payback period = Initial investment / Cash inflow per period
=$379,200 / $48,000
=7.9 years
Thus, the cash payback period is 7.9 years.
Note: It is assumed that the net annual cash flows are after considering the annual depreciation.
Tatham Corporation produces a single product. The standard costs for one unit of its Clan product are as follows:
Direct materials (8 pounds at $0.70 per pound) $5.60
Direct labor (2 hours at $8 per hour) 16.00
Variable manufacturing overhead
(2 hours at $7 per hour) 1,400
Total 3,560
During November Year 2, 3,500 units of Clan were produced. The costs associated with November operations were as follows:
Material purchased (35,000 pounds at $0.80 per pound) 28,000
Material used in production (31,500 pounds)
Direct labor (7,500 hours at $7.50 per hour) 56,250
Variable manufacturing overhead incurred 55,500
What is the variable overhead efficiency variance for Clan for November Year 2?
1. $3,500 favorable.
2. $3,500 unfavorable.
3. $4,000 favorable.
4. $4,000 unfavorable.
Answer:
$3,500 Unfavorable
Explanation:
The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-
Variable overhead efficiency variance
= (Standard labor hours - actual labor hours) × (Standard variable overhead rate)
= (3,500 × 2 - 7,500) × $7
= (7,000 - 7,500) × $7
= $3,500 Unfavorable
Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.
2. The world has now become a “global village” in many respects. a) Explain any 5 factors working to make the world “a global village” for businesses. b) Discuss 4 major reasons why businesses go global.
Answer:
the watch has been totally fed tractors working to make a words a Glover villa for measures reserve between two globin respect as a global wind I have been by practice and a business discuss and white business as a work of the word for
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of
Answer: collaborative filtering
Explanation:
Collaborative filtering is a technique thta helps to filter out the things that a user can like base on how other identical users react. Here, a small sample of the people with similar taste will be chosen from a larger group.
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of collaborative filtering.
Moorcroft’s assistant controller suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible.Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections?
Answer:
The budgeted sales are missing, so I looked for them. I found the following question, hopefully it will be similar:
Month Sales
April $300,000
May $320,000
June $370,000
Schedule of expected collections
For the month of June, 202x
Cash sales during June = $370,000 x 40% = $148,000
Collection from June's credit sales = $222,000 x 30% = $66,600
Collection from May's credit sales = $192,000 x 50% = $96,000
Collection from April's credit sales = $180,000 x 18% = $32,400
Total cash collections during June = $343,000
Since the cost of the part time collector is $1,000 per month, and the total uncollectible accounts reduce from 4% to 2%, which represents $7,400 for June's sales, I would recommend hiring the collector.
Slack Inc. borrowed $400,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? a. $0. b. $48,000. c. $32,000. d. $36,000
Answer:
D.$36,000
Explanation:
Calculation for How much interest is recognized for the period from April 1 to December 31
First step is to find the 12% of the amount that was borrowed which is $400,000
$400,000×12%
=$48,000
Now let calculate for the amount of interest that is recognized from April 1 to December 31
Interest =$48,000×3/12
Interest =$12,000
Hence,
Interest =$48,000-$12,000
Interest=$36,000
Therefore the amount of interest that is recognized from April 1 to December 31 will be $36,000
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period.
Which of the following help o explain the increase in international trade and finance since the 1950's?
a. International trade agreements such as the North American Free Trade Agreement (NAFTA)
b. An increasing number of affordable international flights
c. Changes in property rights
d. The widespread use of the Internet to conduct business.
Answer:
The correct answer is the option A: International trade agreements such as the North American Free Trade Agreement (NAFTA).
Explanation:
To begin with, the name of "North American Free Trade Agreement" or NAFTA, refers to the comercial agreement between the three nations of the countries of the norht of America that established that there is a bloc of free trade among Canada, Mexico and the United States that will benefit the three parties whose bloc have formed one of the largest trade blocs in the world by gross domestic product. Moreover, the agreement came into force in 1994 and since then the main purpose of it is to encourage the increase and development of international trade.
Jay owns Gatsby Islands and wants to convey it to his good friends, Nick and Daisy. Nick lives next door to Jay while Daisy lives across the waters. He conveys an interest in Gatsby Islands "to Nick as tenants by the entirety." Two months later, he makes a corresponding conveyance to Daisy. Jay created the following:_______
a. tenancy in common
b. severalty community property
c. joint tenancy with rights of survivorship
d. tenancy by entirety
Answer:
Correct Answer:
c. joint tenancy with rights of survivorship
Explanation:
The property Jay owes on Gatsby Island belongs to him but he wishes to share th ownership with his 2 good friends. His conveyance of the message to both which reads "tenants by the entirety" shows that he and his friends has equal ownership and rights to the Gatsby Island property.
In the event that either him or one of the friends dies, the full title of the property automatically passes to the surviving person.
On January 1, 2017 , Northeast USA Transportation Company purchased a used aircraft at a cost of $ 53,200,000. Northeast USA expects the plane to remain useful for five years (6,500,000 miles) and to have a residual value of $ 5,200,000. Northeast USA expects to fly the plane 900,000 miles the first year, 1,400,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.
1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, theunits-of-production method, and the double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $:________
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $:________
c. Double-declining balance method
Using the double-declining-balance method, depreciation is $_______ for 2017 and $ for 2018 for 2017 and $ for 2018. for 2017 and for 2017 and $________ for 2018.
Answer:
1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, theunits-of-production method, and the double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $9,600,000
straight line depreciation = ($53,200,000 - $5,200,000) / 5 = $9,600,000
depreciation expense year 1 = $9,600,000
depreciation expense year 2 = $9,600,000
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $7.384615 per mile
depreciation expense per unit of production = ($53,200,000 - $5,200,000) / 6,500,000 = $7.384615 per mile
depreciation expense year 1 = $7.384615 x 900,000 = $6,646,153.50
depreciation expense year 2 = $7.384615 x 1,400,000 = $10,338,461
c. Double-declining balance method
depreciation expense year 1 = 2 x 1/5 x $53,200,000 = $21,280,000
depreciation expense year 2 = 2 x 1/5 x $31,920,000 = $12,768,000
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. Ross' common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. J. Ross's cost of retained earnings is closest to:
Answer:
J. Ross's cost of retained earnings is 18.33%
Explanation:
Cost of retained earnings is also call Cost of Equity
Cost of retained earnings = (Dividend per share for next year / Current market value of stock) + Growth rate of dividend
Cost of retained earnings = 2 / 40(1-40%) + 10%
Cost of retained earnings = 2 / 24 + 10%
Cost of retained earnings = 0.08333 + 0.1
Cost of retained earnings = 0.183333
Cost of retained earnings = 18.3333%
Cost of retained earnings = 18.33%
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,500 $30,500 Direct operating expenses 27,600 23,000 Sales 92,300 67,600 Interest expense $2,100 General overhead 18,900 Income tax 4,000 The income from operations for the Locomotive Division is a.$44,600 b.$67,600 c.$14,100 d.$37,100
Answer:
$14,100
Explanation:
To find the answer, we use the following formula:
Income from operations = Sales - Cost of Goods Sold - Direct Operating Expenses - General Overhead
Income from operations = $67,600 - 30,500 - 23,000
= $14,100
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $32,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $3,520 $14,400 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer 55 % Truck 8 %
Answer:
3D Printer 55 % Truck 8 %
Explanation:
The formula to compute the average rate of return for each proposal is shown below:
The average rate of return = Average net income ÷ Average investment
Particulars 3D printer Truck
Average net income (a) $880 $1,600
($3,520 ÷ 4 years) ($14,400 ÷ 9 years)
Average investment (b) $16,000 $20,000
($32,000 ÷ 2) ($40,000 ÷ 2)
Average rate of return (a ÷ b) 55% 8%
If a company uses straight-line depreciation, the annual average investment can be calculated as: (Check all that apply.)
Answer: beg book value +the salvage value) / 2.
(the sum of annual average book values) ÷ asset’s life
(beg book value +the end book value) ÷ 2.
Explanation:
Depreciation is simply when an asset begin to wear and tear and thereby its value is reduced.Straight line depreciation is calculated when the difference between the cost of an asset and the expected salvage value is divided by the number of years it is projected to be used.
Using this method, the annual average investment can be calculated as:
• beg book value +the salvage value) / 2.
• (the sum of annual average book values) ÷ asset’s life
• (beg book value +the end book value) ÷ 2.
Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $340,000 net income during 2018, paid $24,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,034,000. Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo (1) lacks significant influence or (2) has significant influence over the operating and financial policies of the investee.
Required 1
Record the entry for investment in Sonny Enterprises.
Record the entry for cash dividend received.
Record the net unrealized holding gain or loss for an available-for-sale investment.
Required 2:
Record the entry for investment in Sonny Enterprises.
Record the revenue from Sonny Enterprise during 2018.
Record the receipt of dividend during 2018.
Answer and Explanation:
The Journal entry is shown below:-
As per requirement 1
1. Investment in Sonny Enterprises Dr, $1,000,000
To Cash $1,000,000
(Being investment is recorded)
2. Cash Dr, $24,000
To Dividend revenue $24,000
(Being cash dividend received is recorded)
3. Fair value adjustment Dr, $34,000
To Unrealized holding gain or loss - OCI $34,000
(Being investment at fair value is recorded)
As per requirement 2
1. Investment in Sonny Enterprises Dr, $1,000,000
To Cash $1,000,000
(Being investment is recorded)
2. Investment in Sonny Enterprises Dr, $34,000
To Investment Income $34,000 ($340,000 × 10%)
(Being revenue from Sonny is recorded)
3. Cash Dr, $24,000
To Investment in Sonny Enterprises $24,000
(Being the receipt of dividend is recorded)
If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of interest rates being increased? Borrowing will decrease. Investing will decrease. Inflation will increase. Liquidity will increase.
Answer:
The answer is: interest rates will decrease
Explanation:
Just got correct on edge
If there is an increase in the interest rate, then borrowing will decrease.
The term "domino effect" refers to the cumulative effect that is produced by one event that eventually leads to the same effect on others. In other words, the domino effect is when one disaster affects or brings destruction or disruption to others, leading to similar events.
One result will lead to a chain reaction in this event, affecting the rest of the cycle. This means that like one domino's downfall brings the next domino down, one destruction will lead to the fall of the next, taking the cycle to the end until all falls. In this scenario, if the interest rates are being increased, then it will lead to a decreased rate of borrowing. A change in the money supply will increase the interest rate. This will only leave the customers looking for a way out, which means there will be a lower rate of borrowing.In a domino effect, one event will bring the fall of the other. Therefore, if the interest rates increase, there will only be more problems for the customers. This will leave them reducing or decreasing the borrowing rate in the market. Thus, the correct answer is the first option.
Learn more about "domino theory" here:
brainly.com/question/12039657
Rank the following investments from lowest to highest, for overall historical returns experienced by investors over long periods of time:
a. Treasury Bills
b. AAA Rated Corporate Bonds
c. Common Stocks
Answer:
Treasury BillsAAA Rated Corporate BondsCommon StocksExplanation:
Treasury Bills are considered risk-less investments. As a result the interest rate will not be adjusted for risk and will be relatively low compared to other securities. It will give the lowest return overtime here.
AAA Rated Corporate Bonds are the highest rated Corporate bonds there are. Even still, they will pay an interest rate that has a little risk premium in it which will make its returns overtime higher than a T-bill.
Common Stocks will provide the highest rate of return overtime on average simply because as well as the dividend payments that are paid to holders, the stock also has a chance of rising in value overtime which will give the holder a Capital gain as well. Something that the other 2 investments cannot give.
Three phenomena that tend to bias the expected completion time of projects are inflated time estimates, activity time variability with path interdependencies, and resource dependence.
a. True
b. False
Answer: True
Explanation:
The expected completion time of a project is determined when the duration of every activity that takes place on the critical path is established.
Three phenomena that tend to bias the expected completion time of projects are inflated time estimates, activity time variability with path interdependencies, and resource dependence.
