the objective of present value is to estimate fair value when used to determine accounting measurements for initial-recognition purposes fresh-start purposes initial-recognitionpurposes no fresh-startpurposes yes initial-recognitionpurposes no fresh-startpurposes no initial-recognitionpurposes yes fresh-startpurposes yes initial-recognitionpurposes yes fresh-startpurposes no

Answers

Answer 1

In initial-recognition or fresh-start measurements, the estimation of fair value is the goal of present value.

When used in accounting measurements at initial recognition, what is the goal of present value?

to estimate fair value In accounting measurements at initial recognition and fresh-start, the sole purpose of present value is to estimate fair value. To put it another way, present value ought to try to capture the components that, if there were one, would make up a market price, or fair value.

When it comes to accounting measurement, what is the purpose of using the present value?

The estimation of the probable market price, if one existed, is the goal of using present value. An expected cash flow approach is presented in the statement, with an emphasis on the explicit assumptions regarding the variety of possible cash flows and their probabilities.

Five components make up a present value calculation:

1) estimates of cash flows,

2) expectations regarding their variability,

3) the time value of money (also known as the risk-free interest rate),

4) the cost of an asset or liability's inherent uncertainty,

5) other elements Taking into account the estimates and expectations of market participants, fair value incorporates all of these aspects.

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Related Questions

Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it provides. What type of stance does your country take on fiscal policy?

A.) expansionary stance
B.) contractionary stance
C.) economic stance
D.) neutral stance brainly

Answers

Option B Expansionary stance

Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:

Year Cost to Acker Transfer Price Amount Held by Howell at Year-End
2020 $55,000 $75,000 $15,000
2021 $70,000 $110,000 $55,000

Howell reported net income of $100,000 in 2010 and $120,000 in 2011 while paying $40,000 in dividends each year. What is the amount of unrealized intra-entity inventory profit to be deferred on December 31, 2010?

Answers

Answer:

the amount of unrealized intra-entity inventory profit is $1,600

Explanation:

The computation of the amount of unrealized intra-entity inventory profit is given below:

= Profit percentage × amount at year end × purchase percentage

= (($75,000 - $55,000) ÷ $75,000) × 15,000 × 40%

= $1,600

hence, the amount of unrealized intra-entity inventory profit is $1,600

Your firm has a credit rating of Baa. You notice that the credit spread for five-year maturity Baa debt is 150 basis points (1.50%). Your firm is issuing a five-year 5% semiannual coupon bond. You see that new five-year Treasury notes are being issued at par with a coupon rate of 3.5%. Should your bond be issued at par, at a discount, or at a premium?

Answers

Answer: Par

Explanation:

The credit spread measures the difference between the risk free rate/ yield for a certain type of security and the yield the security offers.

The credit spread here is 1.50%.

The risk free rate is 3.5%.

The expected yield in the market for the type of security you are issuing is therefore:

= 3.5% + 1.50%

= 5.00%

Your Baa bond is expected to have a yield of 5% which is the coupon rate you are issuing it at.

Bond will therefore be issued at Par which is what happens when the Coupon and the Yield are equal.

Which of the following does not relate to organizational structure? Specialization Span of control Formalization Cross functional team

Answers

Cross functional team does not relate to organizational structure.

What is organizational structure?

A system that specifies how specific activities are carried out in order to accomplish an organization's objectives is known as an organizational structure.

A decentralized structure gives nearly every employee a high level of personal agency in contrast to a centralized structure, which has a clearly defined chain of command.

The formal division, grouping, and coordination of job tasks are determined by organizational structure. Typically, an organization's structure consists of six distinct components:

specialization of workdepartmentalizationcontrol span chain of commandcentralization and decentralizationformalization

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b. Explain the following term as used in sole proprietorship type of business.
(i)Asset

Answers

Answer:

any investment that holds value.

Explanation:

can be land, equipment, supplies, lawn mowers, cash, etc. Same as other forms of businesses

Is anyone good at introduction to business?

Answers

Answer:

Yeah I'm good with business  too

Explanation:

Stanislaw Timber Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In 2010, Stanislaw built fire lanes and roads, with a life of 30 years, at a cost of $84,000. Every year, Stanislaw sprays to prevent disease at a cost of $3,000 per year and spends $7,000 to maintain the fire lanes and roads. During 2011, Stanislaw selectively logged and sold 700,000 board feet of timber, of the estimated 3,500,000 board feet. In 2012, Stanislaw planted new seedlings to replace the trees cut at a cost of $100,000.
Instructions
a. Determine the depreciation expense and the cost of timber sold related to depletion for 2011.
b. Stanislaw has not logged since 2011. If Stanislaw logged and sold 900,000 board feet of timber in 2022, when the timber cruise (appraiser) estimated 5,000,000 board feet, determine the cost of timber sold related to depletion for 2022.

Answers

Answer:

a. Depreciation expense = Cost/Life =  $84,000/30 = $2,800 per year

b. Cost of timber sold = Per arce - Land value = $1,400 - $400 = $1,000

Timber value = Cost of timber sold * Acre = $1,000 * 9,000 acres = $9,000,000

Land value = Timber value/Estimated Board feet * Sold Board feet = 9,000,000/3,500,000 * 700,000 = $1,800,000

Total Cost of timber sold = Timber value - Land value = $9,000,000 - $1,800,000 = $7,200,000

Depletion = Timber value * [Total Cost of timber sold+Replacement cost/Estimated Board feet]

Depletion = $900,000 * $7,200,000+$100,000/5,000,000

Depletion = $900,000 * 1.46

Depletion = $1,314,000

Compute the price of an American call option with strike K = 110 and maturity T = .25 years. See 1. American Put Option excel sheet - A 15-period binomial model The price of the American call option = 2.604

Answers

The strike of k is 15 which means that it was very dangerous and the a= 15(6)/5^2

In the context of the entrepreneurial strategy matrix, a ________ is most likely to have the highest risks and returns. Select one: A. new passenger vehicle B. lawn mowing service C. tax preparation service D. clothing outfit E. new restaurant

Answers

Answer:

E. new restaurant

Explanation:

The entrepreneurial strategy matrix is a interesting model for the ongoing ventures an d the new ventures. It helps to identify the proper business strategies.

In the context, according to the entrepreneurial strategy matrix, a new restaurant is most likely to have a high risk and high returns as there is a lot of competition and rivalries in the restaurant industry in the market. Many people already have their favorite restaurant and they prefer going to their favorite or their selected restaurant.

So there is a risk in setting up a new restaurant which requires large investments without properly studying the market. On the other hand if a new restaurant manages to serve some really tasty and hygiene food to their customers, customers will prefer coming to this restaurant and this in turn will provide huge returns to the owners.

What are the benefits of outsourcing

Answers

Focus on core tasks
Lower costs
Promote growth
Maintain operational control
Offer staffing flexibility
Provide continuity and risk management
Develop internal staff

Hillman Corporation reported a decrease in accounts receivable of $391,216. This is best defined as a _________ of cash on the _______________ segment on the statement of cash flows. source of cash; investing activities use of cash; operating activities use of cash investing activities source of cash; operating activities source of cash financing activities use of cash financing activities

Answers

Answer:

This is best defined as a SOURCE of cash on the OPERATING segment on the statement of cash flows.

Explanation:

The operating sector of the cash flow statement includes net income plus any adjustments that include depreciation expense, changes in accounts receivables, inventories, accounts payables, etc.

A decrease in accounts receivable increases operating cash flows.

Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3]We are evaluating a project that costs $583,800, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $41, variable cost per unit is $27, and fixed costs are $695,000 per year. The tax rate is 25 percent, and we require a return of 9 percent on this project. a-1.Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2.What is the degree of operating leverage at the accounting break-even point

Answers

Answer:

It was nice... friend.

Explanation:

When a capital budgeting project generates a positive net present value, this means that the project earns a return higher than the

Answers

Saved When A Capital Budgeting Project Generates A Positive Net Present Value, This Means That The Project Earns A Return Higher Than The Internal Rate Of Return.

When a capital budgeting project generates a positive net present value, this means that the project earns a return higher than the internal rate of return.

For better understanding, lets explain what capital budgeting means

Capital Budgeting  is simply known as the process of evaluating and selecting long-term investments that are always in line with an organisation's  goal of maximizing owners' wealth. the four main administrative steps to the capital budgeting process includes idea generation ,  analyzing project proposals , create the firm-wide capital budget  and monitoring decisions and conducting a post-audit

from the above, we can therefore say that the answer When a capital budgeting project generates a positive net present value, this means that the project earns a return higher than the internal rate of return, is correct

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Vulcan Companyâs contribution format income statement for June is as follows:

Vulcan Company Income Statement For the Month Ended June 30

Sales $750,000
Variable expenses 336,000
Contribution margin 414,000
Fixed expenses 378,000
Net operating income $36,000

Management is disappointed with the companyâs performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following:

a. The company is divided into two sales territoriesâNorthern and Southern. The Northern territory recorded $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 are traceable to the Northern and Southern territories, respectively. The rest of the fixed expenses are common to the two territories.

b. The company is the exclusive distributor for two productsâPaks and Tibs. Sales of Paks and Tibs totaled $50,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost records show that $30,000 of the Northern territoryâs fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products.

Required:
Prepare contribution format segmented income statements.

Answers

Answer:

Vulcan Company

a. Segmented Income Statement For the Month Ended June 30

                                              Northern     Southern        Total

Sales                                   $300,000     $450,000    $750,000

Variable expenses                156,000        180,000      336,000

Contribution margin              144,000       270,000       414,000

Fixed expenses:

Traceable                              120,000        108,000      228,000

Non-traceable                                                                 150,000

Net operating income         $24,000     $162,000      $36,000

b) Segmented Income Statements for the Northern Territory:

                                              Paks           Tibs            Total

Sales                                  $50,000    $250,000   $300,000

Variable expenses                11,000       145,000      156,000

Contribution margin         $39,000     $105,000    $144,000

Fixed expenses:

Traceable                            30,000         40,000       70,000

Non-Traceable                                                            50,000

Net operating income       $9,000       $65,000     $24,000

Explanation:

a) Data and Calculations:

Vulcan Company

Income Statement For the Month Ended June 30

Sales                            $750,000

Variable expenses        336,000

Contribution margin      414,000

Fixed expenses            378,000

Net operating income $36,000

Jurvin Enterprises is a manufacturing company that had no beginning inventoriesA subset of the transactions that recorded a recent month is shown below 75,700 in raw materials were purchased for cash 71.900 in raw materials were used in production Of this amount, $65,100 was for direct materials and the remainder was for Indirect materiais Total labor wages of \$150.500 were incurred and paid Of this amount, 133,000 was for direct labor and the remainder was for indirect labor dAdditional manufacturing overhead costs of 126,200 were incurred and paid e Manufacturing overhead of 122,500 was applied to production using the company's predetermined rate All of the jobs in process at the end of the month were completed All of the completed jobs were shipped to customers Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold Required: Post the above transactions to T-accounts Determine the adjusted cost of goods sold for the period

Answers

When the transactions of Jurvin Enterprises are posted to T-accounts, the entries will be:

                                                  Cash                                                  

Beg balance                         $0           Raw materials               $75,700

                                                              Labor wages                $150,500

                                                             Additional overhead     $126,200

                                           Raw materials                                                  

Beg balance                         $0           Direct materials           $71,900

Cash                               $75,700         and overhead

Ending balance           $3,800

                                           Work in process                                                

Beg. balance                    $0                       Finished goods  $320,600

Raw materials          $65,100

Direct labor              $133,000

Man. overhead         $122,500

                                           Finished goods                                                  

Beg. balance                    $0                       Cost of goods sold  $320,600

Work in process     $320,600                  

                                         Manufacturing overhead                                  

Beg. balance                    $0                 Work in process        $122,500

Raw materials                $6,800             Cost of goods sold     $28,000

Indirect labor                $17,500

Cash                              $126,200

                                     Cost of goods sold                                                

Beg. balance                        $0

Finished goods                $320,600

Manufacturing overhead $ 28,000

Ending balance                 $348,600

How are manufacturing overhead accounted for?

The cash spent on overhead is debited to the Manufacturing overhead account and so are the indirect materials.

Indirect labor will also be debited to this account. These are to show that Overhead is a cost. Work in process will be credited to the account to show that the cost of overhead is transferred to another account.

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preparing adjusting and closing entries across two periods norton company closes its accounts on december 31 each year. the company works a five-day work week and pays its employees every two weeks. on december 31, 2015, norton accrued $1,880 of salaries payable. on january 7, 2016, the company paid salaries of $4,800 cash to employees.

Answers

Answer:

Requirement: Prepare journal entries to: (a) Accrue the salaries payable on December 31, b) Close the Salaries Expense account on December 31 (the account has a year-end balance of $250,000 after adjustments), (c) Record the salary payment on January 7

Date     Accounts title and Explanation      Debit          Credit

31-Dec  Salaries expense                             $1,880

                   Salaries Payable                                             $1,880

             (To record accrued salaries )  

31-Dec   Retained Earnings                          $250,000  

                     Salaries Expense                                          $250000

              (To close salaries expense account)

07-Jan   Salaries Payable                             $1,880

              Salaries expense                            $2,920

                     Cash                                                                $4,800

              (To record payment of salary)

You are the marketing officer for either a large hotel or a car dealer. Produce a report for
your company's head of marketing in which you explore:
the differences between customer satisfaction and customer delight
ii. the reasons why it is so important to create the sensation of delight among your
customers
iii. the ways in which it could be done.
i.
Illustrate your arguments by examples relevant to your chosen organization, Let the hotel
or car dealership.

Answers

Hbvhhhbbhjj
Bbhbbbbbhh

Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data.

Cost of Goods Sold $400,000
Work-in-Process Inventory, Beginning 35,000
Work-in-Process Inventory, Ending 46,000
Selling and Administrative Expense 59,000
Finished Goods Inventory, Ending 18,000
Direct Materials Purchased $194,900
Factory Overhead Applied $125,600
Operating Income $25,000
Direct Materials Inventory, Ending $6,800
Cost of Goods Manufactured $380,900
Direct Labor $62,700

The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end. What should be the amount of direct materials available for use?

Answers

Answer:

$210,400

Explanation:

Particulars                                            Amount

Cost of Goods Manufactured             $380,900

Add: Closing WIP                                 $46,000

Less: Opening WIP                             -$35,000

Less: Factory Overhead Applied       -$125,600

Less: Direct Labor                               -$62,700

Add: Closing stock of Direct material $6,800    

Direct Material Available for use       $210,400

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating expenses, $31,000 From the balance sheet: Beginning BalanceEnding Balance Accounts Receivable:$14,500$17,800 Inventory:23,50017,800 Accounts Payable:6,00013,500 Accrued Liabilities:4,0001,500 On the statement of cash flows, what amount will be shown for payments to suppliers for inventory purchases

Answers

Answer: $‭196,800‬

Explanation:

The cash payments to suppliers for inventory purchases will be:

= Cost of goods sold - Decrease in inventory -  Increase in accounts payable

Decrease in inventory = 23,500 - 17,800

= $5,700

Increase in accounts payable

= 13,500 - 6,000

= $7,500

Cash to suppliers for inventory = 210,000 - 5,700 - 7,500

= $‭196,800‬

As a worker, will you work properly even if the boss is not around? Yes or no?

Answers

Answer:

Yes

Explanation:

Because it is our duty to work properly even the boss is around or not

Answer:

Yes

Explanation:

No matter what you're getting paid for what you have to so & its your job no matter what and as growing up you become responsible for your actions

Consider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow. If people in this economy trade five goods, the price tag of each good must list____prices, and the economy requires____prices for people to carry out transactions. Suppose that the number of goods people trade increases to 17. Then the price tag of each good must list____prices, and the number of prices that the economy requires increases to____.
Now suppose that our economy has a money. The government now issues a national currency and there is no longer any barter. In this economy, money and currency are not the same because:____.
1. The fact that the government issues currency means that the currency will be accepted as money by all agents.
2. The fact that the currency is backed by the government means that it will never lose value and will remain a perfect unit of account.
3. Just because the government issues currency does not mean that the currency will be accepted as money, since it must be used as a medium of exchange, store of value and standard of value.
4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.
Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?
1.Medium of exchange.
2.Double coincidence of wants.
3.Store of value.
4.Unit of account.

Answers

Answer:

4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.

Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?

3.Store of value.

Explanation:

On December 31, 2010, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2011; $1 on December 31, 2012; $10 on December 31, 2013; and $9 on December 31, 2014. The service period is 4 years, and the exercise period is 7 years.Instructions:(a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.(c) Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.

Answers

Answer:

Beckford Company

a) A schedule of Compensation Expense for each year:

Stock-Appreciation Rights (SARs):

Date Due                  SARs        Fair Value  Compensation  Annual %

                                                    of SARs    Recognizable    Expenses

December 31, 2011   150,000      $4            $600,000    $150,000 (25%)

December 31, 2012  150,000      $1                150,000        37,500 (25%)

December 31, 2013  150,000      $10        $1,500,000      375,000 (25%)

December 31, 2014  150,000      $9         $1,350,000      337,500 (25%)

Total SARs Compensation Expense for the 4 years =  $900,000

b) Journal Entry at December 31, 2014 to record compensation expense:

Debit Compensation Expense (SARs) $337,500

Credit SARs Liability $337,500

To record the compensation expense for 2014.

c) Debit Compensation Expense (SARs) $900,000

Credit SARs Liability $900,000

To record the compensation expense for the four years.

Explanation:

a) Data and Calculations:

Stock-appreciation rights = 150,000

Period of exercise = 4 years

Portion exercisable each year = 37,500 (150,000/4)

Pre-established price of SARs = $10

Fair values of the SARs are:

December 31, 2011 = $4

December 31, 2012 = $1

December 31, 2013 = $10

December 31, 2014 = $9

b) Stock Appreciation Rights (SARs), like stock options, compensate Beckford employees during a predetermined period of four years with the difference between the stock's market price and a predetermined price of $10.  Since the SARs are exercisable over four years, the compensation expense is based on the portion of the stock that is exercisable each year (which is 150,000 divided by 4).  It differs from stock options because employees are entitled to a cash payment or stock issuance at the end of the period, whereas employees pay for stock options when they exercise them.

You have just purchased ten municipal bonds, each with a $1,000 par value, for $9,500. You purchased them immediately after the previous owner received semiannual coupon payments. The bond rate is 6.6% per year payable semiannually. You plan to hold the bonds for 5 years, selling them immediately after you receive the coupon payment. If your desired nominal yield is 12% per year compounded semiannually, what will be your minimum selling price for the bonds

Answers

Answer:

$12,663.26

Explanation:

The computation of the minimum selling price is shown below

Semi-annual  = 12% ÷ 2 = 6%

Semi-annual compounding periods = 5 × 2 = 10

Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% x (1 ÷ 2) = $330

as we know that

We assume the selling price be S

Present worth (PW) of the bond= PW of future cash flows

$9,500 = $330 × P/A(6%, 10) + S × P/F(6%, 10)

$9,500 = $330 × 7.3601 + S × 0.5584

$9,500 = $2,428.83 + S × 0.5584

S × 0.5584 = $7,071.17

= $7,071.17 ÷ 0.5584

= $12,663.26

Why are supply curves typically upward-sloping? They slope upward because sellers prefer to sell more when prices are lower. They slope upward due to the law of demand. They slope upward because sellers demand more when prices are lower. They slope upward because higher prices lead individual businesses to supply a larger quantity and more businesses are willing to supply goods and services.

Answers

Answer: They slope upward because higher prices lead individual businesses to supply a larger quantity and more businesses are willing to supply goods and services.

Explanation:

The supply curve is typically upward-sloping because higher prices lead individual businesses to supply a larger quantity and more businesses are willing to supply goods and services.

What is supply?

Supply refers to the amount of a given product or service that suppliers are  willing and able to bring to the market for a specific price. The notion of supply is closely related to demand. As, when supply increases the price also goes up because companies want to expand their production to meet the increasing demand.

What is a supply curve?

A supply curve represents the relationship between price of a product  and quantity of product which a seller is willing and able to supply at a given period of time.

Supply curve are an essential tool for understanding the law of supply. As a supply curve, in a graphical form shows that, if prices of a good or service increases, producers will also increase the quantity they supply.

Why is supply curve upward-sloping?

The supply curve slopes upward because if the price of goods and service increases quantity supplied also increases. This happens because of higher prices, which offers higher profits. Thus, it encourages the producer to invest more by producing larger quantities and thus earning larger profits.

Hence, option D is correct.

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Match each definition with its related term by selecting the appropriate letter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terms.)
Definitions:
A. Report the long life of a company in shorter periods.
B. Record expenses when incurred in earning revenue.
C. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
D. Record revenues when earned and expenses when incurred.
E. Increases in assets or decreases in liabilities from peripheral transactions.
F. An asset account used to record cash paid before expenses have been incurred.
G. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).
H. Decreases in assets or increases in liabilities from peripheral transactions.
I. Record revenues when received and expenses when paid.
J. The income statement equation.
K. Decreases in assets or increases in liabilities from central ongoing operations.
L. The retained earnings equation.
M. A liability account used to record cash received before revenues have been earned.
1. Expenses
2. Gains
3. Revenue recognition principle
4. Cash basis accounting
5. Unearned revenue
6. Operating cycle
7. Accrual basis accounting
8. Prepaid expenses
9. Revenues − Expenses = Net Income
10. Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared

Answers

Answer:

A. Going concern

B. Accrual Basis accounting

C. Operating Cycle

D. Cash Basis Accounting

E. Gains

F. Prepaid Expense

G. Revenue recognition principle

H. Expenses

I. Cash basis Accounting

J. Revenue - Expenses = Net Income

K. Expense

L. Ending Retained Earning = Beginning Retained Earning + Net Income - Dividends Declared

M. Unearned Revenue

Explanation:

The definitions for each letter are matched with the accounting terms. The unearned revenue account is used to record the revenue received but services yet to be delivered. This is a liability account in which the company reports any unearned revenue.

Last year Viera Corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. Assets, total invested capital, sales, and the debt to capital ratio would not be effected. By how much would the cost reduction improve the ROE?

Answers

Answer:

13.41%

Explanation:

Calculation for By how much would the cost reduction improve the ROE

First step

Debt value = $155,000 × 37.5%

Debt value = $58,125

Second step

Equity value = $155,000 - $58,125

Equity value $96,875

Third step

= (Net income ÷ Total equity) × 100

Ratio = ($20,000 ÷ $96,875) × 100 = 20.65%

New ROE would be = ($33,000 ÷ $96,875) × 100 = 34.06%

Fourth step

Change in ROE= New ROE - Old ROE

ROE= 34.06% - 20.65%

ROE= 13.41%

Therefore By how much would the cost reduction improve the ROE is 13.41%

Item4 eBookPrintReferencesCheck my workCheck My Work button is now disabledItem 4 Lanson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts payable $25,200 Bonds payable, due 2030 24,600 Salaries payable 16,400 Notes payable, due 2022 21,100 Notes payable, due 2026 40,300 What amount should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet

Answers

Answer:

$41,600

Explanation:

Calculation for What amount should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet

Accounts payable $25,200

Add Salaries payable $16,400

December 31, 2021, balance sheet current liabilities $41,600

($25,200+$16,400)

Therefore the amount that should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet will be $41,600

Which of the following individuals has enrolled in a plan on a fixed income

Answers

Fixed income gives a steady of income to the individual.

What is a fixed income?

The complete question wasn't found online. An overview was given as the complete information wasn't found.

It should be noted that a fixed income means an investment approach that is focused on presentation of capital and income.

The examples of fixed income include municipal bonds, certificate of deposit, etc.

It should be noted that fixed income orders a steady stream of income with less risk.

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A country has a _________________whenever the value of the products it imports exceeds the value of the products it exports

Answers

Answer:

trade surplus

Explanation:

like karo

why we remove interest amount from 1 year amount?

Answers

The interest amount earned is removed from the accumulated amount of savings because the interest is simple interest.

What is Interest?

interest is the percentage amount earned over the savings made and deposited in the account, the interest is a basic market interest rate that is applied to the savings to calculate the amount of interest income for a given period of time.

The savings are deposited and they are applied for the interest rate the interest income is also included in the original savings, then for the next year the interest rate will again be only applied to the original savings amount and not the compounded amount that is the original amount of savings plus the interest earned in the first year.

That is why the interest earned in the first year is deducted from the total savings in the account to calculate the interest income for the second year.  

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