Revenues are recognized in the period they are measurable and available for spending and expenditures are recognized when they create an obligation to be paid from current financial resources under the modified accrual basis.
The Modified Accrual basis is a method of accounting in which revenue is recognized when it is measurable and available for spending and expenditures are recorded when they create an obligation to be paid from current financial resources. This accounting method is used by state and local governments to prepare financial statements.
Generally Accepted Accounting Principles (GAAP) determine the accounting method to be used by governments. The modified accrual accounting basis is one of the two methods that GAAP permits governments to use in accounting for their financial transactions. The other is full accrual accounting.
The accounting standards of the Governmental Accounting Standards Board (GASB) provide guidance on the use of the modified accrual accounting basis.
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If a firm has a target debt equity ratio of 0.5, what is the firm's target capital structure weight for common stock?
State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE). 1. Unrecorded interest on savings bonds is $221. 2. Property taxes that have been incurred but that have not yet been paid or recorded amount to $342. 3. Legal fees of $1,140 were collected in advance. By year end 60 percent were still unearned. 4. Prepaid insurance had a $570 balance prior to adjustment. By year end, 40 percent was still unexpired. 5. Unpaid salaries earned by year end but not yet paid or recorded amounted to $984.
1. Situation 1: Unrecorded interest on savings bonds is $221.
This situation represents an accrued revenue (AR). Accrued revenue occurs when revenue has been earned but not yet recorded. In this case, the interest on savings bonds has been earned but not yet recorded. To record this accrued revenue, an adjusting entry will be made to recognize the revenue and increase the appropriate revenue account by $221.
2. Situation 2: Property taxes that have been incurred but not yet paid or recorded amount to $342.
This situation represents an accrued expense (AE). Accrued expenses occur when expenses have been incurred but not yet paid or recorded. In this case, the property taxes have been incurred but not yet paid or recorded. An adjusting entry will be made to recognize the expense and increase the appropriate expense account by $342.
3. Situation 3: Legal fees of $1,140 were collected in advance. By year-end, 60% were still unearned.
This situation represents unearned revenue (UR). Unearned revenue occurs when cash is received in advance for goods or services that have not yet been provided. In this case, legal fees of $1,140 were collected in advance, but by year-end, 60% of those fees were still unearned. To record this, an adjusting entry will be made to decrease the unearned revenue account by 40% of $1,140 and increase the appropriate revenue account by the same amount.
4. Situation 4: Prepaid insurance had a $570 balance prior to adjustment. By year-end, 40% was still unexpired.
This situation represents a prepaid expense (PE). Prepaid expenses occur when expenses are paid in advance and recorded as assets before they are used or consumed. In this case, prepaid insurance had a balance of $570 prior to adjustment, and by year-end, 40% of that amount was still unexpired. An adjusting entry will be made to decrease the prepaid insurance account by 60% of $570 and increase the appropriate expense account by the same amount.
5. Situation 5: Unpaid salaries earned by year-end but not yet paid or recorded amounted to $984.
This situation represents an accrued expense (AE). Accrued expenses occur when expenses have been incurred but not yet paid or recorded. In this case, the unpaid salaries have been earned by year-end but not yet paid or recorded. An adjusting entry will be made to recognize the expense and increase the appropriate expense account by $984.
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The slow growth of u.s. incomes during the 1970s and 1980s can best be explained by:______.
The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by a combination of factors.
One major factor was the decline in manufacturing jobs due to increased global competition and automation. This led to a decrease in well-paying jobs for workers with limited education and skills. Additionally, there was a shift in the economy towards service-based industries, which typically pay lower wages.
Another factor was the decline in labor unions, which historically played a role in negotiating higher wages and better working conditions for workers.
Lastly, there were changes in government policies, such as deregulation and tax cuts for the wealthy, which resulted in income inequality and a concentration of wealth at the top.
Overall, these factors contributed to the slow growth of U.S. incomes during that time period.
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From the previous video: At age 40 you deposit $150 at the end of each month into an IRA that pays 4% interest compounded monthly. In the previous question, we found that the value of the annuity at age 65 would be $77,119.43. How much interest did you earn
You earned $32,119.43 in interest over the 25-year period. To find the interest earned, we first calculated the initial amount deposited by multiplying the monthly deposit by the number of months.
From the information provided, we know that at age 40, you started depositing $150 at the end of each month into an IRA that pays 4% interest compounded monthly. By the time you reach age 65, the value of the annuity will be $77,119.43.
To find out how much interest you earned, we can subtract the initial amount deposited from the total value of the annuity. The initial amount deposited can be calculated by multiplying the monthly deposit ($150) by the number of months between age 40 and age 65 (25 years * 12 months/year = 300 months).
Initial amount deposited = $150 * 300 = $45,000
Now, we can subtract the initial amount deposited from the total value of the annuity to find the interest earned.
Interest earned = Total value of the annuity - Initial amount deposited
Interest earned = $77,119.43 - $45,000 = $32,119.43
Therefore, you earned $32,119.43 in interest over the 25-year period.
To find the interest earned, we first calculated the initial amount deposited by multiplying the monthly deposit by the number of months. Then, we subtracted the initial amount deposited from the total value of the annuity to find the interest earned.
You earned $32,119.43 in interest over the 25-year period.
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n inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets and equity, but also the next period's statements because multiple choice question. cost of goods sold of one period is the cost of goods sold in the next period. ending inventory of one period is the beginning inventory of the next period. beginning inventory of one period is the ending inventory of the next period. net purchases in one period is also the net purchases in the next period.
An inventory error can have significant impacts on various financial statements, both in the current year and in the next period. Here are the key points to understand:
1. Cost of goods sold (COGS): The COGS for one period is not directly affected by an inventory error. However, an error in the current year's COGS will impact the gross profit and net income for that period.
2. Ending inventory: The ending inventory of one period becomes the beginning inventory for the next period. So, if there is an error in the ending inventory of a particular period, it will carry over to affect the beginning inventory of the next period.
3. Beginning inventory: Similarly, the beginning inventory of one period is the ending inventory of the previous period. Any errors in the beginning inventory of a period will affect the ending inventory of the previous period.
4. Net purchases: The net purchases in one period represent the purchases made during that period after adjusting for any returns, allowances, or discounts. Generally, net purchases are not affected by an inventory error as they are calculated based on actual purchases made.
In summary, an inventory error can impact the current year's COGS, gross profit, net income, current assets, and equity. Additionally, it can have ripple effects on the next period's statements due to the interrelationships between ending and beginning inventory. However, it typically does not directly affect net purchases. It is crucial for businesses to accurately track and value their inventory to avoid misstatements in financial reporting.
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For purposes of calculating the cpi, the apparel category of consumer spending includes the cost of:________
For purposes of calculating the Consumer Price Index (CPI), the apparel category of consumer spending includes the cost of clothing and related items, such as shoes, accessories, and personal care products.
The CPI is used by governments, central banks, businesses, and individuals to monitor and adjust economic policies, track cost-of-living changes, determine wage increases, and make informed financial decisions. It is an important tool for understanding and analyzing price trends and the impact on purchasing power and living standards.
Additionally, the CPI is crucial for assessing inflation rates, which can have significant implications for interest rates and monetary policy. By monitoring changes in the CPI, policymakers can take appropriate measures to stabilize the economy and promote sustainable growth. Furthermore, the CPI serves as a benchmark for comparing the relative price levels of different regions or countries, aiding in international economic analysis and trade negotiations.
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william wells, a principal broker, listed parcel a under an exclusive listing agreement and listed parcel b under an exclusive right-to-sell agreement. both listings expired. three days later, without seeing each other's property beforehand, the two owners exchanged properties in a like-kind exchange. william will receive: select one: a. one commission b. two commissions c. no commission d. a split commission
William Wells will not receive a commission because both of the listings had expired.
In an exclusive listing agreement, the seller agrees to only work with the broker for a certain period of time. If the property does not sell during that time, the seller is not obligated to pay the broker a commission. In an exclusive right-to-sell agreement, the seller agrees to only allow the broker to sell the property, but the seller is not obligated to pay the broker a commission if the property sells through another means.In this case, both of the listings had expired, so William Wells is not entitled to a commission.The exchange is not considered a sale, so the broker is not entitled to a commission.
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Which corporate officer is responsible for accurate financial accounting of the firm's activities?
The Chief Financial Officer (CFO) is responsible for accurate financial accounting of a firm's activities.
The CFO holds the primary responsibility for overseeing and ensuring the accuracy of financial accounting within a company. They are accountable for maintaining proper financial records, preparing financial statements, and ensuring compliance with accounting principles and regulations. The CFO plays a crucial role in managing the financial health of the organization, making strategic financial decisions, and providing transparent and reliable financial information to stakeholders such as investors, shareholders, and regulatory bodies.
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what action would you take? please explain your rationale.if a decision is made to terminate garza, does she have legal recourse (i.e. a basis to fight the termination)? please explain your answer and include the probability of success if a case is filed.what human resource (hr) practices should be changed? why?
If a decision is made to terminate Garza, she may have legal recourse depending on the circumstances surrounding the termination. To determine if she has a basis to fight the termination, several factors need to be considered.
Review the employment contract or agreement: The first step is to carefully examine the terms of Garza's employment contract or agreement, if any. This will help determine if there are any clauses or provisions that outline the conditions for termination and the rights of the employee.
Overall, HR practices should be designed to foster a positive work environment, promote fairness, and comply with legal requirements. Regular evaluation and improvement of these practices are essential for maintaining a healthy and productive workplace.
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_______ bonds are characterized by interest payments that are required only when earnings are available.
The bonds that are characterized by interest payments that are required only when earnings are available are known as "income bonds." Income bonds are a type of corporate bond that pays interest only when the issuing company has sufficient earnings to cover the interest payment.
Income bonds are often used by companies that are not able to make regular interest payments, such as those going through financial difficulties or reorganization. By structuring the bond in this way, the company has more flexibility in managing its cash flow and can prioritize other financial obligations.
For example, let's say Company A issues income bonds to raise capital for a new project. The terms of the bonds state that interest payments will only be made if the company's earnings exceed a certain threshold. If the company does not meet this threshold, no interest payments will be made to the bondholders.
In summary, income bonds are characterized by interest payments that are required only when earnings are available. They provide companies with more flexibility in managing their cash flow and can be appealing to investors looking for higher returns.
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Mike is an HR manager at Apple. With reference to the Hofstede's framework, USA is one of the most individualistic countries. Thus, he adopts ___________ plan in order to better motivate employees in the US.
Based on the information you provided, Mike, an HR manager at Apple, would adopt an individualistic plan in order to better motivate employees in the US, according to Hofstede's framework.
In a highly individualistic country like the USA, people tend to prioritize their personal goals and achievements over the collective goals of the group. They value individual freedom, autonomy, and independence. To motivate employees in such a cultural context, Mike could consider implementing the following strategies:
1. Individual recognition: Recognize and reward employees for their individual accomplishments and contributions. This can boost their motivation and sense of achievement.
2. Performance-based incentives: Provide incentives and bonuses based on individual performance, such as sales targets or project completion. This can drive employees to strive for personal excellence.
3. Personal growth opportunities: Offer training and development programs that cater to individual needs and aspirations. This allows employees to enhance their skills and pursue their personal career goals.
4. Clear goals and autonomy: Set clear individual goals and empower employees with decision-making authority. This gives them a sense of ownership and control over their work.
5. Flexible work arrangements: Provide flexibility in terms of work hours and remote work options. This recognizes and respects individual needs and work-life balance.
By adopting an individualistic plan, Mike can better align employee motivation with the cultural values and preferences in the US, ultimately leading to improved engagement and performance.
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Question Content AreaFranklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is
we add the cash interest payment ($4,900) to the amortization amount ($440) to find the bond interest expense to be recognized on July 1: $4,900 + $440 = $5,340.
The bond interest expense to be recognized on July 1 can be calculated using the straight-line method of amortization of bond premium.
First, let's find the premium amount by subtracting the face value of the bonds from the amount received from issuing the bonds: $102,400 - $98,000 = $4,400.
Since the bonds have a 5-year term and interest is paid semiannually, there are 10 interest periods (5 years x 2).
Next, divide the premium amount by the number of interest periods to find the amortization amount per period: $4,400 / 10 = $440.
Now, we can calculate the bond interest expense to be recognized on July 1. The interest expense for each interest period is the sum of the cash interest payment and the amortization amount.
Since the bonds have a 10% interest rate and a face value of $98,000, the semiannual interest payment is $98,000 x 10% x 6/12 = $4,900.
Therefore, the bond interest expense to be recognized on July 1 is $4,900 + $440 = $5,340.
ANSWER MORE THAN 100 WORDS:
In this question, Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. The bonds pay interest semiannually on January 1 and July 1. To calculate the bond interest expense to be recognized on July 1, we need to use the straight-line method of amortization of bond premium.
First, we calculate the premium amount by subtracting the face value of the bonds ($98,000) from the amount received from issuing the bonds ($102,400). The premium amount is $4,400.
Since the bonds have a 5-year term and interest is paid semiannually, there are 10 interest periods (5 years x 2).
Next, we divide the premium amount by the number of interest periods to find the amortization amount per period. The amortization amount is $4,400 / 10 = $440.
To find the bond interest expense to be recognized on July 1, we add the cash interest payment to the amortization amount. The cash interest payment for each interest period is calculated as the face value of the bonds ($98,000) multiplied by the interest rate (10%) multiplied by the fraction of the year (6/12) since interest is paid semiannually. The semiannual interest payment is $98,000 x 10% x 6/12 = $4,900.
Finally, we add the cash interest payment ($4,900) to the amortization amount ($440) to find the bond interest expense to be recognized on July 1: $4,900 + $440 = $5,340.
In conclusion, the bond interest expense to be recognized on July 1 is $5,340.
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A cost or benefit of an economic activity that has an impact on an individual's well-being, even though the individual was not directly involved in the activity, is known as a(n)?
In conclusion, an externality is a cost or benefit that affects the well-being of individuals or society, even if they are not directly involved in the economic activity. It is important to consider these externalities when making economic decisions to ensure a more accurate assessment of costs and benefits.
A cost or benefit of an economic activity that has an impact on an individual's well-being, even though the individual was not directly involved in the activity, is known as an externality.
Externality refers to the spillover effects of economic activities on third parties who are not directly involved in the transaction. These effects can be positive or negative and can affect the well-being of individuals or society as a whole.
For example, if a factory pollutes the air and causes respiratory problems for nearby residents, this is a negative externality. The residents bear the cost of the pollution, even though they are not directly involved in the factory's production process.
On the other hand, if a homeowner installs solar panels and generates clean energy, this creates a positive externality. The neighbors benefit from reduced pollution and improved air quality, even though they did not invest in the solar panels themselves.
In conclusion, an externality is a cost or benefit that affects the well-being of individuals or society, even if they are not directly involved in the economic activity. It is important to consider these externalities when making economic decisions to ensure a more accurate assessment of costs and benefits.
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the marketing department at your company has promised your customers that the next software release will show a 2.1-fold performance improvement. you have been assigned the task of delivering on that promise. you have determined that only 70.0% of the system can be improved. how much (i.e., what value of k) would you need to improve this part to meet the overall performance target?you can enter a mathematical expression or a single value.
To meet the overall performance target of a 2.1-fold improvement, considering that only 70.0% of the system can be improved, the value of k, representing the part that needs improvement, can be calculated.
The equation for the performance improvement is given by:
Overall Improvement = (1 - k) + (k * Improvement Factor)
Here, the Improvement Factor is 2.1, and the given percentage of the system that can be improved is 70.0%. To calculate k, we can rearrange the equation:
2.1 = (1 - 0.7) + (0.7 * k)
Simplifying the equation:
2.1 = 0.3 + 0.7k
Subtracting 0.3 from both sides:
1.8 = 0.7k
Dividing both sides by 0.7:
k ≈ 2.57
Therefore, to meet the overall performance target of a 2.1-fold improvement, you would need to improve approximately 2.57 (or 257%) of the part that can be improved.
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began working on a two-year fixed price contract project. recognized revenue over time according to percentage of completion for this contract, and provides the following information what were the construction billings by
The construction billings for a two-year fixed price contract project can be recognized over time according to the percentage of completion method. To determine the construction billings, you need the following information:
Total contract value: This is the agreed-upon price for the entire project.
Percentage of completion: This represents the progress made on the project and is usually measured by comparing the costs incurred to date with the estimated total costs. Calculate the total revenue recognized based on the percentage of completion. Multiply the total contract value by the percentage of completion. Subtract the revenue recognized from any billings previously made.
This will give you the revenue recognized during the current period. Compare the revenue recognized during the current period with the revenue recognized in previous periods. the construction billings for a two-year fixed price contract project can be determined by calculating the total revenue recognized based on the percentage of completion and considering any billings made previously.
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The market consisting of all the world's currencies that are banked outside their countries of origin is called the?
The market consisting of all the world's currencies that are banked outside their countries of origin is called the foreign exchange market. The offshore market refers to the trading and exchange of currencies that takes place outside the domestic boundaries of a particular currency. It involves transactions conducted by non-resident entities and individuals who hold and trade foreign currencies outside their home countries. These offshore markets exist to facilitate international financial transactions, currency trading, and investments across borders.
Offshore markets often emerge due to various factors, including capital flow restrictions, tax advantages, regulatory differences, and market demand. They provide opportunities for participants to engage in foreign currency trading, offshore banking, and other financial activities. Major offshore currency markets include locations such as London, New York, Singapore, Hong Kong, and Switzerland. These markets play a significant role in global finance, serving as hubs for currency trading, foreign investments, and international financial services. It's worth noting that the term "offshore market" is also used in broader contexts beyond currency markets, referring to activities conducted in jurisdictions with lower tax or regulatory requirements. In the specific context of currencies held outside their countries of origin, the offshore market primarily relates to foreign exchange and currency trading activities.
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Consider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes any taxes.
1. The equilibrium price and quantity of commercial fans before the government imposes any taxes are $50 and 800 units, respectively.
In the graph, the demand curve intersects the supply curve at the point where the quantity demanded equals the quantity supplied. At this equilibrium point, the price is $50 and the quantity is 800 units. This is the market-clearing price and quantity in the absence of taxes.
Before the government imposes any taxes, the market for commercial fans reaches equilibrium at a price of $50 and a quantity of 800 units. This indicates that buyers are willing to purchase 800 units of commercial fans at a price of $50, while sellers are willing to supply 800 units at the same price.
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Under the cost-plus reimbursement standard, hospitals had little incentive to lower costs. true false
True. Under the cost-plus reimbursement standard, hospitals had little motivation to reduce costs since higher costs resulted in higher reimbursement and potential profits.
Under the cost-plus reimbursement standard, hospitals were reimbursed for their costs incurred in providing healthcare services, along with an additional percentage as profit. This reimbursement method created a situation where hospitals had little incentive to lower costs. The more they spent on costs, the higher their reimbursement would be, leading to a potential increase in profits. This system created a lack of financial incentive for hospitals to implement cost-saving measures or improve efficiency in their operations. As a result, hospitals may have been less motivated to control expenses or find ways to streamline processes. This reimbursement approach has been criticized for contributing to the rising healthcare costs and inefficiencies in the healthcare system. In recent years, alternative reimbursement models that focus on value-based care and outcomes have been introduced to address these issues and encourage cost-containment efforts.
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Colter Steel has $5,250,000 in assets.
Temporary current assets $ 2,500,000
Permanent current assets 1,575,000
Fixed assets 1,175,000
Total assets $ 5,250,000
Short-term rates are 9 percent. Long-term rates are 14 percent. Earnings before interest and taxes are $1,110,000. The tax rate is 40 percent.
If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?
The earnings after taxes will be $444,000 as per the information provided.
The tax rate is given as 40%.
Earnings after taxes can be calculated by using the formula below;
Earnings after taxes = Earnings before taxes (1 – Tax rate
)Putting the given values;
Earnings after taxes = $1,110,000 (1 – 0.4)
Earnings after taxes = $1,110,000 (0.6)
Earnings after taxes = $666,000
If long-term financing is perfectly matched with long-term asset needs, and the same is true of short-term financing, the current assets are divided into two categories: permanent current assets and temporary current assets.
Permanent current assets are the minimum level of current assets required to conduct business activities on a daily basis. As a result, permanent current assets are financed with long-term capital. On the other hand, temporary current assets are the additional working capital required to support the company's seasonal requirements. As a result, temporary current assets are financed with short-term funds
.Now, we can find out the current assets financed by short-term financing;= Permanent current assets + (Temporary current assets - Excess short-term financing)
= $1,575,000 + ($2,500,000 - Excess short-term financing)
Also, Total current liabilities (TCL) = $ Excess short-term financing= $TCL = $1,575,000 + ($2,500,000 - $)
Current Ratio (CR) = Total current assets (TCA) / Total current liabilities (TCL)
Where,TCA = Permanent current assets + Excess short-term financing + Fixed assets= $1,575,000 + $ + $1,175,000= $2,750,000CR = $2,750,000 / TCL
CR = TCA / TCL= 2 / 1Therefore, the earnings after taxes will be $444,000.
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An important cause of recessions is an unexpected negative supply shift, such as higher oil prices.
a. true
b. false
The statement "An important cause of recessions is an unexpected negative supply shift, such as higher oil prices" is true.
During an economic recession, there is a significant decline in economic activity, leading to a decrease in the production and consumption of goods and services.
One of the causes of recessions is an unexpected negative supply shift, which refers to a sudden decrease in the availability or increase in the cost of resources needed for production.
Higher oil prices can be a specific example of a negative supply shift.
When oil prices rise, it affects various sectors of the economy.
Transportation costs increase, making it more expensive to deliver goods and services.
This can lead to higher prices for consumers, resulting in a decrease in their purchasing power.
Industries that heavily rely on oil, such as manufacturing, may face higher production costs, leading to reduced output and potential job losses.
This negative supply shock can disrupt the overall economic equilibrium, leading to a contraction in economic activity and potentially causing a recession.
In summary, an unexpected negative supply shift, such as higher oil prices, can be a significant cause of recessions.
It impacts various sectors of the economy, affecting production costs, consumer prices, and overall economic activity.
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Tamarisk, Inc. has current assets of $1990000 and current liabilities of $640000. If they issue $141000 of new stock, what will their new current ratio be
This means that for every dollar of current liabilities, Tamarisk, Inc. will have $3.33 of current assets, indicating a relatively healthy liquidity position.
To calculate the new current ratio of Tamarisk, Inc., we need to determine their new current assets and current liabilities after issuing $141,000 of new stock.
The current ratio is calculated by dividing current assets by current liabilities.
Tamarisk, Inc. currently has current assets of $1,990,000 and current liabilities of $640,000.
After issuing $141,000 of new stock, the new current assets will be
$1,990,000 + $141,000 = $2,131,000.
The current liabilities will remain the same at $640,000.
To find the new current ratio, we divide the new current assets by the current liabilities:
New current ratio = $2,131,000 / $640,000 = 3.33 (rounded to two decimal places).
Therefore, the new current ratio of Tamarisk, Inc. will be 3.33.
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Ceteris paribus, when the short-run aggregate supply curve is upward sloping, a beneficial (positive) supply shock: __________. a. increases aggregate demand which leads to a new equilibrium at a higher level of output, a lower unemployment rate, and a higher price level. b. increases short-run aggregate supply which leads to a new equilibrium at a higher level of output, a lower unemployment rate, and a lower price level. c. decreases aggregate demand which leads to a new equilibrium at a lower level of output, a higher unemployment rate, and a lower price level. d. decreases short-run aggregate supply which leads to a new equilibrium at a higher level of output, a lower
b. increases short-run aggregate supply which leads to a new equilibrium at a higher level of output, a lower unemployment rate, and a lower price level.
When the short-run aggregate supply curve is upward-sloping, a beneficial supply shock will increase the short-run aggregate supply (SRAS). This means that at any given price level, producers are able and willing to supply a larger quantity of goods and services.
As a result, the new equilibrium will occur at a higher level of output because the increase in SRAS allows for more production. The increase in output leads to a lower unemployment rate as more workers are needed to meet the higher level of production.
However, the beneficial supply shock also leads to a lower price level. With the increase in supply, the market becomes more competitive, and producers may lower their prices to attract consumers. This decrease in the price level is consistent with the downward sloping aggregate demand curve, where a higher level of output corresponds to a lower price level.
In conclusion, a beneficial supply shock, when the short-run aggregate supply curve is upward sloping, leads to a new equilibrium with higher output, lower unemployment, and a lower price level.
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Government ________ is an obstacle to change and economic efficiency in many parts of Sub-Saharan Africa and has a negative impact on social and economic development, as well as on the environment and resource management.
The blank is "corruption" Government corruption is an obstacle to change and economic efficiency in many parts of Sub-Saharan Africa and has a negative impact on social and economic development, as well as on the environment and resource management.
Corruption means the misuse of public power, property or assets by a public official for personal gain. Corruption in the government systems undermines democratic principles, slows down economic growth, and destabilizes security, among other things.
The corruption index for African countries is high According to Transparency International, Sub-Saharan Africa is the world's most corrupt area. This level of corruption has an impact on the overall growth of the countries in the region and the wellbeing of their citizens.
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what types of information does managerial accounting provide? (check all that apply.) multiple select question. financial non-financial information for external decision makers information for managers
In summary, managerial accounting provides both financial and non-financial information for both external decision makers and managers within an organization. This information is vital for effective decision-making, planning, and control.
Managerial accounting provides various types of information that are essential for decision-making and control within an organization. Here are the types of information that managerial accounting provides:
1. Financial information: Managerial accounting provides financial data that helps managers make informed decisions. This includes information about revenues, costs, profits, and financial ratios. For example, it can provide data on the profitability of different products or services, helping managers identify areas of improvement.
2. Non-financial information: Managerial accounting also provides non-financial information that is crucial for decision-making. This includes data on customer satisfaction, employee productivity, market trends, and product quality. For instance, it can provide information on customer feedback, enabling managers to identify areas where customer satisfaction can be improved.
3. Information for external decision makers: Managerial accounting can provide information that is relevant for external decision makers, such as investors, creditors, and regulatory bodies. This includes financial statements like balance sheets, income statements, and cash flow statements. These statements provide a comprehensive view of a company's financial performance and its ability to meet its obligations.
4. Information for managers: As the name suggests, managerial accounting primarily provides information for managers within an organization. This includes detailed reports and analyses that assist managers in planning, controlling, and evaluating the performance of different business units or departments. For example, it can provide budget reports, variance analyses, and performance metrics.
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dmitri is self-employed and reports all of his business-related income and expenses on his personal tax return. this is an example of: quizlet
Dmitri reporting all of his business-related income and expenses on his personal tax return is an example of a self-employed individual filing taxes as a sole proprietorship.
When someone is self-employed, they have the option to operate their business as a sole proprietorship. This means that they are not forming a separate legal entity for their business, but rather they are conducting business activities as an individual. In this case, Dmitri is reporting his business income and expenses directly on his personal tax return.
When reporting income as a sole proprietor, Dmitri would include his business-related income on a specific section of his personal tax return, such as Schedule C (Profit or Loss from Business). This income would be combined with any other personal income he has earned throughout the year.
Additionally, Dmitri can deduct his business-related expenses, such as supplies, equipment, and advertising costs, from his business income on his personal tax return. These deductions help reduce the overall taxable income and can result in a lower tax liability for Dmitri.
Reporting business-related income and expenses on a personal tax return is a common practice for self-employed individuals operating as sole proprietors. It allows them to fulfill their tax obligations while simplifying the reporting process by integrating business activities with their personal finances.
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Erica is 35 years old and own an IRA. At what age can she begin to receive distributions without a tax penalty?
Erica can begin to receive distributions without a tax penalty from the Traditional IRA at the age of 59½ and from the Roth IRA at the age of 59½, provided she has had the account for at least five years.
Erica is 35 years old and owns an Individual Retirement Account (IRA).
The IRA is a great retirement savings tool that offers significant tax benefits.
Many people have this question in mind about what age they can begin to receive distributions without a tax penalty.
The age at which Erica can begin to receive distributions from the IRA without a tax penalty depends on the type of IRA she has.
There are two types of IRAs, Traditional IRA and Roth IRA.
The age at which Erica can begin to receive distributions without a tax penalty is different for each type of IRA.
Let's discuss both types of IRAs and the age at which Erica can begin to receive distributions without a tax penalty.
Traditional IRA
Erica can begin to receive distributions from the Traditional IRA without a tax penalty at the age of 59½.
If she withdraws money from the Traditional IRA before the age of 59½, she will have to pay a 10% early withdrawal penalty, and the withdrawn amount will be added to her taxable income.
The withdrawn amount will also be subject to federal and state income tax.
Roth IRA
Erica can begin to receive distributions from the Roth IRA without a tax penalty if she has had the account for at least five years, and she is either 59½ years old, disabled, or dead.
If Erica withdraws money from the Roth IRA before the age of 59½ and the account is less than five years old, she will have to pay a 10% early withdrawal penalty.
The withdrawn amount will be added to her taxable income, but it will not be subject to federal and state income tax.
Erica can begin to receive distributions without a tax penalty from the Traditional IRA at the age of 59½ and from the Roth IRA at the age of 59½, provided she has had the account for at least five years.
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Ricky is in a consumer equilibrium. given the prices of goods, ricky has allocated all his income such that his marginal utility per dollar spent is __________ for __________ goods.
The marginal utility per dollar spent is equal for both goods in consumer equilibrium.
In consumer equilibrium, Ricky allocates his income in a way that maximizes his satisfaction or utility. The concept of marginal utility per dollar spent helps determine how Ricky achieves this equilibrium.
To determine the marginal utility per dollar spent for goods, we need to compare the ratio of the marginal utility of each good to its price. The marginal utility is the additional satisfaction gained from consuming one more unit of a good.
Let's assume Ricky consumes two goods, Good A and Good B. We'll denote the marginal utility of Good A as MUa and the marginal utility of Good B as MUb. The prices of Good A and Good B are Pa and Pb, respectively.
To achieve consumer equilibrium, Ricky would allocate his income in a way that maximizes the marginal utility per dollar spent. This means Ricky should spend his money on Good A and Good B in a way that MUa / Pa = MUb / Pb.
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For maya, the opportunity cost of producing one unit of good x is ___________ unit(s) of good y.
The opportunity cost of producing one unit of good X for Maya is a certain number of units of good Y. The specific value of this opportunity cost depends on factors such as production capabilities, resource availability, and the trade-off relationship between goods X and Y.
The concept of opportunity cost refers to the value of the next best alternative that is forgone when choosing one option over another. In this case, Maya is faced with a decision regarding the production of goods X and Y. The opportunity cost of producing one unit of good X represents the number of units of good Y that Maya must give up in order to allocate resources to the production of good X.
To determine the specific value of the opportunity cost, more information is needed, such as the production capabilities, resource availability, and the trade-off relationship between goods X and Y. The opportunity cost will depend on the relative efficiency and productivity of Maya's production processes for goods X and Y.
For example, if Maya can produce one unit of good X at a lower cost in terms of resources, time, or effort compared to producing one unit of good Y, the opportunity cost of producing one unit of good X would be lower than one unit of good Y. On the other hand, if producing one unit of good X requires more resources or effort compared to producing one unit of good Y, the opportunity cost would be higher.
To determine the specific numerical value of the opportunity cost, it is necessary to analyze the production capabilities and trade-offs within Maya's specific context.
The opportunity cost of producing one unit of good X for Maya represents the number of units of good Y that Maya must forgo. Further analysis is required to determine the precise numerical value of the opportunity cost in Maya's situation.
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according to the law of comparative advantage, when one country sells goods for which it has the comparative advantage in production and buys goods for which it does not have the comparative advantage in production
According to the law of comparative advantage, a country should specialize in producing goods that it can produce more efficiently compared to other countries.
This means that it should sell those goods for which it has a comparative advantage in production. On the other hand, the country should buy goods for which it does not have a comparative advantage in production.
By doing so, both countries can benefit from trade and maximize their overall production and consumption. This allows countries to allocate their resources more efficiently and ultimately leads to economic growth and higher living standards.
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Average total cost equals Group of answer choices the change in total cost divided by the change in output. total cost minus total variable cost. total fixed cost divided by output. average fixed cost plus average variable cost. average fixed cost plus average variable cost plus marginal cost.
The formula for calculating average total cost is the change in total cost divided by the change in output.
In other words, average total cost is equal to the total cost divided by the output. This formula helps us understand the average cost of producing each unit of output. To calculate the average total cost, we need to find the change in total cost and the change in output. Then, we divide the change in total cost by the change in output to find the average total cost.
The formula for calculating average total cost is:
ATC = Total Cost / Quantity of Output
Total cost includes all the costs incurred by a business in the production process, including both fixed costs and variable costs. Fixed costs are expenses that do not vary with the level of production, such as rent, salaries of permanent employees, and depreciation of equipment. Variable costs, on the other hand, are expenses that change with the level of production, such as raw materials, direct labor, and utilities.
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Average total cost is calculated by dividing total cost by total output at each level of output. Average variable cost is calculated by dividing variable cost by total output at each level of output. Marginal cost is the additional cost of producing one more unit of output.
Explanation:Average total cost is calculated by dividing total cost by total output at each level of output. Average costs are typically U-shaped on a graph. If a firm's average cost of production is lower than the market price, a firm will be earning profits. Average variable cost, on the other hand, is calculated by dividing variable cost by total output at each level of output.
Average variable costs are typically U-shaped as well. If a firm's average variable cost of production is lower than the market price, the firm would be earning profits if fixed costs are disregarded. Marginal cost, in contrast, is the additional cost of producing one more unit of output. It is calculated by dividing the change in total cost by the change in quantity. Marginal cost curve is generally upward-sloping due to diminishing marginal returns.
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