Answer:
Credit card bills must be mailed at least 21 days ahead of their due dates.
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
CARD is an acronym for Card Accountability Responsibility and Disclosure and it is an act (federal statute) signed by President Barack Obama on the 22nd of May, 2009 after it was passed by the Congress of the United States of America.
A provision of the CARD Act is that, Credit card bills must be mailed at least 21 days ahead of their due dates so as to avail the card holders (users) an ample amount time to pay from the time it was mailed.
Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfaction Which report should a consultant recommend?
a. Average speed to answer
b. First contact resolution
c. Escalation rate
d. Average handle time
Answer: Average handle time
First contact resolution
Explanation:
Since the center manager needs to measure the productivity of the agent and the customer satisfaction, the report that should be recommended by a consultant would be the average handle time and the first contact resolution.
The average handle time shows the time taken for a transaction to be completed. This can be used to determine the productivity of agents. Also, first contact resolution can be used to determine customer satisfaction as it shows the number if queries that were successfully resolved.
For a present sum of $840,000, determine the annual worth (in then-current dollars) in years 1 through 6 if the market interest rate is 10% per year and the inflation rate is 3% per year. The annual worth is:________ $ .
Answer:
The annual worth is:________
$667,380
Explanation:
Present value of investment = $840,000
Number of years = 6
Market interest rate = 10%
Inflation rate = 3%
Real interest rate = 7%
PV Annuity factor = 4.767
Total FV of annuity = $840,000 * 4.767 = $4,004,280
Annual worth = $4,004,280/6 - $667,380
The annual worth of the investment of $840,000 will be $667,380 based on the market-adjusted interest rate of 7% (10 - 3).
Companies that sell their own products and use an intermediary are using a strategy called
O inventory control
O marketing distribution
O dual distribution
O internal distribution
Answer:
dual distribution
Explanation:
A dual distribution strategy involves a manufacturer using two paths to get its products to the intended end-users. It means the manufacturer uses two distribution channels simultaneously to get its products to customers.
When a company is using a dual distribution strategy, one of the ways is the sell directly to customers, and the other path is using a marketing intermediary.
Outstanding stock of the Nash's Corporation included 30000 shares of $5 par common stock and 8000 shares of 5%, $10 par non-cumulative preferred stock. In 2019, Nash's declared and paid dividends of $1500. In 2020, Nash's declared and paid dividends of $15000. How much of the 2020 dividend was distributed to preferred shareholders
Answer:
$4,000
Explanation:
Calculation of Dividend distributed to Preferred Shareholder
= $8,000 * 5% * $10 Preferred shares
= $4,000
Thus, $4,000 is the amount of dividend which was distributed to preferred shareholders
1) Zahra and Joseph sign a contract worth $1,000. When Zahra breaks the contract, Joseph loses the $1,000. Which type of monetary award does Joseph receive if he is later awarded $1,000?A) Restitution.B) Compensatory damages.C) Incidental damages.D) Nominal damages.2) A manufacturer of a disposable butane lighter is sued for the wrongful death of two adults and a child under strict products liability law when the family's house burned down as a result of the six-year-old child setting bed clothes on fire using the manufacturer's butane lighter. The allegation against the manufacturer is based on the theory that the lighter was defective because it did not have a childproof device to prevent children from igniting the lighter. This butane lighter had the words: "Keep Out of Reach of Children" written on the outside of the lighter body. How strong of a case does the family's estate have in its strict product liability lawsuit against the manufacturer based on the lighter being a defective product?A) Strong, because the product only contained a warning to keep the lighter away from children, but did not provide a childproofing mechanism.B) Weak, because there was no evidence that the product was unreasonably dangerous in normal use.C) Weak, because it would be difficult to prove with certainty that the lighter was the cause of the fire.D) Strong, because lighters are unavoidably unsafe.
Answer:
1) Zahra and Joseph sign a contract worth $1,000. When Zahra breaks the contract, Joseph loses the $1,000. Which type of monetary award does Joseph receive if he is later awarded $1,000?
B) Compensatory damages.Compensatory damages are awarded in order to compensate the non-breaching party for a loss resulting from the breach of the contract.
2) A manufacturer of a disposable butane lighter is sued for the wrongful death of two adults and a child under strict products liability law when the family's house burned down as a result of the six-year-old child setting bed clothes on fire using the manufacturer's butane lighter. The allegation against the manufacturer is based on the theory that the lighter was defective because it did not have a childproof device to prevent children from igniting the lighter. This butane lighter had the words: "Keep Out of Reach of Children" written on the outside of the lighter body. How strong of a case does the family's estate have in its strict product liability lawsuit against the manufacturer based on the lighter being a defective product?
B) Weak, because there was no evidence that the product was unreasonably dangerous in normal use.In order for a manufacturer to be liable for selling an unreasonably dangerous product, the product must be unreasonably dangerous to use by a normal average consumer. In other words, in normal use, is the product dangerous to use or not? A lighter is a common product, it is not something extremely technical that requires special training for its use. It is also of common knowledge that lighters produce fire, and fire is dangerous.
Many normal products can be extremely dangerous if used in uncommon ways, e.g. if you drink Clorox you might get poisoned, but no one should be drinking Clorox. It is common sense. The manufacturer's liability exists when the product is dangerous to use under normal circumstances, but a small child should not be allowed to play with lighters, nor matches, nor guns, nor electric circuits, nor anything else that represents a threat to their lives.
Products are meant to be used by normal users, and small children are not supposed to smoke or use a lighter. E.g. a small child can actually drive a car, and will probably get into an accident, but they are not supposed to drive a car. So the manufacturer is not responsible for selling an unreasonable dangerous product, the parent that allowed his/her kid to drive the car is responsible.
The Holiday Corporation had sales of $450 million this year. Its accounts receivable balance averaged $30 million. How long, on average, does it take the firm to collect on its sales
Answer:
24.3 days
Explanation:
Calculation for How long, on average, does it take the firm to collect on its sales
Using this formula
Average collection period = (Accounts receivable / Credit sales) * 365 days
Let plug in the formula
Average collection period =$30 million/$450 million *365 days
Average collection period =24.3 days
Therefore How long, on average, does it take the firm to collect on its sales is 24.3 days
What's the correct entry for $100 purchase of supplies on credit?
a. Debit Cash: $100 & Credit Supplies: $100
b. Debit Accounts Payable: $100 & Credit Cash: $100
c. Debit Supplies: $100 & Credit Accounts Payable: $100
d. Debit Accounts Payable: $100 & Credit Supplies: $100
e. Debit Accounts Receivable: $100 & Credit Cash: $100
Answer:
c. Debit Supplies: $100 & Credit Accounts Payable: $100
Explanation:
When we purchase supplies on credit this has the following effect :
Assets : Will Increase thus Debit Supplies with $100
Liabilities : Will Increase thus Credit Accounts Payable with $100
Conclusion :
The correct entry is c. Debit Supplies: $100 & Credit Accounts Payable: $100
Black, Inc. is a calendar-year corporation whose financial statements for 2014 and 2015 included errors as follows: PHOTO
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2014, or at December 31, 2015. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2016?
a. $154,000 increase
b. $46,000 increase
c. $19,000 decrease
d. $8,000 increase
Answer: a. $154,000 increase
Explanation:
An overstated closing inventory overstates Income as it understates Cost of Goods sold.
An overstated Depreciation understates Income as it overstates expenses.
2014 Income Overstatement (understatement) = 162,000 - 135,000
= $27,000
Net income overstated by $27,000 in 2014
An understated closing inventory understates Income as it overstates Cost of Goods sold.
An understated Depreciation overstates Income as it understates expenses.
2015 income overstatement (understatement) = 45,000 - 64,000
= -$19,000
Income understated in 2015 by $19,000
2015 Beginning inventory was $162,000 overstated which means income was understated by $162,000 in 2015.
Income should therefore be increased (decreased): Understatements - Overstatements
= 162,000 + 19,000 - 27,000
= $154,000
ECC Corp. will pay annual dividends of $20 per share for the next 5 years. At the end of year 6, ECC will increase the dividends by 1% per year forever. The required rate of return on this stock is 6%. What is the price of the stock today?
Answer:
$386.14
Explanation:
The computation of the price of the stock today is as follows;
But before that following calculations need to be done
Year 6 dividend = $20 × (1 + 1%)
= $20 × (1 + 0.01)
= 20.2
Now
Value at year 5 = Dividend at year 6 ÷ (required rate - growth rate )
= $20.2 ÷ (0.06 - 0.01 )
= $20.2 ÷ 0.05
= 404
Now
Price of stock = Annuity × [1 - 1 ÷ (1 + r)^n] ÷ r + FV ÷ (1 + r)^n
= $20 × [1 - 1 ÷ (1 + 0.06)^5] ÷ 0.06 + 404 ÷ (1 + 0.06)^5
= $20 × [1 - 0.747258] ÷ 0.06 + 301.892302
= $20 × 4.212367 + 301.892302
= $386.14
An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
a. True
b. False
Answer:
False
Explanation:
An excise tax is tax levied on some specific goods. It is an indirect tax because it is not levied on customers.
Excise tax would increase the cost of supplying alcohol. This would reduce the supply of tax. A decrease in the supply of tax would increase the price of alcohol
A collaborative selling environment makes the sales pitch more challenging for salespeople.
O True
O False
Answer:
O True
Explanation:
In the case when the selling environment is collaborative so it would make the sales pitch more challenging for the sales people
Here collaborative selling means the collaboration that does not between the sales team members but it would be done between the sales people and the customers
So the given statement is true
Hence, it is not false
What is the Modified Internal Rate of Return (MIRR) of a project with the following cash flows? The discounting rate is 12%.
Year Cash Flow
0 -1,200,000
1 400,000
2 500,000
3 500,000
4 500,000
5 500,000
a. 9.90%
b. 23.49%
c. 20.72%
d. 23.02%
e. 16.62%
f. 34.35%
g. 20.26%
Answer:
g. 20.26%
Explanation:
The computation of the MIRR is as follows;
Here we applied the MIRR formula in an excel
Year Cash flow
0 -1,200,000
1 400,000
2 500,000
3 500,000
4 500,000
5 500,000
After applying the MIRR formula, the MIRR is 20.26%
Therefore the correct option is g.
Becky wants to have $2,000 for spending money on vacation in 2 years. How much does she need to put in the bank today at 5% to have the the $2,000 in 2 years?
Answer:
the amount that need to put in the bank today is $1,814.059
Explanation:
The computation of the amount that need to put in the bank today i.e. present value is shown below
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$2,000 = Present value × (1 + 0.05)^2
$2,000 = Present value × 1.05^2
So, the present value is $1,814.059
hence, the amount that need to put in the bank today is $1,814.059
Karen wants to buy stock, but is worried about the current "bear market." What does this mean?
A.that many investors are selling their stocks in anticipation of lower profits
B.that many investors are buying stocks in anticipation of higher profits
C.that protits from stocks are rising, making it-a good time to buy
D. that profits from stocks are falling, making it a good time to buy
Answer:
A.that many investors are selling their stocks in anticipation of lower profits
Explanation:
In stock market terminologies, a bear market is a selling market. If the traders' sentiments are to sell a stock, tell the market for the stock is referred to as a bear market.
Generally, when a company is performing well financially, its stock price will appreciate. Investors will buy its stocks in anticipation of increased dividends and selling the stocks at a higher price. Should investors anticipate a loss, they will start selling the stocks. Karen is concerned with the current bear market as it signals the stocks are likely to yield reduced earnings.
[The following information applies to the questions displayed below.]
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 59,200
Accounts Receivable 26,000
Allowance for Uncollectible Accounts 2,700
Inventory 36,800
Notes Receivable (5%, due in 2 years) 18,000
Land 160,000
Accounts Payable 15,300
Common Stock 225,000
Retained Earning 57,000
Totals $ 300,000 $ 300,000
During January 2018, the following transactions occur:
January 1. Purchase equipment for $20,000. The company estimates a residual value of $2,000 and a four-year service life.
January 4. Pay cash on accounts payable, $10,000.
January 8. Purchase additional inventory on account, $87,900.
January 15. Receive cash on accounts receivable, $22,500
January 19. Pay cash for salaries, $30,300.
January 28. Pay cash for January utilities, $17,000.
January 30. Firework sales for January total $225,000. All of these sales are on account. The cost of the units sold is $117,500.
Information for adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,100.
5. Accrued income taxes at the end of January are $9,500
Answer:
Since the requirements are missing, I believe that you need the adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
Dr Depreciation expense 375 ($18,000/4 x 1/12)
Cr Accumulated depreciation, equipment 375
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
Dr Bad debt expense 6,250
Cr Allowance for doubtful accounts 6,250
3. Accrued interest revenue on notes receivable for January.
Dr Interest receivable 75 ($18,000 x 5% x 1/12)
Cr Interest revenue 75
4. Unpaid salaries at the end of January are $33,100.
Dr Salaries expense 33,100
Cr Salaries payable 33,100
5. Accrued income taxes at the end of January are $9,500
Dr Income tax expense 9,500
Cr Income tax payable 9,500
If bonds are issued at a premium, the stated interest rate is a.higher than the market rate of interest b.too low to attract investors c.lower than the market rate of interest d.adjusted to a higher rate of interest
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest.
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
A new venture will require an initial investment in fixed assets of $20,000 and in working capital of $10,000. The fixed assets will have no salvage value at the end of the project's four-year life, and the working capital will be completely recovered at the end of the project. The organization's cost of capital is 16%. At a time value of money of 16%, the present value of an ordinary annuity of $1/year for four years is 2.8 and the present value of $1 at the end of four years is 0.6. What is the annual net cash inflow required for the project to break even on a time-adjusted basis
Answer:
$5,000
Explanation:
we need to determine the annual cash flows in order that NPV = $0
initial outlay = present value of future cash flows
$20,000 = (FCF x 2.8) + ($10,000 x 0.6)
$20,000 = 2.8FCF + $6,000
$14,000 = 2.8FCF
FCF = $14,000 / 2.8 = $5,000
Wilma Robles is a District Operations Coordinator. When she visits one of her offices she finds that the office has three open boxes of Emerald Cards. Each of the three Tax Pros has a complete box and log sheet at their desk. Two of the three open boxes do not reconcile when she tries to count cards and entries on the log sheets. What should Wilma do to bring the office in compliance with policies and procedures
The options are:
A.) Wilma should ignore the findings and let the practice continue.
B.) Wilma should report the findings to Incident Management for follow-up on the missing cards.
C.) Wilma should train the associates in the office on the proper distribution policy for Emerald Cards.
D.) Both B. and C.
Answer:
D.) Both B. and C.
Explanation:
Incidence management is defined as the process by which an organisation identifies, analysis and rectifies events that leads to disruption not their business processes.
These adverse effects that prevent a business from working efficiently or being productive are called incidence events.
Most organisations have a department that specialise in analysing and preventing occurrence of these events.
In the given scenario Wilma observed two of the three open boxes do not reconcile when she tries to count cards and entries on the log sheets. This is an incidence event.
First she has to report the event to the incidence management team so they can follow up on the missing cards and also set up a process to prevent future occurrence.
Since this event could also be as a result of inadequate training on process, Wilma should also train the associates in the office on the proper distribution policy for Emerald Cards.
This will reduce such events in the department going forward
Dearborn owns a department store that has a $45,700 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful Accounts. 1. Determine the net realizable value of the accounts receivable. 2. Assume that an account receivable in the amount of $420 was written off using the allowance method. Determine the net realizable value of the accounts receivable after the write-off.
Answer:
1. realizable value = accounts receivable - allowance for doubtful accounts = $45,700 - $3,000 = $42,700
2. the journal entry used to write off the account is:
Dr Allowance for doubtful accounts 420
Cr Accounts receivable 420
Since both accounts receivable and the allowance account are decreased in the same amount, the net realizable value doesn't change (still is $42,700).
Williams Company pays each of its two office employees each Friday at the rate of $240 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
Answer:
DrSalaries Expense $960
Cr Salaries Payable $960
Explanation:
Based on the information given we were told that the Company pays each of its two office employees each Friday at the rate of $240 per day which means that if the employees worked on both Monday and Tuesday, the month-end adjusting Journal entry to record the salaries earned but unpaid is:
Dr Salaries Expense $960
Cr Salaries Payable $960
Using this formula to Calculate the amount
Amount = Rate per day * Number of days * Number of employees
Let plug in the formula
Amount= $240 * 2 * 2 employees
Amount= $960
What would you tell your team are the three most important concepts to keep in mind while completing a marketing research project, and why are they important
Answer:
1. Product Fit
2. Customer Acquisition cost
3. Customer Service and Support.
Explanation:
The three most important concepts to keep in mind while completing a marketing research project are
1. Product Fit: this is the analysis of how well the product to be produced will satisfy the market.
2. Customer Acquisition cost: this is the analysis to determine the expected cost of enticing a new consumer or customer to the products or services to be produced.
3. Customer Service and Suppor: this is the analysis to ensure that the firm can finance the ensuing growth from its marketing enterprises.
Work with delivery teams that are implementing the solution to ensure the technology features are appropriate. Ensure alignment between technology deliverables of a solution and the business goals. Engage with decision-makers to identify the business goal and the capabilities that need improvement. Prepare the budget for the endeavor into the cloud.
Answer:
Note: The full question is attached as picture below
Cloud architects typically carry out 3 major tasks as listed below:
Task 1: Prepare the budget for the endeavor into the cloud.
Task 2: Configure and build the cloud environment for the company to ensure everything is setup as the design intended.
Task 3: Work with delivery teams that are implementing the solution to ensure the technology features are appropriate.
Other options are wrong because
- Ensuring alignment between technology deliverable of a solution and the business goals - This is the goal of a project manager or a solution architect.
- Engage with decision-makers to identify the business goal and the capabilities that need improvement - This activity is typically done by the product manager.
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Direct labor-hours per unit 0.20 0.25
Number of units produced 10,000 40,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 4,000 4,000 8,000
Compute the unit product costs for the two products using the proposed ABC system.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
Answer:
Part 1
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads $5.60 $7.00
Unit product cost $18.60 $18.75
Calculation of overhead rate
M = 0.20 × 10,000 = 2,000
W = 0.25 × 40,000 = 10,000
Total hours = 12,000
Rate = $336,000 ÷ 12,000
= $28.00
Part 2
Overhead rate for direct labor-hours
Rate = $168,000 ÷ 12,000
= $14.00
Overhead rate for engineering design time
Rate = $168,000 ÷ 8,000
= $21.00
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads - labor hrs $2.80 $3.50
Overheads - eng time $8.40 $2.10
Unit product cost $24.20 $17.35
Drag each term to the correct location on the table.
Identify dos and don’ts of creating a good résumé.
1. using underlined text to
denote section headings
2. including marital status
3. listing work experience
chronologically
4. using different bullet styles
5. making the résumé lengthy
6. listing technical competencies
Answer:
Creating a Good Résumé
Dos
1. using underlined text to denote section headings
3. listing work experience chronologically
6. listing technical competencies
Don’ts
2. including marital status
4. using different bullet styles
5. making the résumé lengthy
Explanation:
A good resume is a document that gives a brief summary of a job applicant's personal and professional experiences, skills, and education history. It is used in addition to a cover letter to show off your best self to potential employers. Important sections of a good resume include contact information, summary or objective, work experience, and education history.
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.
a) A cell phone company specifies in its sales contract that if a product is defective, the buyer's only remedy is to receive a replacement phone.
b) The sales contract for an art dealer excludes specific performance as a remedy for non-delivery of items ordered by the buyer, but it does not exclude all remedies.
c) An appliance manufacturer's sales contract gives buyers a maximum of six months to raise any concerns relating to breach of contract.
d) In its sales contract, an airplane manufacturer eliminates responsibility for consequential damages related to loss of business in the case of a delivery error.
Answer:
The example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract is:
c) An appliance manufacturer's sales contract gives buyers a maximum of six months to raise any concerns relating to breach of contract.
Explanation:
Consumers have up to six years to raise concerns relating to breach of contract, even though the goods under the contract may not last up to this period. Therefore, the provision by the appliance manufacturer that buyers have a maximum of six months to raise concerns is inconsistent with the Uniform Commercial Code (UCC). The code sets the same comprehensive laws for all commercial activities in the US.
The proper sequence of events for a referee to take if a coach refuses to start play with both teams on the ice, after the game has started, is as follows: warn the captain with 15 seconds to comply, assess bench minor penalty, warn again with 15 seconds to comply, suspend the game, assess a match penalty to the head coach and report the incident to the proper authorities.A. TrueB. False
Answer:
A. True
Explanation:
The proper arrangement of the events for a referee for taking in the case when a coach deny for starting play with the both teams on the ice and after the game has started the captain would be warned with 15 seconds for comply and it should be warn again with 15 seconds now the game is suspended and it analyze the penalty of the match to the head coach and report the same to the proper authorties
So the above represent true
The difficulty of the ___________estimate is that the measure of remaining budget changes depending on whether you are currently over budget or currently under budget.
Answer:
The answer is "Budget"
Explanation:
* An essential task of budgeting is to estimate the degree of resources or funds that will be required in the future to help crafted by set up offices, projects, and exercises. Another significant difficulty of budgeting is to recognize and evaluate elective ways that funds could be used all the more successfully to achieve a given set of strategy objectives or goals. The individuals who are liable for budgeting and appropriating funds will never make some easy time with both of these tasks.
* For strategy and program territories in which the processes fundamental spending requests are justifiable and moderately steady, gradual methods frequently get the job done to create sensibly exact evaluations of budget necessities.
* Since the spending process is protracted and spending requests are portrayed by vulnerability, offices think that its difficult to precisely estimate their budget needs when financial plans are drafted.
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows
Answer:
Investment X PV=$43,357.71
Investment Y PV=$37,666.45
Explanation:
The present value of future cash flows is the today's worth of those cash flows by virtue of discounting the cash flows to present time
The present value of a future cash flow=future cash flow/(1+discount rate)^n
n refers to the period in which the cash flow is expected , for instance,for year 1 cash flow n is 1, 2 for year 2 and so on.
Investment X:
PV=$6,100/(1+5%)^1+$6,100/(1+5%)^2+$6,100/(1+5%)^3+$6,100/(1+5%)^4+$6,100/(1+5%)^5+$6,100/(1+5%)^6+$6,100/(1+5%)^7+$6,100/(1+5%)^8+$6,100/(1+5%)^9=$43,357.71
Investment Y:
PV=$8,700/(1+5%)^1+$8,700/(1+5%)^2+$8,700/(1+5%)^3+$8,700/(1+5%)^4+$8,700/(1+5%)^5=$37,666.45
Hansel and Gretel decide to organize a partnership. Hansel invests $15,000 cash, and Gretel contributes
$12,000 cash and equipment having a book value of $6,000 and a fair value of $9,000.
Choose the entry to record Gretel's investment in the partnership.
a.Cash....................................................................................... 12,000
Gretel, Capital ................................................. 12,000
b. Equipment ............................................................................ 6,000
Gretel, Capital .............................................. 6,000
c. Cash....................................................................................... 12,000
Equipment .................................................................... 6,000
Gretel, Capital ............................................... 18,000
d. Cash....................................................................................... 12,000
Equipment ...................................................................... 9,000
Gretel, Capital ................................................... 21,000
Answer:
c. Cash....................................................................................... 12,000
Equipment .................................................................... 6,000
Gretel, Capital .......
Explanation:
The journal entry is as follows;
Cash Dr $12,000
Equipment Dr $6,000
To Gretel capital $18,000
(Being the investment done by gretel is recorded)
Here the cash and equipment is debited as it increased the assets while on the other hand the capital account is credited as it also increased the shareholder equity
Therefore the option c is correct
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance.The franchise company failed to live up to the value-driven principle of:_____
a. sharing information across the organization.
b. balancing customers' benefits and costs.
c. evaluating strategic competitive partnerships.
d. building relationships with customers.
e. keeping prices below those charged by competitors.
Answer:
a. sharing information across the organization
Explanation:
A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.
In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.
This is a failure in the function of sharing information across the organisation.
Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer