Answer:
Microeconomic issues
a)How will an increase in the price of Coca-Cola affect the quantity of Pepsi-Cola sold?
c)How does a quota on textile imports affect the textile industry?
Macroeconomic issues
(b) What will cause the nation's inflation rate to fall?
(d) Does a large federal budget deficit reduce the rate of unemployment in the economy?
Explanation:
The issues pertaining to a industry and business are all studied and analyzed in Microeconomics that's why (a) & (c) fall under Microeconomic issues.
The issues pertaining to the entire economic system like inflation, budget deficit and unemployment rate etc. as stated in options (b) & (d) respectively all fall under Macroeconomic issues.
For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
Explanation:
Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital
= [($22,000,000 - $19,000,000)*(1 - 0.35)] - [$15,000,000*8%]
= $750,000
On November 1, Arvelo Corporation had $42,000 of raw materials on hand. During the month, the company purchased an additional $68,000 of raw materials. During November, $75,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. Prepare journal entries to record these events. Use those journal entries to answer the following question:The credits to the Raw Materials account for the month of November total:a) $75,000 b) $68,000 c) $42,000 d) $110,000
Answer:
a) $75,000
Explanation:
Given data about Arvelo Corporation;
On November 1
Cost of raw materials at hand = $42,000
Purchases during the month = $68,000
Raw materials requisitioned from storeroom (direct and indirect) = $75,000
Balance of inventory = $42,000 + $68,000 - $75,000
= $35,000
For the inventory amount requisitioned from the storeroom, the entries to be posted on issuance
Dr Cost of sale $75,000
Cr Inventory (Raw materials) $75,000
Being entries to recognize inventory issued for use.
The credits to inventory account in the month (November) is $75,000.
Arvelo Corporation's journal entries reflect the purchase and use of raw materials. The total credits to the Raw Materials account for November is $75,000 (option a).
Explanation:The journal entries for these transactions would look like this:
When the raw materials are purchased:So, the credits to the Raw Materials account for the month of November would total $75,000, represented by the raw materials that were requisitioned from the storeroom for use in production. Therefore, the correct answer is (a) $75,000.
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The Supreme Court once denied tax-exempt status to a private university that discriminated on the basis of race. What is likely to have influenced or guided the interpretation of the statute relevant to this case?
Answer and explanation:
According to Section 501(c)(3) of the U.S. Internal Revenue Code (IRC), private universities that have discriminatory admissions are not eligible for tax exemptions. In the U.S. this was applied in the Bob Jones University v. United States case (1983), where the Supreme Court stated that no tax exemption could be granted to the evangelic private university.
According to Adam Smith's invisible hand.
A. people coordinate their activities, resulting in equilibrium in the market.
B. forces are constantly pushing markets out of equilibrium
C. there is an invisible glove that restricts what markets can do.
D. markets need the government to intervene.t
Answer:
A. People coordinate their activities, resulting in equilibrium in the market.
Explanation:
Adam Smith - a proponent of Capitalist Economy 'Laissez Faire' i.e free markets proposed that :
Un-intervened (by govt) Markets guided by self interest create more wealth & over all socio economic welfare. Any disequilibrium will be sorted by undisturbed market forces, any government intervention is distortionary.
Match each of the numbered descriptions with the term or phrase it best reflects. Indicate your answer by writing theletter for the term or phrase in the blank provided.A. AuditB. GAAPC. EthicsD. Tax accountingE. SECF. Public accountantsG. Net incomeH. IASB
Please the remaining part of the question below :
1.Amount a business earns after paying all expenses and costs associated with its sales and revenues.
2.An examination of an organization’s accounting system and records that adds credibility to financial statements.
3.Principles that determine whether an action is right or wrong.
4.Accounting professionals who provide services to many clients.
5.An accounting area that includes planning future transactions to minimize taxes paid.
Answer:
1.Amount a business earns after paying all expenses and costs associated with its sales and revenues. - Net income (G)
2.An examination of an organization’s accounting system and records that adds credibility to financial statements. - Audit (A)
3.Principles that determine whether an action is right or wrong. - Ethics (C)
4.Accounting professionals who provide services to many clients.- Public accountants (F)
5.An accounting area that includes planning future transactions to minimize taxes paid- Tax accounting (D)
Explanation:
Descriptions are matched with terms such as Audit, GAAP, Ethics, and others. Each term is defined and associated with its appropriate description. This matching helps in understanding key accounting concepts.
Matching Descriptions with Terms
Let's match each of the numbered descriptions with the appropriate term or phrase provided:
A. Audit: An examination of financial records to ensure accuracy and compliance with regulations.B. GAAP: Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting.C. Ethics: Moral principles that govern a person's or group's behavior in conducting activities.D. Tax accounting: Accounting methods focused on taxes rather than the appearance of public financial statements.E. SEC: The Securities and Exchange Commission, a U.S. government agency responsible for enforcing the federal securities laws.F. Public accountants: Professionals who provide accounting services to a variety of clients, including audits.G. Net income: The total revenue minus total expenses in a financial period, indicating profit.H. IASB: The International Accounting Standards Board, which develops global accounting standards.Using the list above, we can assign each description to its corresponding term or phrase.
Audit: To check the accuracy of financial statements, conducted by an independent third party.GAAP: These are the standard guidelines for financial accounting used in the U.S.Ethics: The principles and values guiding the conduct of accountants and financial professionals.Tax accounting: Focuses on preparing tax returns and planning for future tax obligations.SEC: U.S. agency responsible for regulating the securities industry and protecting investors.Public accountants: Provide various accounting services to multiple clients.Net income: The profit or loss of a company after all revenues and expenses have been accounted for.IASB: Sets international financial reporting standards.The phrase to "design the rules of the game without specifying the actions of the players" refers to what type of manager? a. Keeping tabs b. Individuals over teams c. Controllers d. Enablers
Answer:
d. Enablers
Explanation:
This is a manager that will not micromanage things, as long as the employees follow the requirements(this is where the phrase comes on).
For example, in the NFL, Bill Bellichick may call the plays, but also let Tom Brady audible(change the play) at the line of scrimmage. This enables his players.
So the correct answer is:
d. Enablers
KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,400.
What is the value of the shareholders’ equity account for this firm?
Answer:
Share holder's equity = $15,450
Explanation:
given data
current assets = $4,200
net fixed assets = $23,400
current liabilities = $3,750
long-term debt = $8,400
solution
we get here value of the shareholders equity that is express as
Share holder's equity = (current assets + net fixed assets) - (current liabilities + long term debt) ....................1
put here value we get
Share holder's equity = ( $4,200 + $23,400) - ( $3,750 + $8,400 )
Share holder's equity = $15,450
The Halpert Group produces a single product selling for $ 20 per unit. Variable costs are $ 2 per unit and total fixed costs are $ 10,000. What is the contribution margin ratio?
Answer:
90 percent
Explanation:
Given that,
Selling price per unit = $20
Variable costs per unit = $2
Total fixed cost = $10,000
Contribution margin = Selling price per unit - Variable cost per unit
= $20 - $2
= $18
Contribution margin ratio:
= (Contribution margin ÷ Selling price) × 100
= ($18 ÷ $20) × 100
= 0.9 × 100
= 90 percent.
Therefore, the contribution margin ratio is 90%.
As of April 2015, the Fed no longer holds any mortgage-backed securities or federal agency debt securities as assets. O True O False
Answer:
False
Explanation:
The given statement is false because Federal Reserve System (The FED) Does hold Mortgage backed securities and Federal agency debt securities in the month of April 2015 According to their annual report clearly mentioned in the Statistical Tools Table 1 of Federal Reserve, in the month of April 2015 Note 5.
Calculate net income and stockholders equity (LO2) Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $38,000; Liabilities = $21,000; Dividends = $1,800; Revenues = $11,600; Expenses = $7,800. Required: 1. Calculate net income. Net income 2. Calculate stockholders' equity at the end of the period. Stockholders' equity
Answer:
Explanation:
Net Income = Revenue -Expenses
= $11,600 -$7,800
= $3,800
Retained Earnings = $3,800- $1,800
= $2,000
According Accounting Equation ;
Total Assets = Total liabilities + Total equity
Stockholders' Equity = $38,000- $21,000
= $17,000
A research analyst at PDQ Securities mentions to a registered representative at that firm that a new research report is coming out about ACME Corporation that is "highly positive." Prior to the issuance of the research report, the registered representative calls his customers and tells them to buy ACME stock. Based on this information, which statement is TRUEa. Research has some loop holesb. Research is accurate
Answer:
Explanation:bvcx
Identify which of the major fundamental principles (responsibilities, performance, or reporting) is most closely related to each of the following:
1. The need for auditors to consider their financial relationships with prospective clients.
2. An auditor has raised some question with respect to management’s response to various inquiries concerning pending litigation facing the client.
3. The auditors’ consideration of the effectiveness of the entity’s internal control on the nature, timing, and extent of substantive procedures.
4. The auditing’ evolution of the magnitude of a misstatement that would impact perceptions of the entity’s profitability.
5. The auditors’ issuance of a disclaimer of opinion because of a significant scope limitation.
6. Relevant education and experience requirement to provide absolute assurance with respect to profession.
7. The inability of an audit examination of provide absolute assurance with respect to detecting all material misstatements.
8. The requirement that auditors possess the skills and knowledge of others in their profession.
9. The preparation of a written audit plan that guides the conduct of the audit engagement.
10. The auditors’ issuance of a qualified opinion because of a departure from GAAP.
Explanation:
1. The need for auditors to consider their financial relationships with prospective clients. - responsibilities
2. An auditor has raised some question with respect to management’s response to various inquiries concerning pending litigation facing the client. - responsibilities
3. The auditors’ consideration of the effectiveness of the entity’s internal control on the nature, timing, and extent of substantive procedures. - performance
4. The auditing’ evolution of the magnitude of a misstatement that would impact perceptions of the entity’s profitability. -performance
5. The auditors’ issuance of a disclaimer of opinion because of a significant scope limitation. -reporting
6. Relevant education and experience requirement to provide absolute assurance with respect to profession. - responsibilities
7. The inability of an audit examination of provide absolute assurance with respect to detecting all material misstatements. -performance
8. The requirement that auditors possess the skills and knowledge of others in their profession. - responsibilities
9. The preparation of a written audit plan that guides the conduct of the audit engagement. -performance
10. The auditors’ issuance of a qualified opinion because of a departure from GAAP. -reporting
Data on total employment can be a good indicator of whether the economy is currently in a recession. This kind of data is called a economic indicator. Similarly, data on recent interest rates can be a good indicator of whether the economy was recently in a recession. This kind of data is called a economic indicator.
Data on total employment can be a good indicator of whether the economy is currently in a recession. This kind of data is called a lagging economic indicator. Similarly, data on recent interest rates can be a good indicator of whether the economy was recently in a recession. This kind of data is called a coincident economic indicator.
Data on total employment is referred to as a trailing economic indicator since it can be a useful tool for determining if the economy is now experiencing a recession.
Economic measures known as lagging indicators typically alter only after the entire economy has changed. They support long-term patterns and aid in determining the state of the economy as a whole.
A coincident economic indicator is information on how long people have been out of work, which can be a useful sign of whether the economy has just had a recession.
Coincident indicators adjust along with the state of the economy. They offer insight into the economy's present condition and are frequently used to assess its performance right now.
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Your complete question was as follows:
Data on total employment can be a good indicator of whether the economy is currently in a recession. This kind of data is called a________ economic indicator Similarly, data on how long people have been unemployed can be a good indicator of whether the economy was recently in a recession. This kind of data is called an_________ economic indicator.
Total employment data is a lagging indicator revealing economic conditions following changes. Recent interest rate data is a leading indicator offering insight into probable future economic movement.
Explanation:In the realm of economics, data on total employment and data on recent interest rates serve as two separate kinds of economic indicators that give us information about the state of the economy at different points in time. Data on total employment, which might change due to shifts in the economy, is an example of a lagging indicator—it provides evidence about the state of the economy after changes have occurred. This is because employment levels typically respond to changes in the economy after they happen. On the other hand, data on recent interest rates is a leading indicator, giving clues about the future direction of the economy. Interest rates often change before the economy as a whole does, so they can provide early signs of upcoming economic changes.
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Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. Assume that the partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Kramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally.
1. Determine the partners' shares of Kramer and Knox given a first-year net income of $98,800. (Losses and amounts to be deducted should be entered with a minus sign.)
2. Determine the partners' shares of Kramer and Knox given a first-year net loss of $16,800. (Losses and amounts to be deducted should be entered with a minus sign.)
Answer:
1. $53.4 for Kramer and $45.5 for Knox
2. -$4.4 for Kramer and -$12.4 for Knox
Explanation:
Partner’s agreement before dividing profit or loss is to grant salaries and 10% interest to the partners. In effect, this agreement will be followed whether the partnership incurs profit or losses for the period. First, all salaries should be given to the partners and the 10% interest as well. Any excess whether profit of loss will be divided equally by the partners. Computation of division of profit or loss are attached for proper demostration.
1. Kramer's share: $43,500; Knox's share: $55,300.
2. Kramer's share: -$3,100; Knox's share: -$13,700.
Explanation:1. For the first-year net income of $98,800, the partners' shares are calculated as follows:
- Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($98,800 - $50,000 - $6,000) / 2) = $43,500.
- Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($98,800 - $40,000 - $8,000) / 2) = $55,300.
2. For the first-year net loss of $16,800, the partners' shares are calculated as follows:
- Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($16,800 - $50,000 - $6,000) / 2) = -$3,100 (loss).
- Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($16,800 - $40,000 - $8,000) / 2) = -$13,700 (loss).
DDX Co. is a short-haul trucking company. Misha owned 1,000 shares of DDX stock. With research, he found a better investment opportunity and sold his entire holding of DDX to another investor. This an example of: a. proprietorship, b. LLC/LLP, c. corporationd. partnership
Answer:
Corporation
Explanation:
The main key to understanding the type of business is the ownership of capital/funding.
In a Sole Proprietorship, the capital is usually provided by an individual who is the owner of the business. Where personal funds are not available, then lending can be done either from friends and family or from financial institutions.
In a Partnership also talks about private ownership, although unlike the sole proprietorship, it is owned and managed by a group of people who bring in expertise and they are the financiers of the business or through lending
The Corporation however, is the key here because it allows public ownership and raising of capital through the sales of shares of stock and since Misha was able to own and sell 1,000 shares of stock. DDX Co. is a Corporation.
The fundamental idea behind _____ is that corporations have duties that go beyond lawful execution of their economic function.
Answer:
Corporate Social Responsibility.
Explanation:
Corporate social responsibility is a form of foreign self-regulation of a private enterprise aimed at contributing to public objectives of a philanthropic, political or humanitarian nature or by participating in or promoting voluntary or ethically driven activities.
Social Operating License can be described as a statutory basis for the legality of the operations and the participation of the organization in the ventures. This relates to the amount of support and recognition of the operations of an organization by its stakeholders.Final answer:
Corporations have obligations that extend beyond their economic functions, embodied in the concepts of Corporate Social Responsibility and corporate personhood, which emphasize ethical duties to stakeholders and society beyond profit maximization.
Explanation:
The fundamental idea behind the concept that corporations should uphold duties beyond lawful economic functions is often associated with Corporate Social Responsibility (CSR) or corporate personhood. This perspective holds that companies have a moral and ethical duty beyond just complying with local laws, especially in areas where legal protections might be inadequate or lacking. International human rights, for example, suggest that companies should adhere to certain ethical standards regardless of local legislation.
It is a complex issue, indeed. Corporations in the United States, vested with certain legal rights, must navigate the challenging terrain of aligning their responsibilities with stakeholders, community, and society at large. While some advocate for shareholder primacy, where corporations' primary responsibility is towards their shareholders, others propose the stakeholder theory, emphasizing a balance between the interests of all parties involved, including the community, employees, and customers.
Corporate social responsibility and corporate personhood are two key concepts that resonate when corporations acknowledge wider obligations than profit maximization, marked by a moral commitment to act in the interests of various stakeholders, including society at large. The discussions surround the ethical parameters within which corporations operate and how they are expected to contribute to the social and environmental welfare in addition to their economic activities.
51. The national government helped to finance transcontinental railroad construction in the late nineteenth century by providing railroad corporations with A) cash grants from new taxes. B) land grants. C) cash grants from higher tariffs. D) reduced prices for iron and steel. E) aid for construction of railroad stations.
Answer:
B) land grants
Explanation:
The national government helped to finance transcontinental railroad construction in the late nineteenth using land grants.
Beginning stockholders' equity was $120,000. Ending stockholders' equity was $195,000. Additional issuances of capital stock during the year amounted to $18,000. Dividends during the year amounted to $12,000. How much was net income for the year?
Answer:
The net income for the year is $ 69,000.
Explanation:
This question requires us to find net income for the year. The equity in balance sheet comprises of common stock, reserves and retain earning etc. So net income will be determine in the following way
Opening equity +addition in equity + net income = closing equity + dividend
120,000 + 18,000 + net income = 195,000 + 12,000
Net income = $ 69,000
Net income is the sum total of a company's income, less the cost of goods sold, expenses, taxes, and other costs. In this specific case, we used the company's stockholders' equity information to calculate a net income of $69,000 for the year.
Explanation:The subject matter of the question relates to financial accounting, specifically about the calculation of net income when given stockholders' equity information. The net income in this scenario can be calculated using this equation: Ending stockholders' equity = Beginning stockholders' equity + Net income - Dividends + Additional capital stock. Hence, the net income, can be calculated by rearranging this equation as follows: Net income = Ending stockholders' equity - Beginning stockholders' equity - Additional issurances of capital stock + Dividends. When we substitute the numbers from the given problem into this equation, we get: Net income = $195,000 - $120,000 - $18,000 + $12,000. Therefore, the net income for the year was $69,000.
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if interest rates are positive the present value of a future lump sum of $100 will be
Answer:
If interest rates are positive the present value of a future lump sum of $100 will be less than $100. The reason for this is that because the interest rate is positive this $100 will be discounted by the interest rate and number of years and so the present value will be less than the future lump sum value. We can see this in an example. If we assume that the future lump sum payment will be made 1 year from now and the interest rate is 5% we will discount the $100 by 5% to find the present value.
Present value = 100/1.05=95.23, This proves that when interest rates are positive the present value will be less than the future value.
Explanation:
If interest rates are positive, the present value of a future lump sum of $100 will be less than $100.
Explanation:If the interest rates are positive, the present value of a future lump sum of $100 will be less than $100. This is because positive interest rates indicate that there is a cost associated with borrowing or a return on investment. When calculating present value, we discount future cash flows to reflect the time value of money. The discounting process considers the interest rates and the time period involved. As interest rates increase, the present value of a future cash flow decreases. Therefore, the present value of a $100 lump sum will be less than $100 when interest rates are positive.
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Sophie is highly concerned about what others think of her. She is extremely careful about freely displaying her feelings and opinions in public. She tactfully adapts her responses and interactions to suit the situation and the audience. On the basis of the given information, we can conclude that Sophie would score_______________.
Answer:
The correct answer is letter "C": high on self-monitoring.
Explanation:
American psychologist Mark Snyder proposed the self-monitoring scale to explain how much people measure their behavior and affective demonstrations in front of others. Self-monitoring is the ability individuals have to evaluate their behavior to provide a good impression to others.
Thus, Sophie would score high in a self-monitoring test.
Final answer:
Sophie would likely score high on a scale measuring sensitivity and psychological well-being, as her tendencies match those of a rhetorically sensitive and highly sensitive person who tactfully adapts to social situations and shows concern for the perceptions of others.
Explanation:
Based on the information provided, Sophie would likely score high in terms of sensitivity and psychological resources and strengths. Sophie's concern with what others think of her, careful control of emotional expression, and tactful adaptation to different social situations indicate a high degree of sensitivity and self-consciousness. These traits align with that of a rhetorically sensitive person, who takes care to understand their audience and adapts their communication accordingly.
Sophie's behavioral traits suggest that she is highly affected by her environment, likely to experience a range of emotions strongly, and may worry a lot about others' perceptions. Therefore, on a scale where a high score represents attributes such as worrying, temperamental, self-pitying, self-conscious, emotional, and vulnerable, Sophie would likely land on the higher end. Given these aspects, Sophie displays signs of being a highly sensitive person.
It is also worth mentioning that adapting to others can indicate strong social relationships, which are part of the scoring for psychological well-being. Sophie's capability to adapt her interactions for the betterment of social settings can also be seen as contributing to the happiness and well-being of others, which forms part of the scoring for high psychological well-being.
If firms in a competitive market are making positive economic profits, you would expect firms to ________ the market, causing the ________ curve to shift to the ________. Group of answer choices
Answer:
Enter
Supply
Right
Explanation:
A competitive market is when there are many buyers and sellers of homogenous goods and services. There are no restrictions to entry or exit of firms. In the long run, firms make zero economic profit.
If in the short run, if firms are making economic profit, in the long run, new firms would enter into the industry, this increases supply and drives economic profit to zero.
I hope my answer helps you
Discuss the concept of downsizing and provide 4 of the hidden costs associated with it.
Answer:
firms that lay off staff can see a significant reduction in the performance of their remaining workers, according to our experimental study. our research suggests that firms that decide to ‘downsize’ their workforce should be wary of how the layoff decision is perceived by the remaining (“surviving”) workers. if the surviving staff interpret the decision as a way to boost profits at the cost of the workers, they might react negatively.
lay-offs are an integral part of dynamic economies. for example, in germany at least one large firm announces cuts of at least 800 jobs on each third working day of the year. lay-offs impose massive costs on the displaced workers, the regional economy and social insurances. hence, it is no surprise that layoffs are often discussed controversially in the general public and the media, and receive a lot of attention by scholars and practitioners.
from the firm’s perspective, the benefits of lay-offs seem to be obvious – in particular, labor costs and organisational slack can be reduced. firms considering laying off workers have to weigh these benefits with potential costs. some types of costs (e.g. severance payments) are more or less calculable in advance, while other costs are ex ante hard to estimate. in particular, there may be substantial costs associated with a decrease in the motivation of the workers who stay in firms after lay-offs – a phenomenon called ‘survivor syndrome’.
we set up a lab experiment with 400 students at the goethe-university frankfurt to study how non-fired employees respond to an employer’s
decision to fire a co-worker. in our experiment, employees work for an employer whose payoff depends on the employees’ performance in a real-effort task. subsequently, the employer is provided with an incentive to layoff one of her/his employees. after her/his decision for or against firing, the remaining employees continue to work for the employer.
to analyse whether the remaining employees’ performance is driven by the employer’s decision to layoff an employee or its implementation, we conduct a control treatment in which it is randomly decided whether an employee is fired or not.
we find that survivors reduce their performance substantially in response to the employer’s decision to lay off a co-worker. the reduction is strongest for survivors who interpret the employer’s decision as a method to increase profits at the cost of the workers; it is weaker if they can comprehend the layoff decision, and it vanishes (in the control treatment) if the employer is forced to fire a co-worker. it seems that the survivors in our experiment perceive an employer’s decision to lay off a co-worker as a signal that she does not expect them to perform well or cares more about her/his own payoff than the well-being of the employees. our results suggest that this negative signal leads to a decrease in employees’ performance.
our experimental results imply that firms deciding in favour of layoffs should be wary about how their decision is perceived by their workforce. in firms laying off workers, one can observe a number of business practices that are puzzling at first glance. our study can provide one potential explanations for these practices.
first, firms often use natural fluctuations to reduce the level of staffing instead of firing workers. the existence of such a policy is quite surprising – firms can more rapidly adjust their labor force by simply firing some workers. one potential explanation for this business practice could be that firms try to mitigate the survivor syndrome.
a second fact is that firms laying off workers often claim that they have “no choice”. a rational for this communication strategy could be that firms try to prevent that employees perceive the employer’s layoff decision as an attempt to increase profits at the cost of the workers. it is, however, an open question whether employees really believe management’s declaration. one way to verify declarations could be a strong cooperation with the works council.
third, research has shown that top management turnover is higher after downsizing. one explanation for this phenomenon could be that firms try to limit the negative impact of the lay-off decision by separating from the management with the lay-off history. after the separation, the new management can blame the predecessors.
a fourth fact is that firms that are downsizing often provide outplacement services for the leavers, and make financial offers for voluntary leavers (even if these offers are quite expensive and, because of their better outside options, the more able workers who separate). a rational for such business practices could be that firms try to attenuate the negative signal of the lay-off decision by the provision of positive signals.
Tiny Town Kennel earns service revenue by caring for the pets of customers. T Town Kennel is organized as a sole proprietorship and owned by Earle Martin the past month, Tiny Town Kennel has the following transactions: a. Received $520 cash for service revenue earned. iny b. Paid $325 cash for salaries expense. c. Martin contributed $1,000 to the business in exchange for capital. d. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet. e. Received utility bill of $85, which will be paid next month. f. Martin withdrew $100 cash. Indicate the effects of the business transactions on the accounting equation for Town Kennel. Transaction (a) is answered as a guide. a. Increase asset (Cash): Increase equiy (Service Revenue
Answer:
Accounting equation : Equity + Liability = Assets or Equity=Assets - Liability.
(a) Increase asset (Cash): Increase equity (Service Revenue) by $520
(b) Decrease asset (Cash): Decease equity (Salaries Expense) by $325
(c) Increase asset (Cash): Increase equity (Capital) by $1,000
(d) Increase asset (Debtor): Increase equity (Service Revenue) by $640
(e) Increase liability (utility bills payable): Decease equity (utility bill Expense)
by $85
(f) Decrease asset (Cash): Decease equity (Drawing) by $100
Explanation:
The accounting equation is the basis of the double-entry in accounting. Accounting equation ensure Statement of Financial position(i.e. balance sheet) balance all the time. It shows balance sheet. It shows that sum of assets equals to the addition of liabilities and equity.
With the aid of accounting equation, we establised that for every debit (affecting asset or expense) entry, there must be corresponding credit (affacting liability or equity).
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
Account Title Debits Credits
Cash 5,800
Accounts receivable 2,800
Inventory 5,800
Equipment 11,800
Accumulated depreciation—equipment 4,300
Accounts payable 3,800
Common stock 10,000
Retained earnings 8,100
Sales revenue 0
Cost of goods sold 0
Salaries and wages expense 0
Rent expense 0
Advertising expense 0
Totals 26,200 26,200
The following transactions occurred during January 2016:
Jan. 1
Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.
2 Purchased equipment on account for $6,300 from the Strong Company.
4
Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.
8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.
10 Purchased merchandise on account for $9,900.
13 Purchased equipment for cash, $700.
16 Paid the entire amount due to the Strong Company.
18 Received $5,600 from customers on account.
20 Paid $700 to the owner of the building for January’s rent.
30 Paid employees $3,800 for salaries and wages for the month of January.
31
Paid a cash dividend of $1,000 to shareholders.
Prepare general journal entries to record each transaction.
Answer:
The journal entries to record each transaction is given below.
1 Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.
Debit Cash Account Asset $ 4,300
Credit Sales Income Account $ 4,300
Debit Cost of good sold $ 2,800
Credit Inventory Account $ 2,800
2 Purchased equipment on account for $6,300 from the Strong Company.
Debit Equipment Asset $ 6,300
Credit Payable $ 6,300
4 Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.
Debit Advertisement expense $ 100
Credit Payable $ 100
8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.
Debit Account Receivable $ 5,800
Credit Sales Income $ 5,800
Debit Cost of Good Sold $ 3,600
Credit Inventory $ 3,600
10 Purchased merchandise on account for $9,900.
Debit Inventory $ 9,900
Credit Payable $ 9,900
13 Purchased equipment for cash, $700.
Debit Equipment Asset $ 700
Credit Cash $ 700
16 Paid the entire amount due to the Strong Company.
Debit Payable $ 6,300
Credit Cash $ 6,300
18 Received $5,600 from customers on account.
Debit Cash $ 5,600
Credit Receivable $ 5,600
20 Paid $700 to the owner of the building for January’s rent.
Debit Rent expense $ 700
Credit Cash $ 700
30 Paid employees $3,800 for salaries and wages for the month of January.
Debit Salary expense $ 3,800
Credit Cash ` $ 3,800
31 Paid a cash dividend of $1,000 to shareholders.
Debit Dividend payable/Retain Earning $ 1000
Credit Cash $ 1000
Final answer:
The student's question requires preparing general journal entries for certain transactions in January 2016. Each transaction is documented step-by-step to reflect its impact on different accounts, highlighting the dual nature of bookkeeping where every debit has a corresponding credit.
Explanation:
The question involves the preparation of general journal entries for a series of transactions that occurred in January 2016 for the Whitlow Manufacturing Corporation. These entries will reflect various financial activities such as sales, equipment purchases, and payment of expenses, which impact the company's financial statements. Let's proceed to document each of these events.
Journal entry for the cash sale:
Debit Cash $4,300
Credit Sales Revenue $4,300
Debit Cost of Goods Sold $2,800
Credit Inventory $2,800
Journal entry for purchasing equipment on account:
Debit Equipment $6,300
Credit Accounts Payable $6,300
Journal entry for advertising expense:
Debit Advertising Expense $100
Credit Accounts Payable $100
Journal entry for sales on account:
Debit Accounts Receivable $5,800
Credit Sales Revenue $5,800
Debit Cost of Goods Sold $3,600
Credit Inventory $3,600
Journal entry for purchasing merchandise on account:
Debit Inventory $9,900
Credit Accounts Payable $9,900
Journal entry for the cash purchase of equipment:
Debit Equipment $700
Credit Cash $700
Journal entry for payment to Strong Company:
Debit Accounts Payable $6,300
Credit Cash $6,300
Journal entry for cash collections on account:
Debit Cash $5,600
Credit Accounts Receivable $5,600
Journal entry for rent payment:
Debit Rent Expense $700
Credit Cash $700
Journal entry for salaries and wages payment:
Debit Salaries and Wages Expense $3,800
Credit Cash $3,800
Journal entry for cash dividend payment:
Debit Retained Earnings $1,000
Credit Cash $1,000
Discuss ten (10) different purposes of an evaluation of salesperson performance and how each purpose affects the performance evaluation process.
Answer:
1. To ensure that compensation and other reward disbursements are consistent with actual performance
2. To identify salespersons who needs to be promoted
3. To identify salespersons who should be fired/terminated
4. To determine the specific training and counseling needs of individual
5. To provide information for effective human resource (Succession) planning
6. To identify criteria that can be used to recruit and select salespersons in the future
7. To advise salespersons of work expectations
8. To motivate salespersons
9. To help salespersons set their career goals
10. To enhance effective communications between salesperson and sales manager
Explanation:
How each purpose affects the performance evaluation process
1. To ensure that compensation and other reward disbursements are consistent with actual performance
Compensation and rewards affects the performance and it should be on the merit.
2. To identify salespersons who needs to be promoted
Promotion shall be given on the basis of evaluation
3. To identify salespersons who should be fired/terminated
Termination should be on the basis of performance evaluation
4. To determine the specific training and counseling needs of individual
Training shall be provided on the basis of evaluation
5. To provide information for effective human resource (Succession) planning
Succession planning should be on the basis of performance evaluation so that the exceptional performers must be retained,
6. To identify criteria that can be used to recruit and select salespersons in the future
It helps in understanding the factors that will be useful to recruit and select salespersons
7. To advise salespersons of work expectations
On the basis of evaluation, it will be decided to communicate the work expectations
8. To motivate salespersons
It will help in understanding the factors which motivate the salespersons
9. To help salespersons set their career goals
Salespersons will understand about their future and set their career goals.
10. To enhance effective communications between salesperson and sales manager
It will help to communicate effectively about the expectations of salesperson and sales manager and better coordination
Which two options are available to share Report or Dashboard folder with other users in the Organization? Choose 2 answers
A. Public Groups
B. Roles
C. Teams
D. Profiles
Answer:
Roles and public groups
Explanation:
A public group is a collection of individual users, other groups, individual roles, and/or roles with their subordinates that all have a function in common.
On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $161. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $113. Another, with serial #1045, was purchased on November 1 for $95. The last player, serial #1056, was purchased on November 30 for $88. Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Marzion Electronics' year-end. The cost of goods sold If Marzion Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing which particular players to sell to the two customers? What would Marzion's cost of goods sold be if the company wished to minimize earnings? Maximize earnings? Cost of goods sold would be if it wished to minimise the earnings. Cost of goods sold would be if it wished to maximise the earnings. Which of the two inventory methods do you recommend that Marzion use?
Answer:
Fifo means First in First out
CP SP
S # 1012 June 1 DVD $113 $161
S# 1045 Nov 1 DVD $ 95 $ 161
Ss # 1056 Nov 30 DVD $ 88 $ 161
Cost of Goods Sold ( using FIFO) = $ 113+ $ 95= $ 208
Weighted average method = Opening inventory + Purchases (amount)/ Units
Weighted Average Method CGS= $ 296/3= $ 98.6= $ 99
The specific identification method would allow to record the prices individually. this method is better in this scenario because the balance sheet would record only the left out balance . the item is removed immediately as soon as the item is sold.
To minimise earnings FIFO is used because the inventory at the beginning has more cost price
To maximise earning LIFO is used because the inventory at the end has less cost price.
I recommend LIFO and specific identification method as both would get desired results. LIFO would give maximum profit and specific would be better in meeting the customers specific needs
Using the FIFO method, Marzion's cost of goods sold would be $208. If Marzion wishes to minimize earnings, it should use the specific identification method and sell the DVDs costing $208, and if it wishes to maximize earnings, it should sell the DVDs costing $183. The choice of inventory method should depend on the company strategy and objectives.
Explanation:Using the FIFO (First-In, First-Out) periodic inventory method, Marzion Electronics would first sell the DVD players which were acquired earlier. Thus, the cost of goods sold would be the cost of the DVDs purchased on June 1 and November 1, which is $113 + $95 = $208.
With the Specific Identification method, Marzion Electronics could choose which DVD players to sell to influence their earnings. If Marzion wanted to minimize earnings, it would sell the DVD players that cost more to purchase (as higher cost of goods sold decreases earnings), meaning the DVDs with serial #1012 and #1045 totaling $208. To maximize earnings, it would sell the players that cost less, i.e., serial #1045 and #1056, with a total cost of $95 + $88 = $183.
The decision on which inventory method to use depends on the company's objectives. If Marzion wants more control over cost of goods sold and earnings, the specific identification method might be more suitable. However, for simplicity and consistency, many businesses prefer the FIFO method.
Learn more about Inventory Methods here:https://brainly.com/question/34640904
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If the demand for a good increases by more than the supply of the good increases, then the goods equilibrium price will __________ and its equilibrium quantity will __________.
Answer:
If the demand for a good increases by more than the supply of the good increases, then the goods equilibrium price will increase and its equilibrium quantity will also increase.
Explanation:
Please refer to the attachment.
D zero is the initial demand curve.
D one is the new increased demand curve.
S zero is the initial supply curve.
S one is the new increased supply curve.
P zero is the initial equilibrium price, where D zero = S zero
Q zero is the initial equilibrium quantity, where D zero = S zero
A is the initial equilibrium point, where D zero = S zero.
P one is the new equilibrium price and it is greater than P zero. Here, D One is equal to S One.
Q one is the new equilibrium quantity and it is greater than Q zero. Here, D One is equal to S One.
B is the new equilibrium point, where S one is equal to D one.
Note- Here, increase in demand is more than the increase in supply as seen from the diagram.
A defeasible estate is one that can be lost in the future by the happening of a specific event.
True/False
The given statement is true a defeasible estate is one that can be lost in the future by the happening of a specific event
Explanation:
When the land is transferred upon conditionally by the grantor or the owner then it is called as defeasible estate and the property is subjected to some conditions intentionally or unintentionally upon the happening of the events
This is not permanent to the owner hence with the time of run it can eventually be lost or it will be handed over back to the grantor and hence it can be lost in the future
Robert, the CEO of a software company in Houston, has fulfilled his career goals. Therefore, he decides to retire and help eliminate societal problems. In order to achieve this, he starts a charitable organization that helps in educating underprivileged children. With respect to Maslow's hierarchy of needs theory, Robert is looking to fulfill his _____ need.
Answer:
The correct answer is: self-actualization.
Explanation:
American psychologist Abraham Maslow (1908-1970) proposed the hierarchy of needs -usually portrayed in a pyramid to explain- humans face different needs but the most basic must be satisfied so they can pursuit ti satisfy other less necessary desires. According to Maslow, those needs are divided into five (5) categories: Physiological needs, safety needs, love and belonging, esteem, and self-actualization.
Self-actualization is at the top of the pyramid and this need arises when individuals have the desire to become the most that one can be. Just like in Robert's case. He has fulfilled his career goals so he decides to retire and contribute to the education of underprivileged children.