Answer:
A. Credit $5,000
B. Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
Cr Deferred tax liability $5,000
Explanation:
Calculation for What is the deferred tax liability to be reported in the balance sheet
Deferred tax liability=[ (400,000-300,000)*.25]-20,000
Deferred tax liability=($100,000*.25)-$20,000
Deferred tax liability=$25,000-$20,000
Deferred tax liability=$5,000 Credit
Therefore the deferred tax liability to be reported in the balance sheet will be $5,000 Credit
B. Preparation of the appropriate journal entry to record income taxes this year.
Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
(4million *.25)
Cr Deferred tax liability $5,000
The scenarios each illustrate a principle of economics. Classify each scenario according to the principle that best fits it.
a. On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store or a flat screen TV at another store, and buying one means losing out on the ability to purchase the other.
b. An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost.
c. Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must make choices about how to use her limited time.
1. Marginal Decisions
2. Resource Scarcity
3. Opportunity Cost
Answer:
3. Opportunity Cost
1. Marginal Decisions
2. Resource Scarcity
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If David buys the camera he would forgo the opportunity to buy a tv and if he buys a tv, he forgoes the opportunity to buy a camera.
Marginal decisions look at the benefit of increasing or decreasing an input by little units. Here, the educational company is considering the marginal benefit of increasing the numbers of economist by one unit.
Ava has limited time to do all she would like to do. Time here is a scarce resource. Her wants her limited but the resources are scarce.
The Saturn Company records all collections from customers (including 5% sales tax) in the Sales Revenue Account. The account balance for 2025 is $100,000. Saturn's 12/31/25 Sales Tax Payable will be:
Answer:
$5,000
Explanation:
Calculation for what the Sales Tax Payable will be:
Sales Tax Payable=5% sales tax*Account balance $100,000
Sales Tax Payable=$5,000
Therefore the Sales Tax Payable will be: $5,000
There is a 10 percent chance that you will have healthcare bills of $200,000; a 20 percent chance that you will have bills of $10,000; a 59 percent chance that you will have bills of $1,000; and an 11 percent chance of having bills of $0. Your expected healthcare bills are Group of answer choices $22,590. $22,000. $20,590. $19,590.
Answer:
Expected value of healthcare bills = $22590
Explanation:
The expected value of the healthcare bills can be calculated by multiplying the probability of the a healthcare bill by the amount in case of that probability situation.
Expected value = pA * Amount in case of A + pB * Amount in case of B + ... + pN * Amount in case of N
Where,
p represents the probability of each scenario
Expected value of healthcare bills = 0.1 * 200000 + 0.2 * 10000 + 0.59 * 1000 + 0.11 * 0
Expected value of healthcare bills = $22590
Marginal cost A) is the increase in total cost resulting from producing one more unit. B) is the average cost of production divided by output. C) equals the increase in AVC resulting from producing one more unit. D) always equals average cost.
Answer: A) is the increase in total cost resulting from producing one more unit.
Explanation:
Marginal cost is the increase in total cost that a company incurs from producing one more unit of the good being produced. It includes both fixed and variable cost and can be calculated by dividing the change in cost by the change in quantity.
Marginal cost is an important metric in profit maximisation because it tells the point where profit is maximised when it equals Marginal revenue.
Examples of imperfections in the financial system which allow banks to exist include which of the following? A. Informational asymmetry B. Efficiency of markets C. Divisibility of assets D. Adequate liquidity E. All of the examples are of the imperfections that exist.
Answer: A. Informational asymmetry
Explanation:
There exists an information asymmetry in the financial markets that rises from people being unable to adequately analyse the riskiness of various business endeavours.
Banks overcome this information asymmetry by having experience and well trained personnel that are capable of adequately assigning risk to ventures and charging them the appropriate interest rate to make a return on that venture.
George owns a custom pottery business where he makes all types of mugs and drinkware. Which of the following products would dramatically affect his profit margins if the price were to decrease for that product?
a. glass coffee mugs
b. coffee beans
c. silverware
d. clay
Answer:
a. glass coffee mugs
Explanation:
As we know that the glass coffee mugs and the pottery mugs are the subsitutes goods. In the case when the price of glass coffee mugs would decline so it would more consume due to which the demand of the pottery mugs would reduced
Therefore as per the given situation, the product that impact the profit margin is option a
hence, the correct option is a.
Robin Company has the following balances for the current month: Direct materials used $ 19,000 Direct labor $ 21,750 Sales salaries $ 11,250 Indirect labor $ 1,900 Production manager's salary $ 6,050 Marketing costs $ 8,350 Factory lease $ 4,020 What is Robin's total manufacturing overhead
Answer:
$30,750
Explanation:
Given that;
Direct materials used = 19,000
Direct labor = 21,750
Sales salaries = $11,250
Indirect labor = $1,900
Production manager's salaries = $6,050
Marketing costs = $8,350
Factory lease = $4,020
Total manufacturing overhead = Direct materials + Direct labor
= $19,000 + $21,750
= $30,750
Therefore,
Total manufacturing overhead is $30,750
A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -5. The government must ________ the price of electricity by ________.
Answer:
increase
2%
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
5 = 10 / percentage change in price
percentage change in price = 10%/5 = 2%
Demand is elastic because the elasticity of demand is greater than 1 in absolute terms. So, if price is increased, there would be a greater change in quantity demanded.
A toy manufacturer estimates the demand for a game to be 2000 per year. Each game costs $3 to manufacture, plus setup costs of $500 for each production run. If a game can be stored for a year for a cost of $2, how many should be manufactured at a time and how many production runs should there be to minimize costs
Answer:
See below
Explanation:
We will compute the above using the EOQ
EOQ = √ 2 × D × S / H
EOQ = √ 2 × 2,000 × 500 / 2 × 3
EOQ = 1,000
1,000 units of toys should be manufactured at a time
Production runs = 2,000 / 1,000
Production runs = 2
Select the correct answer.
Delegating means being responsible for all the work.
A True
B. False
Answer:
B. False
Explanation:
Delegating is using one's authority to assign some responsibilities to team members. Usually, delegations stem from a senior officer to a junior officer but can also be between co-workers. It is authorizing and empowering someone else to execute some of your responsibilities on your behalf.
In delegation, the delegating authority must provide clear guidance on how the assigned duties are discharged. Some level of supervision is still required as delegating does not take away the accountability element from the delegating authority.
Lifesaver Inc., a producer of personal protective equipment, trades on the TSX Venture stock exchange at an EV/EBITDA multiple of 4.0x. From performing a precedent transaction analysis, you note that recent acquisitions of similar companies have transacted at an EV/EBITDA multiple of 6.0x. The following is not a valid potential reason for this discrepancy:
a. Special purchaser considerations, such as synergies, being inherent in the precedent transaction multiples.
b. Multiples implied by precedent transactions are not relevant when considering publicly traded companies.
c. The presence of a control premium within the EV/EBITDA multiple implied by the acquisitions.
d. The presence of an implied minority discount (a discount due to a lack of control in the company when purchasing shares in the open market in the 4.0X EV/EBITDA trading multiple
Answer:
b. Multiples implied by precedent transactions are not relevant when considering publicly traded companies.
Explanation:
The following options are the valid reasons
1. Option c is valid as the lacking of control would generate the valuation that creates the difference compared with the purchase route.
2 Option a is valid as at the time of purchased made, synergies this would become a big factor for incorporation the valuation
3. OPtion d is valid as the control premium would push up the valuation in the previous transactions
But the option b is not valid as the discounted cash flow and the previous transaction would be considered as important for the valuation purpose
The next dividend payment by Hot Wings, Inc., will be $4.25 per share. The dividends are anticipated to maintain a 3 percent growth rate forever. Required:If the stock currently sells for $59 per share, what is the required return
Answer:
10.20%
Explanation:
According to the Gordon constant growth model :
value = D1 / r - g
D1 = next dividend = $4.25
r = required return
g = growth rate = 3%
value = $59
$59 = $4.25 / r - 0.03
4.25 / 59 = r - 0.03
0.072034 = r - 0.03
r = 0.102034
r = 10.20%
Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots.
Answer and Explanation:
The journal entry is shown below:
Cash Dr (1,000 × $65) $65,000
To Sales revenue $59,000
To Deferred Revenue -Discount coupon $6,000
(1,000 × $100 × 30% × 20%)
(Being the sales revenue is recorded)
here the cash is debited as it increased the assets and credited the sales revenue and deferred revenue as it increased the revenue and liabilities
The use of one’s official position for what always raises moral concerns and questions?
Answer:
The use of one’s official position for self-interest always raises moral concerns and questions. It is called corruption.
Explanation:
Corruption is the abuse of entrusted power for private gain. It erodes public confidence and breeds a culture of patronage. All forms of dishonest behavior by those in positions of power and authority are corrupt practices. It may also entail the giving and receiving of bribes for contract fronting. Many nations have experienced economic upheavals due to the corrupt practices perpetrated by those who should know better.
What is the interest if principal is $1000, with an interest rate of 5% for a
term of 1 year. *
5000
50
500
5
0.50
Answer:
$50
Explanation:
Interest is calculated using the formula
I = p x r x t
where I = interest
p = the principal amount: $1000
r = interest rate: 5% or 0.05
t = time in years: 1
I = $1000 x 0.05 x 1
I = $50
Interest = $50
'
Which of the following occupations would most likely be
subject to seasonal unemployment?
Select one:
a.Appliance salesperson
b.Television repair-person.
C.Automobile mechanic.
d.Farm worker
= Farm worker
Answer:
Farm worker
Explanation:
Seasonal unemployment occurs due to a decrease in labor demand at particular times of the year. Some industries experience increased activities during specific seasons. Hotels and restaurants may experience a boom in holiday seasons, while Ski business may be closed during summer.
The farming business is seasonal. During winter, nothing much happens. Workers in this period are likely to be unemployed.
At the end of the prior year, Doubtful Inc. had a deferred tax asset of $14,500,000 attributable to its only timing difference, a temporary difference of $58,000,000 in a liability for estimated expenses. At that time, a valuation allowance of $4,720,000 was established. At the end of the current year, the temporary difference is $53,000,000, and Doubtful determines that the balance in the valuation account should now be $5,000,000. Taxable income is $15,800,000 and the tax rate is 25% for all years. Required: Prepare journal entries to record Doubtful's income tax expense for the current year.
Answer:
S/N Account Titles and Explanation Debit Credit
1 Income tax expense (balance) $6,780,000
Deferred tax asset $1,250,000
(53,000,000*25%) - 14,500,000
Income taxes payable $5,530,000
(15,800,000 *35%)
(To record tax expenses)
2 Income tax expense $280,000
Valuation allowance - deferred tax asset $280,000
(4,720,000 - 5,000,000)
(To record valuation allowance)
Oriole owes $3.4 million that is due on February 28. The company borrows $2670000 on February 25 (5-year note) and uses the proceeds to pay down the $3.4 million note and uses other cash to pay the balance. How much of the $3.4 million note is classified as long-term in the December 31 financial statements
Answer:
Since the $3.4 million note is repayable on the coming February 28, i.e within 12 months from December 31, no portion of the note is to be classified as long-term on the current December 31 balance sheet.
However, the $2.67 million note is to be classified as long-term liability in the following December 31, balance sheet.
Match the terms to their definition. 1. annual percentage yield the amount of interest you will earn in one year from a savings account 2. interest thresholds different interest rates paid for different size balances, with higher balances earning higher rates 3. money market account the minimum balances before the bank begins paying interest 4. variable interest rates a savings account that offers a higher rate of interest when you make large deposits
Answer:
The terms are mixed up with the definitions. They are:
Annual percentage yield, Interest thresholds, Variable interest rates and Money market account.
1. The amount of interest you will earn in one year from a savings account ⇒ Annual percentage yield
The annual percentage yield is the interest rate that shows how much your account will increased by in a year.
2. Different interest rates paid for different size balances, with higher balances earning higher rates ⇒ Variable interest rates.
Variable rates are meant to reward higher balances are so are different per account balances.
3. The minimum balances before the bank begins paying interest ⇒ Interest thresholds.
Banks have interest thresholds which show the minimum value that an account must have in order to start accruing interest.
4. A savings account that offers a higher rate of interest when you make large deposits ⇒ Money market account
Money market accounts make returns by trading short term instruments which enables them to offer higher rates of return. They however require large deposits.
Answer:
cccf
Explanation:
After Lynda's initial client assessment, she has noted that her client will require inventory management to avoid out-of-stock situations for their merchandise.
What business industry type does this best describe?
1) Professional services
2) Appointment-based services
3) Contractor/Field Services
4) Retail and e-commerce
Answer:
4) Retail and e-commerce
Explanation:
The retail industry comprises businesses that sell to the final consumers of goods and services. Examples of firms in the retail industry retail stores, supermarkets, banks, gas stations are all other businesses that sell to end consumers. The retail business requires inventory to sell to customers. Out-of-stock is a situation where a retail outlet has run out of a particular product or products to sell to customers. It results in customers being turned away and lost revenues.
eCommerce is business done via the internet. The retail industry has incorporated eCommerce in its operations.
Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in the United Kingdom
Answer:
In the last 30 years, national economies have shifted towards decreasing trade barriers, and the world is becoming global economic space. Economic turbulence, especially in one of the major economies like the US, Europe, and China, tends to have ripple effects on other world economies. For example, the subprime housing crisis in 2008, which upturned the US economy, reached global proportions with the economic and financial meltdowns that were felt globally.
The new emergence in the economic system suggests that national boundaries are shrinking, and economies are becoming integrated and interdependent. In the last 30 years, China emerged as a global economic superpower, challenging the dominance of the US and European economies.
For businesses based in the United Kingdom, they have wider opportunities and better playing grounds. They can look beyond Europe and the US for investment and business opportunities. China, especially Hong Kong, is becoming an investment haven. Even other developing countries like Brazil, South Africa, and Dubai are becoming more attractive with increased consumer spending.
Secondly, the United Kingdom will continue to be the center of attraction for some Asian firms that will use London as a launching pad for their European businesses. This also poses some threats, just as it generates opportunities for global expansion of UK-based businesses.
Explanation:
Globalization has caused the world economies to merge and become a global economy. However, in the last four years, China seems to be recoiling to its shelves with the coming on board of the Trump Administration, which had exposed China's behind-the-door fiscal and monetary policies. This started when the administration labeled China as a currency manipulator. China is becoming alienated from the US and having its reputation tarnished internationally. The earlier prediction that China would emerge as the dominant superpower economy in 2010 was not wholly realized. China is re-strategizing by concentrating its investments in Asia, Africa, Latin America, and some parts of Europe.
The velocity of money increases if:
Select one:
a.
Each unit of money is used more frequently.
b.
Money is constant
c.
Each unit of money is used less frequently.
d.
None of the above
= Each unit of money is used more frequently.
Answer:
= negative relationship = negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment. inflation and unemployment.
Explanation:
= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.
All of the following except
are examples of sustainable business practices.
o following environmental laws when disposing of waste
O using energy efficient practices to run a paper plant
o undercutting the competition with low pricing
o using recycled materials to produce paper
Answer:
C
Explanation:
ccording to the U.S. Bureau of Labor Statistics, there were chefs/head cooks employed in the United States in and food service managers. Those numbers were projected to decrease to and by . Which job was facing the larger percent decrease? By how much? Round your answer to two decimal places, if necessary.
Answer:
Food service managers are facing a larger percent decrease at 3.31%Explanation:
The percentage decrease in chefs/head cooks is:
= (100,600 - 99,800) / 100,600
= 0.795%
= 0.8%
Percentage decrease for food service managers is:
= (320,600 - 310,000) / 320,600
= 3.31%
A company uses the finite replenishment model to determine the optimal quantity to produce. There are days a year over which demand and production occur. The daily demand is , and the production rate is per day. The setup cost for production is $ per setup. Assuming that the carrying cost is percent of the item's $ cost, what is the length, in days, of a production run if the company produces the replenishment quantity that minimizes its inventory-related costs?
Answer:
16.1 days
Explanation:
Note: The full question is attached as picture below
Daily demand d = 520
Annual demand D = 520*250 = 130000
Setup cost S = $680
Production rate p = 875
Holding cost H = 0.25*25 = 6.25
Optimal order quantity Q
[tex]Q = \sqrt{2DS/H}[/tex] [tex]\sqrt{p / p -d}[/tex]
[tex]Q = \sqrt{(2*130000*680)/6.25} \sqrt{875/875-520}[/tex]
Q = 8350
Length of production run = Q/d
Length of production run = 8350/520
Length of production run = 16.05769230769231
Length of production run = 16.1 days
Which of the following is an advantage of a small business?
Greater adaptability to changing market demands
High success rates
Diverse and large workforce
OLow levels of stress in managing the business
Highly trained and competent staff
Determine the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%.
Answer: 1.167
Explanation:
From the question, we are informed to calculate the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%. This would go thus:
Beta = (stock return - riskfree rate) / (market return - riskfree rate)
= (10% - 3%) / (9% - 3%)
= 7% / 6%
= 0.07 / 0.06
=1.167
How does QuickBooks Online use machine learning in its reconciliation tool to help find any hidden transactions
Answer: b. It can identify transactions where the transaction date is in a future period and the cleared date is in the statement period .
Explanation:
QuickBooks online uses machine learning based on the transactions that it conducts with its millions of users so that it provides a better experience for those same users.
One way machine learning is used is in reconciliation where it identifies transactions that may have a future date but by virtue of their clearing dates should be in the current period and so may have been hidden.
There will be a higher equilibrium price and quantity if _____.
Answer:
An increase in demand
Explanation:
At equilibrium quantity, there is no excess or shortage in supply. The quantity supplied match with quantity supplied. The equilibrium price is the prevailing market price where there no excess or shortage in demand or supply. At the equilibrium point, Both suppliers and buyers are happy with the current price and quantity supplied.
An increase in demand will make suppliers increase supply to meet the new high demand. As demand increases, prices tend to rise. An increase in demand, therefore, cause the equilibrium price and quantity to increase.
Present Value of $200,000 that is expected to be received at the end of one year at a discount rate of 25% per year is:
Answer:
PV= $160,000
Explanation:
Giving the following information:
Future Value (FV)= $200,000
Discount rate (i)= 25%
Number fo periods (n)= 1 year
To calculate the present value (PV), we need to use the following formula:
PV= FV / (1+i)^n
PV= 200,000 / 1.25^1
PV= 200,000/1.25
PV= $160,000
