Salespeople who work for producers make cold calls to intermediaries and their clients in an effort to build goodwill and increase demand, but they don't take any orders.
What strategy does the business have in place to balance its internal strengths and weaknesses with potential external threats and opportunities in order to maintain a competitive advantage?In order to maintain a competitive position, a company must plan strategically for how it will balance its internal strengths and weaknesses with its external opportunities and threats.
Which of the following best justifies a business not placing a cap on a sales representative's prospective earnings?The reason there are no caps or restrictions on sales earnings is because the more a sales representative makes, especially if the earnings.
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smartstuff inc. grants a foreign entity the right to produce and sell the firm's microprocessors in return for a royalty fee on every product sold. smartstuff inc.'s approach is called
Answer:
Explanation:
Smart stuff inc.'s approach is called licensing. Licensing basically refers to the authorization one company offers to another company to produce its products for specific payments.
What is the purpose of licensing?
Licensing provides authorization to practice in a specific domain. Careers that requires licensing nowadays usually requires specialized training and skills that are often termed as dangerous and requires caution to perform. For example licensed software, intellectual property etc.
What are the different categories of licensing?
The different categories of licensing are operating license that allows a licensee to operate particular facilities of gambling, personal license that allows the ones responsible for managing and operating the gambling facilities permitted under operational license and premises license.
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which of the following is an example of flexible manufacturing systems? felix engineering designs the plans and specifications for customer products on the computer. mercury automotive modifies their machinery to produce automotive parts for their customers. peterson brothers products determines the steps a machine must take to produce their products. downtown printing produces a gamut of advertising from postcard promotions to bus billboards.
An example of a Flexible Manufacturing System (FMS) is that Felix engineering designs the plans and specifications for customer products on the computer.
In today's market, customer demand and product specifications change very quickly, so it is critical for a manufacturing system to accommodate these changes as quickly as possible in order to compete in the market. This evolution frequently causes conflict in a manufacturing system because as variety increases, productivity decreases. As a result, the Flexible Manufacturing System (FMS) provides a good balance of variety and productivity.
The emphasis in this system is on flexibility rather than system efficiency. Because building a new production line is a large investment, the existing production line is reconfigured to keep up with the increased frequency of new product design in a competitive Flexible Manufacturing System (FMS).
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huprey company is the defendant in the following legal claims. for each of the following separate claims, indicate whether huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure.
1. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1,390,000 it is probable that Huprey will lose the case: he would record a liability. Option c
2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable : the company would disclose in notes. option b
3. Huprey is being sued for damages of $2,260,000. It is very unlikely (remote) that Huprey will lose the case. The company have no disclosure. Option C.
What is a disclosure?Making facts or information public is the process of disclosure. Making necessary information known to consumers, investors, and everyone else involved in the company's activity is what is meant by proper disclosure for corporations.
1. Huprey can reasonably predict that a current litigation will result in damages of $1,390,000 and that Huprey will probably lose the case. - record an obligation
2. There is a chance Huprey will lose a current litigation. The loss is not calculable. - Mention in notes
3. Huprey is being sued for $2,260,000 in damages. Huprey's chance of losing the case is quite slim. - omit disclosure
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15) Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b) disclose in notes, or (c) have no disclosure.
1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,390,000it is probable that Huprey will lose the case.
Have no disclosure.
Disclose in notes.
Record a liability.
2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.
Record a liability.
Disclose in notes.
Have no disclosure.
3. Huprey is being sued for damages of $2,260,000. It is very unlikely (remote) that Huprey will lose the case.
Disclose in notes.
Record a liability.
Have no disclosure.
the difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate, is the:
The correct answer is direct labor efficiency variance. If the distinction of the particular hours and, therefore, the normal hours allowed square measure calculated, the corporate would assess how economical the assembly employees are in producing the product.
If actual labor hours square measure but the budgeted or normal quantity, the variable overhead potency variance is favorable; if actual labor hours square measure over the budgeted or normal quantity, the variance is unfavorable.
An unfavorable variance is the opposite of a positive variance wherever actual prices are unit but commonplace. Rising prices for direct materials or inefficient operations inside the assembly facility can explain associated unfavorable variance in production.
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comparing dividends per share and earnings per share indicates the extent to which earnings are being retained for use in operations. true false group of answer choices true false
Comparing dividends per share and earnings per share indicates the extent to which earnings are being retained for use in operations is True.
Retained earnings represent the cumulative amount of net income over the life of a company that has not been distributed to shareholders as dividends. The Statement of Retained Earnings, sometimes called the Statement of Changes in Equity, shows the total profits that a company has accumulated and maintained since it began operations.
Retained earnings are subject to changes in net income and dividends paid to shareholders. As a result, items that drive net income up or down will ultimately affect retained earnings. Net profit is directly related to retained earnings. The three components of retained earnings include initially retained earnings net profit loss during the accounting period and cash and stock dividends paid during the accounting period.
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when there are expectations of higher inflation in the future, we would typically expect the supply of loanable funds to and the demand for loanable funds to . group of answer choices increase; decrease increase; increase decrease; increase decrease; decrease
The rate of price growth over a specific time period is referred to as inflation. Inflation is frequently measured broadly, such as the general rise in prices or the rise in the cost of living in a nation.
What is Measuring inflation?The cost of living for consumers is influenced by a variety of factors, including the cost of many goods and services as well as their proportion in household spending. Government organizations conduct household surveys to identify a basket of frequently bought items and track over time the cost of purchasing this basket in order to calculate the average consumer's cost of living. (Housing expenses, including rent and mortgages, make up the largest portion of the American consumer basket.) The consumer price index (CPI), the most commonly used indicator of inflation, measures the cost of this basket at a given time expressed relative to a base year. Consumer price inflation, on the other hand, is the percentage change in the CPI over a given period.For instance, inflation is 10% throughout the time period if the base year CPI is 100 and the current CPI is 110.To Learn more About inflation refer to:
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What are the benefits of a bank loan?.
A loan is money given to you by a bank or financial institution in exchange for a promise to repay the principal amount plus interest.
Because lenders assume the risk of a possible default, they charge a fee to offset this risk, which is known as interest. Loans bank can be secured or unsecured. Repayment is the act of repaying money borrowed from a lender. Typically, funds are returned through periodic payments that include both principal and interest. The principal is the initial amount of money borrowed in a loan. Before making a loan offer, lenders will consider a prospective borrower's income, credit score, and debt levels.
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Which of the following is not something you should be thinking when considering changes in your auto insurance policy?.
A contract between you and the insurance company to safeguard you against financial loss in the event of an accident or theft is known as auto insurance. The insurance company agrees to cover your losses in accordance with your policy in exchange for your premium payment.
What are the four primary kinds of insurance and coverage?
Life, health, auto, and long-term disability insurance are the four types of insurance that the majority of financial experts recommend.
Should you pay your auto insurance monthly or every six months?
"Covering your vehicle insurance installment at regular intervals will set aside you cash. This could significantly lower your monthly premium, depending on the insurance provider.
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Using the SPSS output file contained in Question 1, the Pearson Correlation Coefficient (R), the measure that determines the strength of the correlation between our independent variables to our dependent variable (I am worried about global warming), has been determined to be 0.847 indicating a _____________ relationship between our dependent variable and our independent variables!
A. very strong
B. weak
C. very weak
D. no relationship
The Pearson Correlation Coefficient (R), the measure which determines the strength of the correlation between the independent variables to the dependent variable, has been determined to be 0.847 indicating a very strong relationship between the dependent variable and the independent variables.
What is the Pearson Correlation Coefficient (R)?The Pearson correlation coefficient (R) is the most ordinary way of measuring a linear correlation. It is a number between –1 and 1 which measures the strength and direction of the correlation between two variables. Values always range from -1 for a perfectly negative correlation to 1 for a perfectly positive correlation.
In general, the Pearson Correlation Coefficient expresses the degree which, on an average, two variables change correspondingly. If one variable increases when the second one increases, it means there is a positive correlation.
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What are 5 tips for using a checking account?.
A checking account allows you to pay bills, move the money to savings, withdraw cash from ATMs, and use your debit card for making purchases. Their checking account would be an important aspect of overall personal financial management.
That is why it is critical to pick a bank account has beneficial features and no fees that deplete your balance.
A checking account would be a sort of bank account which allows you to easily access your money. Unlike the other kinds of bank accounts, particularly savings accounts, checking accounts often enable unrestricted withdrawals as well as deposits, making them an excellent alternative for covering your daily expenses.
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werner's fish house purchases a tract of land and an existing building for $980,000. the company plans to remove the old building and construct a new restaurant on the site. in addition to the purchase price, werner pays closing costs, including title insurance of $2,800. the company also pays $13,600 in property taxes, which includes $8,800 of back taxes (unpaid taxes from previous years) paid by werner on behalf of the seller and $4,800 due for the current fiscal year after the purchase date. shortly after closing, the company pays a contractor $49,000 to tear down the old building and remove it from the site. werner is able to sell salvaged materials from the old building for $4,600 and pays an additional $10,800 to level the land. Required: Determine the amount werner's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.)
The amount Werner's Fish House should record as the cost of the land is calculated to be $1,038,000.
The costs that should be recorded in the cost of the land include all the expenses that are essential in bringing the land to a usable condition. This cost should also contain the cost of preparing the land for the construction of the new restaurant. The property taxes should be excluded since they were paid as unpaid taxes and also are not essential expenses that would bring the land to use.
Therefore;
Cost of the land = Purchase price + Title insurance + Tearing down the old building + Leveling the land - Salvaged materials
Cost of the land = $980,000 + $2,800 + $49,000 + $10,800 - $4,600
Cost of the land = $1,038,000
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What are three reasons that banks charge interest on loans ?.
Cost of Opportunity. Risk protection and cost protection are the three reasons that bank charge interest on loans.
What is the Cost?A cost is an outlay needed to create, market, or prepare an item for regular usage. In other terms, it's the cost incurred to produce a good, buy inventories, sell goods, or prepare equipment for use in a commercial activity.
Costs come in a variety of forms, both fixed and variable, but they are always recorded in the same way. Costs are deducted in a closing entry at the conclusion of the accounting period after being reported as costs on the income statement throughout the period.
Costs related to selling items, such as hiring sales employees, leasing space for sales, and buying product display racks, are reported as selling expenditures and shown on a multi-step income statement.
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The degree to which education level and income are so closely tied to voter participating in the united states is _____ when compared to european countries.
The complete statement is "The degree to which education level and income are so closely tied to voter participating in the united states is unusual when compared to European countries."
What are education level and income?Generally, According to the findings of various pieces of research, the level of education has a significant bearing on both income and wealth.
There is a correlation between higher levels of education and higher levels of liquid assets held by households.
These households are better able to weather financial storms, diversify their savings (investments), and keep their debt-to-asset ratios low.
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Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is to
Debit______________
Credit_____________
The entry to record the transaction for materials requisitioned by the production department is to
Debit WIP $156,000
Credit Materials $156,000
Organization accountants should account for direct and indirect materials one after the other. The magazine entry for direct substances, this is, substances that can be without delay traced to merchandise, is a debit to the paintings in technique and a credit to the raw materials inventory accounts.
To file materials used in manufacturing, a debit for the value of raw substances is made to the WIP inventory account and a credit score is made to the raw substances account. Exertion fees are spilt between direct and indirect labor.
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A secured party who has control will prevail over a secured party who has only filed for these types of collateral: purchase- money security interests, investment property, and mechanic's liens. insurance policies, purchase-money security interests, and letter-of-credit rights. deposit accounts, mechanic's liens, and insurance policies. deposit accounts, investment property, and letter-of-credit rights.
A secured party who has control will prevail over a secured party who has only filed for these types of collateral deposit accounts, investment property , and letter of credit rights.
What is secured party?
A person who benefits from the security interest generated by or provided for by a security arrangement is referred to as a secured party under UCC law, regardless of whether there is a current obligation to be secured.
What is a secured party example?
The lender or seller is known as the creditor, and in this case the secured party, while the borrower or buyer is known as the debtor. A bank lending money to a business so it can purchase inventory is one straightforward example of a secured transaction. Another is a business selling equipment on credit.Learn more about secured party
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A manager of an advertising firm appointed two employees to strike an advertising deal with one of their big clients. They were chosen as they had made a similar agreement previously with another client. Which of the following biases was the manager engaging in?
A manager of an advertising firm appointed two employees to strike an advertising deal with one of their big clients. They were chosen as they had made a similar agreement previously with another client. on Representativeness biases the manager will engaging in.
An advertising contract is a formal agreement between the party seeking to put an advertisement and the business providing the advertising space. A deal between two bloggers, a firm and a billboard company, etc., are examples of such agreements.
Even though verbal agreements make up the majority of advertising contracts today, written agreements are still necessary to protect both parties from claims that "We complied with the terms of an agreement while he promised to do this, but he hasn't." Make an advertising contract rather than leaving everything up to chance.
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if your boss tells you to do something simply because she is the boss, you're dealing with what source of negotiation power?
If your boss tells you to do something simply because she is the boss, you're dealing with positional power.
Positional power refers to a power derived by rank or title in any organization. Positional power enables the person to act in an organization with formal power. Positional power brings along two more powers that are coercive power and reward power. Coercive power enables the person to punish the employees for non-cooperation. Reward power enables the person to appreciate employees for their work.
In the given situation, the boss tells you to do something because of his/her positional power. There are various positional powers in an organization but not all have equal power.
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out of the over 700,000 construction firms in united states the majority are which of the following business types? question 3 options: joint ventures individual (sole) proprietorships corporations partnerships
A business structure is a class of legally registered enterprises whose regular operations or everyday activities are influenced by it.In general, the three (3) main business kinds are ranked from the easiest to start to the most challenging to start, as follows:
single-person business
Partnership\sCorporationThe type of business started by one guy is a sole proprietorship. Another name for it is one man's operation. The business's liabilities and debt are all owed to this one man. This situation does not fall under the entity idea, which holds that a company and its owner are separate, distinct, and distinctive. All business choices are made by him. He commands and offers directions. The earliest type of business is the sole proprietorship.This business structure has the fewest restrictions from the government of all business formations. There is no need for transparency, and there is no corporate tax. Government grants this company freedom to operate.
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explain how allocative efficiency is related to the concepts of consumer surplus and producer surplus.
According to the concept of allocation efficiency, the specific combination of products that a society produces corresponds to the combination that society most desires.
For instance, a society with a younger population frequently prioritizes the production of education over health care. Utilizing allocative efficiency ensures that resources are allocated properly in light of customer requirements and preferences.
Almost all resources (i.e., elements of production) have a finite amount of supply, hence it is crucial to allocate resources wisely in order to maximize value. An efficient market has an attribute called allocational, or allocative, efficiency in which all products and services are optimally divided among consumers. It happens when parties can use the precise and easily accessible information reflected in the market to decide how to employ their resources.
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Because the CML is based on total risk, in a plot of expected return on standard deviation of returns
A. Individual stocks will plot above the CML.
B. None of the responses is correct.
C. Individual stocks will plot below the CML.
D. Individual stocks will plot on the CML.
E. Individual stocks could plot above or below the CLM.
Individual stocks will plot below the
CML
What is CML?
CML stands for
efficient frontier
, which plots predicted return and overall risk for portfolios made up of a mix of market and risk-free asset holdings. Risk/return combinations for certain securities will follow the SML but not the CML if markets are in
equilibrium
. Because unsystematic risk is diversified away in market portfolios, the risk-return combinations for individual securities will fall below CML.
The capital marKet line (CML) depicts portfolios that balance risk and return 4i444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444]
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In a plot of expected return on standard deviation of returns
C. Individual stocks will plot below the CML
What is CML?
The capital market line (CML) is the portfolios that optimally combine risk and return. It is a theoretical concept that represents all the portfolios that optimally combine the risk averse rate of return and the market portfolio of assets that are risky. In capital asset pricing model (CAPM), investors will choose a position on the capital market line, by borrowing and or lending at the risk-free rate, since this can maximize return for a given level of risk. CML shows portfolios that effectively combine risk and return. The point of intersection of CML and efficient frontier result in the most efficient portfolio known as the tangency portfolio.
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Cainas Cookies purchases equipment on 1/1/15 for $40,000, to be used for a total of 72,000 baking hours, with a $4,000 residual value. Cainas uses a units of production depreciation method. She bakes for 5,000 hours in 2015 and 9,000 hours in 2016. On 1/1/17 she sells the equipment for $30,000. Which of the following is true? To record the entry, she will need to credit the equipment account for $33,000 To record the entry, she will need to credit accumulated depreciation for $7,000. She sold the equipment at a gain of $8,000 D She sold the equipment at a loss of $3,000
After Caina purchases the equipment and analyzes the residual value, to record the entry she will D. She sold the equipment at a loss of $3,000
What is units of production depreciation method?
Units of production are a standard depreciation method that enables businesses to divide the cost of a fixed asset according to its utilization. The cost of the equipment is divided by the expected lifespan production to derive the units of production rate, which is widely employed in manufacturing. By dividing this rate by the asset's output for that year, you may get the depreciation expense for a specific year. Utilizing the units of production depreciation technique will not allow you to calculate your tax deduction. However, it is one of the four depreciation methods that Generally Accepted Accounting Principles permits (GAAP). Units of production are especially beneficial for manufacturers whose utilization of machinery differs from one product to another since they connect the cost of the equipment with the revenue it creates.
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the expiration date of a one-year lease is september 30. on july 1, the house is sold to a family that wants to live in the rental property. assuming the lease does not include a sale clause, how soon can they move in?
A one-year lease has a September 30 deadline. A family that wishes to reside in the rental property purchases the home on July 1. How quickly can they move in October 1 of the current year, providing the lease does not contain a selling clause.
What occurs in Ontario when a one-year lease expires?When a residential lease in Ontario ends without being renewed, the tenancy automatically converts to a month-to-month arrangement. A month-to-month lease gives tenants far more freedom if they wish to move, which is its principal benefit.
What is the legal word for a renter who refuses to leave after their lease has expired?A holdover tenant is someone who continues to live in a rental after their lease expires without signing a new one. In this case, the landlord may take action to evict the tenant or require the renter to sign a new lease.
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how much energy would the family save by investing in all of the features that are cost-effective at the current price of energy?
About 9,000 kilowatt-hours per year energy will the family save by investing in all of the features that are cost-effective at the current price of energy.
What type of renewable energy is the most affordable?Currently, hydroelectricity is the least expensive renewable energy source, with an average cost of $0.05 per kilowatt-hour. Because the infrastructure has been in place for a long time and produces electricity reliably, hydroelectric power is the most affordable.
What are the top 5 energy sources?There are five main types of renewable energy:
Energy from sunlight solar energy.Heat from deep within the ground is geothermal energy.Wind power.Plant-based biomass.Water-powered hydroelectricity.To know more about energy resources, visit:
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what companies are bound to the generally accepted accounting principles? answer: a. all b. privately owned c. none d. publicly owned
Public owned companies are bound to the generally accepted accounting principles.
Who are the shareholders in a public company?
A public company's ownership is distributed among general public shareholders thru the free trade of stock shares on stock exchanges or over-the-counter (OTC) markets.
A public company is one that has sold all or part of its stock to the public through an initial public offering. The capacity of public companies to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (i.e., cash) for expansion and other projects is their primary advantage.
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Use the following information: Net sales Cost of goods sold Beginning inventory Ending inventory $250,000 180,000 55,000 45,000 a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) o During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following Inventory purchase transactions for the year. Date Jan. 1 May. 5 Nov. 3 Transaction Beginning inventory Purchase Parehase Number of Unit Units Cost $ 82 250 85 200 90 Total Cost $ 6,920 21,250 18.000 $44.170 . . Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory 230 units of Inventory from the May 5 purchase, and 180 units from the November 3 purchase. fo Date Activity Units Sold Unit Cost Unit Cost Ending Invente Beginning inventory May 5 sos 250 200 510 Cost of Goods Sold Ending Inventory Units 49201 21,250 250 18,000S 44,170 250 Purchase Purchase Total Nov. 3
The correct answer to the question is "Net sales." Expense for items sold Beginning inventory is 3.60, 101.39 days, and 28%, respectively.
Briefing:
a. Inventory turnover ratio = Cost of goods sold / Average inventory
Average inventory = (Beginning inventory + Closing inventory ) / 2
= ($55,000 + $45,000)/2
= $50,000
Cost of goods sold = $180,000
Therefore, inventory turnover = $180,000 / $50,000
= 3.60
How would you define sales?
A sale is an agreement between a buyer and a vendor where the seller exchanges money for the sale of tangible or intangible products, assets, or services. A sale, or a contract involving two or more parties, such as the buyer and seller, can be thought of in larger terms.
How Do Sales Work?
Selling is the act of persuading a customer to purchase a service or product. A typical step in the sales process at a company is for salespeople to get in touch with leads who match the target market's ideal customer profile.
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conventional indemnity health insurance plans, whereby an insured individual pays for services and is later reimbursed by the insurer, were the most common type of health insurance coverage in 2014.
A set percentage of the "usual, reasonable, and customary" costs for the product or care obtained is specified in the plan.
What is being paid back?Reimbursement is reimbursement given by a business for out-of-pocket costs spent or excess payments made by a worker, a client, or a third party. Common instances are the reimbursement of work expenses, insurance premiums, and overpaid taxes.
What does reimbursement mean?Reimbursement occurs when a company reimburses a worker, client, or other person for amount they spend out of pocket or for money they were overpaid. Getting reimbursed for business expenses, insurance premiums, and overpayment taxes are a few examples. However, unlike normal compensation, reimbursements is not taxed.
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kara and sheldon are both middle managers at gotcha international. kara is dissatisfied because she knows that sheldon makes more in salary even though, in kara's opinion, she works longer hours than he does. if kara wishes to reduce this perceived inequity, what should she do?
Reduce her work hours, increase her level of absenteeism, and ask for a raise.
Absenteeism is a recurring pattern of absence from responsibility or obligation with out desirable reason. typically, absenteeism is unplanned absences.[1] Absenteeism has been considered as a hallmark of negative character performance, as well as a breach of an implicit settlement among employees and business enterprise. it's far seen as a control trouble, and framed in financial or quasi-economic terms. greater latest scholarship seeks to apprehend absenteeism as an indicator of psychological, scientific, or social adjustment to work.
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niwa co. replaced a $3,000 account payable balance to fiona co. with a 60-day, $3,000 note bearing 5% annual interest. niwa's entry to record this transaction would include which of the following entries? (check all that apply.)
Niwa's entry to record this transaction would include :
Credit to notes payableDebit to accounts payableWhat is debited and credited in accounts payable?When a business makes a credit purchase of goods or services, the accounts payable account is credited. When the business pays back a portion of its account payable, the balance is debited.The entry for notes payable is a debit entry. The balance sheet shows the credit as a liability and credits the cash account. As a result, they appear as a negative rather than a credit on your balance sheet.Debit your Cash account for the amount of cash received and credit your Notes Payable account for the liability if your business borrows money under a note payable. Your Notes Payable account will be debited and your Cash account credited when you repay the loan.Credits cause liabilities to grow, whereas debits cause them to shrink. The amount of money you owe rises each time you receive an invoice (accounts payable). Credit the accounts payable because credits increase liabilities.Notes payable is increased from the credit in the amount of the note's face value because it is a liability account with a normal credit balance.Learn more about debited and credited in accounts payable refer to :
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Canton Inc. issued 10000 shares of $1 par value common stock at $10 per share. Mr. Smart the bookkeeper, recorded this transaction with a $100000 debit to cash and a $100000 credit to common stock. As a result of this entry____________
Canton Inc. issued 10000 shares of $1 par value common stock at $10 per share. Mr. Smart the bookkeeper, recorded this transaction with a $100000 debit to cash and a $100000 credit to common stock. As a result of this entry the Additional Paid-In Capital (APIC) will be understated that is option B is correct
Capital reserve is the difference between the face value of a stock and the price investors actually pay. APIC is typically generated when a company issues new shares and is decremented when the company or company buys back old shares. This is called a share buyback. This depends on the issue price of the shares, not the current market value. It is basically used as a reference to indicate that an investor is willing to buy a stock of value and therefore may agree to pay a higher value for the same stock. APIC is calculated using the following formula:
Additional Paid-in Capital Formula = (Issue Price – Par Value) x Number of Shares Outstanding.
Your question is incomplete, but most probably the full quetion was
Canton Inc. issued 10000 of $1 par value common stock at $10 per share. Mr. Smart, the bookkeeper, recorded this transaction with a $100,000 debit to Cash and a $100,000 credit to Common Stock. As a result of this entry: Multiple Choice
a. total assets will be overstated
b. Additional Paid-In Capital will be understated
c. total stockholders' equity will be understated
d. equity will be overstated.
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cash revenues from the sale of new cars at five star autos would be listed as a cash inflow from operations on five star's statement of cash flows.
Cash revenues from sale of the new cars at five star autos would be listed as payments for the annual premium insurance, payments for the rent office place and cash received from providing services.
What is Cash revenue?For any calculation date, "Cash Revenues" refers to the base rent and interest for all active leases, loans, notes, and direct financing receivables (and comparable revenue streams) as of that date, annualized based on contract rates in effect as of that calculation date. Cash Revenues refers to the consolidated cash revenues of the Purchaser, inclusive of cash revenues from March 1, 1999, to February 29, 2000, excluding trade dollar revenues, and includes any additional cash revenues to the Purchaser from any acquisitions of majority interest (whether for cash or shares in any entities during such period), including cash revenues from strategic alliances or joint ventures of Purchaser, provided that only any increase in cash.
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