Answer:
Aging of accounts receivable method
Explanation:
Accounts Receivable
This is simply refered to as the right to receive cash in future terms from customers for goods sold or for services performed.
Aging of accounts receivable method
In this method, finding out the means of accounting for bad debts expense in which the aging of accounts receivable schedule which is a list of accounts receivable according to length of time outstanding is usually used to estimate the total amount of bad debts.
It is also defined as the method of estimating uncollectible receivables by finding out the balance of Allowance for Bad Debts account based on the age of individual accounts receivable.
At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is
A) Debit Cash $1,245; Credit Sales $1,245.
B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.
C) Debit Cash $1,250; credit Sales $1,250.
D) Debit Cash $1,250; credit Sales $1,245, credit Cash Over and Short $5.
E) Debit Cash Over and Short $5, credit Sales $5.
Answer:
B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.
Explanation:
If the cash register's record shows the amount of $1,250 while the count of cash in the cash register shows the amount of $1,245 which means that the Cash is Over and Short by $5.
Therefore the correct entry to record the cash sales is to Debit Cash For $1,245; Debit Cash Over and Short for $5 and Credit Sales for $1,250.
Debit Cash For $1,245
Debit Cash Over and Short $5
($1,250-$1,245)
Credit Sales $1,250
(To record cash sales)
A U.S. investor has borrowed pounds, converted them to dollars, and invested the dollars in the United States to take advantage of interest rate differentials. To cover the currency risk, the investor should:
Answer: C. Buy pounds forward.
Explanation:
The investor borrowed in pounds which means that they would have to pay back in pounds. They would therefore need pounds at the end of the investment period but need to be sure of the rate they are converting back to so as to reduce currency risk.
The way to cater for this risk would be to buy pounds in the forward market at a guaranteed rate so that when they are to pay back the pounds, they buy it at the rate they agreed to in the forward market, regardless of what the rate is in the spot market when they want to pay back the pounds.
Which of the following are the characteristics PF change manager?
Answer:
Change management is one of the frequently overlooked elements of any technology implementation strategy. Even if the change is widely understood to improve the status quo, people instinctively stick to comfort zones.
Explanation:
The approach to the "human side" of the change is systematic.They have the senior management's long-term commitment.Each layer includes leaders.They support key players' ownership.They undertake clear, regular, and timely communication.They recognize that company culture is important.You are preparing for the unforeseen.They support those affected by the transformation.Every major change creates problems with human relations. New roles and responsibilities may be requested of employees; new skills and abilities may have to be developed.
Change is inherently unsettling for employees at every level of an organization, employees usually look for strength, support, and direction from senior managers when change takes place.
Large-scale change programs require leaders to take responsibility for changes in their areas of influence. The main way to promote ownership is by involving people in the identification and resolution of the problems. Incentives and rewards will reinforce ownership.
Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?
Answer:
Backordering Costs.
Explanation:
This is the correct answer I hope this helps.
The following four costs are included in the overall production plan:
initial production expensescosts related to variations in manufacturing rateKeeping inventory expenses.Costs of back ordering.What is aggregate production?An aggregate production function holds constant all other production factors, like as capital, natural resources, and technology, and connects the entire output of an economy to the total amount of labor engaged in that economy.
A stands for the technology component. It is a gauge of overall economic production. K represents the economy's entire non-human capital input. It is expressed in terms of money or monetary units. L represents the total workforce in the economy.
These are the four cost which are most difficult to measure aggregate production.
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A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 70% complete. The planners were expecting to be only57% through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,427,000 and it was done for only $1,307,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,507,000 but was actually done for $9,007,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,507,000. To date, they have spent $5,007,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to dat
Answer:
Schedule variance = $1,105,910
Schedule performance index = 1.066
Cost performance index = 1.168
Explanation:
Note: The requirement of the question is not complete. The complete requirement is therefore provided before answering the question.
Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Round your "performance index" values to 3 decimal places.)
The explanation of the answers is now provided as follows:
Budgeted cost of work schedule = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Expected percentage of completion) = $1,427,000 + $10,507,000 + ($8,507,000 * 57%) = $16,782,990
Budgeted cost of work performed = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Actual percentage completed) = $1,427,000 + $10,507,000 + ($8,507,000 * 70%) = $17,888,900
Actual cost to date = Actual cost of first activity + Actual cost of second activity + Actual amount spent on third activity to date = $1,307,000 + $9,007,000 + $5,007,000 = $15,321,000
Therefore, we have:
Schedule variance = Budgeted cost of work performed - Budgeted cost of work schedule = $17,888,900 - $16,782,990 = $1,105,910
Schedule performance index = Budgeted cost of work performed / Budgeted cost of work schedule = $17,888,900 / $16,782,990 = 1.066
Cost performance index = Budgeted cost of work performed / Actual cost to date = 1.168
will i be rich from business or entrepreneurship
Find the compound amount for the deposit. Round to the nearest cent. $15,000 at 8% compounded semiannually for 10 years
Answer:
$17,866.85
Explanation:
Use the following formula to calculate the compound amount
Compound Amount = Future value of deposit - Initial deposit
Where
Future value of deposit = Initial Deposit x ( 1 + Periodic interest rate )^numbers of compounding periods = $15,000 x ( 1 + ( 8% x 6/12 ) )^(10 x 12/6 ) = $32,866.85
Initial Deposit = $15,000
Placing values in the formula
Compound Amount = $32,866.85 - $15,000
Compound Amount = $17,866.85
A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it returned $200 worth of merchandise. On August 18, it paid the amount due. The amount of the cash paid on August 18 equals:________
a. $2,000.
b. $1,800
c. $1,782
d. $1,620.
e. $1,260.
The amount of the cash paid is $1,782
Let understand the question aims to solve the amount of cash paid for purchase of a merchandise $2,000, there is also some return of the merchandise worth $200.
On Aug 15, Purchase merchandise $2,000, On Aug 17, Return merchandise $200, Discount = 1%Amount of cash paid = ($2,000 - $200) - 1% discount
Amount of cash paid = $1,800 - ($1,800)*1%
Amount of cash paid = $1,800 - $18
Amount of cash paid = $1,782
In conclusion, on August 18, the amount of the cash paid is $1,782.
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Paris Corporation holds a $100,000 unrealized net capital gain and a capital loss carryforward that will expire in the current year. Paris is subject to a 14 percent cost of capital. Its marginal tax rate is 40 percent. Should Paris accelerate the recognition of this gain from next year to this year, assuming a net capital loss carryforward in each of the following amounts? Paris is subject to a 14 percent cost of capital. Its marginal tax rate is 40 percent.
a. $40,000
b. $10,000
c. Repeat parts a and b, but assume that Paris is subject to a 6 percent cost of capital.
Answer:
Hence the answer is given as follows,
Saving is a leakage in the sense that:______.
a. saving is lost to the economy and ultimately leads to stagnation.
b. it often accompanies a trade deficit.
c. consumers spend less than their total income.
d. the financial system often makes negative profits.
Answer:
The correct option is c. consumers spend less than their total income.
Explanation:
Saving is simply a portion of the total income that is not spent by the consumers on goods and services.
Saving is a non-consumption use of income which is leaked out of the circular flow of income and expenditure. Saving therefore makes the consumption lower than the total income.
Based on the explanation above, the correct option is c. consumers spend less than their total income.
A company issues $17200000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $16904864. What is interest expense for 2021, using straight-line amortization
Answer:
$1,691,122
Explanation:
First, calculate the discount on the bond
Discount on the bond = Face value of bond - Proceeds from the bond = $17,200,000 - $16,904,864 = $295,136
Now prepare the bond amortization table
The Bond amortization table is attached with this answer please find that
Now calculate the Interest expense for 2021
Interest Expense = Interest Expense on June 30, 2021 + Interest Expense on December 31, 2021
Interest Expense = $845,493.63 + $845,628.31
Interest Expense = $1,691,121.94
Interest Expense = $1,691,122
roject A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year
Answer:
It will take 2.79 years to cover the initial investment.
Explanation:
Giving the following information:
Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years.
The payback period is the time required to cover the initial investment:
Year 1= 2,150 - 6,000= -3,850
Year 2= 2,150 - 3,850= -1,700
Year 3= 2,150 - 1,700= 450
To be more accurate:
(1700/2150)= 0.79
It will take 2.79 years to cover the initial investment.
A contingent liability can be classified as all of the following except for a.Certain b.Probable c.Remote d.Reasonably possible
Answer: D
Explanation:
A contingent liability can be classified as probable, possible, and remote. Thus, option D is correct.
What is the contingent liability?The contingent liabilities are liabilities that an entity may incur based on the outcome of an uncertain future event, such as the outcome of a pending lawsuit.
Contingent liabilities are also important for potential lenders to a company, who will consider these liabilities when determining lending terms.
A contingent liability is a potential future liability, such as pending lawsuits or honouring product warranties. If the liability is likely to occur and the amount can be reasonably estimated, it should be recorded in a company's accounting records.
Therefore, There are three types of contingent liabilities: probable, possible, and remote. So, option D is correct.
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DMC Company manufactures a standard and a custom version of a boat engine. Overhead costs include a significant amount of indirect labor and other costs related to moving materials and setting up machines for each batch of engines that are produced. The rest of the overhead is mostly facility-based. The actual activity for a year was as follows:
Total Standard engines Custom engines
Engines produced 3,000 2,500 500
Machine hours 6,000 4,800 1,200
Batches of products 200 100 100
DMC has used machine hours in the past to allocate all overhead costs. Which of the following statements is true given the data above, if DMC used machine hours as the allocation base for the current year?
a. DMC under allocated overhead costs to the standard engines.
b. DMC paid more for overhead costs than if it used activity-based costing.
c. DMC over allocated the overhead costs to the standard engines.
Answer:
Hence the correct option is option c. DMC over-allocated the overhead costs to the standard engines.
Explanation:
DMC over-allocated the overhead costs to the quality engines
All overheads have now been allocated within the ratio of machine-hours used i.e. 4:1
If however, ABC system were used, overheads associated with found out would are allocated within the ratio of batches i.e. 1:1
And hence, more overheads would are allocated to custom engines and fewer to plain engines.
The amount purchased overheads will remain equivalent. The systems are only used for the allocation of overheads.
The price elasticity of gasoline supply in the United States is 0.4. If the price of gasoline rises by 8%, what is the expected change in the quantity of gasoline supplied in the United States?
A. 3.2%
B. + 0.32%
C. + 32.0%
D. + 3.2%
Answer:
a
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
0.4 == quantity / 8
3.2%
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
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.
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? Assume that the activity levels of 2,500 machine-hours and 2,400 machine-hours are within the same relevant range. Group of answer choices
Answer:
$60,380
Explanation:
Missing word "Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity Level - 2500 Machine Hours - Variable Overhead Cost: Supplies 12,250 Indirect Labor ---22,000 Fixed Overhead: Supervisor 15,500 Utilities -- 5500 Depreciation --- 6500 Total Cost --- 61,750"
So, at activity level of 2500
Total variable overhead cost = Supplies + Indirect labor
Total variable overhead cost = $12,250 + $22,000
Total variable overhead cost = $34,250
So, at activity level of 2400
Total variable overhead cost = $34,250 * 2,400/2,500
Total variable overhead cost = $34,250 * 0.96
Total variable overhead cost = $32,880
So, at 2,400 hours
Total overhead cost = Variable overhead cost + Fixed overhead cost
Total overhead cost = $32,880 + Supervisor salary + Utilities + Depreciation
Total overhead cost = $32,880 + $15,500 + $5,500 + $6,500
Total overhead cost = $60,380
Estimated sales units are based on which of the following?
Level of sales
The future inventory
Level of taxes
Net cost to sales
Answer:
Level of sales
Explanation:
Estimated sales units are based on the level of sales already made.
This is because, in business, estimated sales can be predicted or discovered based on demand of those particular products.
Therefore, if a product is in high or low demand, then an estimated sales unit can be made based on this information.
A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $20,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Fruit Computer Company accepts the deal, how will this impact operating income
Answer:
an increase in the operating income by $16,322
Explanation:
The computation of the impact in the operating income is given below:
Variable cost of 75 units (1300000 × 75 ÷ 12700) 7,678
Sale price of 75 units (75 × 320) 24,000
Increase in operating income (24000 - 7678) $16,322
hence, the impact in the operating income is that there is an increase in the operating income by $16,322
1. The first step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed units 2. The last step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed units
Answer:
1. The first step in preparing a cost of production report is to _____.
compute equivalent units of production
2. The last step in preparing a cost of production report is to _____.
allocate costs to units transferred out and partially completed units
Explanation:
After determining the equivalent units of production, the total costs of production are determined. The next step is to determine the cost per equivalent unit by dividing the total costs by the equivalent units of production. Finally, the equivalent cost per unit is multiplied by the equivalent units for units transferred out and ending inventory (partially completed units).
A corporation acquired a copyright by issuing 1,000 shares of $5 par common stock. At the time of the exchange, the stock was selling for $40 per share. The copyright had a carrying value of $18,000 to the author. The purchasing corporation should assign to the copyright a value of
Answer:
the purchasing corporation should assign to the copyright a value of $40,000
Explanation:
The computation of the copyright value is given below:
= Number of shares acquired for purchasing a copyright × selling stock per share
= 1,000 shares × $40
= $40,000
hence, the purchasing corporation should assign to the copyright a value of $40,000
Asset cost $35,000Prepaid Insurance $5,000Maintenance costs $3,000Accumulated Depreciation $10,000Book Value $________Based on the information above, the book value of the tractor is __________.a) $33,000b) $43,000c) $25,000d) $28,000
Answer:
25000
Explanation:
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produce 2,425 units that can be sold now for $81,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $255 per unit. If Holmes processes further, the units can be sold for $415 each. Should Holmes sell the product now or process it further
Answer: Holmes should process it further to make a profit of $306,496
Explanation:
If Holmes sells now, the selling price would be:
= Amount sold for / No. of units
= 81,500 / 2,425
= $33.61
If the company processes further and sells at $415, they will get a profit per unit of:
= 415 - 255
= $160 per unit
Incremental revenue is:
= (160 - 33.61) * 2,425 units
= $306,495.75
Holmes should process it further.
The following costs were incurred in May:
Direct materials $42,200
Direct labor $32,800
Manufacturing overhead $25,400
Selling expenses $18,800
Administrative expenses $40,200
Conversion costs during the month totaled: __________
Answer:
the conversion cost is $58,200
Explanation:
The computation of the conversion cost is shown below:
The conversion cost is
= Direct Labor + Manufacturing Overhead
= $32,800 + $25,400
= $58,200
Hence, the conversion cost is $58,200
It is the combination of the direct labor and the manfacturing overhead
The HR Manager at Fresh Foods instructs his subordinates to make a list of all employees who have completed about one year in the firm. He wants his subordinates to collect the testscores obtained by these employees when they applied for the job and compare these scores to their job performance over the past year. In this scenario, the HR Manager most likely wants to conduct a(n) _____.
a. internal validity test
b. concurrent validity test
c. face validity test
d. predictive validity test
Answer:
d. predictive validity test
Explanation:
Predictive validity test that represent the degree where the scores of the test is correctly expected based on the criterion measures
Also the comparision is to be made for the test scores along with the performance rating done by the supervisor is known as the predictive validity test
Therefore the option d is correct
INTC just paid an annual dividend of $3.40 a share and is expected to increase that amount by 2.2 percent per year. If you are planning to buy 1,000 shares of INTC in two years, how much should you expect to pay per share if the market rate of return for this type of security is 14.8 percent at the time of your purchase
Answer:
the price of the share is $28.18 per share
Explanation:
The computation of the price of the share is given below
Dividend at year 1
= 3.4% ×(1 + 2.2%)
= 3.4748
Dividend at year 2
= 3.4748 × (1 + 2.2%)
= $3.55
Now the price of the share is
= ($3.55) ÷ (14.8% - 2.2%)
= $28.18 per share
Hence, the price of the share is $28.18 per share
Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $89,000. The appraised value of the land is $26,000, and the appraised value of the building is $92,000.
Required:
a. Assuming that the building is to be used in Dorsey Co.’s business activities, what cost should be recorded for the land?
b. Indicate why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land. (Select all that apply.) Land is a current asset. Land is not a depreciable asset. Land value will not reduce taxable income. Land is a depreciable asset. Land value reduces taxable income.
c. Indicate why Dorsey Co. allocated the cost of assets acquired based on appraised values at the purchase date rather than on the original cost of the land and building to Bibb Co. Appraised values are to be used because they represent the historical asset value. Appraised values are to be used because they represent the book value. Appraised values are to be used because they represent the asset's current value.
d. Assuming that the building is demolished at a cost of $11,000 so the land can be used for employee parking, what cost should Dorsey Co. record for the land?
Answer:
a. Cost of land = $19,610.17
b. Correct options are:
Land is not a depreciable asset.
Land value will not reduce taxable income.
c. Appraised values are to be used because they represent the asset's current value.
d. Cost of Land = $100,000
Explanation:
a. Assuming that the building is to be used in Dorsey Co.’s business activities, what cost should be recorded for the land?
Total appraised value = Appraised value of the land + Appraised value of the building = $26,000 + $92,000 = $118,000
Cost of land = Purchase price * (Appraised value of the land / Total appraised value) = $89,000 * ($26,000 / $118,000) = $19,610.17
b. Indicate why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land. (Select all that apply.)
Correct options are:
Land is not a depreciable asset. Note that an asset that is NOT eligible for tax and accounting purposes to register depreciation in compliance with Internal Revenue Service (IRS) rules is considered NOT to be depreciable property. Since land s NOT eligible for tax and accounting purposes to register depreciation, it therefore not a depreciable asset.
Land value will not reduce taxable income. This due to the fact that land is not a depreciable asset as stated above.
c. Indicate why Dorsey Co. allocated the cost of assets acquired based on appraised values at the purchase date rather than on the original cost of the land and building to Bibb Co.
Appraised values are to be used because they represent the asset's current value.
The current value of an asset is the price at which it can be sold or settled as of the current date.
d. Assuming that the building is demolished at a cost of $11,000 so the land can be used for employee parking, what cost should Dorsey Co. record for the land?
Since it is assumed that the building is demolished, the addition of the purchase price and the cost of demolition will be recorded as the cost of land. This is because the demolition cost is the expense of preparing the land for its intended use. Therefore, we have:
Cost of Land = Purchase price + Cost of demolition = $89,000 + $11,000 = $100,000
Suppose Torche Corporation has the following results related to cash flows for 2020: Net Income of $10,000,000 Increase in Accounts Payable of $800,000 Increase in Accounts Receivable of $600,000 Decrease in Inventory of $100,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow from Operating Activities?
Answer:
9,700,000
Explanation:
Essentially... a lot. I would recommend learning about debits and credits. Short explanation is credits are negative and debits are positive. So an increase to a debit is adding to the net value, just as a decrease to a credit adds net value.
We start with 10,000,000.
We subtract 800,000 from this as we are increasing AP, a credit.
We are now at 9,200,000
We then add 600,000 from AR, a debit that is increasing.
We are at 9,800,000.
Finally, we subtract 100,000 because we are decreasing Inventory, a debit.
Our final value is 9,700,000
If you place a stop-loss order to sell 100 shares of stock at BDT 55 when the current price is BDT 62, how much will you receive for each share if the price drops to BDT 50?
Answer:
55 per share
Explanation:
A stop-loss is used to immediately sell a stock when it goes down to a certain point. In this example, 50 is beneath 55 so as BDT heads towards 50 it will reach 55. At 55, the selling begins and thus the investor gets 55 per share.
Define Total Quality Management (TQM) and Lean Production.
Total Quality Management (TQM) is an on-going improvement management plan. Furthermore, TQM ensures that equipment is properly maintained and a recent type, and workers are well-trained. However, most companies who use Total Quality management also utilize other lean processes, not just TQM.
XYZ Co. expects to sell 26,000 pools for $15 each. Direct materials cost is $3 per pool, direct labor cost is $5 per pool, and manufacturing overhead cost is $1.62 per pool. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 20,000 units 22,000 units Work-in-process inventory 0 units 100 units Finished goods inventory 1,800 units 2,600 units How many pools need to be produced in 2019
Answer:
250120
Explanation:
Total pools is equal to 26,000
Directable cost is equal to $5 per pool
Manufacturing overhead equals 1.62 dollars per pool
Direct costes equals $3 per pool
We add up this costs
5+1.62+3 = 9.62 dollars in total
In 2019 the total amount of pools that needs to be produced can be gotten by multiply 26000 with 9.62
26000x9.62
= 250,120
