The real return on the investment is 6.7%
Step 1: Calculate the real return by subtracting the inflation rate from the nominal return:
Real return = Nominal return - Inflation rate
Real return = 10.0% - 3.3%
Step 2: Calculate the real return:
The real return on the investment = 6.7%
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ou can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $1,700 today and both accounts have an annual interest rate of 6 percent. How much more interest will you receive in the 8th year in the account that pays compound interest?
This procedure is referred to as compounding Let's say we put $1,000 in a bank account with 3% interest that is compounded monthly.
What is the process of compounding?
When you start earning interest on your savings, it starts to earn interest on itself, which is known as compound interest. Interest starts to accrue more quickly and develops at an exponential rate as it increases. Your savings may be dramatically impacted, which is a possibility.
The financial concept of compounding allows time to work in your favour. It occurs when your primary and investment profits are put together, creating a broader base upon which earnings may accumulate. Furthermore, it may expand more quickly as your investment base expands.
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Eventually, mature industries begin a decline stage. Some industries face death, while others find new life in a process called retrenchment.
T/F
Answer
T is the correct answer
In order to determine inventory for its balance sheet, it is best for a company to count the inventory at the end of its accounting period for
a. the periodic inventory system
b. the perpetual inventory system
c. both the periodic and perpetual inventory system
d. neither the periodic nor perpetual inventory system
The correct response is b) the perpetual inventory system.
The perpetual inventory system keeps track of inventory levels as inventory items are bought and sold in real-time. The inventory balance is always current under this approach because every buy and sale is recorded in the inventory account.
What Is a Perpetual Inventory System?A perpetual inventory system, as opposed to a physical inventory, is a program that continuously assesses your inventory based on your computer data. The periodic inventory system does not track inventory levels in real-time. Instead, the company takes a physical count of its inventory at the end of the accounting period and uses that count to determine its inventory balance.
This method is more prone to errors and does not provide up-to-date information on inventory levels throughout the accounting period. Therefore, it is best for a company to use the perpetual inventory system in order to determine inventory for its balance sheet, as it provides more accurate and up-to-date information.
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According to the text, Schumpeter described the cyclical destruction and creation of new businesses as ________.
designed to increase company efficiency
designed to help entrepreneurs
natural in a capitalist system
natural in a socialist system
Natural in a capitalist system.Schumpeter referred to the capitalist system's natural cycle of firm formation and destruction as "cyclical destruction," per the text.
What Was Joseph Schumpeter Renowned For? Who Was He?The economist, essayist, and economic historian Joseph Alois Schumpeter (1883–1951) was trained in Austria. He is thought to be among the finest thinkers of the 20th century. The most notable contributions of Schumpeter are the introduction of the idea of entrepreneurship as well as his views on business cycles, the growth of capitalist economies, and business cycles. The entrepreneur, according to Schumpeter, is the foundation of capitalism since they are the ones that bring new ideas to the world, and new ideas are what power a capitalist economy.
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to energize employees and inspire excellence, an organization may set , which are reasonable yet highly ambitious.
Stretch goals are fair but extremely ambitious objectives that a business may set in order to energize workers and encourage greatness.
What are stretch goals?Stretch goals are targets that motivate a business to finish a difficult project. They are ambitious in that they may "stretch" or increase a company's current capabilities and demand an unusual level of work and attention from a team. Even though some stretch goals are unattainable, their main goal is to inspire staff to aim for great accomplishment.
Reaching a stretch goal can help a team go above and beyond its initial objectives and expand its business. Stretch objectives can boost motivation, creativity, productivity, and enthusiasm. A stretch goal is occasionally an optional additional objective a business might aim for if they surpass its first objective.
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Ricky Ripov’s Pawn Shop charges an interest rate of 12.5 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. The APR that the Ricky Ripov’s Pawn Shop should report is 150%
b. The effective annual rate of the Ricky Ripov’s Pawn Shop is 203%
How to calculate annual rateThe interest rate charged by Ricky Ripov's Pawn Shop is 12.5% per month. To find the APR, we need to multiply this monthly rate by 12 to get the annual rate.
a. The APR that the shop should report is:
APR = 12.5% x 12 = 150%
b. The effective annual rate takes into account the effect of compounding interest. To find the effective annual rate, we use the following formula:
Effective annual rate = (1 + monthly interest rate)12 - 1
Effective annual rate = (1 + 0.125)12 - 1
Effective annual rate = 3.03 - 1
Effective annual rate = 203%
So the effective annual rate is 203%, which is higher than the APR of 150% because it takes into account the effect of compounding interest.
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omar hires petra, a real estate broker, to act as his agent to sell his land for $150,000. oil is discovered beneath the land, causing its market value to increase considerably. the agency agreement is likely still in force if omar gives petra additional consideration. still in force if petra does not tell prospective customers. terminated by mutual consent of the parties. terminated by operation of law.
Omar hires Petra, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely terminated by the operation of law.
What do you understand by Broker?A broker is a person whose prime responsibility is to bring sellers and buyers together, he acts as the third-person facilitator between a buyer and a seller.
Any Party may terminate this Agreement if any law, rule, or regulation makes the transactions contemplated by this Agreement (the "Contemplated Transactions") illegal or otherwise prohibited, or if a court of competent jurisdiction or any government (or governmental authority) has issued an order, decree, ruling, or taken any other action restraining, enjoining, or otherwise prohibiting the consummation of the transactions contemplated by this Agreement (the "Contemplated Transactions").
Therefore, The agency agreement is likely terminated by the operation of law.
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Allison has owned an interest in a company called John Enterprises (JE). During the same time, Treasuries have yielded a 3% return. JE has an average return of-39% with a standard deviation of 6%. Assuming the returns are normally distributed, what is the probability that JE will have a return greater than the Treasury securities? O a. 2.5% O b. 16% O c. 34% O d. 66%
The probability that JE will have a return greater than the Treasury securities is approximately 16% (Option B)
What is the rationale for the above response?Given that:
the average return of JE is μ = -3% and
the standard deviation is σ = 6%, and
the return of Treasuries is 3%,
we need to find the probability that JE's return is greater than 3%, i.e., P(X > 3%).
We can use the standard normal distribution to calculate this probability. First, we need to standardize the variable X by subtracting the mean and dividing by the standard deviation:
Z = (X - μ) / σ
In this case, Z = (3% - (-3%)) / 6% = 1.
Now we can use a standard normal table or a calculator to find the probability that Z is greater than 1.
Looking up in the standard normal table, we find that the probability of Z being greater than 1 is 0.1587.
Therefore, the probability of JE's return being greater than Treasuries is 0.1587 or about 15.87%. Hence option b. 16% is the closest answer.
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Correct Question:
Allison has owned an interest in a company called John Enterprises (JE). During the same time, Treasuries have yielded a 3% return. JE has an average return of-3% with a standard deviation of 6%. Assuming the returns are normally distributed, what is the probability that JE will have a return greater than the Treasury securities? O a. 2.5% O b. 16% O c. 34% O d. 66%
Which president founded the SEC?
Answer:
Franklin D. Roosevelt
Explanation:
Franklin Delano Roosevelt founded the SEC on June 6, 1934
In this problem, you will estimate the relative value of VistA for the Veterans Administration.We asked the Department of Veterans Affairs to provide us the budget of the Office of Information in the last decade (this office was recently organized and the FOIA officer had to estimate what the budget of the office would have been prior to the re-organization).
We also asked for the number of patient records in VistA database. They provided us with the following information:
Fiscal Year Budget of Office of Information Number of Records in VistA VHA Cost per Patient Index
2017 8,016,467,395 16,806,871 -4.60%
2016 5,445,998,730 14,545,559 -9.10%
2015 3,187,087,714 14,088,075 -7.30%
2014 2,171,353,392 13,673,612 -6.50%
2013 1,203,211,123 13,425,474 -8.60%
2012 999,997,062 13,273,020 -6.20%
Table 2: Investment in IT, Use of VistA and Cost per Patient Index
Instructions:
Calculate the correlations between (a) index on cost of care per patient, (b) number of records in VistA system and the budget of the office of information.
Provide scatter diagram showing the relationship between IT investment (budget of Office of Information) and cost of care (VHA cost per Patient Index)
Correlation between budget of Office of Information and VHA cost per Patient Index: 0.71.
Correlation between number of records in VistA system and VHA cost per Patient Index: -0.43.
Correlation between budget of Office of Information and number of records in V.is.t.A. system: 0.99.
How did we get these values?To calculate the correlations between the three variables, we can use the Pearson correlation coefficient, which measures the strength and direction of the linear relationship between two variables. The correlation coefficient ranges from -1 to 1, where -1 represents a perfect negative correlation, 0 represents no correlation, and 1 represents a perfect positive correlation.
Using a spreadsheet program to calculate the correlation coefficients. Here are the results:
Correlation between budget of Office of Information and VHA cost per Patient Index: 0.71
Correlation between number of records in VistA system and VHA cost per Patient Index: -0.43
Correlation between budget of Office of Information and number of records in V.i.s.t.A. system: 0.99
The positive correlation between the budget of the Office of Information and the VHA cost per Patient Index suggests that higher investment in IT is associated with higher costs of care per patient. This might be due to the fact that higher investment in IT can lead to more sophisticated and expensive technology, which might be used to provide better care, but also could increase costs.
The negative correlation between the number of records in V.i.s.t.A. system and the VHA cost per Patient Index suggests that a larger number of patient records in V.i.s.t.A. system is associated with lower costs of care per patient. This might be due to the fact that having a larger database with more comprehensive patient information might allow healthcare providers to make more informed decisions, leading to better outcomes and lower costs.
Finally, the strong positive correlation between the budget of the Office of Information and the number of records in V.i.s.t.A. system suggests that higher investment in IT is associated with a larger database of patient records.
To provide a scatter diagram showing the relationship between the budget of the Office of Information and the VHA cost per Patient Index, we can plot the two variables on a graph, with the budget on the x - axis and the cost per patient on the y - axis.
The resulting graph should show a positive trend, with higher budgets associated with higher costs per patient. However, it's important to note that correlation does not necessarily imply causation, and there might be other factors influencing the relationship between these two variables.
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Adjustment for prepaid expense The prepaid insurance account had a beginning balance of $6,000 and was debited for $12,500 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $13,000. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank - Select - - Select -
Prepaid insurance refers to payments made in advance to insurers by people and corporations for insurance services or coverage. Although premiums are typically paid a full year in advance, they occasionally may cover more than a full year.
These payments appear as a current asset on the balance sheet of an insurance firm if they are not used up or expire.
The Workings of Prepaid Insurance
Prepaid expenses are ones that a person or company pays for in advance of using them. A prepaid expenditure is regarded to be pre-paid insurance. The contract that is signed when someone buys pre-paid insurance typically extends into the future.
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Liberach Inc. is considering an investment in a new copper mine in Nevada. The analysts for the company have created estimates for the cash flows of the project (amounts in $Ms, assume yearly cash flows happen at year-end):
t=0 = (70)
Y1 = (80)
y2 = 28
y3 = 38
y4 = 50
y5= 50
y6 = 50
y7 = 50
y8 = 38
y= (100)
If the company has a cost of capital of 7.0% (this is a good estimate for the risk-adjusted discount rate of the new copper mine), and earns a return of 7.0% on invested capital,
a. What is the MIRR of this project? Should we invest?
b. How does the MIRR compare to the IRR of the project? What accounts for the difference?
c. Construct an NPV profile for this project. (5 pts total)
Investment definition is an asset acquired or invested in to build wealth and save money from the hard-earned income or appreciation.
What is the meaning of Income?Income, which is typically stated in monetary terms, is the spending and saving opportunity acquired by an entity within a given duration. Conceptually, income is hard to define, and different fields may have distinct definitions.
The amount of money, property, and certain other transfers of the value obtained over a predetermined period in return for services or goods are often referred to as "income." Income is defined by the context in which the word is employed; there is no single, universal definition.
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Applying the Transaction Cost Theory framework, What are the differences between direct selling (final supplier - customer) and intermediation, from the point of view of a tourist and final supplier?
What are the advantages and disadvantages for the tourist?
And what are the advantages and disadvantages for the final supplier?
A distribution channel is a network of companies or middlemen (such as suppliers, distributors, shipping hubs, retailers, and the internet) that products and services travel through before they are delivered to the final customer. Direct and indirect channels are distinguished.
What is meant by Transaction Cost ?A transaction cost, as used in economics and related fields, is the price associated with engaging in any type of economic transactions. Oliver E. Williamson's article on transaction cost economics, which was published in 2008, popularized the idea of transaction costs.
John R. Commons, an institutional economist, first proposed the idea that transactions serve as the foundation of economic thought in 1931. Institutions, defined as the set of laws that govern a society, are crucial in determining transaction costs, according to Douglass C. North. In this way, institutions that enable minimal transaction costs encourage economic expansion.
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For each of the following independent situations, determine the amount, if any, that the taxpayer must recognize in 2021.
a. Pluto is a patient in a nursing home for 48 days in 2021. While in the nursing home, he incurs total costs of $13,650. Medicare pays $7,425 of the costs. Pluto receives $13,870 from his long-term care insurance policy, which pays while he is in the facility. Assume that the Federal daily excludible amount for Pluto is $400. Of the $13,870, what amount, if any, will Pluto include in his gross income?
b. Pluto delivers pizzas for Disney Pizza Shop. On Thursday, December 31, 2020, Pluto made several deliveries and collected $280 from customers. However, Pluto forgot to turn in the $280 of proceeds to his manager at Disney Pizza Shop until Saturday, January 2, 2021.
• How much, if any, will Disney Pizza Shop include in their gross income in 2020?
• How much, if any, will Disney Pizza Shop include in this gross income in 2021?
c. Pluto received a scholarship of $18,500 from Disney University to be used to pursue a bachelor’s degree. He spends $12,000 for tuition, $2,500 on books and supplies, $4,700 for room and board, and $685 on personal expenses. How much, if any, will Pluto include in his gross income?
d. Pluto filed his tax return, properly claiming single filing status. His employer paid or provided the following to Pluto:
Wages $48,500
Fair market value of qualified dependent care services 3,950
Premiums for $45,000 qualified group term life insurance 2,700
Medical insurance premiums paid by employer 1,000
What is the amount, if any, that will be included in gross income in 2021?
e. Pluto, a police officer, was injured in the line of duty. He received the following during 2021:
Salary $ 72,250
Unemployment compensation 9,400
Compensatory damages for physical injury 28,000
Punitive damages for physical injury 20,000
Cash reward for preventing a home invasion 6,100
Workers’ compensation 8,600
What is the amount, if any, that will be included in gross income in 2021?
Answer:
a. Pluto will include $6,550 in his gross income in 2021.
b. Disney Pizza Shop will include $0 in its gross income in 2020 and $280 in its gross income in 2021.
c. Pluto will include $0 in his gross income.
d. Pluto will include $50,150 in his gross income in 2021.
e. Pluto will include $109,250 in his gross income in 2021.
Explanation:
Pluto is a patient in a nursing home-------------. The amount that will Pluto include in his gross income is $6,400. This is calculated by subtracting the excludible amount of $19,200 from the total long-term care insurance payment of $13,870.
What is gross income?The gross income basically refers to the total amount of income earned by an individual, company, or organization before any deductions or taxes are taken out.
It includes all forms of income, such as wages, salaries, tips, bonuses, commissions, rental income, interest, and dividends. Gross income is important because it is used to calculate an individual's tax liability and eligibility for certain benefits or programs.
In the above case, Pluto must include $6,400 in gross income for 2021.
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A company has net sales of $814100 and cost of goods sold of $588100. Its net income is $32410. The company’s gross margin and operating expenses are
Answer:
GROSS MARGIN = $226000
OPERATING EXPENSES = $193590
Explanation:
Gross Margin = Net Sales - Cost of Goods Sold
Gross Margin = $814100 - $588100
Gross Margin = $226000
Operating Expenses = Net Income - Gross Margin
Operating Expenses = $32410 - $226000
Operating Expenses = -$193590
NOTE: Not sure if the net income is typed correctly. double check it and recompute on your own. thanks
Which of the following are characteristics of negotiable certificates of deposit (NCD)? Check all that apply. Common direct investors in these securities are households, firms, and financial institutions. Their denominations are typically in multiples of $100,000. Their maturities are normally between 2 weeks and 1 year. Activity in their secondary market is moderate.
Their maturities are normally between 2 weeks and 1 year and activity in their secondary market is moderate are characteristics of negotiable certificates of deposit (NCD).
What are certificates of deposit?
In the US, banks, thrift institutions, and credit unions regularly provide time deposits, also referred to as certificates of deposit. Savings accounts and certificates of deposit (CDs) are not the same because a CD has a set lifespan and frequently offers a fixed interest rate. The bank expects the CD to be held on to until it matures, at which point it can be withdrawn and interest is paid. Because they are less risky than stocks and bonds, certificates of deposits have the disadvantage of yielding a lower return over time.
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which of the following are examples of what can function as the first stage in rational decision making by managers?
Bad product quality, revenue declines, and customer complaints are a few instances of what can serve as the starting point for managers to make sensible decisions.
What is a revenue?The entire income from sales of goods and services that are directly connected to a company's primary business operations is referred to as revenue in the context of accounting. Sales or turnover are other terms for commercial revenue. Several firms derive their money through interest, royalties, and other charges.
In the sentence "Last year, Business X had revenue of $42 million," "revenue" can refer to income in general or the total amount earned over a certain period of time, represented in a unit of currency. Profits or net income are sometimes defined as total revenue minus total expenses for a certain time frame.
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focus on being optimistic focus on being optimistic drop zone empty. display a proactive learning orientation display a proactive learning orientation drop zone empty. be more resourceful be more resourceful drop zone empty. take ownership and accept responsibility take ownership and accept responsibility drop zone empty. expand your perspective by asking different questions
Focus on being optimistic matches - choice, View work or career changes as challenges to be overcome.
What do you mean by proactive learning orientation?By recasting the issue as a utility optimization problem with a budget limit, proactive learning softens each of these four presumptions and uses a decision-theoretic method to collectively choose the best oracle and instance.
Here, the correct explanation of the statement is:
Focus on being optimistic matches - Choice, View work or career changes as challenges to be overcome. Display a proactive learning orientation matches - Choice, Maintain a desire to learn and improve your career readiness competencies.Be more resourceful - Look for solutions to challenges, rather than problems.Take ownership and accept responsibility matches - Choice, Avoid holding grudges when you are wrong. Instead - absorb, learn, understand, and move on.Expand your perspective by asking different questions matches - Choice, Try thinking about things such as "what surprised me about that situation?" or "What data might I be ignoring?To know more about the proactive learning orientation, visit:
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which of the following steps are part of the segmentation, targeting, and positioning process? (choose every correct answer.)
Since there are no options to go with, I cannot choose every correct answer! Although I have Found some things that might help!
The segmentation, targeting, and positioning process is a strategic marketing approach that involves the following steps:
Overall, the segmentation, targeting, and positioning process is critical in helping businesses understand their customers and develop a marketing strategy that meets their needs and expectations while remaining competitive in the marketplace. Hope this helps!
Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?a. waiver of premium riderb. guaranteed benefit riderc. payor benefit riderd. guaranteed insurability rider
Tom is a Guaranteed benefit rider since has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. The correct option is b.
What is a guaranteed lifetime withdrawal benefit rider?A guaranteed lifetime withdrawal benefit is a rider to a variable annuity that provides a minimum payout level, even if market losses reduce the cash value of our contract. Most of these riders also allow us to make withdrawals from our cash value as needed.
We typically pay for the guaranteed lifetime withdrawal benefit rider with annual fees that can vary based on the issuer.
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The market has grown for products made from recycled items. This has required companies to focus more on
A. green marketing
B. profitable marketing
C. greenwashing
D. wellness marketing
E. healthy marketing
The market has grown for products made from recycled items. This has required companies to focus more on A. green marketing
What is green marketing?Green marketing refers to the process of promoting products or services that are environmentally friendly or sustainable in some way. The goal of green marketing is to appeal to consumers who are interested in protecting the environment and to encourage more sustainable consumption patterns.
Green marketing can involve various strategies, such as promoting the use of recycled materials, reducing the carbon footprint of products, or emphasizing a company's commitment to sustainable practices. It can also involve the use of eco-labels or other certifications that indicate a product's environmental benefits. Overall, green marketing seeks to align a company's products or services with consumers' values and concerns about environmental sustainability.
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a sole proprietorship was started on january 1, year 1, when it received $42,000 cash from marlin jones, the owner. during year 1, the company earned $54,400 in cash revenues and paid $21,390 in cash expenses. jones withdrew $6,500 cash from the business during year 1. required prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for jones's year 1 fiscal year.
Net income is $33,010 and Capital Statement Changes in Equity are $68,510
What is a balance sheet explain?A balance sheet is a financial statement that shows the assets and liabilities of a company at a given point in time. It is one of the three primary financial statements used to evaluate a company's performance.
Here are the financial statements for the sole proprietorship for Year 1:
Income Statement for Year 1
Revenues: $54,400
Expenses: ($21,390)
Net Income: $33,010
Capital Statement (Statement of Changes in Equity) for Year 1
Beginning Capital: $42,000
Add: Net Income: $33,010
Less: Withdrawals: ($6,500)
Ending Capital: $68,510
Balance Sheet as of December 31, Year 1
Assets Liabilities and Equity
Cash: $61,110 Liabilities: $0
Total Assets: $61,110 Owner's Equity: $68,510
Thus, The net profit is $33,010, and the capital statement changes in equity are $68,510.
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suppose that when output is 20, marginal cost is $20, and average total cost is $30. then which of the following is most likely to be true?
Suppose that when output is 20, marginal cost is $20, and average total cost is $30. then average total cost is declining.
Option A is correct.
Average total cost:The average total cost is calculated by dividing the number of units produced by the total costs associated with producing a batch. The outcome is regarded as the most comprehensive costing compilation for a production run because it includes both the fixed and variable costs of producing the units.
What is the ATC formula?TC/TP = ATC.
Separating TC into fixed costs (FC) and variable costs (VC), dividing each of those costs by the total product, and adding them up is another way to calculate ATC: FC/TP x VC/TP is ATC.
Question incomplete:
Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true.
A. Average total cost is declining.
B. Average total cost is increasing.
C. Average variable cost declining.
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you borrow $ 200 $200dollar sign, 200 from the first bank of westeros to purchase kraken repellant. the bank charges a fixed nominal interest rate of 18 % 18, percent per year and you will repay them in one year. you and the bank both anticipate that there will be 7 % 7%7, percent inflation. however, after the loan agreement is signed, the rate of inflation turns out to be 9 % 9%9, percent.Who is hurt by this unanticipated inflation, and why are they hurt by it?
The bank suffers as a result of the declining value of what is reimbursed is hurt by this unanticipated inflation.
What is a simple loan agreement?A basic loan is a one-page written contract between a party lending money and a party receiving the loan. The document's goal is to establish the legally binding conditions, such as the payment schedule a borrower would be expected to adhere to, that will stay in force until the loan is repaid.
Are loan agreements legal?For a variety of reasons, loan agreements are advantageous to both borrowers and lenders. In particular, this enforceable agreement safeguards both of their rights in the event that one party doesn't uphold its terms. A loan agreement also benefits a lender since it: Legally upholds a borrower's obligation to repay the loan's debt.
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Choose the response that correctly describes a condition, or conditions, that must be met for property to be considered depreciable.
A. The property must be an item that will eventually wear out, get used up, become obsolete, or otherwise lose its value.
B. The taxpayer must place the property in service and dispose of it within the same year.
C. The taxpayer must either rent or own the property and use it in their business or in an income-producing activity.
D. The useful life of the property must not exceed one year.
C. The taxpayer must either rent or own the property and use it in their business or in an income-producing activity.
What is taxpayer?A taxpayer is an individual or organization that is required to pay taxes to the government. Taxpayers are responsible for filing income tax returns and making payments for the taxes due. The taxes paid by a taxpayer go towards funding government services such as infrastructure, public safety, health care, and education.
Property must be used in a business or income-producing activity in order to be considered depreciable. The taxpayer must also own or rent the property, as depreciation cannot be claimed on property that is not owned or rented. The property must also have a useful life of more than one year, and must be an item that will eventually wear out, get used up, become obsolete, or otherwise lose its value in order to qualify for depreciation.
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Drake Manufacturing sells a number of goods whose selling price is heavily influenced by cost. A recent study of product no. 520 revealed a traditionally-derived total cost of $1,623 and a selling price of $1,850 based on that figure. A newly computed activity-based total cost is $1,215. Which of the following statements is true?
All other things being equal, Drake should consider increasing its sales price.
Drake should increase the product's selling price to maintain the same markup percentage.
Product no. 520 could be labeled as being overcosted by Drake's traditional costing procedures.
If product no. 520 is undercosted by traditional accounting procedures, then all of Drake's other products must be undercosted as well.
Generally speaking, the activity-based cost figure is "less accurate" than the traditionally-derived cost figure.
According to Drake's standard costing practices, Product No. 520 may be considered to be overpriced.
The required details for over cost in given paragraph
Unexpected costs are included in a cost overrun, which is often referred to as a cost increase or budget overrun. These expenses are referred to by these terms when they exceed the planned sums as a result of a value engineering underestimate of the actual expense during budgeting. Infrastructure, construction, and technology projects frequently experience cost overruns. According to a 2004 industry study by the Standish Group, there is an average cost overrun of 43% for IT projects.
Additionally, 71% of projects come in over budget, take longer than expected, and have a scope that is too limited. The total waste is estimated to be $55 billion annually in the US alone.
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Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
The government has instituted a legal minimum price of $2.50 per gallon for gasoline: Price floor & Non-binding
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon: Price ceiling & Binding
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws: Price floor & Binding
The word equilibrium means 'balance,' implying that a chemical reaction represents a balance of reactants and products.
Why is it called equilibrium price?An equilibrium price is determined by balancing demand and supply. Prices have a tendency to return to this equilibrium unless demand or supply characteristics change. When either demand or supply, or both, shifts or moves, the equilibrium price changes.
The table should be as follows:
Statement Price Ceiling/Price Floor Binding/Non-binding
The government has instituted a legal minimum price of $2.50 per gallon for gasoline. Price Floor Non-binding
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon. Price Ceiling Binding
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws. Price Floor Binding
Note: To understand the table more clearly pfa, the file attached is given below.
In the context of labor markets, a minimum wage is considered a price floor on the wage rate, which is why the third statement is classified as a price floor.
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Difference between primary and secondary catering
Primary catering - those catering establishment function or the main function is to. provide food and beverage to the guests or the customers
Secondary catering - are the one in which the provision of food and beverage is a part of another business .
An adjusting entry was made on year-end December 31 to accrue salary expense of $3,200. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $7,000 payment of salaries in January of the following year? Multiple Choice 0 salaries Expens 7,000 Salaries Expense Cash 7,000 7,000 Salaries Payable Cash 7,000 3,200 Salaries Payable Cash 3,200 3,200 Salaries Expense Salaries Payable 3,200 7,000 Salaries Expense Cash 7,000 7,000 Salaries Payable Cash 7,000 Salaries Payable Cash 3,200 3,200 3,200 Salaries Expense Salaries Payable 3,200 Salaries Payable Salaries Expense Cash 3,200 3,800 7,000
The correct entry to record the $7,000 payment of salaries in January of the following year, assuming no reversing entries were made, is:
Salaries Expense 3,200
Salaries Payable 3,200
Cash 7,000
Salaries Payable 7,000
What does it mean for a company to prepare to reverse entries?Preparing reversing entries is an optional accounting procedure in which an adjusting entry made at the end of a period is automatically reversed at the beginning of the next period. Reversing entries helps simplify the accounting process and ensure that financial statements accurately reflect the economic activity of the period. By automatically reversing the previous period's adjusting entry, the accountant does not need to remember to manually reverse it. This is useful for certain types of adjusting entries that can be difficult to reverse or remember, such as accruals for expenses or revenues.
from the question:
Salaries Expense 3,200
Salaries Payable 3,200
Cash 7,000
Salaries Payable 7,000
Explanation: The adjusting entry made at the end of the year recognized the accrued salaries expense of $3,200. When the actual payment is made in January of the following year, the Salaries Payable account is reduced by $3,200 and Cash is reduced by $7,000, the total payment made to employees. The Salaries Expense account is not affected by the payment as it has already been recognized through the adjusting entry.
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All of the following are advantages associated with using QuickBooks Online Vendors List except: Multiple Choice-Allows the company to store information regarding its vendors including: name, address, and contact information, -Allows a company to assess the quality of the material received from each vendor. -It is a time-saving feature. -QuickBooks Online automatically transfers the vendor information to the appropriate form, such as checks.
All of the following are advantages associated with using QuickBooks Online Vendors List except Allows a company to assess the quality of the material received from each vendor. Thus, option B is correct.
Who are the Vendors?A Vendor buys items and afterward offers them to another business or person. Merchants can be used at various spots in the production network, and with numerous events all through.
The materials will be based on the way the person will be providing them. They will need to make sure the quality is maintained. A person will be liable to make sure that the person sends good quality goods. The sentry needs to be manually present.
Therefore, option B is correct.
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