The statements that summarize why a buyer would desire a purchase allowance are:
- Purchased merchandise was defective or unacceptable.
- In order to keep defective, but still marketable merchandise, the buyer would need a reduction in the purchase price.
A purchase allowance is a reduction in the purchase price granted by the seller to the buyer.
Provided in situations where the buyer encounters issues with the purchased merchandise, such as defects or unacceptability. In such cases, the buyer may seek a purchase allowance to offset the reduced value or additional costs incurred due to the defects or unacceptability of the merchandise.
The statement "The seller could not pay within the discount period" does not relate to a purchase allowance. It refers to the seller's inability to make payment within the specified discount period, which is a separate issue from a purchase allowance.
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Match the following statements to the appropriate terms. Segregation of duties. One to whom a check is payable. Two or more employees circumventing prescribed procedures. Prevent a transaction from being recorded more than once. Checks which have been returned by the maker's bank for lack of fund: Checks which have been paid by the depositor's bank. Shows the depositor's bank transactions and balances. Anything that a bank will accept for deposit. Physical controls. One who issues a check. One who issues a check. An extensive network of approvals by authorized individuals. Document indicating the purpose of a petty cash expenditure. Issued checks that have not been paid by the bank. Highly liquid investments.
Collusion Prenumbered documents Cash NSF checks Bank statement
Payee Cash registers, garment sensors and burglar alarms are examples Bonding employees Custody of an asset should be kept separate from the record-keeping for that asset Maker Canceled checks Outstanding checks Petty cash receipt Cash equivalents Voucher system
Here are the appropriate matches for the given statements: Segregation of duties, Payee, Collusion, NSF checks, Bank statement, Physical controls, Maker, Cash equivalents, Voucher system.
1. Segregation of duties: Custody of an asset should be kept separate from the record-keeping for that asset. This ensures proper internal controls and reduces the risk of fraud.
2. Payee: One to whom a check is payable. The payee is the recipient of the funds specified on the check.
3. Collusion: Two or more employees circumventing prescribed procedures. Collusion refers to employees working together to bypass established controls and exploit weaknesses in the system.
4. NSF checks: Checks which have been returned by the maker's bank for lack of funds. NSF stands for "Non-Sufficient Funds," indicating that the account holder did not have enough money to cover the check.
5. Bank statement: Shows the depositor's bank transactions and balances. It is a record provided by the bank that details the account activity, including deposits, withdrawals, and balances.
6. Physical controls: Cash registers, garment sensors, and burglar alarms are examples. Physical controls involve measures put in place to protect assets, such as cash, inventory, or equipment, from theft, loss, or damage.
7. Maker: One who issues a check. The maker is the individual or entity that writes and signs the check, authorizing the payment.
8. Cash equivalents: Highly liquid investments. Cash equivalents are short-term investments that are easily convertible to cash and have a low risk of value fluctuation.
9. Voucher system: Document indicating the purpose of a petty cash expenditure. The voucher system is a method of controlling and documenting petty cash expenses by requiring supporting documentation for each expenditure.
In summary, the appropriate matches for the given statements are: Segregation of duties, Payee, Collusion, NSF checks, Bank statement, Physical controls, Maker, Cash equivalents, and Voucher system. These terms correspond to the respective descriptions provided in the statements.
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Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality, it is expected to have a salvage value at the end of its useful life. The following estimates were made of the cash flows. The company’s cost of capital is 8%. Option A Option B Initial cost $160,000 $227,000 Annual cash inflows $71,000 $80,000 Annual cash outflows $30,000 $31,000 Cost to rebuild (end of year 4) $50,000 $0 Salvage value $0 $8,000 Estimated useful life 7 years 7 years Instructions (a) Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero.) (b) Which option should be accepted?
Option A has a net present value (NPV) of $30,107.74, a profitability index (PI) of 1.188, and an internal rate of return (IRR) of 10.15%. Option B has an NPV of $18,713.01, a PI of 1.082, and an IRR of 9.99%. Based on these calculations, Option A should be accepted.
To calculate the net present value (NPV), profitability index (PI), and internal rate of return (IRR) for each option, we need to discount the cash flows using the company's cost of capital of 8% and consider the initial cost, annual cash inflows, annual cash outflows, cost to rebuild (if applicable), and salvage value (if applicable).For Option A: Calculate the present value of annual cash inflows, annual cash outflows, and the cost to rebuild at the end of year 4.For Option B: Calculate the present value of annual cash inflows, annual cash outflows, and the salvage value at the end of the useful life. Therefore, Option A should be accepted as it provides a higher return on investment.
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a 24-year semiannual coupon bond has 3.5% coupons and the market interest rate is 6.2%. find the price of the bond today and the current yield. group of answer choices A. 665.11 and 5.262%
B. 1,403.94 and 2.849% C. 1,173.32 and 3.196%
D. 1,195.32 and 2.719%
The correct answer is C. 1,173.32 and 3.196%. A 24-year semiannual coupon bond has 3.5% coupons and 6.2% market interest. Today's bond price and yield are 1,173.32 and 3.196%.
The bond price is the current value of its future cash flows, including coupon payments and face value. The 24-year bond pays 3.5% semiannual coupons. Semiannual bonds make 48 coupon payments (24 years * 2 payments per year). We may compute the coupon payments' present value using the annuity formula:
Coupon payment = (Coupon rate * Face value)/2 = (3.5% * Face value)/2
Present value = Coupon payment * (1 - (1 + Market interest rate)^-48) / (Market interest rate / 2)
Present face value = Face value / (1+Market interest rate)^48
The bond's current price is the sum of its coupon payments and its face value is C. 1,173.32 and 3.196%
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In the long run, a monopolistically competitive firm charges a higher price than a perfectly competitive firm. The reason for this difference is that monopolistically competitive firms: act like monopolies and restrict output. need to earn economic profits in the long run to justify their expenditures on product development. have higher costs associated with advertising and product development. have no interest in consumer well-being.
act like monopolies and restrict output.
need to earn economic profits in the long run to justify their expenditures on product development.
have higher costs associated with advertising and product development.
have no interest in consumer well-being.
Monopolistically competitive firms act like monopolies and restrict output. They have higher costs associated with advertising and product development.
They need to earn economic profits in the long run to justify their expenditures on product development. These firms have a bit of power to charge a higher price than a perfectly competitive firm.What is monopolistic competition?Monopolistic competition is a type of market in which firms sell similar but not identical products.
It is a market in which there are several small producers, each with a limited degree of market control. In monopolistic competition, firms differentiate their products to make them seem unique, which helps them gain some control over the price. This is known as product differentiation, and it is accomplished through branding, advertising, and customer service.In monopolistic competition, each firm has a downward-sloping demand curve, indicating that the company has some market power. However, they are not as dominant as a monopoly, nor are they as powerless as a perfectly competitive company.
Monopolistically competitive firms can charge a higher price than a perfectly competitive firm because they act like monopolies and restrict output. They need to earn economic profits in the long run to justify their expenditures on product development. They have higher costs associated with advertising and product development.
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The strong form of the EMH states that _____ must be reflected in the current stock price.
A. all security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
The strong form of the Efficient Market Hypothesis (EMH) states that all information, including inside information, must be reflected in the current stock price.
The strong form of the EMH assumes that the stock market is perfectly efficient, and all relevant information is instantaneously and accurately reflected in stock prices. In other words, no investor can consistently achieve above-average returns by trading on either public or private information. If the strong form of the EMH holds true, it implies that even insider trading would not provide an advantage, as all private information is already priced into the stock.
However, it is important to note that the strong form of the EMH is widely debated, and there is evidence suggesting that certain investors may be able to achieve abnormal returns using private information. Nevertheless, from an idealized perspective, the strong form of the EMH suggests that stock prices should fully reflect all available information, including both public and non-public information.
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Fixed costs are $3,000,000 and the unit contribution margin is $150. What is the break-even point? (LO 4) Seleccione una: a $20,000,000 b. $7,500,000 c. 7,500 units d. 20,000 units
The break-even point is 20,000 units.This means that the company needs to sell or produce at least 20,000 units in order to cover all fixed costs and reach a point where total revenue equals total costs.
The break-even point is the level of sales or production at which total revenue equals total costs, resulting in zero profit or loss. To calculate the break-even point, we need to divide the fixed costs by the unit contribution margin.
Given:
Fixed costs = $3,000,000
Unit contribution margin = $150
Break-even point (in units) = Fixed costs / Unit contribution margin
Substituting the given values into the formula:
Break-even point = $3,000,000 / $150
Break-even point = 20,000 units
Therefore, the break-even point is 20,000 units.
Based on the given information, the break-even point for the business is 20,000 units. This means that the company needs to sell or produce at least 20,000 units in order to cover all fixed costs and reach a point where total revenue equals total costs. It is an important metric for businesses to determine the minimum level of sales required to avoid losses and assess the viability of their operations. By understanding the break-even point, companies can make informed decisions about pricing, cost control, and sales targets to achieve profitability.
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which of the following is true of a put option on a stock? group of answer choices
A. the person who owns a put option would like the stock price to go down. B. the person who owns the put option should not care whether the stock price goes up or down.
C. the person who owns a put option would like the stock price to go up. D. the owner of the put option would prefer the stock price to remain equal to the strike price.
Option A is the correct answer because it accurately reflects the motivation of the person who owns a put option. A put option on a stock gives the owner the right to sell the stock at a specific price (strike price) within a certain time period.
The correct statement regarding a put option is that the person who owns a put option would like the stock price to go down. A put option provides the owner with the ability to sell the underlying stock at the strike price, regardless of the current market price. If the stock price decreases below the strike price, the owner of the put option can exercise the option and sell the stock at a higher price than the prevailing market price. Therefore, the owner of a put option benefits from a decline in the stock price. They hope for the stock price to decrease so that they can exercise the option and sell the stock at a profit. Option B is incorrect because the owner of the put option does care about the stock price movement. Option C is incorrect because owning a put option is not beneficial when the stock price goes up. Option D is also incorrect because the owner of the put option prefers the stock price to be lower than the strike price.
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which of the following is not a determinant of the long-run level of real gdp? a. available human capital b. available natural resources c. available technology d. the price level
The correct answer is d. the price level. The price level, represented by the general level of prices in an economy, is not a determinant of the long-run level of real GDP.
Determinants of the long-run level of real GDP refer to the factors that influence an economy's potential output over time. These factors include available human capital, which represents the skills, education, and knowledge of the workforce. The availability of natural resources, such as land, minerals, and energy sources, also contributes to long-run GDP. Technological advancements and innovation play a crucial role in increasing productivity and expanding an economy's capacity. However, the price level, which refers to the overall level of prices in an economy, is not considered a determinant of long-run GDP. While it affects various economic variables, such as inflation and purchasing power, it does not directly impact an economy's potential output in the long run.
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Which of the following is false? O a. The BC Court of Appeal can hear appeals from lower BC provincial courts. O b. Juries make findings of fact not law. O c. The Supreme Court of Canada is the highest court f appeal in Canada. O d. Trail judges make finding of fact and law. Oe. If a case is appealed, the appeal court will conduct a new trail and determine whether the facts c correct. Which of the following is false? O a. The BC Court of Appeal can hear appeals from lower BC provincial courts. O b. Juries make findings of fact not law. O c. The Supreme Court of Canada is the highest court f appeal in Canada. O d. Trail judges make finding of fact and law. Oe. If a case is appealed, the appeal court will conduct a new trail and determine whether the facts are correct.
The false statement is that trial judges make findings of fact and law. In the judicial system, trial judges primarily determine facts, while appellate courts review legal issues and errors made by lower courts.
In the judicial system, the responsibility for making findings of fact and law is generally divided between different levels of courts. Trial judges are primarily responsible for determining the facts of a case based on the evidence presented and applying the law to those facts. Their role is to preside over the trial and make initial determinations on both fact and law.
However, when it comes to appeals, the appellate courts, including the BC Court of Appeal and the Supreme Court of Canada, do not conduct new trials or reexamine the facts. Instead, they focus on reviewing legal issues and errors made by the lower courts.
The role of the appellate courts is to assess whether the trial judge correctly applied the law and to potentially overturn or modify the decision based on legal considerations, not to reevaluate the facts of the case.
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An unemployment insurance program has which of the following effects? of Select one: a. It decreases the amount of personal income of the unemployed. b. It lowers the overall unemployment rate. c. It contributes to the severity of a recession or economic downturn. d. It increases the amount of time spent searching for a job.
d. It increases the amount of time spent searching for a job. An unemployment insurance program provides financial benefits to individuals who are unemployed and meet certain eligibility criteria.
The program is designed to provide temporary income support to unemployed individuals and assist them during their job search. By providing financial assistance, unemployment insurance increases the amount of time individuals can spend searching for a suitable job. It helps to alleviate the immediate financial pressures and allows individuals to focus on finding employment that matches their skills and preferences. This increased time spent on job search can contribute to better job matching and potentially lead to better long-term employment outcomes. While unemployment insurance can have various impacts on the economy and individuals, option d correctly identifies one of the effects, which is an increase in the amount of time spent searching for a job.
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The article concludes by saying; "The new business-government relationship also offers a rare opportunity for at least the next generation. We may witness the start of a new form of capitalism that meets public ne best insights of the private sector on solving heretofore intractable public problems. These developments government and focus instead on what we need business and government to achieve together." Based on this article, "we should focus on what we need business and government to achieve together" ra Explore in what ways can governments help businesses flourish and serve the needs of a society. Researd situation was created for all stakeholders and share your analysis of those situations with your colleagues.
Governments play a crucial role in creating an environment where businesses can thrive and serve the needs of society. By implementing favorable policies, regulations, and infrastructure, governments can support businesses in areas such as economic growth, job creation, innovation, and social welfare. Collaboration between business and government can lead to the achievement of common goals and address complex societal challenges.
Governments can help businesses flourish by creating a conducive business environment through favorable policies and regulations. This includes measures such as tax incentives, streamlined bureaucracy, and investment-friendly regulations that encourage entrepreneurship and attract both domestic and foreign investment. By providing a stable and predictable legal framework, governments can instill confidence and facilitate long-term business planning.
Additionally, governments can support businesses by investing in infrastructure development. By improving transportation, communication, and energy networks, governments can enhance connectivity and reduce logistical costs, thereby enabling businesses to operate more efficiently. Infrastructure investments also create opportunities for job creation and stimulate economic growth. Furthermore, governments can foster innovation and research and development (R&D) by providing funding, grants, and incentives to businesses. By promoting innovation, governments can drive technological advancements, improve productivity, and stimulate economic competitiveness.
Lastly, governments can play a role in ensuring that businesses serve the needs of society by implementing regulations and standards that prioritize social welfare, consumer protection, and environmental sustainability. By setting ethical and responsible business practices, governments can create a level playing field and build trust between businesses and consumers. Overall, when governments and businesses work together, they can create a favorable environment for economic growth, innovation, job creation, and social welfare. Collaboration between these two sectors is essential to address societal challenges and achieve shared goals, leading to the development of a new form of capitalism that combines the strengths of both sectors for the benefit of society as a whole.
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ABC started operations in 2022. An analysis of its investment portfolio shows the following totals at the end of the year:
Investment in Bonds. | Market Value | Amortized cost | Difference
Hold To Maturity (HTM). $39,000 $49,000|. ($10,000)
Available to Sell Values (AFS) 65,000. 57,000 8,000
On December 31, 2022, the mark-to-market entry will require reporting
a.
an unrealized loss of $2,000 on the Statement of Income and Expenses
b.
an unrealized gain of $8,000 on the Statement of Income and Expenses
c.
an unrealized gain of $8,000 in Other Comprehensive Income.
d.
an unrealized gain of $8,000 in Other Comprehensive Income and an unrealized loss of $10,000 in the Statement of Income and Expenses.
The mark-to-market entry on December 31, 2022, will require reporting an unrealized gain of $8,000 in Other Comprehensive Income and an unrealized loss of $10,000 in the Statement of Income and Expenses.
At the end of the year, ABC's investment portfolio consists of two categories: Hold To Maturity (HTM) and Available to Sell (AFS). For HTM investments, the difference between market value ($39,000) and amortized cost ($49,000) is a loss of $10,000. This loss is recognized in the Statement of Income and Expenses.For AFS investments, the difference between market value ($65,000) and amortized cost ($57,000) is a gain of $8,000. Since AFS investments are subject to mark-to-market valuation, this gain is recognized in Other Comprehensive Income.
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Which of the following transactions qualify as noncash investing and financing activities?
a) Purchase of building with mortgage payable.
b) Additional short-term borrowing from bank.
c) Dividends paid in cash.
d) Purchase of equipment with short-term investments.
The correct answer is (a).
Noncash investing and financing activities are activities that affect a company's financial statements but do not involve a cash transaction. Examples of noncash investing and financing activities include the issuance of stock, the acquisition of property or equipment through a loan, the issuance of bonds, the retirement of debt, or the granting of options to purchase stock.
In the given scenario, the purchase of a building with a mortgage payable is a noncash investing activity. This is because the company is acquiring an asset (the building) by assuming a liability (the mortgage). The cash flow statement would not reflect this transaction, as no cash has changed hands.
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what is the proper adjusting entry at december 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is $3,250? group of answer choices debit insurance expense, $4,500; credit prepaid insurance, $4,500. debit insurance expense, $7,750; credit prepaid insurance, $7,750. debit insurance expense, $3,250; credit prepaid insurance, $3,250. debit cash, $7,750; credit prepaid insurance, $7,750. debit prepaid insurance, $4,500; credit insurance expense, $4,500.
The proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is $3,250 is:
Debit Insurance Expense, $4,500;
Credit Prepaid Insurance, $4,500.
According to the question, the unexpired amount per analysis of policies is $3,250 before adjustment.
Since the balance in the prepaid insurance account is $7,750,
the amount of insurance that has been used can be calculated using the following formula:
Insurance used = Prepaid insurance at the start of the period - Unexpired insurance at the end of the period
Insurance used = $7,750 - $3,250
Insurance used = $4,500
Therefore, $4,500 worth of insurance has been used, and this amount needs to be expensed.
The proper adjusting entry at December 31, the end of the accounting period, will be:
Debit Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500.
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The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
Checks outstanding totaled $17,865.
A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
The following things would be included in the reconciliation of Stone Systems' cash account on July 31, 20Y5, according to the information provided:
1. Checks Still Outstanding: There were 17 865 checks still outstanding. These checks are ones that Stone Systems has written but have not yet been delivered to the bank for clearance. They must be deducted from the bank balance because they weren't listed on the bank statement.2. Deposits in Transit: A $9,150 deposit intended to cover receipts from July 31 was received too late to show up on the bank statement. This indicates that even though Stone Systems made the deposit prior to July 31 but it was not recorded on the bank statement. Therefore, this sum needs to be increased in the bank account.
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What are the possible weaknesses of this peer approach to valuation? A. The approach does not account for industry context, the company might have multiple divisions, and the approach focuses on the statistics of only one company. B. The chosen peers might not be true competitors, the approach focuses on the statistics of only one company, and the most appropriate competitors might not have P/E multiples. C. The chosen peers might not be true competitors the company might have multiple divisions, and the most appropriate competitors might not have P/E multiples. D. The chosen peers might not be true competitors, the company might have multiple divisions, and the approach focuses on the statistics of only one company
(D). The chosen peers might not be true competitors, the company might have multiple divisions, and the approach focuses on the statistics of only one company.
The peer approach to valuation, which involves comparing a company's financial metrics to those of similar peer companies, has its potential weaknesses. These weaknesses include:
1. The chosen peers might not be true competitors: Selecting appropriate peer companies for comparison can be challenging. If the chosen peers are not truly comparable to the company being valued in terms of industry, size, business model, or market dynamics, the valuation results may be skewed.
2. The company might have multiple divisions: If the company being valued operates in multiple divisions or segments, each with its own unique characteristics and financial performance, it can be difficult to find peers that accurately represent each division. This can result in an incomplete or inaccurate comparison.
3. The approach focuses on the statistics of only one company: Relying solely on the financial statistics of one company, even if it is a peer, may not provide a comprehensive view of the valuation. It is important to consider multiple factors and sources of information to arrive at a more reliable and accurate valuation.
while the peer approach to valuation can provide useful insights, it is important to be aware of its potential weaknesses. These include the possibility of selecting inappropriate peers, difficulties in accounting for multiple divisions within a company, and the limitation of focusing solely on the statistics of one company.
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Since residual income (RI) is not a percentage, it is not very useful for Multiple Choice O Comparing business units of significantly different size. O Evaluating the performance of subunits with high Rols. O Motivating goal-congruent behavior on the part of divisional managers. Evaluating the short-term financial performance of small divisions, O Evaluating the short-term financial performance of larger divisions.
The most appropriate option among the given choices for the usefulness of residual income (RI) is:
Evaluating the short-term financial performance of smaller divisions
Residual income (RI) is a financial performance measure that calculates the excess profit generated by a division or business unit over its required rate of return. It is an absolute amount and not expressed as a percentage. Comparing business units of significantly different sizes can be challenging because the absolute value of residual income may not provide a meaningful comparison. Similarly, evaluating the performance of subunits with high roles may require a relative performance measure rather than absolute residual income.
However, evaluating the short-term financial performance of smaller divisions can be more meaningful using residual income. By comparing the actual residual income of smaller divisions with their respective required rate of return, it is possible to assess their performance in generating excess profits. This helps in understanding the division's ability to generate returns above the minimum expectation, which can be particularly relevant for evaluating the short-term financial performance of smaller divisions.
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because of emerging technologies, positions that sports properties are adding in the area of marketing operations are
Due to emerging technologies, sports properties are adding various positions in the area of marketing operations. Some of these positions include:
Digital Marketing Specialist: With the rise of digital platforms and social media, sports properties are hiring specialists who can develop and implement digital marketing strategies.
These specialists focus on leveraging digital channels to engage with fans, promote events, create content, and drive revenue.
Data Analyst: The availability of data analytics tools and technologies has led to the demand for data analysts in sports marketing operations.
These professionals analyze fan data, ,campaign metrics and market trends to provide insights and optimize marketing strategies. They help sports properties make data-driven decisions and maximize their marketing effectiveness.
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a mortgage-backed security is a financial instrument that comprises a pool of home mortgages, typically numbering in the thousands, that have been consolidated into a marketable asset. when an investor acquires a security, they are essentially purchasing the cash flows generated by the individual home mortgages that constitute the security.
A mortgage-backed security (MBS) is a marketable asset composed of thousands of home mortgages. Investors buy the security to gain the cash flows generated by the underlying individual home mortgages.
A mortgage-backed security (MBS) is a type of financial instrument that represents a pool of home mortgages. These mortgages, typically numbering in the thousands, are consolidated and packaged together into a single marketable asset. When an investor purchases an MBS, they effectively buy the rights to the cash flows generated by the individual home mortgages that make up the security.
The cash flows from the underlying mortgages include the principal and interest payments made by the homeowners. The MBS acts as a pass-through vehicle, meaning the cash flows are distributed to the investors in proportion to their ownership of the security. This enables investors to participate in the income generated by the homeowners' mortgage payments.
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Journalize the summary transactions (1)-(4) for March. If an amount box does not require an entry, leave it blank. 1. Raw and In Process Inventory Accounts Payable 2. Raw and In Process Inventory Conversion Costs 3. Finished Goods Inventory Raw and In Process Inventory 4. Sale Accounts Receivable Sales 4. Cost Cost of Goods Sold Finished Goods Inventory 00 00 00 00 00 3 Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $974,400 for 2,030 production hours. Each unit requires 12 · minutes of cell process time. During March, 900 DVR players were manufactured in the cell. The materials cost per unit is $71. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 900 DVR players were assembled and placed in finished goods. 4. 860 DVR players were sold for $296 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour $ b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $ per unit
The budgeted cell conversion cost per unit is approximately $2,401.To calculate the budgeted cell conversion cost per hour and per unit:
We need to use the given information about the budgeted conversion cost for the year and the production hours.
To determine the budgeted cell conversion cost per hour, we divide the total budgeted conversion cost for the year by the total production hours.
Budgeted cell conversion cost per hour = Budgeted conversion cost for the year / Production hours
Budgeted cell conversion cost per hour = $974,400 / 2,030
Calculating this, we get:
Budgeted cell conversion cost per hour ≈ $480.20
Therefore, the budgeted cell conversion cost per hour is approximately $480.20.
To calculate the budgeted cell conversion cost per unit, we divide the budgeted conversion cost per hour by the cell process time per unit.
Budgeted cell conversion cost per unit = Budgeted cell conversion cost per hour / Cell process time per unit
Given that each unit requires 12 minutes of cell process time, we need to convert it to hours:
Cell process time per unit = 12 minutes / 60 minutes per hour = 0.2 hours
Now, we can calculate the budgeted cell conversion cost per unit:
Budgeted cell conversion cost per unit = $480.20 / 0.2
Calculating this, we get:
Budgeted cell conversion cost per unit ≈ $2,401
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The following quote by Captain Willie refers to what point concerning the "Hemingway World"? "Who the hell do you eat off of with people working here in Key West for the government for six dollars and a half a week?" a. Failure of Victorian Ideals b. Failure of the individual c. None d. Failure of traditional institutions
The quote by Captain Willie refers to option d. Failure of traditional institutions.
The quote by Captain Willie highlights the frustration and disillusionment with the economic conditions in Key West, where government employees earn a meager six dollars and a half per week. Captain Willie's question, "Who the hell do you eat off of," suggests that the existing traditional institutions, such as government and employment systems, have failed to provide a decent living for the people in the Hemingway World (referring to the world depicted in the works of American author Ernest Hemingway).
The quote points to the failure of traditional institutions in meeting the basic needs and providing economic security for the residents of Key West. It reflects a broader critique of the societal structures and institutions that are supposed to support and uplift individuals. The Hemingway World, as portrayed through Captain Willie's statement, exposes the inadequacies and shortcomings of established systems, calling for a reevaluation and reformation of these institutions to ensure a more equitable and prosperous society.
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You are finalizing the year-end financial statements for a public company and have come across the following situations.Situation 1 – a former employee is suing you for $500,000. Legal counsel is of the opinion that is more likely than not that you will end up having to settle anywhere between $150,000 and $300,000, with each amount in the range equally likely.Situation 2 – you are offering a warranty on a new product and have not yet accrued a warranty provision. Based on industry comparables, you estimate that the probability of defects per unit sold over the three-year warranty period are as follows:Probability #defects70% 015% 110% 25% 3Each defect will cost on average $150 to fix. A total of 3,000 units of the new product was sold during the past year.Situation 3 – a customer slipped on a floor that had just been washed and seriously injured himself. The janitor did not put up the yellow warning sign that the floor was slippery and the whole event was caught on tape by the security camera. The customer is suing for $400,000. Legal counsel believes that the probability and amount of settlement is as follows:Probability payout20% $030% $100,00025% $175,00025% $350,000Required –For each of the situations, estimate the provision that needs to be accrued, if any. Also explain using the decision chart for provisions how you arrive at the conclusion that a provision needs to be accrued.For each situation, use the following table to analyze the situation.Present obligation as a result of a past eventProbable outflow Measurable?conclusion
Answer:
Explanation:
Situation 1:
| Present obligation as a result of a past event | Probable outflow | Measurable? | Conclusion |
| ---------------------------------------------| ---------------------- | ------------| ------------------------- |
| Yes | $150,000 - $300,000 | Yes | Provision needed |
In Situation 1, there is a present obligation as a result of a past event (the lawsuit filed by the former employee). Legal counsel's opinion indicates a probable outflow of $150,000 to $300,000, with each amount equally likely. This range of potential settlement amounts is measurable, and therefore a provision should be accrued for the potential liability within the given range.
Situation 2:
| Present obligation as a result of a past event | Probable outflow | Measurable? | Conclusion |
| ---------------------------------------------| ------------------------------------ | ------------| ------------------------- |
| No | N/A | N/A | No provision needed |
In Situation 2, there is no present obligation as a result of a past event for warranty expenses. Although there is a potential future obligation due to warranty claims, it does not meet the criteria for a provision at the year-end. Therefore, no provision needs to be accrued for warranty expenses in the year-end financial statements.
Situation 3:
| Present obligation as a result of a past event | Probable outflow | Measurable? | Conclusion |
| ---------------------------------------------| ---------------------------------- | ------------| ------------------------- |
| Yes | $80,000 - $350,000 | Yes | Provision needed |
In Situation 3, there is a present obligation as a result of a past event (the customer's slip and injury). Legal counsel's opinion indicates a probable outflow ranging from $80,000 to $350,000 for potential settlement. This range of potential payouts is measurable, and therefore a provision should be accrued for the potential liability within the given range.
By using the decision chart for provisions, we analyze each situation based on the presence of a present obligation, the probability of an outflow, and the measurability of the amount. If there is a present obligation, a probable outflow, and the amount is measurable, a provision needs to be accrued. If any of these criteria are not met, no provision is required.
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question 3 list at least two productivity and collaboration tools to achieve tasks and better communicate with the team and stakeholders.
Two productivity and collaboration tools that can help achieve tasks and improve communication with the team and stakeholders are:
Trello: Trello is a popular project management tool that uses boards, lists, and cards to organize and prioritize tasks. It allows teams to collaborate and track progress in real-time. Trello provides a visual representation of tasks and can be customized to fit different project workflows. Users can assign tasks, set due dates, add comments, and attach files, enabling efficient collaboration and communication among team members.
Slack: Slack is a team communication platform that offers real-time messaging, file sharing, and collaboration features. It allows teams to create different channels for specific projects or topics, facilitating focused discussions and reducing the clutter of email chains. Slack also integrates with various other tools and services, making it easy to share files, receive notifications, and automate workflows. Its searchable message history and direct messaging capabilities make communication and collaboration smoother and more efficient.
These tools can help streamline task management, enhance collaboration, and improve communication within teams and with stakeholders. However, there are numerous other productivity and collaboration tools available in the market, so it's important to choose the ones that best suit your specific needs and requirements.
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Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to sell 4,100 units of Diamond and 1,300 units of Jade in 2019.The following estimates are given for 2019:
Diamond Jade
Selling price $200 $500
Direct materials 60 80
Direct labor 90 180
Manufacturing overhead 40 110
Ali Inc. had an inventory of 320 units of Diamond and 85 units of Jade at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 510 units of Diamond and 200 units of Jade.
Each Jade watch requires one unit of Porcelain and has to be imported at a cost of $11. There were 140 units of Porcelain in stock at the end of 2018.The management does not want to have any stock of Porcelain at the end of 2019.
How many units of Diamond vases must be produced in 2019?
Given: Ali Inc. manufactures and sells two brands of vases, Diamond and Jade.
It expects to sell 4,100 units of diamond and 1,300 units of jade in 2019.
The following estimates are given for 2019:
Diamond Jade Selling price $200 $500
Direct materials 60 80
Direct labor 90 180
Manufacturing overhead 40 110
Ali Inc. had an inventory of 320 units of diamond and 85 units of jade at the end of 2018. It has decided that, as a measure to counter stock outages, it will maintain an ending inventory of 510 units of diamond and 200 units of jade.
Each Jade watch requires one unit of porcelain and has to be imported at a cost of $11. There were 140 units of porcelain in stock at the end of 2018. The management does not want to have any stock of porcelain at the end of 2019.
How many units of diamond vases must be produced in 2019?
The cost of direct material for the diamond vase is $60, and the cost of direct labor is $90.
The manufacturing overhead cost for a diamond vase is $40.
So, the total cost for Diamond vase is $60+$90+$40
= $190.
Since the selling price of a diamond vase is $200, the contribution margin for a diamond vase is $200 minus $190 = $10. Thus, Ali Inc. will make a profit of $10 per unit of Diamond vase produced
.In 2019, Ali Inc. expects to sell 4,100 units of Diamond Vase. It had an inventory of 320 units at the end of 2018 and wants to maintain an ending inventory of 510 units.
Thus, the total number of diamond vases required in 2019 will be:
Units required = Expected sales + Ending inventory - Beginning inventory
= 4,100 + 510 - 320= 4,290 units
Therefore, Ali Inc. must produce 4,290 diamond vases in 2019.
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if there is a decrease in variable cost per unit and all else remains the same, then _______________.
If there is a decrease in variable cost per unit and all else remains the same, then the company's profit margin will increase.
Step-by-step explanation:
Understanding variable cost per unit: Variable costs are expenses that change in proportion to the level of production or sales. Variable cost per unit is the cost incurred to produce each individual unit of a product. It includes costs such as direct materials, direct labor, and variable overhead.
Impact on profit margin: Profit margin is the percentage of revenue that remains as profit after deducting all expenses. When the variable cost per unit decreases, it means the company is able to produce each unit at a lower cost. This has a positive impact on the profit margin.
Relationship between cost and profit margin: A decrease in variable cost per unit means that the company can either maintain the same selling price while reducing costs or lower the selling price to increase sales volume. In both cases, the company's profit margin increases.
Scenario 1: Keeping selling price constant: If the company keeps the selling price constant while reducing the variable cost per unit, the profit margin increases. This is because the cost of producing each unit is lower, resulting in higher profit per unit sold.
Scenario 2: Lowering selling price: Alternatively, the company may choose to lower the selling price to attract more customers and increase sales volume. In this case, the reduced variable cost per unit allows the company to lower the selling price while maintaining the same profit margin. The increased sales volume compensates for the lower selling price and leads to higher overall profits.
Fixed costs and other factors: It's important to note that the decrease in variable cost per unit does not impact fixed costs, which remain constant. Other factors, such as demand, competition, and market conditions, may also influence the overall profitability of the company.
In summary, a decrease in variable cost per unit, while keeping other factors constant, will increase the company's profit margin. It allows the company to either maintain the same selling price with reduced costs or lower the selling price to increase sales volume, resulting in higher overall profits.
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Autonomy is an consideration of both Job Enrichment and Intrinsic Motivation. Select one True O False
Autonomy is an consideration of both Job Enrichment and Intrinsic Motivation - This statement is true.
Here is a brief explanation about the three terms:
Autonomy: Autonomy in the work environment refers to employees being given the freedom to organize and conduct their work in the way they see fit. In other words, it refers to a sense of independence and control over one's work. Autonomy is considered a major factor in improving job satisfaction, motivation, and performance.
Job Enrichment: Job enrichment is the process of making a job more meaningful and rewarding for employees. It involves increasing the level of responsibility, challenge, and variety in the work performed by an employee. Job enrichment can lead to an increase in motivation, job satisfaction, and productivity.
Intrinsic Motivation: Intrinsic motivation refers to the desire to perform a task or activity because it is inherently interesting or enjoyable. In other words, it is the motivation that comes from within, rather than from external rewards or incentives. Intrinsic motivation is considered a more powerful and long-lasting form of motivation compared to extrinsic motivation such as rewards and recognition. When employees are intrinsically motivated, they are more likely to be engaged, committed, and productive in their work.
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Why is it important for organizations to embrace diversity and pursue equal opportunity-what is the business/social case? In your answer, you should present arguments for and against diversity in an organization.
Embracing diversity and equal opportunity is essential for organizations to create a positive workplace culture, better understand their customers, attract top talent, and reduce legal risks.
Embracing diversity and equal opportunity is essential for organizations for several reasons. The first reason is that it fosters a positive workplace culture that values differences in backgrounds, skills, and perspectives. This helps to create a more inclusive environment where everyone feels valued and heard, leading to increased job satisfaction and employee engagement.
Secondly, having a diverse workforce helps organizations to better understand and serve their customers. By having employees from different backgrounds and experiences, organizations can gain insights into different cultures and markets, which can lead to better products and services.
Thirdly, embracing diversity and equal opportunity can help organizations to attract and retain top talent. In today's global economy, skilled workers are in high demand, and organizations that are seen as inclusive and diverse are more attractive to job seekers.
Lastly, promoting diversity and equal opportunity can help to mitigate legal risks associated with discrimination. By ensuring that all employees are treated fairly and have equal opportunities for advancement, organizations can reduce the risk of lawsuits and other legal action.
Arguments against diversity in organizations include the potential for conflict and communication issues when people from different backgrounds work together. There is also the possibility that diversity initiatives can be seen as a form of reverse discrimination, where certain groups are given preferential treatment based on their race or gender.
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CASE STUDY: INTEGRATION AT TOCOPHARMAAs you walk out of the board room, still shaking your head in disbelief, you mumble to yourself, "Boy, that was fun! They were really going at it today!" As you get to your desk, though, it hits you - you have to make sense of what just happened in there. As the MIS Manager at Tocopharma, the second largest pharmaceutical firm in Ghana, you have had the luxury of attending all the executive team meetings, and sometimes participating in the decision-making with your analysis. However, far from what you had imagined the glamour of boardroom discussions to be, most meetings of the executive team were pretty boring. Not today! Surprisingly, you had predicted this one to be exciting. A pretty safe bet given the topic: the need to gain efficiencies by better integrating across functional areas. The meeting took a turn toward the exciting right out of the gate when Kofi Akoto, the CEO, announced that at PharamaMed (the premier industry trade event of the year), he had drinks with the Director of Business Development for BigCoSoft, the second largest vendor of enterprise systems.He said that BigCoSoft was interested in breaking into the pharmaceutical market and was seeking to sign up a high-profile customer. They looked at this contract as a mutually beneficial partnership that would lead to lots of press and advantages for both firms. The client would be a "showcase customer", featured on the Web site and in case studies. BigCoSoft was willing to waive licensing fees for the first three years. "But the biggest advantage," the Director had said," is that with you on board we will attract more customers. With critical mass, we can put huge development resources into this product." At this point you were thinking, "Yep, serious! I was right." Two seconds later the first salvo was fired. Emma Sam, the Director of Finance, said, "Everyone knows that BigCoSoft’s strength is manufacturing. Their financial package stinks. They will surely want to reuse that code and I am going to have to take the hit. We can cut the same deal with LargeCoSoft. They already have an enterprise system for pharmaceutical firms, and their financial module is top notch." "Another option could be to write a bolt-on," chimed in Ronald Nanor, the Director of operations, "that should take care of the missing finance functionalities." "But the Human Resource module of BigCoSoft also leaves much to be desired," interjected Kwabena Sekyere, the Director of human resources. "Plus, we just spent $12 million on the overhaul of the benefits management system; am I going to get hit with more information systems service charges for an upgrade I don’t need?" This is about the time confusion set in, and the story becomes fuzzy as you got lost in the pingpong volleys of comments, questions, and responses. With a heated topic on the agenda, it was painfully clear that the people in the room were more used to being listened to than listening to. You were snapped back to attention when Mr. Akoto closed the meeting by calling your name. He said," Well, it looks like I underestimated how much my staff cared about systems! I will need a report with an investigation of the top three most viable options; the need to integrate is not going away, so we have to do something. I told BigCoSoft I would get back to them in three weeks."Case Study Questions1. Discuss the opportunities and threats with BigCosoft’s offer to Tocopharma and advice the management team on what to do.2. Discuss any three different ways that Tocopharma can address its integration problems to enable working from home under the Covid-19 lockdown situation. What challenges can be encountered and how can they be resolved.
Opportunities: 1. Showcase customer status: Being a high-profile customer for BigCoSoft can enhance Tocopharma's reputation and attract more customers.
2. Cost savings: Waiving licensing fees for the first three years can significantly reduce Tocopharma's expenses and free up resources for other investments.
3. Development resources: Access to BigCoSoft's development resources can enable Tocopharma to customize the enterprise system to better suit their needs and gain a competitive edge.
Threats:
1. Functional limitations: BigCoSoft's financial package may not meet Tocopharma's requirements, potentially causing difficulties for the finance department.
2. Integration challenges: Integrating a new system can be complex and time-consuming, requiring significant effort from Tocopharma's IT and operational teams.
3. Lock-in effect: Once committed to BigCoSoft's system, switching to another vendor may be challenging, limiting Tocopharma's future flexibility.
Advice: Conduct a thorough evaluation of the potential benefits and drawbacks of partnering with BigCoSoft. Assess the alignment of their system with Tocopharma's specific needs and consider the long-term implications of integration. Explore alternatives such as negotiating with LargeCoSoft or developing a bolt-on module to address functional gaps. Engage all relevant stakeholders to ensure their concerns are addressed and make an informed decision based on the best fit for Tocopharma's overall objectives.
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Michelle pays $12,000 down on an electric car which Cars'R'Us had agreed to sell to her for $64,000. Michelle then repudiates the contract. Cars'R'Us sells the electric car to Larry in good faith for $60,000. Michelle may recover from Cars'R'Us:
A. her $12,000 down payment since Cars'R'Us's contract with Larry created a novation anddischarged any duty Michelle had to pay anything toward the electric car
B. ļ»æļ»æ$8,000 in restitution, which represents Michelle's $12,000 down payment less the $4,000 in damages Cars'R'Us sustained because of Michelle's breach.
C. ļ»æļ»ænothing, since she was the one who repudiated the contract.
D. ļ»æļ»æonly a nominal amount
Michelle may not recover anything from Cars'R'Us (option C). Since Michelle repudiated the contract by refusing to fulfill her obligation to purchase the electric car, she is not entitled to any recovery from Cars'R'Us.
Michelle may survive Cars'R'Us: B. Michelle's $12,000 down payment minus Cars'R'Us' $4,000 damages. Michelle breaks the deal by not buying the Cars'R'Us electric automobile. Cars'R'Us can sue for contract breach. Damages are the difference between the contract price and the car's sale price.
Cars'R'Us offers Larry the electric car for $60,000, $4,000 less than Michelle agreed to. Michelle's breach cost Cars'R'Us $4,000.
Michelle could only recoup $12,000, her down payment. However, she must deduct Cars'R'Us' breach-related losses. Michelle would receive $8,000 after deducting the $4,000 in damages from her down payment.
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The Covid-19 pandemic started in March of 2020. It's been two years since the world changed dramatically in all senses. On too of more than 6 million deaths due to the novel coronavirus, economies suffered and have been suffering a great deal with the ongoing pandemic. When the pandemic first hit the economy, the US government took steps to deal with the economic crisis enacting the CORONAVIRUS AID, RELIEF, and ECONOMIC SECURITY ACT (CARES ACT) in 2020,which included resources for small and large businesses as well as expansion of unemployment benefits, and significant direct payments to low and middle income families. Based on what you learned in this class, answer the following:
1. Is the CARES ACT a monetary policy or a fiscal policy. Please explain.
2. Is this policy an expansionary or contractionary one? why?
3. What was the expected impact of this policy in the economy? explain using the AD/AS MODEL
The CARES ACT is a fiscal policy implemented by the US government in response to the economic crisis caused by the COVID-19 pandemic. It is an expansionary policy that aimed to provide relief and support to individuals and businesses. The expected impact of this policy in the economy can be analyzed using the AD/AS model.
The CARES ACT is a fiscal policy. Fiscal policy refers to the use of government spending and taxation to influence the economy. In this case, the US government enacted the CARES ACT to provide economic relief and support in response to the COVID-19 pandemic. It involved the allocation of resources, direct payments, and expansion of benefits, all of which fall under the realm of fiscal policy. The CARES ACT is an expansionary policy. Expansionary policies are measures taken to stimulate economic growth and increase aggregate demand. The purpose of the CARES ACT was to provide financial support to individuals and businesses during the economic crisis caused by the pandemic. By increasing government spending, providing direct payments, and expanding unemployment benefits, the policy aimed to boost consumer spending, business activity, and overall economic growth.
The expected impact of the CARES ACT in the economy can be analyzed using the AD/AS model. The increase in government spending and support to individuals and businesses would shift the aggregate demand (AD) curve to the right. This is because the policy provides additional income and purchasing power, leading to increased consumer spending. As a result, there would be an increase in real GDP and price levels in the short run. The expansionary fiscal policy would also have multiplier effects, where increased spending by individuals and businesses would further stimulate economic activity. However, the long-term impact would depend on factors such as the effectiveness of the policy implementation, the duration of the pandemic, and other economic conditions.
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