The correct answer is (a) Identifying each transaction and event from source documents.
The process of going from transactions and events to financial statements starts with identifying each transaction and event from source documents. Source documents include things like receipts, invoices,
bank statements, and other records that provide evidence of the transactions and events that have taken place. It is essential to gather and analyze these source documents to ensure accurate recording and reporting of financial information.
Once the transactions and events are identified, they are recorded in the accounting system through journal entries. This step involves classifying and summarizing the transactions according to their nature and the specific accounts they affect.
These journal entries are then used to prepare the trial balance, which lists the balances of all accounts to ensure they are in balance.
After preparing the trial balance, the process moves on to the next steps, such as adjusting entries, preparing financial statements, analyzing the financial statements, and presenting the financial information to decision-maketers.
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"Do American diplomats today share in the "making" of policy, or is it "set" entirely in Washington?
In today's global world, the role of diplomats has transformed significantly. They're not just representatives of their governments, but rather the "eyes and ears" of their respective countries, gathering information, analyzing it, and reporting it to their respective capitals.
The United States of America's diplomatic corps has been at the forefront of this transformation. American diplomats have a critical role in shaping and developing policy as they collaborate with a diverse range of actors, including business leaders, non-governmental organizations, academics, and other policymakers worldwide. They engage in high-level negotiations with foreign governments and help manage the daily operations of US foreign policy.
Their contributions, in addition to those of Washington policymakers, play a critical role in determining the course of American foreign policy.American diplomats today do not only share in the "making" of policy, but they are instrumental in its implementation, interpretation, and negotiation. It is essential to note that while diplomats can shape foreign policy, they are still bound by the policy directives issued from Washington.
Washington policymakers also establish the priorities and parameters for diplomats to work within, but their work in foreign nations is critical to the success of American foreign policy efforts. Diplomats provide information to policymakers, but policymakers' decisions affect foreign policy. Diplomats are the agents of implementation and must cooperate with policymakers to execute foreign policy. Therefore, we can conclude that American diplomats play an integral role in the "making" of policy.
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Audit work has been planned on the basis that internal controls are expected to be effective. However, the planned tests of controls show that this is not, in fact, the case and the controls cannot be relied on. Required: Which TWO actions, taken together, constitute the appropriate audit response?
Audit work has been planned on the basis that internal controls are expected to be effective.
However, the planned tests of controls show that this is not, in fact, the case, and the controls cannot be relied on. The two actions, taken together, constitute the appropriate audit response is explained below:
a. Increase the scope of substantive procedures and reduce reliance on internal controls. This approach recognizes that the client's internal controls are inadequate, and that the audit team cannot use them as a basis for lowering the level of substantive testing. Furthermore, the audit team would have to rely on substantive procedures to achieve a sufficient level of detection risk reduction.
b. Document the deficiencies and report them to management in an internal control letter. The audit team should provide management with a summary of the inadequacies and weaknesses in their internal controls, as well as recommendations for improvement, in a letter of internal control.
This aids in the timely resolution of internal control flaws, reducing the likelihood of significant errors in the future.
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Investment decision making traditionally consists of two steps: investment banking and security analysis buying and selling risk and expected return security analysis and portfolio management
Investment decision-making traditionally consists of two steps that are Security analysis and portfolio management. The correct option is d.
Investment decision-making traditionally involves two main steps: security analysis and portfolio management.
Security analysis: This step involves evaluating individual securities (such as stocks, bonds, or other investment instruments) to assess their value, risk, and potential return. Security analysis helps investors make informed decisions about buying and selling specific securities based on factors such as financial performance, market trends, and company fundamentals.Portfolio management: Once the securities have been analyzed, the next step is portfolio management. Portfolio management focuses on constructing and managing a diversified investment portfolio that aligns with the investor's goals, risk tolerance, and investment strategy. This involves selecting a mix of securities that optimizes risk and return based on the investor's objectives.Investment banking refers to financial institutions that facilitate capital raising, mergers and acquisitions, and other financial transactions for corporations and governments. While investment banking plays a role in the broader investment landscape, it is not directly related to the two traditional steps of investment decision-making mentioned above.
The correct option is d.
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complete the following t-accounts: materials inventory 320 answer 18,120 answer 18,120 18120 250 wages payable 9,000 300
T-Accounts:
1. Materials Inventory:
- Opening balance: $320
- Purchases: $18,120
- Closing balance: $18,120
2. Wages Payable:
- Opening balance: $9,000
- Payment: $300
- Closing balance: $8,700
The Materials Inventory T-account shows an opening balance of $320. During the accounting period, purchases of materials worth $18,120 were made, resulting in the same amount being added to the closing balance. Therefore, the closing balance of Materials Inventory is $18,120.
The Wages Payable T-account starts with an opening balance of $9,000, representing the amount owed to employees. During the period, a payment of $300 was made to reduce the outstanding wages payable. As a result, the closing balance of Wages Payable is $8,700, reflecting the remaining amount owed to employees.
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Burke Tires just paid a dividend of D0 = $1.45. Analysts expect the company's dividend to grow by 25% this year, by 15% in Year 2, grow by 10% in Year 3 and at a constant rate of 596 in Year 4 and thereafter. The required return on this low-risk stock is 10.00%. What is the best estimate of the stock's current market value? $38.19 $39.56 $41.27 $43.34 $45.89 QUESTION 9 The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to Maximize the stock price per share over the long run, which is the stock's intrinsic value. Maximize the firm's expected EPS. Minimize the chances of losses. Maximize the firm's expected total income. Maximize the stock dien CRO 00 00000)
The best estimate of the stock's current market value is $43.34.Option (D) is the correct answer.
Burke Tires just paid a dividend of D0 = $1.45. Analysts expect the company's dividend to grow by 25% this year, by 15% in Year 2, grow by 10% in Year 3, and at a constant rate of 596 in Year 4 and thereafter. The required return on this low-risk stock is 10.00%. We are to find out the best estimate of the stock's current market value.
Determining the current stock price: Dividend in year 1, D1 = D0 (1 + g1) = $1.45 (1 + 0.25) = $1.81Dividend in year 2, D2 = D1 (1 + g2) = $1.81 (1 + 0.15) = $2.08Dividend in year 3, D3 = D2 (1 + g3) = $2.08 (1 + 0.10) = $2.29Dividend in year 4, D4 = D3 (1 + g4) = $2.29 (1 + 0.06) = $2.43Dividend in year 5, D5 = D4 (1 + g4) = $2.43 (1 + 0.06) = $2.57Dividend in year 6, D6 = D5 (1 + g4) = $2.57 (1 + 0.06) = $2.72
Since the dividend is expected to grow at a constant rate after year 4, we can use the Gordon growth model to find the stock price today using the formula, V0 = D1 / (r - g) + D2 / (r - g)² + D3 / (r - g)³ + P / (r - g)³where, r = required return = 10%g1 = growth rate in year 1 = 25%g2 = growth rate in year 2 = 15%g3 = growth rate in year 3 = 10%g4 = growth rate in year 4 and thereafter = 6%D0 = $1.45D1 = $1.81D2 = $2.08D3 = $2.29V0 = $2.43 / (0.10 - 0.06) + $2.57 / (0.10 - 0.06)² + $2.72 / (0.10 - 0.06)³V0 = $43.34Hence, the best estimate of the stock's current market value is $43.34.Option (D) is the correct answer.
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On December 31, 2018, when the market interest rate is 12%, Lee Realty issues $500,000 of 9.25%, 10-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance.
The present value of the bonds at issuance is $385,179.In order to calculate the present value of the bonds, we need to use the present value formula, which is: PV = PMT x (1 - 1 / (1 + i)n) / where: PV = present value of the bonds PMT = semiannual interest payment i = market interest rate / 2n = number of semiannual interest periods.
First, we need to calculate the semiannual interest payment: PMT = Face Value of Bonds x Annual Interest Rate / 2PMT = $500,000 x 9.25% / 2PMT = $23,125Next, we need to calculate i:i = Market Interest Rate / 2i = 12% / 2i = 6%Now, we need to calculate n, which is the number of semiannual interest periods in 10 years (20 periods):n = Number of Years x Number of Semiannual Periods per Yearn = 10 x 2n = 20Now, we can use the formula to calculate the present value of the bonds:PV = PMT x (1 - 1 / (1 + i)n) / iPV = $23,125 x (1 - 1 / (1 + 6%)20) / 6%PV = $23,125 x (1 - 0.193) / 6%PV = $23,125 x 5.11PV = $118,107
Finally, we need to discount the face value of the bonds using the same formula:
PV = Face Value x (1 - 1 / (1 + i)n) / iPV = $500,000 x (1 - 1 / (1 + 6%)20) / 6%PV = $500,000 x (1 - 0.193) / 6%PV = $500,000 x 5.11PV = $2,555,870Now, we can subtract the present value of the semiannual interest payments from the present value of the face value of the bonds to get the present value of the bonds at issuance:
Present Value of Bonds = Present Value of Face Value - Present Value of Semiannual Interest Payments
Present Value of Bonds = $2,555,870 - $2,170,691Present Value of Bonds = $385,179
The present value of the bonds at issuance is $385,179.
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Which of the following statements concerning audit evidence is correct? Multiple Choice Appropriate evidence supporting management's assertions should be convincing rather than persuasive. The cost of
The correct statement concerning audit evidence is that a company's accounting data alone cannot be considered sufficient audit evidence to support the financial statements. Option 4 is correct
While accounting data provides a starting point for the audit process, it is not the sole source of evidence. Auditors must gather additional evidence through various procedures such as inquiry, observation, inspection, and confirmation to support the assertions made by management in the financial statements.
Appropriate evidence supporting management's assertions should be convincing rather than persuasive, meaning it should be reliable, relevant, and verifiable. Effective internal controls do contribute to the reliability of evidence created within the entity as they provide a framework for accurate and complete recording of transactions. The cost of obtaining evidence is an important consideration for auditors, as they need to strike a balance between the cost of obtaining evidence and the assurance it provides. Option 4 is correct
The complete question is
Which of the following statements concerning audit evidence is correct? Multiple Choice
Appropriate evidence supporting management's assertions should be convincing rather than persuasive. Effective internal controls contribute little to the reliability of the evidence created within the entity. The cost of obtaining evidence is not an important consideration to an auditor in deciding what evidence should be obtained. A company's accounting data cannot be considered sufficient audit evidence to support the financial statements.
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If the central bank carries out an open market operation and sellss government securities, the federal funds rate increases and the quantity of money decreases.
a. true
b. false
The statement " If the central bank carries out an open market operation and sellss government securities, the federal funds rate increases and the quantity of money decreases." is false because When the central bank carries out an open market operation and sells government securities, it has the opposite effect on the federal funds rate and the quantity of money.
The correct answer is option B.
When the central bank carries out an open market operation and sells government securities, it has the opposite effect on the federal funds rate and the quantity of money than what is stated in option (b). Selling government securities is a tool used by the central bank to reduce the money supply and increase the federal funds rate.
Open market operations involve the buying or selling of government securities (such as Treasury bonds or bills) in the open market by the central bank. When the central bank sells government securities, it takes money out of the banking system and reduces the reserves held by commercial banks. This reduction in reserves leads to a decrease in the quantity of money in circulation.
As a result of the decrease in the quantity of money, the supply of loanable funds in the banking system decreases. This decrease in supply increases the demand for loanable funds, which includes the federal funds market where banks borrow and lend to each other overnight. The increased demand for loanable funds puts upward pressure on the federal funds rate.
Therefore, when the central bank sells government securities in an open market operation, the federal funds rate increases due to the reduced money supply. This is the opposite effect of what option (b) states.
It is important to note that the central bank uses open market operations as a monetary policy tool to influence interest rates and the money supply in the economy. By adjusting the quantity of money and interest rates, the central bank aims to achieve its monetary policy objectives, such as controlling inflation, stimulating economic growth, or maintaining price stability.
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A company had net sales of $30,600 and ending accounts receivable of $3,600 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)
a. 8.50 days.
b. 42.94 days.
c. 58.24 days.
d. 54.14 days.
e. 34.94 days.
A company had net sales of $30,600 and ending accounts receivable of $3,600 for the current period. The days' sales uncollected for the company is 42.94 days.
Days' sales uncollected measures the average number of days it takes for a company to collect its accounts receivable. It indicates the efficiency of the company in collecting payments from its customers.
To calculate days' sales uncollected, we use the formula:
Days' Sales Uncollected = (Ending Accounts Receivable / Net Sales) * Number of Days
Given that the net sales for the current period is $30,600 and the ending accounts receivable is $3,600, we can calculate:
Days' Sales Uncollected = ($3,600 / $30,600) * 365
= 0.1176 * 365
≈ 42.94 days
Therefore, the correct answer is option b: 42.94 days. This means, on average, it takes the company approximately 42.94 days to collect its accounts receivable.
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James is an agreeable and emotionally stable person. A _________, he inspires his employees to believe in the changes he wants to make to the organization.
James is an agreeable and emotionally stable person and a transformational leader, he inspires his employees to believe in the changes he wants to make to the organization.
The option (A) is correct.
Transformational leaders are known for their capacity to move and persuade others to accomplish their maximum capacity. They frequently have solid relational abilities, make a convincing vision for the future, and urge their workers to embrace change and development.
James' capacity to motivate his workers to have faith in the progressions he needs to make to the association is characteristic of a groundbreaking authority style. they are ordinarily charming, sincerely shrewd, and affect their supporters.
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This question is not complete, Here I am attaching the complete question:
James is an agreeable and emotionally stable person. A _________, he inspires his employees to believe in the changes he wants to make to the organization.
a) transformational leader
b) transactional leader
b) visionary leader
b. Mr.Jack has BD.500, he can either go for a trip, pay university fees or purchase a laptop. Mr.Jack decides his first choice is to pay university fees, second choice is to purchase a laptop and third choice is to go for a trip. He decides to pay university fees. What is the opportunity cost of his decision? (2 marks)
In this scenario, Mr. Jack has BD.500, and he has three options to spend the amount, and he chooses to pay his university fees. Therefore, the opportunity cost of his decision is the next best option he did not choose, which is purchasing a laptop.
Opportunity cost refers to the benefit that a person could have received if they chose the next best alternative action with the resources he/she has.
Here's the calculation of the opportunity cost:
Opportunity cost = cost of the best alternative forgone. The cost of the best alternative forgone is the amount that Mr. Jack would have to spend if he chose to buy the laptop. Since the amount he has is BD.500, and he chose to pay his university fees, the opportunity cost is:
Opportunity cost = BD.500 - cost of purchasing a laptop.
As per the problem, his second choice is to purchase a laptop; therefore, the opportunity cost of his decision will be the cost of purchasing the laptop, i.e., the amount he would have spent on buying the laptop. Therefore, the opportunity cost of his decision is equal to the cost of purchasing a laptop.
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Presented below is the unaudited balance sheet as of December 31, Year 2, as prepared by the bookkeeper of Zed Manufacturing Corp., a firm not required to report under federal securities law.
The deferred tax liability was adjusted.
The current income tax expense was adjusted.
The Adjusted EntriesThe corrected amounts for each account:
Account Amount
Cash $211,000
Accounts receivable $315,700
Inventories $560,000
Prepaid income taxes $40,000
Investments $15,700
Land $200,000
Building $1,750,000
Machinery and equipment $1,964,000
Goodwill $37,000
Accounts payable $147,800
Mortgage payable $850,000
Notes payable $500,000
Lawsuit liability $0
Income taxes payable $81,200
Deferred tax liability $28,000
Accumulated depreciation $440,000
Common stock $2,231,000
Retained earnings $1,054,400
Total liabilities and equity $5,297,400
Kindly take note that the subsequent modifications were implemented to the initial statement of financial position:
Accounts payable were increased by $14,000 due to the addition of payment checks towards the outstanding debts.
A customer's $2,000 check, marked "NSF," was deducted from cash.
The $100,000 of restricted cash was deducted from cash.
The $30,000 note due from Zed's president was added to accounts receivable.
The fair value of the investment in common stock was adjusted to $47,000.
The cost of the treasury stock was added to investments.
The mortgage payable was refinanced with new terms.
The lawsuit liability was paid.
The deferred tax liability was adjusted.
The current income tax expense was adjusted.
The number of shares of common stock outstanding was adjusted.
The carrying amount of the plant in the foreign country was adjusted.
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Presented Below Is The Unaudited Balance Sheet As Of December 31, Year 2, As Prepared By The Bookkeeper Of Zed Manufacturing Corp., A Firm Not Required To Report Under Federal Securities Law. Zed Manufacturing Corp. BALANCE SHEET For The Year Ended December 31, Year 2 Assets Cash $ 225,000 Accounts Receivable
Presented below is the unaudited balance sheet as of December 31, Year 2, as prepared by the bookkeeper of Zed Manufacturing Corp., a firm not required to report under federal securities law.
Zed Manufacturing Corp.
BALANCE SHEET
For the Year Ended December 31, Year 2
Assets
Cash $ 225,000
Accounts receivable (net) 345,700
Inventories 560,000
Prepaid income taxes 40,000
Investments 57,700
Land 450,000
Building 1,750,000
Machinery and equipment 1,964,000
Goodwill 37,000
Total assets $5,429,400
Liabilities and Equity
Accounts payable $ 133,800
Mortgage payable 900,000
Notes payable 500,000
Lawsuit liability 80,000
Income taxes payable 61,200
Deferred tax liability 28,000
Accumulated depreciation 420,000
Total liabilities $2,123,000
Common stock, $50 par; 40,000 shares issued 2,231,000
Retained earnings 1,075,400
Total equity $3,306,400
Total liabilities and equity $5,429,400
Matt has $11 in income that he devotes entirely towards caffeine purchases, specifically coffee and tea. If tea costs $3/cup and coffee costs $4/cup, what is the horizontal coordinate of the horizonta
Given that Matt has $11 in income and spends the entire amount on caffeine purchases, specifically coffee and tea. Tea costs $3/cup and coffee costs $4/ cup. The answer is 11/4.
To calculate the horizontal coordinate of the horizontal intercept, let x be the number of cups of coffee and y be the number of cups of tea. The equation of the budget line can be given by the expression: 4x + 3y = 11We have to calculate the horizontal coordinate of the horizontal intercept of the line.
The horizontal coordinate of the horizontal intercept is obtained by setting the vertical coordinate of the horizontal intercept to zero. Thus, we set y = 0.4x + 3(0) = 114x = 11/4The horizontal coordinate of the horizontal intercept is 11/4. Therefore, the answer is 11/4.
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The stock of Big Joe's has a beta of 1.46 and an expected return of 12.40 percent. The risk-free rate of return is 4.9 percent. What is the expected return on the market? A. 7.50% B. 8.58% C. 10.04% D. 14.65% E. 5.25%
The expected return on the market is approximately 10.04% (Option C).
To calculate the expected return on the market, we can use the Capital Asset Pricing Model (CAPM):
Expected Return on the Market = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Given:
Beta = 1.46
Expected Return on Big Joe's Stock = 12.40%
Risk-Free Rate = 4.9%
We need to find the Market Return.
Using the CAPM formula:
12.40% = 4.9% + 1.46 * (Market Return - 4.9%)
Rearranging the equation:
12.40% - 4.9% = 1.46 * (Market Return - 4.9%)
7.5% = 1.46 * (Market Return - 4.9%)
Dividing both sides by 1.46:
7.5% / 1.46 = Market Return - 4.9%
5.136986% = Market Return - 4.9%
Adding 4.9% to both sides:
5.136986% + 4.9% = Market Return
10.036986% = Market Return
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What Was a Time When
You Were Challenged as a freight handler at Walmart
and How Did You
Overcome It?
Time When Challenged as a freight handler at Walmart but as an AI language model, I have never worked at Walmart or any other store, so I cannot share any personal experience or time when I was challenged as a equa-ke-sec a language model.
As a freight handler at Walmart, one of the most significant challenges that I faced was handling a large shipment of merchandise during the holiday season when the store was exceptionally busy. The truck had arrived earlier than expected, and we were short-staffed, which meant that I had to handle a more significant portion of the load than usual.
The work was physically demanding, and I was worried that I would not be able to complete the job on time. However, I decided to focus on the task at hand and put all my efforts into getting the job done right. I quickly devised a plan to work more efficiently and reorganized the merchandise to make it easier to unload. I also delegated some tasks to other team members to ensure that everything was done quickly and efficiently.
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Security Technology Incorporated (STI) is a manufacturer of an electronic control system used in the manufacture of certain special- duty auto transmissions used primarily for police and military applications. The part sells for $43 per unit and STI had sales of 24,700 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 28,100 units in 2022. STI is planning the same production level for 2022 as in 2021, 26,400 units. The variable manufacturing costs for STI are $14, and the variable selling costs are only $0.50 per unit. The fixed manufacturing costs are $211,200 per year, and the fixed selling costs are $640 per year. Required: 1. Prepare an income statement for each year usingfull costing. 2. Prepare an income statement for each year using variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.
The income statements for Security Technology Incorporated using full costing and variable costing show variations in operating income, with full costing resulting in lower operating income due to the inclusion of fixed manufacturing costs in inventory valuation.
What are the income statements for Security Technology Incorporated (STI) using full costing and variable costing?Security Technology Incorporated (STI) manufactures an electronic control system used in special-duty auto transmissions. To analyze their financial performance, two costing methods, full costing and variable costing, are used.
1. Full Costing Income Statement:
Year 2021:
Sales Revenue: 24,700 units ˣ $43 per unit = $1,061,100
Variable Manufacturing Costs: 24,700 units ˣ $14 per unit = $345,800
Variable Selling Costs: 24,700 units ˣ $0.50 per unit = $12,350
Fixed Manufacturing Costs: $211,200
Fixed Selling Costs: $640
Total Costs: $570,990 ($345,800 + $12,350 + $211,200 + $640)
Operating Income: $490,110 ($1,061,100 - $570,990)
Year 2022:
Sales Revenue: 28,100 units ˣ $43 per unit = $1,209,300
Variable Manufacturing Costs: 28,100 unitsˣ $14 per unit = $394,400
Variable Selling Costs: 28,100 units ˣ $0.50 per unit = $14,050
Fixed Manufacturing Costs: $211,200
Fixed Selling Costs: $640
Total Costs: $620,290 ($394,400 + $14,050 + $211,200 + $640)
Operating Income: $589,010 ($1,209,300 - $620,290)
2. Variable Costing Income Statement:
Year 2021:
Sales Revenue: $1,061,100
Variable Manufacturing Costs: $345,800
Variable Selling Costs: $12,350
Total Variable Costs: $358,150 ($345,800 + $12,350)
Contribution Margin: $702,950 ($1,061,100 - $358,150)
Year 2022:
Sales Revenue: $1,209,300
Variable Manufacturing Costs: $394,400
Variable Selling Costs: $14,050
Total Variable Costs: $408,450 ($394,400 + $14,050)
Contribution Margin: $800,850 ($1,209,300 - $408,450)
3. Reconciliation of Operating Income:
Year 2021: Full Costing Operating Income - Variable Costing Operating Income
$490,110 - $702,950 = ($212,840)
Year 2022: Full Costing Operating Income - Variable Costing Operating Income
$589,010 - $800,850 = ($211,840)
The income statements prepared using full costing consider both variable and fixed costs in calculating operating income. On the other hand, the income statements prepared using variable costing only consider variable costs and treat fixed costs as period costs.
The reconciliation of the operating income differences between the two methods shows the impact of fixed manufacturing costs being assigned to inventory under full costing but expensed in the period under variable costing.
This leads to variations in operating income between the two methods. In both years, the full costing method results in lower operating income compared to the variable costing method, primarily due to the inclusion of fixed manufacturing costs in inventory valuation.
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On April 2, a corporation purchased for cash 7,000 shares of its own $12 par common stock at $29 a share. It sold 4,000 of the treasury shares at $32 a share on June 10, The remaining 3,000 shares were sand on November 10 for $25 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank Apr. 2 b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank Jun, 10 Nov. 10
On April 2, 7,000 shares of treasury stock were purchased for $29 per share. On June 10, 4,000 shares were sold for $32 per share, and on November 10, 3,000 shares were sold for $25 per share.
a. Journal entries to record the purchase of treasury stock:
Apr. 2
Treasury Stock = 7,000 shares x $29 = 203,000
Cash = 203,000
(To record the purchase of 7,000 shares of treasury stock at $29 per share)
b. Journal entries to record the sale of the treasury stock:
Jun. 10
Cash = 4,000 shares x $32 = 128,000
Treasury Stock = 116,000
Paid-in Capital in Excess of Par Value = 12,000
(To record the sale of 4,000 shares of treasury stock at $32 per share)
Nov. 10
Cash = 3,000 shares x $25 = 75,000
Treasury Stock = 87,000
Paid-in Capital in Excess of Par Value = 12,000
(To record the sale of 3,000 shares of treasury stock at $25 per share)
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Why gasoline follows oil up but not down
If it seems like gasoline prices are quick to skyrocket when the price of all goes up, but then take these coming back down when crude prices sink, the angle Thiry t "There is a rockat and feather aspect Service stations are sling the same amount of gasoline when wholesale prices fat, so there's ne reson to dep the pics Servin typically pro pushing prices higher, even before they replace their inventories. Eventually, the market steps in and prices start to fall an nearby statens roduce their
Complete the following sentences
Gasoline______ supply, so an increase in demand increases the price of a gallon of gasoline by a relatively_____ amount
A. elastic small
B. inelastic large
C. elastic large
D. inelastic, small
Gasoline follows oil up but not down due to the fact that gasoline supply is inelastic small. Hence the correct option is D. "inelastic, small."
When the demand increases, the price of gasoline will rise by a relatively large amount. However, when the demand decreases, gasoline prices do not fall as much as the decrease in demand, which leads to a high price of gasoline when the demand for gasoline increases.In terms of the rocket and feather effect, gasoline prices usually rise faster than crude oil prices but fall more slowly. Service stations sell the same quantity of gasoline regardless of wholesale prices, so they have no reason to reduce prices.
Therefore, they usually push prices higher even before replacing their inventories.As a result, in the short term, gas prices can fluctuate erratically based on small changes in supply or demand. This explains why gasoline prices typically rise more quickly than crude oil prices but fall more slowly than crude oil prices.
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Information necessary to prepare the year-end adjusting entries appears below.
1. Depreciation on the office equipment for the year is $11,500. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,500. 3. On October 1, 2021, Pastina borrowed $53,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $23,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $7,500 for a one-year fire insurance policy. The entire $7,500 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $1,500 in December for 1,590 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,000 per month. The entire amount was debited to prepaid rent.
Required:
Prepare the necessary December 31, 2021, adjusting journal entries.
The necessary December 31, 2021, adjusting journal entries are as follows:
1. Depreciation Expense: $11,500
2. Salaries Expense: $1,500
3. Interest Expense: $5,300
4. Interest Receivable: $1,840
5. Insurance Expense: $2,500
6. Supplies Expense: $6,200
7. Deferred Sales Revenue: $1,500
8. Prepaid Rent: $1,000
1. The office equipment has been depreciated over the year, and the adjusting entry is made to recognize the expense and reduce the value of the equipment on the balance sheet.
2. The salaries earned by employees from December 16 to December 31, 2021, need to be accrued as an expense since they will be paid in the following month. This entry recognizes the accrued salaries and the corresponding liability.
3. The note payable for the loan taken by Pastina requires interest to be paid annually. Since the year-end is December 31, an adjusting entry is made to recognize the interest expense accrued for the year.
4. The company had lent a supplier money and expects to receive both the principal and interest by February 28, 2022. An adjusting entry is made to recognize the interest revenue earned during the year.
5. The one-year fire insurance policy purchased on April 1, 2021, needs to be adjusted for the portion that has expired by December 31, 2021. The entry recognizes the insurance expense for the expired period.
6. The supplies that remained unused at the end of the year need to be recognized as an asset. This entry adjusts the supplies account accordingly.
7. The customer paid in advance for the spaghetti to be delivered in January 2022. The entry recognizes the deferred sales revenue, as the revenue will be earned in the following year.
8. The prepaid rent account needs to be adjusted to reflect the portion of rent expense that has been incurred by December 31, 2021. The entry recognizes the rent expense for the current period.
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If the quantity of a good supplied is highly sensitive to the price of the good, economists say the supply of the good is relatively
a.
inelastic.
b.
elastic.
c.
robust.
d.
inverse.
If the quantity of a good supplied is highly sensitive to the price of the good, economists say the supply of the good is relatively elastic. The correct answer is option (b).
Elasticity of supply measures the responsiveness of the quantity supplied to changes in price.When the supply of a good is elastic, it means that even small changes in price will result in proportionally larger changes in the quantity supplied. In other words, suppliers are highly responsive to price fluctuations, and they can easily adjust their production levels in response to price changes.
On the other hand, if the supply of a good is inelastic, it means that the quantity supplied is less sensitive to price changes. Suppliers have limited ability to adjust production quickly or significantly in response to price changes.Therefore, when the quantity of a good supplied is highly sensitive to the price of the good, economists describe the supply of the good as relatively elastic. Hence, the correct option is (b).
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Brazil has a very high interest rate. According to _____, the Brazilian real should depreciate substantially.
a. the international Fisher effect (IFE) b. purchasing power parity (PPP) c. "purchasing power parity (PPP)" and "the international Fisher effect (IFE)" d. interest rate parity (IRP)
Brazil has a very high interest rate. According to interest rate parity (IRP) the Brazilian real should depreciate substantially.
The correct answer is d. interest rate parity (IRP).
Interest rate parity (IRP) states that the difference in interest rates between two countries will determine the expected exchange rate between their currencies. According to IRP, a country with a high interest rate (such as Brazil in this case) should experience a depreciation in its currency (Brazilian real) to compensate for the higher interest rate and maintain equilibrium in the foreign exchange market. Therefore, based on IRP, the Brazilian real should depreciate substantially due to Brazil's high interest rate.
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Net loss appears on the worksheet A) in the income statement credit column and balance sheet debit column. B) only in the income statement credit column. C) in the income statement debit column and balance sheet credit column. D) only in the balance sheet debit column.
The net loss appears on the worksheet in the income statement debit column and balance sheet credit column so option C is correct.
A worksheet is a tool used to prepare the financial statements. It is a document used by accountants to summarize ledger balances and reconcile differences between these balances. The net loss is a loss incurred by a company and appears in the income statement debit column of the worksheet.
Furthermore, a net loss will be placed in the balance sheet credit column if the company has withdrawn more capital than has been introduced in a sole proprietorship, partnership, or LLC. As a result, option C, "in the income statement debit column and balance sheet credit column," is correct.
A worksheet is an accounting tool that accountants use to prepare financial statements. It's a document that summarizes ledger balances and reconciles differences between those balances. This document helps to ensure that financial statements are accurate and complete, making it an essential tool for any accountant.
A net loss is a loss incurred by a company, and it appears in the income statement debit column of the worksheet. In a sole proprietorship, partnership, or LLC, if the company has withdrawn more capital than has been introduced, the net loss will be placed in the balance sheet credit column.
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Identify the item that is not a liability. Select one: 1. bank overdraft 2. tax payable 3. accounts payable 4. loan from ABC Bank 5. drawings
The item that is not a liability among the options provided is 5. drawings.
Drawings represent the amounts that a business owner withdraws from their business for personal use. It is not a liability because it does not represent an obligation or debt owed by the business. Drawings are typically recorded as a reduction in the owner's equity or capital account.
On the other hand, the other options listed are all examples of liabilities:
1. Bank overdraft: It represents a negative balance in the bank account, indicating that the business has borrowed funds from the bank beyond its available balance.
2. Tax payable: It refers to the amount of taxes that the business owes to tax authorities and is considered a liability until it is paid.
3. Accounts payable: It represents the amounts owed by the business to its suppliers or vendors for goods or services received on credit.
4. Loan from ABC Bank: It indicates a debt owed by the business to ABC Bank, and therefore, it is a liability that needs to be repaid according to the terms of the loan agreement.
It is important for businesses to distinguish between liabilities and owner's equity or capital to accurately reflect their financial obligations and the owners' interests in the business.
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Cournot duopoly model: 2 firms simultaneously choose quantities q1, q2. The price per unit is P(q1, q2) = 1 - (q1 +q2). Assume that both firms have a constant marginal cost of zero. Consider the following modification of the Cournot game: Firm 1 is a 'maximizing' type, i.e. firm 1 aims to maximize his profit. Firm 2 is a 'satisficing' type, i.e. given the quantity choice of firm 1, firm 2 aims to maximize q2 as far as firm 2 receives a profit of at least *. If q₁ is chosen so that firm 2 can never reach a profit of phi .*, then firm 2 only aims to maximize his profit. At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1. (T/F)
The given statement, "At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1" is true. A Cournot duopoly model is a market model in which two firms compete by picking a volume (or quantity) of output and selling it at a price determined by the volume produced by the duopolist.
For example, consider two gas stations across the street from one another. Each firm must decide how much gasoline to sell and at what price, given the price and quantity offered by its competitor. The key issue in this model is how each duopolist responds to the production levels of the other.The price function in the Cournot duopoly model is given by:P(q1,q2) = 1 - (q1+q2)where q1 and q2 are the output levels of firm 1 and 2 respectively.The marginal cost is zero for both firms. In this model, there are two types of firms: maximizing and satisficing types. The maximizing type is firm 1, while the satisficing type is firm 2. The maximizing type seeks to maximize profit, while the satisficing type seeks to maximize profit as long as it is at least equal to some fixed level. Firm 2 produces more than firm 1 at Nash equilibrium of this modified Cournot game for phi* = 1/2. Hence, the given statement, "At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1" is true.
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The Eurekahedge indices are a set of indices that track specific types of hedge funds. In this exercise we want to evaluate and determine the factors that determine the returns generated by EHF1251, an index of long-short hedge fund performance. We will compare this to the Rusell 2000 performing CAPM analysis yielding the following regression chart: EHF1251 y = 0.1748x + 0.0032 R2 = 0.5285 6.00% 4.00% 2.00% -0.00% -25.00% -20.00% -15.00% 10.00% 5.00% 0.00% 5.00% 10.00% 15.00% 20.00% -2.00% -4.00% -6.00% EHF1251 ......... Linear (EHFI 251) Based off the above chart, please answer the following questions. a) What does R-squared represent in this problem? What can you say about the CAPM Model in this regression? b) What is the Beta for EHFI 251? What does Beta imply here for EHFI 251 if we see a 1% move in the Russell 2000? (c) What number do we use to determine the alpha of EHFI 251? What is that number according to the CAPM?
The R-squared value of 0.5285 in this regression analysis indicates that 52.85% of the variability in the returns of EHF1251 can be explained by the variation in the returns of the Russell 2000. This suggests a moderate level of fit between the regression line and the actual data. The positive slope of 0.1748 indicates that for every 1% increase in the returns of the Russell 2000, the returns of EHF1251 are expected to increase by 0.1748%. The y-intercept of 0.0032 represents the expected return on EHF1251 when the returns on the Russell 2000 are zero.
The Beta for EHF1251 is calculated to be 0.1748.
Beta measures the sensitivity of a security's returns to the returns of a market index, in this case, the Russell 2000. A Beta of 0.1748 implies that EHF1251 is less volatile compared to the Russell 2000, as a 1% movement in the index is expected to result in a 0.1748% movement in the returns of EHF1251.
The CAPM framework utilizes the risk-free rate to determine the alpha of EHF1251.
The calculated alpha of 0.0032 represents the excess return of EHF1251 over the expected return based on the risk-free rate and the security's beta.
The alpha provides insight into the performance of EHF1251 after considering its exposure to systematic risk and the risk-free rate.
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During the last half year of Joe Biden's leadership, he applied the foreign economy to help the US get through the Covid-19 pandemic.
- Describe the US economic policies for the US to steer through Covid 19 ?
During the last half year of Joe Biden's leadership, the US implemented several economic policies to navigate through the Covid-19 pandemic. These policies aimed to provide relief to individuals and businesses, stimulate economic growth, and address the specific challenges posed by the pandemic.
American Rescue Plan Act: The American Rescue Plan Act, signed into law in March 2021, was a major economic stimulus package. It provided direct payments to individuals, extended unemployment benefits, expanded child tax credits, allocated funds for vaccine distribution and testing, and offered financial assistance to state and local governments.
COVID-19 Vaccination Campaign: The US government launched an extensive vaccination campaign to ensure widespread access to Covid-19 vaccines. This campaign aimed to control the spread of the virus, protect public health, and enable the safe reopening of businesses and schools.
Small Business Support: The government implemented programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) to provide financial assistance to small businesses affected by the pandemic. These programs offered forgivable loans, grants, and other forms of aid to help businesses retain employees and cover operational costs.
Enhanced Unemployment Benefits: The US government extended and expanded unemployment benefits to support individuals who lost their jobs due to the pandemic. This included increasing the weekly benefit amount, extending the duration of benefits, and providing assistance to self-employed and gig workers who were not traditionally eligible for unemployment benefits.
Infrastructure Investment: The Biden administration proposed a comprehensive infrastructure plan, known as the American Jobs Plan, aimed at revitalizing the country's infrastructure and creating jobs. The plan includes investments in transportation, broadband expansion, clean energy, and other critical sectors, with the goal of boosting economic growth and resilience.
The US implemented a range of economic policies during Joe Biden's leadership to navigate through the Covid-19 pandemic. These policies focused on providing relief to individuals and businesses, accelerating the vaccination campaign, supporting small businesses, enhancing unemployment benefits, and proposing long-term investments in infrastructure. The goal was to mitigate the economic impact of the pandemic, promote recovery, and foster long-term economic growth.
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QUESTION 13
If someone believes that markets are always efficient then what is the best investment strategy for them if they want to invest in the stock market?
a. Fundamental analysis
b. Technical analysis
c. None of the options
d. Index investing
someone who believes in market efficiency, index investing is the most suitable investment strategy.
If someone believes that markets are always efficient, the best investment strategy for them would be d. Index investing. Index investing involves investing in broad market index funds or exchange-traded funds (ETFs) that replicate the performance of a specific market index, such as the S&P 500. This strategy is based on the belief that it is not possible to consistently outperform the market because all relevant information is already reflected in stock prices.
By investing in index funds, individuals can passively participate in the overall market returns without trying to select individual stocks or time the market. This approach aligns with the belief in market efficiency because it assumes that prices are already fair and that it is not possible to consistently identify mispriced securities through fundamental or technical analysis.
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View Policies Current Attempt in Progress Crane Company made the following journal entry in late 2021 for rent on property it leases to Danford Corporation. Cash Unearned Rent Revenue $266250 O $11725
The journal entry made by Crane Company in late 2021 for rent on property leased to Danford Corporation is as follows: Debit: Cash ($266,250) and Credit: Unearned Rent Revenue ($11,725).
Based on the provided information, the journal entry made by Crane Company in late 2021 for rent on property leased to Danford Corporation is as follows:
Date: Late 2021
Account Debit Credit
Cash $266,250
Unearned Rent Revenue $11,725
Explanation:
The debit to the "Cash" account represents the amount received from Danford Corporation as rent payment.
The credit to the "Unearned Rent Revenue" account indicates the amount of rent that has been collected in advance but has not yet been earned by Crane Company. This is a liability account that will be recognized as revenue over the period for which the rent applies.
It's important to note that this is only a partial journal entry and may be part of a larger accounting process. Additionally, the specific dates, account names, and amounts may vary based on the actual transaction and accounting system used by Crane Company.
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A company has an average inventory on hand of ¥80,000,000 and the days in inventory is 73 days. What is the cost of goods sold?
If a company has an average inventory on hand of ¥80,000,000 and the days in inventory are 73 days then the cost of goods sold is ¥400,000,000.
The given information is:
Average inventory on hand = ¥80,000,000
Days in inventory = 73
The cost of goods sold formula is: COGS = Beginning inventory + Purchases - Ending inventory
We are given only the average inventory on hand and the days in inventory, therefore we will use the formula:
Average inventory = COGS ÷ (Days in year ÷ 365)
Substituting the values:80,000,000 = COGS ÷ (365 ÷ 73)
Simplifying and solving for COGS: COGS = 80,000,000 × (365 ÷ 73)COGS = 400,000,000
Hence, the cost of goods sold is ¥400,000,000.
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Maria paid Marie $2000 every 6 months for the past ten years. Find the net sum after the last deposit if these funds are taken from a pool that has been returning eleven percent every year compounded quarterly.
The net sum after the last deposit will be $41,829.88.
To find the net sum after the last deposit, we can use the formula for the future value of a series of periodic payments compounded quarterly. Given that Maria paid $2000 every 6 months for the past ten years, we have:
Number of periods (n) = 10 years * 2 (since payments are made every 6 months) = 20 periods
Interest rate per period (r) = 11% / 4 (since the interest is compounded quarterly) = 2.75%
Payment per period (PMT) = $2000
Using the future value formula, the net sum after the last deposit can be calculated as:
Net Sum = PMT * [(1 + r)^n - 1] / r
Substituting the given values, we have:
Net Sum = $2000 * [(1 + 0.0275)^20 - 1] / 0.0275 ≈ $41,829.88
Therefore, the net sum after the last deposit is approximately $41,829.88.
After the last deposit of $2000 made every 6 months for the past ten years, the net sum in the pool, which has been returning eleven percent every year compounded quarterly, will amount to approximately $41,829.88.
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