The statement that is the best explanation for why B2B firms sometimes choose to retain a focus on their co product is: B. Any move a B2B firm makes beyond its core capability or technology can have an adverse effect on its ability to reach the markets it is trying to serve, its skills in executing effectively, its ability to create and deliver offerings across all of its markets, its ability to work effectively with its collaborators, and/or its ability to thrive against competition.
What is B2B?B2B which full meaning is business to business can be defined as a form of business transaction that is carried out between two business owners.
Example of business to business transaction is when a business owner sells it goods or product to another business owners rather to an individual.
Therefore the correct option is B.
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The 2013 budget for the Federal Bureau of Investigations exceeded _____.
Choose matching definition
O DNA analysis and identification biometric analysis evidence collection and preservation fingerprint analysis and identification
O Canada and Mexico
O $8 billion
O False
The 2013 budget for the Federal Bureau of Investigations exceeded $ billion. The correct answer to the question above is $ 8 Billion.
The sentence were talking about the budget for the Federal Bureau Of Investigation so the correct definition to complete the sentence is something that has a correlation with money or numbers.
the other choices like "Canada and Mexico" is talking about places so it's not the right answer and the other one is talking about DNA analysis it has no correlation to the sentence.
So the correct answer is $8 billion. it shows that the budget for the Federal Bureau of Investigation surpassed $8 billion.
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in june, reed hospital purchased medicines from park pharmaceutical co. at a cost of $1,000. however, park notified reed that the invoice was being canceled and that the medicines were being donated to reed. reed should record this donation of medicines as
A $1,000 decrease in Accounts Payable and a $1,000 increase in the charitable contributions expense account on its books. The donation should also be disclosed in the notes to the financial statements, which provide additional information about the financial condition and results of operations of a company.
What is donation?A donation is a gift of cash, property, or goods given by an individual, group, or company to a charity, nonprofit foundation, or other cause. Donations can be made for a wide range of reasons, such as tax incentives, religious values, or support of a specific ideology.
A donation is represented in accounting as a reduction in the assets of the giver and an increase in the assets of the receiver. When a firm or individual makes a donation, it is often noted as a decrease in cash or accrued expenses and an increase in the accrual basis for donations to charity. The donation is recorded for the recipient organization as an increase in their assets, such as cash, and a proportional rise in their unconstrained net assets.
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refers to the strategy of getting visitors to a website to forward information on the site of their friends in order to make more consumers aware of a product. question 2 options: a. viral marketing b. foot-in-door marketing
c. demand-based marketing d. guerrilla marketing
Option a is Correct. Refers to a marketing tactic used to increase the visibility of a product by encouraging website visitors to share content on the sites of their friends. This type of marketing is viral.
What does the tactic use to encourage website visitors to share information mean?Viral marketing is the tactic used to persuade website users to share content with their friends in order to spread the word about the product to even more potential customers.
The tool will enable you to gather useful information about your website and audience, such as their age, location, and the particular devices (such as mobile, desktop, etc.) they are using to access it.
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If a country experiences hyperinflation, then its price level should go up by a multiple of about _____ times in one year 100
Hyperinflation occurs when there is an extremely rapid and out-of-control increase in prices. In extreme cases, prices can double multiple times in one year, leading to a multiple of 100 times or more.
If a country experiences hyperinflation, then its price level should go up by a multiple of about 100 times in one year.HyperinflationHyperinflation is an economic phenomenon characterized by a drastic and out-of-control increase in prices. It is usually caused by an oversupply of money and inadequate control over the money supply. When a country experiences hyperinflation, prices can double multiple times in one year, leading to a multiple of 100 times or more in a single year. This means that if the price level was X at the beginning of the year, at the end of the year it would be 100X, representing a drastic increase in prices.
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how do you find the demonator of the equivalent units of production
To simply calculate equivalent units, you can multiply the number of physical items by the percentage of the work done on them.
What is the meaning of equivalent units?Equivalent units quantify the amount of labor put into a set quantity of tangible objects. You can simply multiply the number of physical goods by the amount of effort done on them to determine equivalent units. You would have one comparable unit for two objects that are 50% complete.
A manufacturer's work on output units that are only partially finished at the conclusion of an accounting period is expressed as an equivalent unit of production. In essence, completely completed units are used to indicate both fully completed units and partially completed units.
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Problem: Typically, the late spring and summer months are the most popular times for personal travel. For the last five years, the top sales months have been April-August. This year, however, sales did not increase during these months. For the first time in five years, Quest annual sales are declining—they now expect to make less this year than last year.
Answer:
It appears that the typical pattern of increased sales during the late spring and summer months has not been followed this year, resulting in a decline in Quest's annual sales compared to the previous year. Possible causes of this decline could be changes in the market, competition, or consumer preferences. It is important to analyze the data to identify the root cause of the decrease in sales and develop strategies to improve sales in the coming years.
which of the following is/are not part of the role of operations in a business? multiple select question. a. produce goods for customers b. promote organization's goods or service c. provide services for customers d. secure financial resources for projects
The correct option is D. Secure financial resources for projects is/are not part of the role of operations in a business.
The money and other resources used to finance an organization's operations and investments are known as financial resources. A firm can raise and use its financial resources in a variety of ways. To put it simply, financial resources are the funds that keep a business running.
In order to accomplish the objectives of the company, every organization will have a framework or procedure in place for organizing, directing, regulating, and monitoring its financial resources and operations. Financial resource management (FRM) or financial management is the term used to describe this. The phrase "financial resources" refers to all the organization's financial resources. Financial resources are a component of the organization's assets from an economic standpoint (property).
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Which of the following taxes are commonly assessed by state and/or local governments? (Check all that apply.) Property tax. Sales tax. Income tax.
Option 1 is Correct. State and/or local governments frequently impose property tax assessments.
What forms of taxes are levied by municipal and state governments?Taxes on income, sales, and property are the three main tax revenue streams for state and local governments. While property taxes are the main source of funding for local governments, including school districts, income and sales taxes provide for the majority of state tax revenue.
Local taxes can take on a variety of shapes, including property taxes, payroll taxes, sales taxes, and license fees. They can differ significantly between jurisdictions. Municipal taxes are another name for the taxes imposed by cities and towns.
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Correct Question:
Which of the following taxes are commonly assessed by state and/or local governments? (Check all that apply.)
1. Property tax.
2. Sales tax.
3. Income tax.
at the beginning of the year, paid-in capital was $82 and retained earnings was $47. during the year, the stockholders invested $24 and dividends of $6 were declared and paid. retained earnings at the end of the year were $52. total stockholders' equity at the end of the year was:
Total shareholders equity at the end of the period is $158.
Shareholders equity Capital Retained earnings Total share
Beginning Balance 82 24 129
Stock holders Investment 24
Net Income 11 11
Dividend Pay 6 6
Ending Balance 106 52 158
Net income = (ending retained earnings + division paid) - beginning retained earning
Net income = (52 + 6) - 47 = $11
Total shareholders equity at the end of the period is $158.
Net income is find by using the above equation.
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a life insurance guaranteed insurability rider gives the insurer the right without proving insurability
No, a life insurance guaranteed insurability rider does not give the insurer the right without proving insurability.
What is insurance?Insurance is a form of risk management that involves the transfer of risk from an individual, business or other entity to an insurance company for a fee. The insurance company then assumes the risk and pays out a predetermined sum in the event of a loss. Insurance can be used to protect individuals and businesses from financial losses arising from a variety of risks, such as death, disability, property damage and liability.
It gives the policyholder the right to increase his or her life insurance policy at certain times without having to prove insurability. The insurer reserves the right to review the policyholder's health and financial situation to determine if they are eligible for the increase.
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how were legislatures under tight democratic control held accountable to the public?
Various mechanisms are used to hold legislatures subject to strict democratic supervision responsible to the public, including: Elections held on a regular basis ,Communications with constituents,Transparency and disclosure legislation,Media scrutiny,Public protest and advocacy.
"The Government of the People, By the People, and For the People" is the definition of democracy. It is the only type of government where the administration reflects the wishes of the people. In other types of government, such monarchy and oligarchy, all the power is concentrated in the hands of a single person or small group of people who run the country against the will of the people. Even if those forms of government serve the interests of the people, people cannot be content living in them since they have no relationship to the leadership. In a democracy, the people are connected to the government, but obviously not all of them can participate in the conduct of government.
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question mode multiple select question select all that apply which of the following are included in cash flow from investing activities? multiple select question. retirement of long-term debt depreciation sales of fixed assets
The following activities that included in cash flow from investing activities are:
Sale of equipmentSale of buildingSale of investmentsIn economic and business, Cash flow generally can be defined as the net balance of cash moving into and out of a business at a specific point in time. In general, as an aspect of financial accounting, Cash is constantly moving into and out of a business. There are several example of cash flow, such as when a retailer purchases inventory, money flows out of the business toward its suppliers.
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Which of the following statements is NOT true of a market economy?
Question 9 options:
The government may supply some goods or services.
The individual makes his or her own economic decisions.
The economy is defined by a freedom of choice for both buyers and sellers.
The system encourages private ownership of resources.
The pricing of goods is determined by what sellers wish to charge and buyers wish to pay.
The government may supply some goods or services is NOT true of a market economy. Thus, option A is correct.
What is a market economy?In a market economy, the majority of the goods are owned by people rather than the government. This pertains to labor, capital, and territory. In a free market, people regulate the usage and cost of such resources by their free choices in the market.
It is NOT true in a free market that the government provides all the services and goods. As they may be the ones that will be changing some rules and policies to aid the people. There can be some change in the interest rates that will aid the market. Therefore, option A is the correct option.
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In Exhibit 14, if there is a shortage of video games of 200 units, the current price of video games must be e. $40.
In Exhibit 14, if there is a shortage of video games of 200 units, the current price of video games must be $40, is the true statement.
What is the current price?The most recent price at which a security was sold on an exchange is the current price. For buyers and sellers, the current price acts as a benchmark. Present pricing is a good reflection of current worth, but depending on supply and demand, the actual price of the next sale could be greater or lower.
Current prices are those that are listed at a specific time and are considered to be in nominal value. Constant prices are expressed in real value, which has been adjusted for changes in prices relative to a reference point or base line.
Thus, it is the true statement.
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Based upon its advertising slogan, the pizza restaurant that likely offers the best value proposition to its customers is A) Johnny's Pie Shop: "The Tastiest Pizza You've Ever Had." B) Fast n'Fresh Pizza: "Get fresh, hot pizza, delivered under 20 minutes—or it's free." C)Sustainable Slices: "Organic and sustainably sourced ingredients that are good for you and the planet." D)Loyalty Pizza: "One pizza, 5 points: to be redeemed with a pan pizza upon reaching 50 points." E)Crackerjack Pizza: "Open your pizza box and find a free gift. Hurry! Free gifts for 100 lucky customers." B
Fast n'Fresh Pizza offers great value with a promise of fresh, hot pizza delivered in 20 minutes or less, for free.
Option B. Fast n'Fresh Pizza: "Get fresh, hot pizza, delivered under 20 minutes—or it's free."Enjoy Fresh and Hot Pizza Delivered in 20 Minutes or Less—FreeOption B, Fast n'Fresh Pizza, offers the best value proposition to its customers. The restaurant's slogan, "Get fresh, hot pizza, delivered under 20 minutes—or it's free," promises customers fresh, hot pizza delivered in a timely manner, or they will receive their order for free. This kind of promise is sure to draw in customers, as they know they will be getting the freshest pizza possible, and that they won't have to wait too long for it. Additionally, the free pizza offer is a great incentive for customers to choose Fast n'Fresh Pizza.
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Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $100 million of 8% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $82 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $90 million.
Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?
5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?
1. On January 1, 2018, the journal entry would involve a debit to Long-term investments for $82 million and a credit to Cash for $82 million.
2. On June 30, 2018, the journal entry would involve a debit to Interest revenue for $4.8 million and a credit to Interest Payable for $4.8 million.
3. On December 31, 2018, the journal entry would involve a debit to Interest revenue for $4.8 million and a credit to Interest Payable for $4.8 million.
4. Fuzzy Monkey will report its investment on December 31, 2018, balance sheet of $90 million.
5. Fuzzy Monkey's 2018 statement of cash flows will be affected by this investment as it will show an increase in cash flows from investing activities of $18 million, reflecting the difference between the purchase price of $82 million and the fair value of $90 million at the end of the year.
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the development of any cooperative in nueva vizcaya using the concept of od process inspection
The development of a cooperative in Nueva Vizcaya using the concept of OD (Organizational Development) process inspection involves the following steps:
AssessmentPlanningImplementationMonitoring and EvaluationContinuous ImprovementWhat is the development about?Assessment: A thorough assessment of the current situation and structure of the cooperative, including its mission, vision, goals, and objectives, needs to be carried out to identify areas for improvement.
Planning: Based on the assessment, a plan needs to be created to address the identified areas for improvement, which includes setting objectives, determining the resources needed, and outlining a timeline for the process inspection.
Implementation: The OD process inspection is implemented, and the identified areas for improvement are addressed. This may involve training and development for the members, restructuring the organization, and implementing new systems and processes.
Monitoring and Evaluation: The progress of the OD process inspection is monitored and evaluated regularly to ensure that the objectives are being met and that the changes are having a positive impact on the cooperative.
Continuous Improvement: Based on the monitoring and evaluation, the cooperative can continue to make improvements to ensure that it remains competitive and continues to meet the needs of its members.
Therefore, By using the concept of OD process inspection, the cooperative in Nueva Vizcaya can improve its structure and processes, leading to greater efficiency, productivity, and success.
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What is perfect competition? Discuss how firms in perfect competition are price takers?
Answer: Perfect competition occurs when there are many sellers in market , and there is easy entry and exiting of firms , all sellers have identical products and companies cannot determine prices .
Explanation: Price takers : It is a individual or company that must accept prevailing prices in a market , lacking the market share to influence market price on its own .
All economic participants are considered to be price takers in a market of perfect competition .
A perfectly competitive firm is known as price takers because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market.
If a firm in a perfectly competitive market raises the price of its product by so much as a penny , it will lose all of its sales to competitors .
When a firm decreases the price of commodity , there will be a sharp increase in the demand which will be not met on time .
There is a negative profit in the long run for firms in perfect competition .
A purchaser went to the county clerk's office to check the records. She found that the seller was the grantee in the last recorded deed and that no mortgage was on record against the property. Thus, the purchaser may assume which of the following?
a. All taxes are paid, and no judgments are outstanding.
b. The seller has good title.
c. The seller did not mortgage the property.
d. The seller inherited the property free and clear.
The following may be assumed by the buyer The property was not mortgaged by the seller.
When a gift deed is received and recorded, may it have a detrimental effect on your title quizlet?Prior unrecorded deeds provided for substantial compensation, rights of parties in possession, and creditors of the grantor.
Which of the following would be utilized to correct a flaw in a deed that was recorded?A "cloud on the title" in the recorded history of a real estate title is frequently fixed using a quitclaim deed.
Which of the following is utilized to safeguard the purchaser from title flaws after closing?Title insurance is only provided following a title examination, which assesses the property's public records, and is used to guard against errors in the ownership record of a property.
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in our society, the two main functions of accounting are to multiple select question. measure business activities. communicate information to investors and creditors. report net income to tax authorities. report activities to government regulators.
Answer:
communicated information to investors and creditors
Explanation:
In our society, the two main functions of accounting are to communicate information to investors and creditors.
What is society?A society is a group of people who contact one another on a regular basis or a big social group that shares the same spatial or social region and is typically subject to the same political authority and dominant cultural expectations.
The measurement of a company's business activities and the dissemination of information about those activities to creditors and investors for decision-making are the two main purposes of financial accounting.
Therefore, Thus, option (B) is correct.
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your mom returned a pair of pants she purchased that were the wrong size. afew days later she checks her online bank statement to see if the money had been returned to her checking account.
Your mother exchanged a pair of pants she bought in the wrong size. She checks her online bank statement . The correct response is a debit card.
What uses can a debit card serve?A debit card is typically provided when opening a checking account at a bank or credit union. You can spend money from your checking account without writing a check with a debit card. When you use a debit card to pay, the money immediately leaves your checking account.
Although both types of cards can be used to pay for goods or services, credit cards and debit cards have important differences. Debit cards withdraw funds directly from your existing bank account, whereas credit cards are issued with borrowed funds.
Even if you don't have the money, you can easily make any purchase you want with a credit card. Because the funds on your debit card come directly from your bank account, you can avoid overspending. Additionally, you won't have to worry about forgetting to pay your credit card bill once a month.
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an advertisement for a security company cites various crime statistics to make consumers aware of growth in home theft and how security systems impact the rate of victimization. the consumer looking at the ad will have to use
After a period of slow growth, the Board of Directors at a large retail conglomerate has decided to eliminate unnecessary levels of management and employees.
This process is called?
a. Decentralization
b. Downsizing
c. Decimalization
d. Demarcation
Suppose that short term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%. Which gives you the higher after tax yield if your tax bracket is: a. zero, b. 10%, c. 20%, d. 30% a. The taxable bond. With a zero tax bracket, the after-tax yield for the taxable bond is the same as the before-tax yield (5%), which is greater than the 4% yield on the municipal bond.b. The taxable bond. The after-tax yield for the taxable bond is: 0.05 x (1 - 0.10) = 0.045 or 4.50%.c. Neither. The after-tax yield for the taxable bond is: 0.05 x (1 - 0.20) = 0.4 or 4%. The after-tax yield of taxable bond is the same as that of the municipal bond.d. The municipal bond. The after-tax yield for the taxable bond is: 0.05 x (1 - 0.30) = 0.035 or 3.5%. The municipal bond offers the higher after-tax yield for investors in tax brackets above 20%.
As a result, taxable bonds would offer greater after-yields for tax brackets of 0% and 10%. Municipal bonds and taxable bonds have equal yields for tax levels of 20% and 30%, respectively. Municipal bonds have greater yields for tax brackets of 20% and 30%.
Which gives you the higher after tax yield if your tax bracket
a. For a tax bracket of 0%, the after-tax yield from a taxable bond would be the same as the yield from a municipal bond, which is 4%. This means that the taxable bond would offer a higher after-tax yield than the municipal bond.
b. For a tax bracket of 10%, the after-tax yield from a taxable bond would be 4.5%, which is higher than the 4% yield from a municipal bond. This means that the taxable bond would offer a higher after-tax yield than the municipal bond.
c. For a tax bracket of 20%, the after-tax yield from a taxable bond would be 4%, which is equal to the yield from a municipal bond. This means that both the taxable bond and the municipal bond would offer the same after-tax yield.
d. For a tax bracket of 30%, the after-tax yield from a taxable bond would be 3.5%, which is lower than the 4% yield from a municipal bond.
This means that the municipal bond would offer a higher after-tax yield than the taxable bond.
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If David Ricardo's theory holds completely true, then any change in budget deficits or budget surpluses would be completely offset by which of the following?
If David Ricardo's theory holds completely true, then any change in budget deficits or budget surpluses would be completely offset by a corresponding change in exchange rates.
How does the Ricardian equivalence theory explain the relationship between government debt and private savings?The Ricardian equivalence idea, named after economist David Ricardo, explains the connection between government debt and private savings by means of declaring that an growth in government debt will cause an identical decrease in personal financial savings. The principle posits that consumers will modify their financial savings in response to modifications in government debt, as they expect destiny tax increases to pay off the debt. Therefore, the theory argues that changes in price range deficits or surpluses are offset by way of adjustments in private financial savings. Which means, in step with the Ricardian equivalence principle, the government's decision to borrow or pay off debt will not affect the financial system, because it might be balanced out with the aid of adjustments in personal financial savings.
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the purpose of a statement of cash flows is to provide information about the_____multiple choice question. A. income and related expenses during the period. B. cash receipts and cash disbursements during a period. C. assets, liabilities, and stockholders' equity used during the period. D. assets used during the period.
The purpose of a statement of cash flows is to provide information about the " income and related expenses during the period."
Hence, option (A) is correct.
A cash flow statement is an important tool for managing finances since it tracks an organization's cash flow. This statement is one of three major reports that assist determine a company's success (together with the income statement and the balance sheet).
Cash flow from operations consists of expenses incurred in the normal course of business. Payroll, cost of products sold, rent, and utilities are examples of cash outflows. When corporate activities are extremely seasonal, cash outflows might vary significantly.
A cash flow statement's objective is to present a complete picture of what occurred to a company's cash during a set time known as the accounting period.
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A constant-cost, perfectly competitive gadget industry is in long-run equilibrium. An increase in the number of consumers of gadgets will most likely result in
(A) higher short-run and long-run prices for gadgets
(B) reduced short-run profits, followed by the exit of some firms
(C) an upward shift in all short-run cost curves, followed by a higher long-run price for gadgets
(D) a higher short-run price for gadgets, followed by an increase in the quantity produced
(E) a decrease in the demand for gadgets, fo
Option (D), a higher initial price for devices followed by a rise in production volume, is the optimal course of action.
What does consumers mean in business?Anyone who uses a service or a product is referred to as a consumer. The terms customer and consumer are frequently used interchangeably. This is not exactly true. A buyer of goods or services is referred to as a customer. They might or might not eat them.
Why is it called a consumer?A consumer in an economy purchases products or services primarily for personal use rather than for resale or for commercial objectives. Consumers purchase goods or services with money (or an equivalent) and then use them (use up).
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When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following is one of the effects on the fundamental accounting equation?cash decreases by $50,000.total assets increase by $200,000.liabilities increase by $150,000.equipment increases by $100,000.
Cash decreases by $50,000 is one of the effects on the fundamental accounting equation.
What is accounting equation?A company's total assets are equal to the total of its liabilities plus its shareholders' equity, according to the accounting equation.
The double-entry accounting system is thought to have its roots in this simple relationship between assets, liabilities, and equity. Balanced balance sheets are maintained by the accounting equation. To put it another way, every entry made on the debit side has an equivalent entry (or coverage) on the credit side.
Also known as the balance sheet equation or the basic accounting equation, the accounting equation has many different names. Assets and liabilities are the two major categories on the balance sheet that determine any company's financial position, regardless of how big or small it is. The third section of the balance sheet is owners' or shareholders' equity.
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sandra would like to organize lab (a legal corporation) as either an s corporation or a c corporation for tax purposes. in either form, the entity is expected to generate an 8 percent annual before-tax return on a $775,000 investment. sandra's marginal income tax rate is 37 percent and her tax rate on qualified dividends and net capital gains is 20 percent. lab's income is not qualified business income (qbi), so sandra is not allowed to claim the qbi deduction. assume that lab will distribute all of its earnings after entity-level taxes every year. ignore the additional medicare tax and the net investment income tax when computing your answers.
The tax implications of organizing Lab as an S Corporation or a C Corporation would depend on the type of income generated by the corporation and the tax rates applicable to that income.
For an S Corporation, the business income is passed through to the shareholders, and they are taxed on their personal tax returns at their marginal tax rate. In this case, Sandra would be taxed on her share of Lab's income at a 37% marginal tax rate.
For a C Corporation, the business income is taxed at the corporate level before being distributed to the shareholders as dividends. The corporate tax rate is 21%, and the qualified dividends and net capital gains are taxed at a rate of 20% for individual taxpayers.
Assuming an 8% return on a $775,000 investment and ignoring entity-level taxes, the annual income would be $62,000. If Lab is organized as an S Corporation, Sandra would pay $22,940 in personal income taxes ($62,000 * 37%). If Lab is organized as a C Corporation, the corporate taxes would be $12,930 ($62,000 * 21%) and Sandra would pay $12,400 in individual taxes on the dividends received ($62,000 * 20%).
In this case, organizing Lab as an S Corporation would result in a higher tax liability for Sandra compared to organizing it as a C Corporation. However, the best option would depend on Sandra's personal financial situation and other factors, such as the type of income generated by the corporation and the tax implications of the different forms of business organization.
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your neighbor is mowing her yard one afternoon when she stops to have some lemonade. she drinks one glass and is considering having a second glass. this is an example of: group of answer choices a. cost analysis. b. benefit analysis. c. equilibrium analysis. d. marginal analysis.
d. marginal analysis. One afternoon, when your neighbour is cutting her lawn, she pauses to drink some lemonade. She downs one glass and is debating having another. An illustration of marginal analysis is this.
The process of analysing a decision's incremental advantages and costs, such as whether to drink a second glass of lemonade, is known as marginal analysis. The neighbour is evaluating the marginal benefit (the extra pleasure or satisfaction she will experience from taking a second glass) against the marginal expense in this situation (the additional time and energy she will spend mowing her yard as a result of drinking the second glass). Marginal analysis is a helpful tool in decision-making because it enables people and organisations to evaluate the relative costs and advantages of several courses of action and choose the most effective and efficient one.
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