in determining when revenue is recognized, b) revenue must be earned and realized according to the realization concept.
In line with the belief precept, when items are involved, the revenue is recognized while the risks and rewards of possession are transferred to the consumer or when the vendor takes obligation for goods that have been broken or destroyed.
The belief principle is a sales reputation principle that states that the income or revenue is diagnosed best while earned. The business enterprise in all fairness positive that the charge in opposition to the identical may be received from the consumer.
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your late aunt gertrude left you a couple of shares of microsoft in her will, which she bought for you on the day you were born. recently, there have been rumors of microsoft acquiring a well-known social media app which you frequently use. you think this is a great idea and would like to have your (very small) voice be heard as a shareholder of microsoft.must microsoft get the approval of you, and other shareholders, before acquiring the other company?
In my opinion, The company doesn't need approval from him, because when you invested your money in the company that means you approve that they managed it. So, people who conduct and have a right to approval about acquiring the other company are all members at Microsoft who has the responsibility to do it.
An acquisition can be described as process when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's other shareholders.
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define the investment trade-off. multiple choice question. an increase in investment expenditure designed to boost future consumption a reduction in investment expenditure designed to boost current consumption a reduction in current consumption to pay for investment capital an increase in consumption designed to increase investment
The risk-return tradeoff is an investment principle that indicates that the higher the risk, the higher the potential reward. To calculate an appropriate risk-return tradeoff, investors must consider many factors, including overall risk tolerance, the potential to replace lost funds.
A trade-off (or tradeoff) is a situational decision that involves diminishing or dropping one nice, quantity, or belongings of a set or design in go back for profits in different components. In easy phrases, a tradeoff is in which one component will increase, and every other should decrease. Tradeoffs stem from barriers of many origins, such as easy physics – for example, best a certain volume of gadgets can fit right into a given area, so a complete container should remove some gadgets a good way to accept any greater, and vessels can bring a few massive items or multiple small gadgets. Tradeoffs additionally commonly seek advice from extraordinary configurations of an unmarried item, which includes the tuning of strings on a guitar to enable one-of-a-kind notes to be performed, as well as an allocation of time and attention towards different responsibilities.
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distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure due to natural disasters. this is an example of what type of forces affecting global trade?
Licensing. While franchising is an option for service industries, manufacturing industries use licensing the most. In exchange for a fee, a license allows a foreign company to create a company's product in another country.
Which of the following is the primary reason that nations employ the dumping strategy?
The capacity to permeate a market with product prices that are frequently regarded as unfair is the primary advantage of trade dumping. When the products sell below their manufacturing cost, the exporting nation may provide the producer with a subsidy to offset losses.
A country is said to have (a) a trade deficit when the value of its imports exceeds the value of its exports.
Due to the fact that not all nations possess the resources and expertise required to produce certain goods and services, exports and imports are crucial to the growth and development of national economies. However, in order to safeguard their domestic industries, nations impose trade barriers such as import quotas and tariffs.
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the turkish lira lost about 40 percent of its value against the u.s. dollar in the first part of 2018. which type of exchange rate system does turkey follow? multiple choice currency board gold standard fixed floating pegged
The Turkish lira lost about 40 percent of its value against the US dollar in the first part of 2018. Turkey follows floating exchange rate system. With a floating exchange rate, the price is determined by speculation, supply and demand, and other market factors.
Following the 2001 financial crisis, Turkey implemented a floating exchange rate system in which prices are based on market forces such as supply and demand. A country's currency price is decided by the foreign exchange market based on the relative supply and demand of other currencies in a floating exchange rate system. In contrast to a fixed exchange rate, a floating exchange rate is not constrained by trade restrictions or governmental oversight.
Because of floating exchange rate structures, shifts in long-term currency values reflect relative economic strength and variations in interest rates across nations. Disasters, speculative events, and the daily supply and demand of the currency are all represented by changes in the short-term floating exchange rate.
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45% of americans have less than 1000 saved for a
Answer: Emergency Fund
Explanation: According to recent data from GO Banking Rates, 69% of Americans have savings, worth less than $1,000. That indicates that they are certainly very far away from having a fully funded emergency fund and that they are taking a very huge financial risk. Even worse, 45% of Americans claim to have no savings. That’s true. Not even a single dollar was saved up in a bank account.
1. on each journal page, the date is written (a) for each entry. (b) only for the first entry. (c) on the first line of each column. (d) none of these.
On each journal page, the data is written for each entry.
The date, the account name and number, the amount debited and credited, the transaction's reference number, and any additional information that should be recorded alongside the transaction are all listed in columns on an accounting journal page.A detailed account of all the financial actions of a corporation is kept in a journal. It is used to transfer data to other formal accounting records, such as the general ledger, and for account reconciliation in the future.Among them are the cash disbursements diary, the purchasing journal, the cash receipts notebook, and the sales journal. There could be more specialized journals. However, since the four accounting fields represented by these journals cover the majority of accounting transactions, additional journals are often not required.Thus the correct option is A.
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digital media give consumers more control over price. this gives them a significant advantage. to compete, what must many companies do so consumers will focus on attributes other than price?
Companies decrease prices after meeting the demand from early adopters in order to draw in more price-sensitive customers.
According to the scenario provided in the question, the rationale for the price decline over time is that businesses cut prices to entice the more price-sensitive customers after satisfying the demand for early adopters.
The users who begin utilizing the product before others do are known as early adopters. In this situation, after the early adopters are satisfied, other customers will want to purchase the product, so the price must be dropped to make it affordable for them.
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coral company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $297,000. what are the proceeds allocated to the common stock?
Coral company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $297,000.
=[(6,000 × $25) ÷ [(6,000 × $25) + (9,000 × $20)]] × $288,000
= $130,909.
Shares, also known as stocks, are securities that represent partial ownership of the issuing company. A unit of stock is called a "share" and allows the holder to receive a portion of the company's assets and profits equal to the number of shares held.
Shares represent ownership of the listed company. When you buy stock in a company, you become a joint owner of that company. For example, if a company owns 100,000 shares of him and he buys 1,000 of them, he owns 1% of the company. Equity means a share of ownership in a company. An example stock is 100 shares of Disney Corporation.
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when an organization compares a score on a selection test to the job performance of existing workers in that job, the organization is using validity. construct content convective criterion-related
The comparison of a score on a selection test to the job performance of existing workers on the same job by an organization means that they are using criterion-related validity.
What is a criterion-related validity?Criterion - Related validity means that two different measures are being compared to see how they relate to each other or how they influence each other. Often the goal of a criterion-related validity will be to see if one measure can have an impact or influence on another measure to see if either measure can be used to improve efficiency in the other.
When an organization such as the one in the question, compares scores from a selection test to the performance of workers in that same job, they would be engaged in criterion-related validity. This is because they are comparing the measures of the selection test and the job performance to see how to improve efficiency.
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when multinationals make a project fully operational and train local managers and workers before the owner takes control, they are using which entry-mode strategy? group of answer choices franchising direct export turnkey licensing
Multinationals use Turnkey as a entry-mode strategy.
A turnkey project is a technique for a foreign corporation to build a plant in another nation and sell its technology and process there. Turnkey projects are typically used as an entry strategy by industrial enterprises that specialise in complicated production technology.What is a turnkey plan of action?
The phrase alludes to the fact that a corporate buyer only needs to "turn" a "key" to get things going. Thus, a turnkey firm is one that is already operational and in a state that permits start-up right away.to learn more about turnkey strategy, click the links
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basic assumptions represent the core values of an organization and are multiple choice visible to everyone. difficult to change. easy to change. can be changed as needed.
Basic assumptions represent the core values of an organization and are B. difficult to change.
What is Assumptions?An assumption is something that is assumed to be true or likely to be true but is not confirmed to be true.
Put differently, an assumption is something you believe to be true despite the lack of evidence. for example, if you wear a all black dress, for instance, people could assume you're mourning, even when that's not the case.
In this case, it's important to note that the core values are vital to organizations. Therefore, they're difficult to change.
In conclusion, assumptions are made by organizations and in different fields of study. Therefore, the correct option is B.
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the laurel corporation starts the year with a beginning inventory of 600 units at $5 per unit. the company purchases 1,000 units at $4 each in february and 400 units at $6 each in october. laurel sells 300 units during the year. laurel uses a periodic inventory system and the fifo inventory costing method. what is the amount of cost of goods sold? multiple choice $1,200 $1,868 $1,500 $1,800
With 600 units in its initial inventory priced at $5 each, the Laurel Corporation is off to a good start. The cost of items sold amounts to $ 1500.
Oldest units must be sold or utilized first according to a solid inventory management system, and inventory should only include recent acquisitions. This can be found in the FIFO costing approach. The FIFO technique gives management little to no control over the choice of units to affect recorded earnings. Inventory valuation and manufacturing costs are both constant and reasonable. The FIFO approach is also simple to use and comprehend.
The stock turnover rate and the frequency of price adjustments both affect how much inventory is valued at current cost. The inventory valuations will take into account the most recent pricing if stocks are changing quickly. The FIFO approach also has other restrictions.
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fitzgerald inc.manufactures and sells a single product for $20 per unit. if variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be:
Break-even sales is:
$16,000 .
What is break even point?The break-even point refers to the point for which total costs and total revenue are equal, implying that your small business has no loss or gain. In these other words, you've reached the point where the costs of production equal the revenues for a product.Here given:
Selling price = $20
The variable expenses = 60%
= 60% of $20
= $12
Given fixed cost = $9,600
Contribution margin is calculated as follows:
contribution margin = (selling price - variable expenses) / selling price.
∴ contribution margin = (20 - 12) / 12
= 0.66
To Computation of break-even sales:
Break-even sales = Fixed cost / contribution margin .
Break-even sales = $9,600 / 0.6
Break-even sales = $16,000
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peta spoke with deanna about how long it should take to finalize menu items and coupon values. what are some risks that might affect the time estimate for uploading menu and coupon content? select all that apply.
The risks that might affect the time estimate for uploading menu and coupon content are unpredictable carter's schedule and Carter want to revamp the menu before he finalizes the menu and coupon information.
What is project management ?Project management is the process of carrying out certain project goals in accordance with predefined parameters by using procedures, techniques, abilities, knowledge, and experience. Project management final deliverables are subject to time and budget constraints.
The fact that project management has a final outcome and a limited time frame as opposed to management, which is a continuing process, is a crucial aspect differentiating it from simple management. Therefore, a project professional requires a varied set of skills, including various technical ones, as well as strong people-management and commercial acumen.
When a company seeks to offer a solution to specified needs within a given budget and time limit, it engages in projects, which are distinct from business as usual activities.
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The complete question is mentioned below :
Peta spoke with Deanna about how long it should take to finalize menu items and coupon values.
What are some risks that might affect the time estimate for uploading menu and coupon content? Select all that apply.
a. Carter's schedule can be unpredictable
b. Restaurant customers are not interested in coupons
c. Waitstaff have not yet been trained to use the tablets
d. Carter wants to revamp the menu before he finalizes the menu and coupon information
the risk register is developed when there is a known risk and serves as a plan of action to reduce the impact a risk will have on the project should the risk occur. group of answer choices true false
The risk register is developed when there is a known risk and serves as a plan of action to reduce the impact a risk will have on the project should the risk occur. the given statement is true.
What is risk?
Risk can be defined as the chance that something negative will occur. Risk is uncertainty about how an action will affect or implicate something that people value, frequently focusing on unfavourable, undesirable outcomes. There have been many different definitions put forth. "Effect of Uncertainty on Objectives" is the international standard description of risk for use in various applications. Different practise areas have different understandings of risk, approaches to risk assessment and management, descriptions of risk, and even definitions of risk. Links to articles with more information on these topics are provided in this article. The international standard for managing risk, ISO 31000, offers fundamental ideas and general recommendations for handling risks that organisations must deal with.
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Which type of market is the one in which a person buys stock in the fast-food company that makes their favorite breakfast sandwich?.
Financial markets are those in which a person purchases stock in a fast-food company.
What is Financial markets?A financial market is a market in which financial securities and derivatives are traded at low transaction costs. Stocks and bonds are examples of securities, as are raw materials and precious metals, which are known as commodities in the financial markets. Financial markets encompass any location or system that allows buyers and sellers to trade financial instruments such as bonds, equities, various international currencies, and derivatives. Financial markets facilitate the interaction of those in need of capital and those with capital to invest. Financial markets, in general, refer to any market where securities are bought and sold. The stock market, bond market, and commodities market are all examples of financial markets.To learn more about Financial markets, refer to:
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In an open economy, what is the source of supply of dollars in the foreign-currency exchange market?.
In an open economy, the net capital outflow is the supply of dollars in the foreign-currency exchange market.
What is an open economy?
An open economy is a form of economy in which organizations from other countries trade in goods in addition to domestically produced goods (goods and services). The exchange of management, the transfer of technology and the exchange of a wide variety of goods and services are all examples of trade.
What is foreign exchange market?
The transfer of money or foreign currency from one country to another to settle accounts is the basic and most obvious function of the foreign exchange market. In essence, the market is turning one currency into another.
The supply of dollars exchangeable in foreign currencies arises from the net outflow of capital. Since the net capital outflow does not depend on the real exchange rate, the supply curve is vertical.
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Compound interest is interest charged on:
Compound interest is the interest charged on the principal and the interest that accrues (Option B).
What is interest?From a financial perspective, interest is the money charged on lending or borrowing a particular sum of money. It is important to mention that interest is expressed in terms of percentage.
Compound interest highlights interest that is calculated on the principal amount and also the interest amount that has been already accrued. Hence, compound interest includes the interest that is paid on the principal amount and also the interest amount that is paid on the interest itself.
It can be concluded that compound interest is the interest charged on the principal and the interest that accrues.
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using the following information, what is the amount of merchandise available for sale? purchases $32,000 purchases discounts $ 960 merchandise inventory, september 1 5,700 merchandise inventory, september 30 6,370 sales returns and allowances 910 sales 63,000 purchases returns and allowances 1,200 freight in 1,040 $35,540 $36,580 $37,700 $34,500
The amount of merchandise available for sale is $30,210
The cost of goods sold is the total price an organisation directly pays to produce the products it sells.
Using the formula for cost of goods sold -
Cost of merchandise sold = cost of merchandise purchase - the cost of merchandise left in inventory
= Purchases - Purchases discounts - Purchases returns and allowances + Freight
= 32,000 - 960 - 1,200 + 1040
= 30880
- ( Merchandise inventory on September 30 - Merchandise inventory on September 1 )
= 6370 - 5700
= 670
Merchandise for sale -
= 30,880 - 670
= 30,210
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You have a copy of an invoice sent to a customer for services provided on account. What would the T account look like after analyzing this transaction?
Accounts Payable is credited to increase, and Sales is debited to increase.
Accounts Payable is debited to increase, and Sales is credited to increase.
Accounts Receivable is credited to increase, and Sales is debited to increase.
Accounts Receivable is debited to increase, and Sales is credited to increase.
The way that the the T account look like after analyzing this transaction is D. Accounts Receivable is debited to increase, and Sales is credited to increase.
What is a T account?A T-account is a colloquial term for a collection of financial records that use double-entry bookkeeping. A T-account is so named because the bookkeeping entries are organized in the shape of a T. Just above the T is the account title.
Accounts receivable are the funds owed by a company's customers for goods or services received but not yet paid for. When a customer purchases a product on credit, the amount owed is added to the accounts receivable.
Therefore, when you have a copy of an invoice sent to a customer for services provided on account, the accounts receivable is debited to increase.
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In the hiring process, ____________ are people who are willing to confirm the job candidate's previous employment and discuss the candidate's qualifications for the job being applied for.
A.
Subcontractors
B.
Classifieds
C.
Personnel
D.
References
In the hiring process, Classifieds are people who are willing to confirm the job candidate's previous employment and discuss the candidate's qualifications for the job being applied for.
The term "hiring process" refers to the search, selection, and hiring of new personnel by a business. The three main parts of this process are planning, hiring, and employment selection. According to the Society of Human Resource Management, the length of the hiring process is 42 days on average (SHRM.) 27 working days are reported as the average in other job research. Your hiring process timetable should be based on the typical time to fill positions in your industry.
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Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as __________.
Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known asmarket segmentation
What is the process of dividing a market into smaller groups?Market segmentation refers to “dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes,” targeting is defined as “evaluating each market segment's attractiveness and selecting one or more segments to enter,” Based on demographics, demands, goals, shared interests, and other psychographic or behavioral characteristics used to better understand the target audience, market segmentation divides a market into subsets.You may use this targeting in your product, sales, and marketing efforts by analyzing your market segments. The four primary categories of market segmentation are thought to be geographic, psychographic, behavioral, and demographic; however, there are many other tactics you can employ, as well as countless variants on the four primary types. Three Different Types of Segmentation and Their Use psychologically based segmentation.The values, beliefs, perceptions, attitudes, interests, and actions of the consumer are taken into account by this segmentation technique.segmentation based on demographics.segmentation by location. Segmentation is the process of breaking up your audience into more manageable groups according to specific traits.By dividing your target market into smaller groups, you may more effectively communicate the products, services, and advantages that may be most appealing to them.To learn more about market segmentation refer
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a chapter 13 personal bankruptcy is characterized by all of the following except group of answer choices you maintain title and possession of your assets. your creditors vote on restructuring your net worth. you get relief from harassment by bill collectors. a new debt repayment schedule is determined. you continue to pay at least a portion of most of your debts.
personal bankruptcy is characterized by all of the following except your creditors' vote on restructuring your net worth.
An individual may be declared bankrupt under certain jurisdictions' personal bankruptcy laws. Almost all nations with contemporary legal systems offer some kind of debt relief for private citizens. Corporate bankruptcy differs from personal bankruptcy.
If you successfully complete a court-mandated repayment plan that lasts between three and five years, you may be eligible to keep your property (including secured assets like your home and car) under Chapter 13, often known as a reconstruction bankruptcy.
People have access to the most potent debt repayment plan possible in Chapter 13 bankruptcy. Any additional interest on debts that are dischargeable will not accrue as a result of your Chapter 13 bankruptcy. Just the outstanding balance must be paid on the day you declare bankruptcy.
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tanner co. manufactures products katra and klare from a joint process. product katra has been allocated $7,500 of total joint costs of $30,000 for the 1,500 units produced. katra can be sold at the split-off point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit. if katra is processed further and sold, the result would be:
Katra can be sold for $4 per unit at the split-off point or processed further for $2,000 more and sold for $7 per unit. If katra is further processed and sold, the gain from additional processing would be $2,500.
The term "Additional Cost" refers to any additional capital outlay, operating expense, tax obligation, or any combination thereof that the contractor has incurred or will be compelled to incur as a result of the change in the work's scope.
A joint cost is an expense that benefits more than one product and for which the contribution to each product cannot be distinguished. In order to allocate joint expenses to items consistently, the accountant must come up with a technique.
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how do private equity firms use incentives (both short term cash bonuses and long term equity) to align managements interests with their own, reinforce a sense of urgency with management, keep management focused on key performance metrics and hold management accountable for achieving such targets?
Employees who participate in equity incentive program receive shares in the business they work for. Shares may be granted in the form of bonds, stocks, warrants, or stock options. The most popular and well-known type of employee equity is stock options.
Explain about the private equity firms?A management agreement for private equity firms typically outlines the remuneration plan and the general partner's ownership stake (GP). The carry charge is typically 20% of earnings above a certain threshold return, while the management cost is often in the range of 2%. Typically, the GP holds 1% of the fund.
Employees who participate in equity incentive programmes receive shares in the business they work for. Shares may be granted in the form of bonds, stocks, warrants, or stock options. The most popular and recognized type of employee equity is stock options.
An equity-based incentive plan's primary purpose is to recruit, keep, and motivate people. Companies frequently give shares or units (these terms are used interchangeably above) in the company to employees, partners, directors, contractors, or other individuals as a form of compensation.
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Martina has decided to structure her new business venture to provide liability protection while gaining tax benefits over alternative structures. Her attorney has prepared the operating agreement and advised her of the complexities and expense of setting up this structure. Which of the basic types of ownership has martina chosen?.
LLC basic types of ownership Martina chose when she decided to structure her new business venture to provide liability protection while gaining tax benefits over alternative structures.
The business form known as a limited liability corporation (LLC) provides pass-through taxation and limited liability protection. The LLC has a separate legal existence from its owners, just like corporations do. As a result, owners are frequently exempt from liability for the debts and obligations of the company. In this way, Martina was able to choose basic ownership to gain tax benefits providing protection from liability. Most people use LLCs in order to shield themselves from personal responsibility for the debts of the companies they control or are affiliated with.
Since the firm is now an LLC, neither the owners nor the management is responsible for the obligations and liabilities incurred by the company. A new company entity that is legally distinct from its owners is created when an LLC is formed. This division offers what is referred to as "limited liability protection. Generally speaking, the bank account and other assets of the LLC are subject to seizure by the LLC's creditors if the LLC is unable to pay its debts.
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which of the following accurately describes of the effect of the government budget deficit on the open economy? a. real interest rates fall, which encourages domestic investment; the currency depreciates pushing the trade balance toward surplus. b. real interest rates rise, which causes crowding out of domestic investment; the currency appreciates pushing the trade balance toward deficit. c. real interest rates fall, which encourages domestic investment; the currency appreciates pushing the trade balance toward deficit. d. real interest rates rise, which causes crowding out of domestic investment; the currency depreciates pushing the trade balance toward surplus.
The effect of government budget deficit on open economy when Real interest rates rise, which causes crowding out of domestic investment; the currency appreciates pushing the trade balance toward deficit.
Option B is correct .
What's a deficit budget?A budget deficit occurs when charges exceed income( i.e., duty and other espoused profit), generally measured over a single fiscal time. The term tends to be reserved for governments, although it's also possible for organisations, businesses, and individualities to run budget poverties.
How's the budget deficit affect interest rates?Budget deficits could often cause interest rates to rise if they caused the debt to grow at unsustainable rates, in budget deficit case investors would ask a risk premium to be induced to hold government debt for fear of default.
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calculate the annual incidence rate of salmonellosis per 100,000 population for trinidad and tobago in 1997 on the basis of laboratory-confirmed cases. calculate the annual incidence rate of salmonellosis per 100,000 population for trinidad and tobago in 1997 on the basis of laboratory-confirmed cases.
Number of cases/population per year incidence rate 109 cases per 1,265,000 people per year 0.0000862 cases per year per person 8.6 cases per 100,000 people per year
What is incidence rate?An incidence rate describes the rate at which disease spreads in a population. It is time-based, so it has some advantages over an incidence proportion. Person-time is calculated for each subject, so it can accommodate people entering and exiting the study. For example, if one hundred sow farms were followed for a year and ten of them developed a disease, the incidence risk for that disease was 0.1 or 10%. To put it another way, a sow farm has a 10% chance of breaking even in a year. The rate of qualified responses is referred to as the incidence rate.To learn more about incidence rate, refer to:
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havermill company establishes a $370 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $85 for office supplies, $149 for merchandise inventory, and $34 for miscellaneous expenses. the fund has a balance of $30. on october 1, the accountant determines that the fund should be increased by $60. the journal entry to record the increase in the fund balance on october 1 is:
The journal entry to record the increase in the fund will be- Debit Petty Cash $60; credit Cash $60.
A petty cash fund is a small sum of company money that is commonly kept on hand (for example, in a secured drawer or box) to cover unimportant or trivial expenses like office equipment or worker compensation.
Periodic corrections of a petty cash fund are conducted, and activities are also noted on the income statement. Each division could have its own petty cash pool in bigger companies. When sending a check or using a company credit card is impractical or undesirable, petty cash offers ease. The meager sum of money that a business may deem petty will differ.
The complete question is here:
Havermill Company establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $149 for merchandise inventory, and $34 for miscellaneous expenses. The fund has a balance of $30. On October 1, the accountant determines that the fund should be increased by $60. The journal entry to record the increase in the fund balance on October 1 is:
Multiple Choice
Debit Petty Cash $430; credit Cash $430.
Debit Cash $60; credit Petty Cash $60.
Debit Miscellaneous Expense $60; credit Cash $60.
Debit Petty Cash $60; credit Accounts Payable $60.
Debit Petty Cash $60; credit Cash $60.
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automated manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. the machines have a 6-year life after which they are worthless. assume no tax. what is the equivalent annual cost of one machine if the required return is 16 percent per year?
The equivalent annual cost of one machine if the required return is 16 percent per year is -S453,657.01
What is annual cost?
Equivalent annual cost (EAC) is a financial metric that is used for a variety of reasons, including capital budgeting. However, it is most commonly used to compare two or more potential projects with varied lifespans, where prices are the most important variable. Other applications of EAC include trying to calculate the optimal life of an asset, determining whether leasing or purchasing an asset is the better option, calculating the magnitude of which cost of maintenance will impact an asset, calculating the necessary cost savings to support buying a new asset, and calculating the cost of keeping existing equipment. The EAC computation takes into account a discount factor or cost of capital. The cost of capital is the required return to make a capital budgeting project worthwhile, such as building a new factory.
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