In accounting, there are various principles, concepts, and assumptions that are followed while creating financial statements. The principles provide guidance on how transactions should be recorded, while the concepts help in understanding the accounting process.
The assumptions assist in the preparation of financial statements. The given statements are explained below with the accounting principle, concept, or assumption that most closely matches them:
An auditor will try to determine whether a transaction had occurred and its dollar amount by examining documents such as invoices and by other means. This statement closely matches the accounting principle of verification. Verification is an auditing principle that ensures that the recorded transactions are genuine. An auditor verifies transactions by inspecting the accounting records, including financial statements, bank statements, and documents such as invoices and receipts.While businesses operate continuously, their economic activities are divided into distinct time periods for reporting purposes.Financial information is presented in such a way so that informed users can comprehend its meaning and implications. This statement closely matches the accounting principle of understandability. Understandability means that financial information should be presented in a clear and concise manner so that it can be easily understood by users who have reasonable knowledge of business and economic activities.Know more about the accounting principle,
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Consider the market for hamburgers. Suppose that in a particular area, the number of Suppose that there are 200 sellers of hamburgers in the area, and each seller is willing to sell the number of hamburgers given below at each specified price. d. What is the equilibrium price of hamburgers? e. What is the equilibrium quantity of hamburgers?
In the market for hamburgers, we are given the number of sellers and the quantity of hamburgers each seller is willing to sell at different prices. We can use this information to determine the market demand and supply curves and find the equilibrium price and quantity.
a. The demand schedule for hamburgers is not given, so we cannot determine the market demand curve.
b. Each seller is willing to sell hamburgers at the following prices and quantities:
Price Quantity $0 0 $1 20 $2 40 $3 60 $4 80 $5 100 $6 120 $7 140 $8 160 $9 180 $10 200
These individual supply schedules can be used to construct a market supply curve. The market supply curve is the horizontal sum of individual supply curves. At a price of $0, the total quantity supplied is 0 (the sum of all individual quantities supplied at that price). At a price of $1, the total quantity supplied is 20 (the sum of all individual quantities supplied at that price).
We can repeat this process for all prices to obtain the following market supply curve:
Price Quantity $0 0 $1 20 $2 40 $3 60 $4 80 $5 100 $6 120 $7 140 $8 160 $9 180 $10 200
c. To find the equilibrium price and quantity,
we need to find the point where the market demand and supply curves intersect. Since we do not have the demand schedule, we cannot find the exact equilibrium point. However, we can make some general observations. If the demand for hamburgers is high, the equilibrium price and quantity will be higher. If the demand for hamburgers is low, the equilibrium price and quantity will be lower.
Again, this is just an estimate based on the limited information we have. The actual equilibrium price and quantity would depend on the market demand schedule. Therefore, the equilibrium price of hamburgers is estimated to be $5, and the equilibrium quantity is estimated to be 100.
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Khalil's teacher has asked him to change the orientation of his images. What does Khalil need to do? O A. O B. O C. O D. Change the shutter speed of his camera. Change the composition of the objects in the pictures. Change the position or direction of the pictures. Change the lighting in the pictures.
Answer:
C: change the position or direction of the pictures
Explanation:
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Ahmed Solomon has run his printing business since 2009 in Somolu. He started with a second hand Gestetner machine but about seven years ago had acquired a complete suite of equipment and was doing very well. In order to position himself to handle much bigger jobs he decided to incorporate his business. He has three sons and a daughter. He registered Solomonic Printers as a limited liability company with a share capital of N500,000.00. He held N200,000.00 shares directly and took out a debenture of N250,000.00. He gave his wife shares of N20,000.00 and registered N10,000.00 in the names of his sons.
Jensen Jibiti was one of his regular customers and often gave him printing jobs running into several millions of naira. Some seven months ago Jibiti introduced a business of printing fake dollars to Ahmed’s son who was running the business as the managing director. Lured on by Jibiti that son began to divert much of the company’s business to this business as an advance against payments by Jibiti. The company became insolvent in July 2021 and had to be wound up. The liquidator wants to know whether he should pay Ahmed first or the other creditors who had given advances on printing jobs. If he paid Ahmed there would not be enough to satisfy the other creditors. He wishes to take various steps against the managing director, as well. Advise him
In this scenario, the company has become insolvent due to the actions of Ahmed Solomon's son, who, in collusion with Jensen Jibiti, diverted much of the company's business to print fake dollars as an advance against payments by Jibiti.
Now, the liquidator wants to know whether he should pay Ahmed first or the other creditors who had given advances on printing jobs. Advise him.The liquidator should prioritize the payment of creditors who had given advances on printing jobs over Ahmed Solomon as per the principles of priority in liquidation. In a winding-up, the liquidator must follow certain rules when distributing the assets of the insolvent company.
According to the rules of priority, certain claims have priority over others. Section 530(1) of the Companies and Allied Matters Act (CAMA) provides a list of preferred creditors whose claims are given priority over others. The priority order of distribution is as follows:
Costs and expenses of winding-up ;
Outstanding salaries, wages, and other benefits to employees;
Local government tax and dues;
Payments due to the Federal Inland Revenue Service (FIRS);
Payments due to any other creditor with a valid fixed charge;
Payments due to other creditors who have no valid fixed charge;
Payments due to shareholders for the return of capital (paid in cash);
Payments due to shareholders as dividends;
In this case, since Ahmed Solomon is a shareholder and has a debenture, he falls under the seventh category of preferred creditors, and his claim must be paid after the first five categories have been settled, but before other unsecured creditors such as those who gave advances on printing jobs.
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The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Instructions: Round your answer for price to two decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market? P=$ Q= million pounds b. What is the monthly surplus created in the wholesale butter market due to the price sunnort (nrice floorl) nroaram? b. What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program? 11 milion pounds 79 million pounds 22 million pounds zero Suppose that a decrease in the cost of feeding cows shifts the supply schedule to the right by 40 million pounds at every price. c. Fill in the new supply schedule given the change in the cost of feeding cows. Suppose that a decrease in the cost of feeding cows shifts the supply schedule to the right by 40 million pounds at every price. c. Fill in the new supply schedule given the change in the cost of feeding cows. Market for Wholesale Butter d. Given the new supply of butter, what is the monthly surplus of butter created by the price support program? million pounds
The equilibrium price and quantity in the wholesale butter market are P= $1 and Q= 66 million pounds.b. The monthly surplus created in the wholesale butter market due to the price support (price floor) program is 11 million pounds.
Suppose that a decrease in the cost of feeding cows shifts the supply schedule to the right by 40 million pounds at every price .c. The new supply schedule after the decrease in the cost of feeding cows is shown in the table below .Market for Wholesale ButterPrice (in $ per pound)Quantity Demanded (in million pounds)Quantity Supplied (in million pounds)1.251051801.00406452.751064223.50517397.251081622.5011913421.25121077d. Given the new supply of butter, the monthly surplus of butter created by the price support program is 22 million pounds.
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Dan likes to eat ham sandwiches. He uses two ingredients to make his sandwiches, and he always makes them exactly the same way: 2 slices of bread and 2 slices of ham. The cost of bread is 1 per slice, and the cost of ham is 2 per slice. If Dan has 24 to spend on sandwich ingredients, what is his optimal bundle of bread and ham? slices of bread and slices of ham. (Hint: how much does 1 sandwich cost? How many total sandwiches can Dan afford with his income? How much bread and ham corresponds to that many sand wiches?) 2 points A consumer's utility function is U(X,Y)=4X+5Y. The price of X is 2. The price of Y is 3. The consumer's income is 60. Therefore, the consumer's optimal bundle is: X= and Y= 2 points Charlie consumes only apples and bananas. His utility function is U(a,b)=ab. His income is m=24. The price of apples is 2 and the price of bananas is 3. To maximize utility, Charlie consumes type your answer.. rananas.
1. For Dan's sandwich ingredients, we know that each sandwich requires 2 slices of bread and 2 slices of ham. The cost of bread is $1 per slice and the cost of ham is $2 per slice.
Total cost of one sandwich = Cost of bread + Cost of ham = $2 + $4 = $6
Since Dan has $24 to spend on sandwich ingredients, we can calculate the maximum number of sandwiches he can afford:
Maximum number of sandwiches = $24 / $6 = 4 sandwiches
Therefore, his optimal bundle of bread and ham is:
Slices of bread = 2 slices/sandwich × 4 sandwiches = 8 slices of bread
Slices of ham = 2 slices/sandwich × 4 sandwiches = 8 slices of ham
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Think about a consumer with a utility function given by u=x1x2, he is facing a budget constraint: p1x1+p2x2<= I.
A) Please derive the Marshallian demand functions for x1 and x2.
B) How much of each good will the consumer purchase if I =8, p1=1 and p2=4?
Given that the consumer has a utility function given by `u = x1 * x2` and is facing a budget constraint `p1 * x1 + p2 * x2 ≤ I`.We are to derive the Marshallian demand functions for `x1` and `x2` and determine how much of each good will the consumer purchase if `I = 8`, `p1 = 1` and `p2 = 4`.Solution:The consumer’s problem is to maximize their utility function `u = x1 * x2` subject to the budget constraint `p1 * x1 + p2 * x2 ≤ I`.The Lagrangian function `L` is given by;`L = x1 * x2 + λ [I − p1 * x1 − p2 * x2]
`Differentiating the Lagrangian function with respect to `x1`, `x2` and `λ` we get;`∂L/∂x1 = x2 − λp1 = 0` …..(1)`∂L/∂x2 = x1 − λp2 = 0` …..(2)`∂L/∂λ = I − p1 * x1 − p2 * x2 = 0` …..(3)Solving the above equations for `x1`, `x2` and `λ` gives the Marshallian demand functions.`x1 = I/(2 * p1)` and `x2 = I/(2 * p2)`Therefore, the demand functions for x1 and x2 are given by;x1 = I/(2 * p1) …..(4)x2 = I/(2 * p2) …..(5) Substituting the given values, `I = 8`, `p1 = 1` and `p2 = 4` into equations (4) and (5) above;x1 = 8/(2 * 1) = 4x2 = 8/(2 * 4) = 1 The consumer will purchase `4` units of `x1` and `1` unit of `x2` if `I = 8`, `p1 = 1` and `p2 = 4`.
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You just met with your retirement planner to discuss your options. You decided that you could put $12,000 today and each year after that towards retirement. How much will you have after 30 years if you can earn 5.5% on your money?
After 30 years of contributing $12,000 annually towards retirement and earning a 5.5% return on investment, you would have approximately $851,983.33.
To calculate the future value of your retirement savings, we can use the formula for compound interest:
FV = P * (1 + r)^n
Where:
FV = Future Value
P = Annual contribution
r = Annual interest rate (as a decimal)
n = Number of years
In this case, your annual contribution (P) is $12,000, the annual interest rate (r) is 5.5% (or 0.055 as a decimal), and the number of years (n) is 30.
Plugging in these values into the formula, we get:
FV = $12,000 * (1 + 0.055)^30
= $12,000 * (1.055)^30
≈ $851,983.33
Therefore, after 30 years of contributing $12,000 annually and earning a 5.5% return, you would have approximately $851,983.33 in your retirement savings.
By consistently contributing $12,000 per year towards retirement for 30 years and earning a 5.5% return, you can accumulate a significant nest egg of approximately $851,983.33. This calculation assumes that you make annual contributions of $12,000 at the beginning of each year and that the interest compounds annually. It's important to note that this estimate does not account for inflation or any potential changes in the investment market. Consulting with a retirement planner or financial advisor can provide more tailored advice based on your specific financial situation and goals.
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Suppose there are two goods beverage and pizza and two inputs land, T, and labor, L. Given atb=4981, atp=997, alb=2505, alp=1976,T=5377, and L=5031. What is the amount of pizza at the point of intersection between land and labor constraints. (Answer should have two decimal places).
At the point of intersection, the amount of pizza produced is approximately 3432.56 units
To determine the amount of pizza at the point of intersection between the land and labor constraints, we need to analyze the production possibilities frontier (PPF) for the two goods.
The production function for beverages (B) and pizza (P) can be represented as:
B = a_tb * L_b + a_lb * T
P = a_tp * L_p + a_lp * T
Given the following values:
a_tb = 4981 (units of beverages per unit of land)
a_tp = 997 (units of pizza per unit of land)
a_lb = 2505 (units of beverages per unit of labor)
a_lp = 1976 (units of pizza per unit of labor)
T = 5377 (total units of land)
L = 5031 (total units of labor)
We can calculate the maximum amount of beverages and pizza produced by substituting the given values into the production functions:
B = 4981 * L_b + 2505 * T
P = 997 * L_p + 1976 * T
Now, to find the point of intersection, we need to equate the production functions and solve for L_p (the amount of labor allocated to pizza production):
4981 * L_b + 2505 * T = 997 * L_p + 1976 * T
Rearranging the equation:
L_p = (4981 * L_b + 2505 * T - 1976 * T) / 997
Substituting the given values:
L_p = (4981 * 2505 + 2505 * 5377 - 1976 * 5377) / 997
Calculating the above expression, we find that L_p ≈ 3432.56 (rounded to two decimal places).
Therefore, at the point of intersection between the land and labor constraints, the amount of pizza produced is approximately 3432.56 units.
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Fill in the Blanks:
In the United States, if you are working on health IT/IS for a large city's government, you need to pay close attention to directives from the _________
The HITECH Act provides money to health organizations that create _________–certified health IT systems
In the United States, if you are working on health IT/IS for a large city's government, you need to pay close attention to directives from the HITECH Act. The HITECH Act provides money to health organizations that create Meaningful Use–certified health IT systems.
The Health Information Technology for Economic and Clinical Health (HITECH) Act is a regulation that offers stimulus funding for the development and usage of electronic health records (EHRs).
The Act establishes incentives for healthcare providers to modernize their operations, ensuring better-quality patient care via safer, more efficient electronic health records.
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What is Principle of Dominance in Game Theory? Reduce the following game by dominance property and solve it:
Principle of Dominance in Game Theory:
The principle of dominance in game theory is a strategy that involves a decision-maker focusing on the most critical and influential choice in a decision matrix. It is the point at which a person or organization has the most substantial impact on the final outcome of their decision.
Game theory's principle of dominance states that if one of the two competing strategies is strictly superior to the other in all cases, the inferior strategy may be removed from consideration. This approach reduces the complexity of a game and makes it easier to analyze. The strategy that is removed from the game is said to be dominated by the other strategy.Now, let's solve this problem using the dominance property.A B C
D
E F
G H
I J
In this game, A is the strictly superior strategy since it is the highest value in its column. Therefore, we can remove the inferior strategy C and make a new game table:A B
D
E F
G H
I J
In the second row, G is the strictly superior strategy, which allows us to remove H, resulting in the following game table:A B
D
E F
G
I J
In the fifth column, J is the strictly superior strategy, allowing us to remove I from the game table, resulting in:A B
D
E F
G
JThe solution to the game is J since it is the highest value. Therefore, the dominant strategy is J.
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DU recently paid a dividend of $1.95. An analyst expects that the firm's dividend rate will grow at a constant rate of 9% indefinitely. He also determines DU's beta is 1.15, the risk-free rate is 2.7%, and the expected return on the market is 9%. a. What is the cost of equity? % Round your answer to two decimals b. What is the current value of DU's shares? $ Round your answer to the nearest cent
a. To calculate the cost of equity, we can use the dividend growth model. The formula is as follows:
Cost of Equity = Dividend / Current Stock Price + Dividend Growth Rate
Given that the dividend rate is expected to grow at a constant rate of 9% indefinitely and the recent dividend is $1.95, we can plug in the values into the formula:
Cost of Equity = $1.95 / Current Stock Price + 9%
b. To calculate the current value of DU's shares, we can use the constant growth dividend valuation model, also known as the Gordon Growth Model. The formula is as follows:
Current Stock Price = Dividend / (Cost of Equity - Dividend Growth Rate)
We already have the dividend value of $1.95 and the dividend growth rate of 9%. We can substitute these values into the formula, along with the cost of equity obtained in part a:
Current Stock Price = $1.95 / (Cost of Equity - 9%)
To get the cost of equity in percentage, we need to multiply it by 100 and round it to two decimal places. To get the current value of DU's shares in dollars, we need to round it to the nearest cent.
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Describe the value of the entrepreneurship method, including
what it emphasizes.
Entrepreneurship is the process of establishing and managing a new business enterprise by identifying a gap in the market and creating a product or service to fill that gap. In contrast to traditional business practices, entrepreneurship emphasizes on creativity, innovation, and risk-taking.Entrepreneurship method is valuable because it is characterized by an experimental approach to business,
whereby the entrepreneur engages in research and development to identify new business opportunities and develop new products or services to fill those opportunities. This method emphasizes innovation and encourages individuals to take risks and pursue new ideas,
which is critical in today's fast-paced and dynamic business environment.Moreover, entrepreneurship involves developing a deep understanding of customer needs and preferences, which leads to the creation of unique and highly customized products and services that meet the needs of specific customer segments. This process results in high customer satisfaction, customer loyalty,
and increased profitability for the entrepreneur.Entrepreneurship also fosters a culture of creativity and innovation that leads to continuous improvement in products and services, as entrepreneurs seek to find new and better ways to meet customer needs. This culture of innovation helps to drive economic growth and creates new job opportunities for people.In conclusion, entrepreneurship method is valuable because it fosters innovation, risk-taking, and a customer-centric approach to business. It encourages individuals to pursue their ideas, take risks, and create new products and services that meet the needs of customers. By doing so, entrepreneurship contributes significantly to economic growth and development by creating new job opportunities, improving customer satisfaction, and driving innovation.
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AMCO is a supplier of specialty fake-parts to the fake-widget industry. AMCO does not face a lot of competition, given its unique know-how making fake-parts. The company's logistics manager is suffering with violent bullwhip in the orders received from its main customers. All of the issues below happen at AMCO. Which of them is NOT a cause for the bullwhip in orders received?
A. Transportation cost of fake-parts to AMCO suppliers can be reduced by only shipping large lots to customers in full truckloads.
B. AMCO marketing director rewards sales staff for meeting monthly targets on sales to fake-widget manufacturers.
C. Fake-parts are hard to make and sometimes can be defective, so the Manufacturing Manager established the practice of 100% inspection of all fake-parts produced.
D. AMCO managers do not have visibility of consumer demand for fake-widgets.
B. AMCO marketing director rewards sales staff for meeting monthly targets on sales to fake-widget manufacturers is NOT a cause for the bullwhip in orders received.
The Bullwhip effect is an occurrence due to an overreaction to demand changes that can cause production to fluctuate, often with inefficient exaggeration in either excess or deficiency. This type of effect is not uncommon in different industries such as retail, distribution, and manufacturing. It is named bullwhip effect because the magnitude of demand amplification in the supply chain looks like the waving of a bullwhip.
Bullwhip Effect Causes:The causes of the Bullwhip effect are:Large lots sizes, which result in batch orderingInaccurate or untimely demand forecasts. Rationing and gaming in times of shortagePromotion and sales strategies that introduce uncertainty and create demand spikesSo, out of all the given options A, C, and D are the causes of the Bullwhip effect in orders received. Hence, option B is not a cause for the bullwhip in orders received.
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In order to meet the deadline of a client's annual report, the engagement partner issues the final audit report prior to completion of the fieldwork. The company is the CPA firm's largest client. Because the company is the CPA firm's largest client, there is a conflict of interest and a lack of independence. The firm's lack of internal quality control procedures suggests that the firm is not exercising due care. The firm's lack of internal quality control procedures suggests that the firm is not exercising objectivity. The issuance of the audit report is acceptable, as long as the situation is disclosed in the client representation letter. The issuance of the audit report is in accordance with the firm's internal professional code of conduct.
The issuance of the audit report is acceptable, as long as the situation is disclosed in the client representation letter. However, there is a conflict of interest and a lack of independence because the company is the CPA firm's largest client.
The CPA firm's lack of internal quality control procedures suggests that the firm is not exercising due care but this does not necessarily mean a lack of objectivity. It's important for the firm to implement internal quality control procedures to ensure the firm is performing due care, exercising objectivity, and maintaining independence. This will help to ensure that the CPA firm is able to issue an audit report that is in accordance with the firm's internal professional code of conduct.Due care is a level of care that a reasonably prudent person would exercise in similar circumstances. Due care is a legal concept that is often used in negligence lawsuits. In accounting, due care refers to the degree of skill and care that is ordinarily exercised by members of the accounting profession under similar circumstances. To avoid claims of negligence, accounting professionals must exercise due care in carrying out their duties.In order to exercise due care, an accountant must have adequate knowledge, skills, and experience. They must also be able to recognize when they need to seek additional information or advice from other professionals.
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Details about Property, Plant and Equipment, such as the age of plant assets and the types of plant assets, are typically reported on the statement of cash flows in a footnote on the income statement on the balance sheet
Property, Plant, and Equipment (PP&E) refer to the long-term assets that companies utilize in their operations. PP&E assets are reported on the balance sheet.
PP&E are recognized at their historical cost, which includes all the costs incurred in acquiring the asset and bringing it to its current condition and location.The age of plant assets and the types of plant assets are typically reported in a footnote accompanying the financial statements. The following are examples of plant assets:Production facilities Machinery and equipment Furniture and fixtures Vehicles, among others.
Most companies report changes in PP&E in the investing activities section of the statement of cash flows. The company must provide a comprehensive account of changes in plant assets in the statement of cash flows. If the proceeds of the sale of PP&E assets are included in investing activities, the gross proceeds and carrying value of the assets sold must be disclosed in the footnotes to the financial statements.In summary, Details about Property, Plant, and Equipment (PP&E) such as the age of plant assets and the types of plant assets are typically reported in a footnote on the income statement on the balance sheet.
They are recognized at their historical cost, which includes all the costs incurred in acquiring the asset and bringing it to its current condition and location.Most companies report changes in PP&E in the investing activities section of the statement of cash flows.
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Complete Form 1040 for Jill Donnovan using the tax forms and information provided. Submit the completed Form 1040. Write a paragraph describing your experience completing Jill's personal tax document. What was easy about the process? What was confusing? How confident are you in the completed document? Be sure to include whether Jill will receive a refund or owe additional taxes. Write using complete sentences and correct grammar and mechanics.
The completed Form 1040 is important for filing individual income tax returns.
What are the importance and problems of completed Form 1040?The completed Form 1040 serves as a comprehensive document that allows taxpayers to report their income, deductions, and credits accurately. It helps ensure compliance with tax laws and facilitates the calculation of the tax liability or refund owed.
However, completing the Form 1040 can be challenging due to its complexity and the numerous rules and regulations associated with it. Mistakes or omissions on the form can result in delays in processing, penalties or even audits by the tax authorities.
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Prepare the adjusting entries for the following data for the year ended December 31, 2020. All journal entry dates would be December 31, 2020 to reflect the end of the period. *Pay careful attention to the dates given below." 1. Office equipment was purchased January 1, 2020. Office equipment depreciated $3,000 per year. 2. A two-year insurance policy was purchased on June 1, 2020 in the amount of $2,400. 3. Office supplies account had a balance of $750 on January 1, 2020 and additional supplies were purchased during the 2020 for $2,000. A physical count of office supplies revealed $1,500 on hand on December 31, 2020. 4. The amount of rent received in advance was $1,500. As of December 31, 2020, there was $750 that remains unearned. 5. Salaries were accrued for $900 on December 31, 2020. 6. Unbilled fees for services performed amounted to $1,200 on December 31, 2020. Account Description Debit Credit 61
Based on the given information, here are the adjusting entries for the year ended December 31, 2020:
Depreciation Expense:
Date: December 31, 2020
Debit: Depreciation Expense (Income Statement) - $3,000
Credit: Accumulated Depreciation - Office Equipment (Balance Sheet) - $3,000
Prepaid Insurance Expense:
Date: December 31, 2020
Debit: Insurance Expense (Income Statement) - $800 [($2,400 / 2) × (7/12)]
Credit: Prepaid Insurance (Balance Sheet) - $800 [($2,400 / 2) × (7/12)]
Office Supplies Expense:
Date: December 31, 2020
Debit: Office Supplies Expense (Income Statement) - $1,250 [$2,000 - ($1,500 - $750)]
Credit: Office Supplies (Balance Sheet) - $1,250 [$2,000 - ($1,500 - $750)]
Unearned Rent Revenue:
Date: December 31, 2020
Debit: Unearned Rent Revenue (Balance Sheet) - $750
Credit: Rent Revenue (Income Statement) - $750
Accrued Salaries Expense:
Date: December 31, 2020
Debit: Salaries Expense (Income Statement) - $900
Credit: Salaries Payable (Balance Sheet) - $900
Accounts Receivable:
Date: December 31, 2020
Debit: Accounts Receivable (Balance Sheet) - $1,200
Credit: Unbilled Fees (Income Statement) - $1,200
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In calculating an APR for Truth in Lending purposes, lenders may use a 360-day year. ( T or F) For Problems 21-24, consider a loan in which you borrowed \$18,000 at 9.5% interest for 120 days. The lender uses a 365 -day year. 21. How much interest will you owe on the maturity date? 22. Assume you pay the loan off early, in 72 days. How much interest will you owe? 23. Assume instead you have some extra cash and pay $12,000 on day 28 (28 days after getting the loan), then the balance on day 72 (72 days after getting the loan). Fill in the blanks. 24. How much interest do you pay under each situation: Problem 21, Problem 22, and Problem 23?
Based on the question, the interest payable in this case is $119.00.
How to find?Firstly, calculate the interest for 1 year using the formula:
Interest = P × r
where P = Principal amount = $18,000
r = Annual interest rate = 9.5%.
Therefore, Interest for 1 year = $18,000 × 9.5/100
= $1,710.
Then, calculate the interest for 120 days using the following formula:
Interest = (P × r × t)/365
Where t = Time period
= 120 days
= 120/365 years.
Therefore, the interest payable on the maturity date = (18000 × 0.095 × 120)/(365)
= $567.12.
Hence, the interest payable on the maturity date is $567.12.
Interest for 1 year has already been calculated in problem 21. Interest for 72 days is calculated as follows:
Interest = (P × r × t)/365
where
t = Time period
= 72 days
= 72/365 years.
Therefore, the interest payable on early payment = (18000 × 0.095 × 72)/(365)
= $359.18.
Hence, the interest payable on early payment is $359.18.The interest when paying $12,000 on day 28, then the balance on day 72 is calculated as follows:
First, calculate the interest for 1 year and then calculate the interest for the period between the loan date and the date of payment.
Finally, calculate the interest for the remaining period using the balance on day 72.
Interest for 1 year has already been calculated in problem 21. Interest for the period between the loan date and the date of payment is calculated as follows:
Interest = (P × r × t)/365
Where t = Time period
= 28 days
= 28/365 years.
Therefore, interest payable for the period between the loan date and the date of payment = (18000 × 0.095 × 28)/(365) = $50.96. Next, the balance remaining after paying $12,000 on day 28 is:
B = 18000 - 12000
= $6,000.
The interest on $6,000 for the remaining period is:
Interest = (B × r × t)/365
where t = Time period
= (72 - 28) days
= 44/365 years.
Therefore, interest payable on the balance of $6,000 for the remaining period = (6000 × 0.095 × 44)/(365)
= $68.04.
Total interest payable = $50.96 + $68.04
= $119.00.
Hence, the interest payable in this case is $119.00.
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Boulderstan is a country that produces only granola and tofu. Denverstan is also a country that produces only granola and tofu.
A. Assuming that producing these goods involves an increasing opportunity cost, draw a fully labeled Production Possibility Curve graph that illustrates Boulderstan’s possible production.
b. On the same graph, show how Boulderstan could move from producing an equal amount of granola and tofu to producing more granola. Assume that Boulderstan continues to produce at peak efficiency.
c. On the same graph, show how increased education would affect Boulderstan’s production’s over the long run.
d. Assume that Boulderstan and Denverstan produce according to the chart below. If the countries each specialized in one product and then traded, which country should specialize in granola and which in tofu? Why? Explain.
e. What are the terms of trade for a unit of granola, according the information in the chart below?
A. To draw a fully labeled Production Possibility Curve graph for Boulderstan's possible production, you would need to use the two goods, granola, and tofu, as the graph's axes. The x-axis represents the quantity of granola produced, and the y-axis represents the quantity of tofu produced. Start by plotting points on the chart corresponding to different combinations of granola and tofu that Boulderstan can pay. Connect these points to form a curve representing the production possibilities for Boulderstan. Label the curve as the Production Possibility Curve.
B. To show how Boulderstan could move from producing an equal amount of granola and tofu to producing more granola, you would need to shift the production point along the Production Possibility Curve toward granola. This can happen if Boulderstan reallocates some of its resources from producing tofu to producing granola while maintaining peak efficiency. Plot the new production point on the graph, reflecting the increase in granola production. C. To show how increased education would affect Boulderstan's production in the long run, you would need to shift the entire Production Possibility Curve outward. This is because increased education can improve technology, skills, and productivity, allowing Boulderstan to produce more granola and tofu with the same resources. Plot the new Production Possibility Curve on the graph, showing the increased production possibilities for Boulderstan. D. To determine which country should specialize in granola and which in tofu, compare the opportunity costs of producing these goods in Boulderstan and Denverstan. The country with a lower opportunity cost for a particular good should specialize in that good. The opportunity cost of producing one unit of granola is the amount of tofu that could have been produced instead, and vice versa. Compare the opportunity costs of granola and tofu production in both countries and identify the country with the lower opportunity cost for each good. That country should specialize in the good with the lower opportunity cost. E. The terms of trade for a unit of granola can be determined by comparing the opportunity costs of granola and tofu production in Boulderstan and Denverstan. The terms of trade represent the rate at which the two countries can exchange one good for another. In this case, the terms of trade for a unit of granola can be determined by comparing the opportunity cost of producing granola in Boulderstan to the opportunity cost of producing tofu in Denverstan. The exact terms of trade would depend on the specific opportunity costs in each country, which need to be provided in the question.
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Identify the Canadian GAAP applicable for the following. (a) Private companies (b) Pension plans (c) Not-for-profit entities (d) Public companies
The Canadian GAAP is transitioning towards full adoption of IFRS for all entities.
These entities use Canadian GAAP:
(a) Canadian private companies follow ASPE. ASPE offers private enterprises non-publicly accountable accounting standards and guidance.
(a) Pension plans: The Pension Accounting Handbook guides pension plan accounting and reporting in Canada. Canadian Actuaries publishes the manual.
(c) Canadian not-for-profit entities follow the CPA Canada Handbook - Accounting Part III. Part III of the manual sets rules for charities and other non-profits.
(d) Canadian public firms use IFRS. Publicly accountable entities worldwide adopt IFRS, including Canada. Public enterprises must prepare financial statements using IFRS as adopted by the IASB.
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How would the following event affect national saving, investment, the current account balance, and the real interest in a large open economy? Event: An increase in the domestic willingness to save (which raises desired national saving at any given real interest rate).
The increase in the domestic willingness to save, which raises the desired national saving at any given real interest rate, would affect the following in a large open economy: The increase in national savings would also mean a decrease in imports, which would positively affect the current account balance.
National saving: The term national savings refers to the sum of private and public savings, and this will help the country to invest in various profitable ventures.
Investment: Since national savings increase due to the increase in domestic willingness to save, it will lead to more investment in the economy.
Current account balance: The current account balance, which is the difference between the country's savings and investment, would improve as a result of the increase in national savings.
Real interest rate: When national savings increase due to an increase in domestic willingness to save, the real interest rate will decrease.
This is due to the inverse relationship between savings and real interest rates, as national savings increase, the interest rates reduce. Therefore, the increase in national savings will result in lower real interest rates.
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Is it ethical for Wal-Mart to pay its employees minimum wage and to oppose unionization, given that the organization also works its people very hard? Are Wal-Mart’s employment and compensation practices for lower-level employees ethical? Add reference
Wal-Mart's employment and compensation practices for lower-level employees have raised a lot of ethical questions. Wal-Mart is often accused of paying its workers a very low wage, opposing unionization, and working its employees very hard.
According to the ethics of human resource management, companies are required to have policies in place to ensure that all employees are treated fairly. Wal-Mart's low pay and opposition to unionization appear to be at odds with this ethical principle. Additionally, while Wal-Mart may argue that it pays its workers a competitive wage, the fact that many of its employees rely on government programs such as food stamps to make ends meet suggests otherwise.
Furthermore, working employees hard without offering them adequate compensation or benefits is considered to be unethical. Wal-Mart has been criticized for not offering its workers basic benefits such as health insurance, paid vacation, or sick leave. These practices make it difficult for employees to meet their basic needs, which can lead to stress, health problems, and other issues. According to the ethical theory of utilitarianism, actions are only ethical if they promote the greatest good for the greatest number of people.
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Suppose for a firm: The Defined Benefit Obligation is $4 million The Pension Plan Assets are $3 million Then which ONE of the following is true? Select one: O a. None of these answers Ob. Net defined benefit obligation = $2 million Oc. Net defined benefit obligation = $1 million O d. Net defined pension benefit asset = $2 million Oe. Net defined pension benefit asset = $1 million
Net defined benefit obligation = $1 million. The firm has a net defined benefit obligation of $1 million, indicating that the pension plan's liabilities exceed its assets by $1 million. Here option C is the correct answer.
Based on the given information, the Defined Benefit Obligation (DBO) of the firm is $4 million, and the Pension Plan Assets are $3 million. The Net Defined Benefit Obligation (NDBO) is calculated as the difference between the DBO and the Pension Plan Assets.
In this case, the NDBO can be determined by subtracting the Pension Plan Assets ($3 million) from the Defined Benefit Obligation ($4 million):
NDBO = DBO - Pension Plan Assets
NDBO = $4 million - $3 million
NDBO = $1 million
Therefore, the correct statement is: Net defined benefit obligation = $1 million
This means that the firm has a net defined benefit obligation of $1 million, indicating that the pension plan's liabilities exceed its assets by $1 million. Therefore option C is the correct answer.
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Which of the following is NOT considered when estimating a credit rating? capacity character covenants consistency collateral
The term that is not considered when estimating a credit rating is covenants. So, option c is correct.
The credit rating represents a credit score assigned to a business or an individual that decides the creditworthiness of that business or individual.The credit rating is an evaluation of an entity's ability to pay back its loans. Credit rating agencies such as Moody's, S&P, and Fitch Ratings use different procedures to assess the creditworthiness of borrowers.
There are five Cs that are considered when estimating a credit rating, which include:1. Capacity2. Character3. Collateral4. Consistency5. Capital
There are various types of covenants, but most of them involve the lender's requirement to adhere to certain financial restrictions or rules. They are part of a loan agreement and are intended to reduce the lender's credit risk and guarantee that the borrower will meet its obligations. The borrower must ensure that these conditions are met; otherwise, they may face consequences.
As a result, covenants are not considered when estimating a credit rating. So, option c is correct.
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Complete question:
Which of the following is NOT considered when estimating a credit rating?
capacity
character
covenants
consistency
collateral
Requirements 1. Calculate the manufacturing cost of Job 309 2. How much will the City of Jonestown pay for this playground equipment? Requirement 1. Calculate the manufacturing cost of Job 309 . First identify the formula, then calculate the predetermined overhead rate.
Job costing is a method of costing that is used by companies to allocate costs to specific jobs or orders. Job costing is a system of costing that is used to assign costs to specific jobs or orders. Job costing is used by companies to allocate costs to specific jobs or orders.
In this scenario, we have to calculate the manufacturing cost of job 309.
So,
To calculate the manufacturing cost of job 309, we will have to follow the given steps:
Identify the formula
Calculate the predetermined overhead rate Calculate the manufacturing cost of Job 309Formula for calculating manufacturing cost:
Direct materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Cost
Predetermined Overhead Rate = Estimated Overhead Costs / Estimated Activity Level
Step 1:
Identify the Formula
The formula for calculating the manufacturing cost of job 309 is given below:
Direct materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Cost
Step 2:
Calculate the Predetermined Overhead Rate The formula to calculate the predetermined overhead rate is given below:
Predetermined Overhead Rate = Estimated Overhead Costs / Estimated Activity Level
Given below is the information that is required to calculate the predetermined overhead rate:
Estimated Overhead Costs = $2,400,000Estimated Activity Level = 800,000 Machine Hours Predetermined Overhead Rate = Estimated Overhead Costs / Estimated Activity Level
Predetermined Overhead Rate = $2,400,000 / 800,000 Machine Hours
Predetermined Overhead Rate = $3 per Machine Hour
Step 3:
Calculate the Manufacturing Cost of Job 309Given below is the information that is required to calculate the manufacturing cost of job 309:
Direct Materials = $15,000Direct Labor = $10,000Machine Hours = 200 Manufacturing Overhead = Predetermined Overhead Rate * Machine Hours
Manufacturing Overhead = $3 per Machine Hour * 200 Machine Hours
Manufacturing Overhead = $600Manufacturing Cost of Job 309 = Direct Materials + Direct Labor + Manufacturing Overhead
Manufacturing Cost of Job 309 = $15,000 + $10,000 + $600Manufacturing Cost of Job 309 = $25,600Requirement
2. How much will the City of Jonestown pay for this playground equipment?
To calculate how much the City of Jonestown will pay for the playground equipment, we will have to add the profit margin to the manufacturing cost of job 309.
Let's assume that the profit margin is 20%.
Manufacturing Cost of Job 309 = $25,600
Profit Margin = 20% of Manufacturing Cost of Job 309
Profit Margin = 20/100 * $25,600
Profit Margin = $5,120
Total Cost of Playground Equipment = Manufacturing Cost of Job 309 + Profit Margin
Total Cost of Playground Equipment = $25,600 + $5,120
Total Cost of Playground Equipment = $30,720
Therefore, the City of Jonestown will pay $30,720 for this playground equipment.
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bank overdraft R55 000,creditors control R230000,portion of loan to be paid next month R50000 and mortgage bond R300000. The total current liability is:
A. R180 000
B. R121 000
C. R331 000
D. 355 000
The total current liability is C. R331,000.
To determine the total current liability, we need to consider the liabilities that are due within the next year or operating cycle, whichever is longer.
From the given information:
- Bank overdraft: R55,000
- Creditors control: R230,000
- Portion of loan to be paid next month: R50,000
Adding these amounts together:
R55,000 + R230,000 + R50,000 = R335,000
Therefore, the total current liability is R331,000, which is the closest option provided.
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In 1912, both America and England were still on the gold standard. The exchange rate was stable at 4.87 dollars per pound. Create a new variable called Titanic.Fare.dollar using vector calculations. Compare the histograms of Titanic$Fare and Titanic.Fare.dollar.
In the year 1912, America and England still used the gold standard and the exchange rate was constant at 4.87 dollars per pound. The Titanic Fare dollar variables histograms are to be compared.
Titanic Fare in dollars
The Titanic.Fare.dollar dataset is to be created using vector calculations. To convert Titanic Fare into dollars, the exchange rate is multiplied by the Fare in British Pounds. Hence, a new variable is generated called Titanic.Fare.dollar. Titanic.Fare.dollar contains the same information as Titanic.Fare, but in US dollars
Titanic.Fare.dollar = Titanic$Fare * 4.87
The histogram of Titanic.Fare.dollar is similar to the Titanic.Fare histogram, with most fares being between 0 and 500 dollars.
However, the Titanic.Fare.dollar histogram's x-axis values range from 0 to 2500, indicating that the majority of fares paid were under $500. Both the histograms appear to be right-skewed. The maximum fare paid in dollars is around $2500, which is five times the maximum fare paid in British pounds. These histograms of the two datasets are very close, with only a shift in the x-axis values.
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Joo A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,600 of direct materials and used $4300 of direct labor. The job was not finished by the end of September, but needed an additional $3,300 of direct materials and additional direct labor of $6,700 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A387 Mutiple Choice $9.0000 $12,850 $5,700 $10.800 $6,700
Given:Direct Material requisitioned in September: $2,600Direct Labor used in September: $4,300Additional Direct Material required in October: $3,300Additional Direct Labor required in October: $6,700Overhead applied at the end of each month: 150% of direct labor cost incurredNow we need to calculate the balance in the Work in Process account at the end of September relative to Job A387.
Here's how we'll do it:Step 1: Calculate the total Direct Labor Cost incurred in SeptemberDirect Labor used in September = $4,300Step 2: Calculate the Overhead Applied at the end of SeptemberOverhead rate = 150% of Direct Labor cost incurredOverhead rate = 150% of $4,300 = $6,450Overhead applied at the end of September = $6,450Step 3: Calculate the Total Cost of Work done on Job A3B until the end of SeptemberTotal cost incurred = Direct Material + Direct Labor + OverheadTotal cost incurred = $2,600 + $4,300 + $6,450 = $13,350
Step 4: Calculate the balance in the Work in Process account at the end of SeptemberBalance in Work in Process account at the end of September = Total cost incurred - Direct Material used until the end of September - Direct Labor used until the end of SeptemberBalance in Work in Process account at the end of September = $13,350 - $2,600 - $4,300 = $6,450Therefore, the correct answer is option C) $5,700.
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The balance in the in the Work in Process account at the end of September relative to Job A387 would be B. $12,850
How to find the balance in the account ?The job was not finished in September, so the total cost of $13,350 is still in the Work in Process account. The additional $3,300 of direct materials and $6,700 of direct labor will be added to the Work in Process account in October when the job is completed.
Direct materials used = $2,600
Direct labor used = $4,300
Overhead applied = 150% * $4,300 = $6,450
Total cost of job = $2,600 + $4,300 + $6,450
= $12,850
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Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2021, when it had an inventory of $843,000. Its inventory as of December 31,2021 , was $871,200 at year-end costs and the cost index was 1.10. What was DVL inventory on December 31,2021 ? A) 871,200 . B) 843,000 . C) 927,300 . D) 792,000 .
The DVL inventory on December 31, 2021, was $820,200. This is calculated by dividing the ending inventory at year-end costs by the cost index to obtain the DVL value and then adding the increase in inventory value during the year.
Dollar-value LIFO (DVL) is a method of inventory valuation that adjusts the inventory value based on changes in the cost level over time. To calculate the DVL inventory on December 31, 2021, we need to determine the ending inventory at year-end costs and then convert it to the DVL value.
Given information:
Inventory as of January 1, 2021: $843,000
Inventory as of December 31, 2021, at year-end costs: $871,200
Cost index: 1.10
To convert the ending inventory at year-end costs to the DVL value, we divide it by the cost index:
DVL inventory = Ending inventory at year-end costs / Cost index
DVL inventory = $871,200 / 1.10 = $792,000
However, the question asks for the DVL inventory on December 31, 2021, not the ending inventory at year-end costs. Therefore, we need to add the increase in the inventory value during the year to the DVL value calculated above.
Increase in inventory value = Ending inventory at year-end costs - Inventory as of January 1, 2021
Increase in inventory value = $871,200 - $843,000 = $28,200
DVL inventory on December 31, 2021 = DVL inventory + Increase in inventory value
DVL inventory on December 31, 2021 = $792,000 + $28,200 = $820,200
Therefore, the DVL inventory on December 31, 2021, is $820,200.
The DVL inventory on December 31, 2021, is $820,200. This is calculated by dividing the ending inventory at year-end costs by the cost index to obtain the DVL value and then adding the increase in inventory value during the year. The cost index is used to adjust the inventory value based on changes in the cost level over time.
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Economies of scale can produce a loss of control, do you think it is better for big companies to focus on Economies of scope instead of Economies of scale?
Economies of scale refer to the phenomenon where as a company's output increases, its average cost of production decreases. This is due to the spreading of fixed costs across a greater number of units, leading to lower per-unit costs.
Economies of scope, on the other hand, refer to the benefits a company can reap by diversifying its product range. This could include sharing resources such as marketing, distribution, and research and development across multiple products, leading to greater efficiencies and cost savings.
There is no clear-cut answer to whether big companies should focus on economies of scope or economies of scale, as the choice will depend on a variety of factors such as industry dynamics, competitive pressures, and the specific goals of the company.
However, it is worth noting that relying solely on economies of scale can lead to a loss of control, as the company becomes too focused on production efficiency at the expense of other factors such as product innovation and customer service. This can ultimately harm the company's long-term prospects.
On the other hand, pursuing economies of scope can lead to greater flexibility and resilience, as the company is less reliant on a single product or market. This can also create opportunities for revenue growth and expansion into new markets, which can be particularly valuable in rapidly changing industries.
Overall, while economies of scale can be an important consideration for large companies looking to reduce costs, it is also important to balance this with a focus on economies of scope and other factors that contribute to long-term success. The specific strategy adopted will depend on a range of factors, and may evolve over time as the company's needs and circumstances change.
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