There are a lot of high school students who would like to work at breweries, but they are not hired due to minimum-wage laws. This is the price ceiling
A price ceiling is the greatest cost that the government may charge for a commodity, whereas a price floor is the lowest price that must be paid for a commodity. Regulations governing minimum wages establish the lowest amount that businesses are required to pay their employees. In this case, high school students who want to work in breweries must be paid a base salary, which is set by the minimum wage law.
The objective of the minimum wage law is to ensure that workers receive a fair wage and ensure preventing companies from exploiting their employees by underpaying them. Some businesses may decide not to hire high school kids as a result of regulation as they cannot afford to pay them the base pay. Due to this, even students who are ready to work for less than the minimum may have trouble finding employment in breweries. In the given case, it could be argued that the minimum wage law discourages certain workers from finding proper jobs.
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what actions are required by manufacturers who will replace existing life insurance
If a manufacturer is planning to replace an existing life insurance policy, they must comply with specific regulations and guidelines to ensure that the replacement is in the best interest of the policyholder. Here are some actions required by manufacturers in this situation:
Provide Disclosure Documents: Manufacturers must provide the policyholder with disclosure documents that explain the proposed replacement and the costs involved. These documents must include information on the benefits and risks associated with the new policy, as well as a comparison of the costs and features of the old and new policies.
Obtain a Signed Statement: The manufacturer must obtain a signed statement from the policyholder confirming that they have received and reviewed the disclosure documents and that they understand the benefits and risks of the new policy.
Consider the Policyholder's Needs: The manufacturer must consider the policyholder's current and future needs when recommending a replacement policy. They must ensure that the new policy provides similar or improved benefits compared to the old policy and that the costs are reasonable.
Overall, the manufacturer must act in good faith and prioritize the policyholder's best interest when replacing an existing life insurance policy. They must provide clear and accurate information, obtain the policyholder's consent, and comply with state regulations to ensure a fair and transparent process.
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Capital Budgeting Analysis: ASSUME a 4 year project's after-tax operating cash flow during years 1-4 = $8,000 and there is an after tax salvage value = $7,000 in year 4. The project also had an initial net working capital (NWC) investment of $1,000. Under conventional assumptions, what is the TOTAL cash flow expected from this project in the terminal year (year 4)?
7,000
8,000
15,000
16,000
none of the other options are accurate
Net margin before depreciation less taxes, after accounting for variations in working capital, is the computation.
Which city has the capital?The term "capital" refers to anything a corporation holds that helps create wealth in the business world. Liquid instruments that can be withdrawn as cash, marketable securities, and marketable securities are examples of sources of capital. assets that can be touched, such the equipment and facilities utilised to produce a good.
What is money?An account type known as a demand deposit allows money to be taken at any moment without informing the institution. Checking and savings accounts are two instances of demand deposit accounts. Operating income before degradation less taxes, after accounting for variations in working capital, is the computation. Silver and gold
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Suppose a garment manufacturer named Vogue Inc. buys materials from another country that is well known for its cotton and silk exports. Recently, the currency of this country fell, which enabled Vogue Inc. to purchase more raw materials. Vogue Inc. achieved cost advantage through _____.
A. labor rates
B. wage rates
C. exchange rates
D. transportation rates
The recent decline in this nation's currency allowed Vogue Inc. to buy additional raw materials. Exchange rates allowed Vogue Inc. to reduce costs.
What does it mean to divide a complex procedure into simpler parts?A huge, complex process is broken down into a variety of smaller, simpler units or tasks through the process of functional decomposition, which improves understanding of the whole process.
Which of the following is not a major factor in the development of economies of scale?growth in output Economies of scale are not the outcome of simply increasing output.
What about a learning curve, according to Vladimir, CEO of Autumn Inc.The CEO of Autumn Inc., Vladimir, argues that a learning curve is a more accurate way to measure business success. According to his assistant Mark, growth may be evaluated more accurately if a scale curve is employed because it provides trustworthy and validated findings and furthermore, it displays results for a certain time period.
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the availability of consumer goods and the means to buy them most led to which of the following in the 1950s? the counterculture the sitcom culture the consumer culture
The availability of consumer goods and the ability to buy them were the main forces behind the Consumer Culture in the 1950s. The advertising industry, which encouraged people to buy products, significantly helped to promote this culture.
The advertising industry, which encouraged people to buy products, significantly helped to promote this culture. It increased customer retention and promoted the different product features. A type of material culture made possible by the market is consumer culture.
As a result, a particular relationship between the consumer and the goods or services they use or consume culture was established. Consumption has historically been seen by social science as a minor byproduct of production.
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You should attempt to have a sufficient amount of funds in liquid assets to draw on when your cash outflows exceed your cash inflows. True or False
It is true that you should try to keep a healthy amount of money in liquid assets on hand for when your cash outflows exceed your cash inflows.
A liquid asset is defined as what?Cash on hand, money deposited in a bank, and assets that may be rapidly and easily turned into cash are all considered liquid assets. Stocks, bonds, certificates of deposit, or shares make up the majority of liquid assets.
Why Is It Important to Have Liquid Assets?Due to the constant requirement for cash to pay short-term obligations, a corporation must have liquid assets. A business can't operate without cash to pay its bills to suppliers or employees' wages. Although a business may not always have a lot of cash on hand, it must make sure that it has adequate levels of liquid assets.
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A calendar year-end reporting period is defined as a 12 (1 / 3 / 12) -month period which ends on december (december/january/march) 31st.
An annual term of 12 months that concludes on December 31st is known as a calendar year end reporting period.
What exactly is meant by the term "calendar year end reporting period"?An organisation reports on its financial performance and financial situation over a reporting period. A business has the option of using the conventional 12-month calendar year or switching to a 12-month fiscal year.
A firm uses a fiscal year, which is a 12-month accounting period, to report financial and tax information. Another name for a fiscal year is a financial year. A fiscal year does not have to begin on January 1 and end on December 31 like a calendar year; it can be different.
What is a year in the calendar?For purposes of individual and company taxation, the fiscal year and the calendar year are frequently congruent.
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if the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? 0.751.001.251.33100
The capacity utilization rate is 1.25. Therefore option C is correct.
How do you calculate ability utilization?Capacity utilization is calculated using a formula: the price of capability utilization is equal to the ratio of the genuine degree of output over the most degree of output accelerated by using a hundred percent. That is, capacity utilization rate = true output/optimal output.
The greater the capability utilisation, the lower the constant fees per unit, which offers a increase to earnings margins.
Capacity utilization of equipment can be defined as the extent to which the equipment is being operated or generates output.
Capacity Utilization Rate = Actual Output / Potential Output
= 500/400
= 1.25
Thus, The capacity utilization rate is 1.25. therefore option C is correct.
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TRUE/FALSE. When a loan is classified as nonperforming, any accrued interest recorded on the books, but not actually received, must be deducted from the bank's loan revenues.
Any interest that has been accrued but not actually received must be deducted from the bank's loan revenues when a loan is deemed nonperforming. It is a true statement .
What is financing based on revenue?Revenue-based financing, also known as royalty-based financing, is a way to get money from investors who get a cut of the company's ongoing gross revenues in return for their investment.
Investors receive a regular share of the business's income in a revenue-based financing investment until a predetermined amount has been paid. This predetermined amount typically ranges from three to five times the initial amount invested and is a multiple of the principal investment.
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f structural unemployment is 2%, frictional unemployment is 3%, and cyclical unemployment is 4%, the actual unemployment rate is _____%. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices 3 4 5 9
If structural unemployment is 2%, frictional unemployment is 3%, and cyclical unemployment is 4%, the actual unemployment rate is 3%. Hence, option A is correct.
What is structural unemployment?Examples of structural unemployment include labor markets in manufacturing and the fruit-picking industry. The economy becoming inefficient is one of structural unemployment's key drawbacks.
A type of unemployment known as structural unemployment can endure for a long time and be brought on by demographic or technological developments. Economic downturns or modifications in business conditions that have an impact on the need for labor are the main causes of cyclical unemployment.
Thus, option A is correct.
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Solveig is testing whether a new experimental drug she designed can improve immune functioning. She recruits participants for a clinical trial and randomly assigns them to either a treatment group, in which they receive the drug, or a control group, in which they receive a placebo.
After several weeks, she measures the differences between the two groups' immune functioning via blood test. Solveig announces that the treatment group had better immune functioning after the trial and claims that her drug was effective. Though the immune functioning between the two groups was different, that difference was not statistically significant.
Assuming that Solveig's drug is effective, which type of validity might be insufficient in this study?
The level of validity in this statistical analysis could be insufficient.
What kind of validity is prioritized when assessing causal claims rather than association or frequency claims?They cannot be assessed for internal validity since neither association nor frequency assertions make an assertion that one variable is the reason for a change in another.
What does a study that reveals a difference of 55% between groups show?A study that identifies a 55% difference between groups instead of a 10% difference between groups shows a larger connection. - Confidence intervals show how precisely the association was estimated. - Studies with more than one run have greater statistical validity.
Which of the following variables is not measured but is instead altered?The thing that researchers want to measure is known as the dependent variable. The thing that the researcher can change is known as the independent variable.
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question content area depreciation on an office building is $6,200. journalize the adjusting entry on december 31. if an amount box does not require an entry, leave it blank.
Entries are modified in the table below and clearly set in compliance with the query.
What kind of number is that?a mass or gathering, especially of an endless item: quantity of The proper amount of sand wasn't supplied. Animal boarding took up a slightly little amount of area. He donated money to a nonprofit organization on a regular basis.
How much is being have been using?When a decision is reached, the phrase "Used Amount" refers to the total of the arithmetic weekly averages of the Acquisitions Prices of all Mortgage Loans that Buyer had previously bought but had not yet been both repurchased by Seller or bought by a Takeout Investor.
Date Accounting titles and Explanations Debit Credit
Dec. 31 Depreciation Expense $12,600
Accumulated Depreciation - Office building $12,600
(To record the Depreciation Expense )
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Complete question:
What is the purpose of a company's data strategy?
Answer: A data strategy helps identify the best tools that meet business needs and support both IT teams and business users. You can also verify that the tools meet all data governance policies, ensuring compliance with regulations.
Explanation:
Along with a purpose statement, a preparation outline should include _____ to keep the speech focused andeffective.a central ideaan unanswered questiona delivery cuea bibliography
Along with a purpose statement, a preparation outline should include a central idea to keep the speech focused and effective.
What is a central idea?The central idea is a concise statement that summarizes the main point or message of the speech. It should be a single sentence that expresses the main theme or thesis of the speech, and it should be specific, clear, and memorable.
Including a central idea in the preparation outline helps to ensure that the speech stays on topic and that the speaker is able to convey the main message to the audience effectively. It also helps the speaker to organize their thoughts and ideas and to develop a coherent and logical structure for the speech.
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: examines large-scale social structures to determine how they impact groups and individuals: examines large-scale social structures to determine how they impact groups and individuals
Macrosociology examines large-scale social structures to determine how they impact groups and individuals .
What does macrosociology mean?
large-scale social systems, as well as persistent patterns and processes, are the subject of sociological study. microsociology through comparison Several instances of macrosociology include.
The local culture of the person's neighborhood: The people who reside there can be impacted by the culture of that place. Cultural norms have a big impact on things like how people dress, what they can eat, and how they listen to music.
What distinguishes macrosociology from microsociology?
Different sociological approaches have varying degrees of analysis. Studying broader social dynamics is a component of macrosociology. Microsociology entails the investigation of individuals on a more interpersonal level, such as via direct encounters.
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Which one of the following statements is true with regard to the various forms of ownership of property-casualty insurers?Select one:A. Stock insurance companies and mutual insurance companies are owned by the policyholders.B. The main reason that cooperative insurers are formed is to earn a profit for their owners.C. State and federal governments provide insurance for exposures that are significant but not commercially insurable.D. Most pools that are required by law are underwritten by state governments
Option (c), Regarding the various ways that property-casualty insurers are owned, it is true that state and federal governments offer insurance for risks that are considerable but not economically insurable.
How do property and casualty insurers make money?Investments, underwriting, or both are options for them to generate income from. Financial holdings, typically in the shape of publicly traded shares, corporate bonds, government bonds, and commercial real estate, make up the majority of an insurer's assets.
Property insurance differs from casualty insurance in what ways?Property insurance is available to everyone who wants to safeguard their home or place of business, whereas casualty insurance is particularly made to assist business owners in safeguarding their working capital. The two types of insurance have another important difference in this regard.
It is impossible for a property and casualty insurance company to be profitable if its combined ratio is higher than 1, or 100%.Since investment income is excluded, a company's combined ratio can be higher than 100% while still being profitable. The combined ratio can be calculated by adding up all losses and expenses, dividing that total by the sum of premiums paid, and finally.
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which of the following was a way internal social and economic divisions shaped colonial responses to british policies?
A manner inner social and monetary divisions formed colonial responses to British policies changed into rich colonists joined the attempt to repudiate the stamp act; this changed into now not a class conflict, many rich colonist made common cause with the farmers, artisans and the terrible.
A rich colonist in the 16th century was a wealthy individual who had the means to settle and establish a new colony in a foreign land. These individuals often held positions of power and influence in their home countries and saw colonization as an opportunity to expand their wealth and influence. They invested large sums of money in establishing settlements, which included acquiring land, building infrastructure, and providing supplies for the settlers.
Rich colonists typically brought with them a retinue of servants and laborers, and often had a large family and social network. They played a critical role in the colonization process, as they provided the financial resources necessary to establish a colony and sustain its growth. While many of these wealthy colonists were successful in establishing profitable settlements, others encountered significant challenges and setbacks, including disease, famine, and conflict with local populations.
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loretta is the advertising director for a large meal-kit company. she's setting up a display campaign to identify and engage with large audiences in order to extend their market reach.
In to reach more people & increase their reach, Loretta, the head for ads for one big meal-kit firm, put up a Display Plan. She has ability to talk of over 90% of users through dozens of apps.
What does a firm do in a business?Describe a firm. A company that offers professional services is referred to as a firm. This can be a corporation, limited company (LLC), or partnership. Most businesses have a single location.
An organization is owned by who?Shareholders, usually referred to as stockholders, are those who purchase shares of stock to acquire ownership stake in a corporation. A directors, who are in charge of running the company, is chosen by the shareholders.
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Indirect costs can be assigned to products or services using ______. multiple select question. the activity rate methodthe activity proportion method
Products or services can be given indirect costs by employing direct costs.
What is meant by Indirect Cost ?Costs that are indirect are those that are not accounted for by a cost object directly (such as a particular project, facility, function or product). Both fixed and variable indirect costs are possible, just as direct costs.
Personnel, administration, and security expenditures are examples of indirect costs. These are the expenses that aren't directly associated with manufacturing.
While certain overhead expenses may be considered indirect, other overhead costs can be directly linked to a project and are therefore considered direct costs.
Indirect costs come in two varieties. One is the fixed indirect expenses, which are constant for a certain project or business, such as the cost of transporting workers to the site of the work, constructing makeshift roadways, etc.
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fill in the blank. firms operating globally often need to give some latitude to their local managers to tailor their strategies and practices to meet the needs of their locations. this highlights the___aspect of global sourcing.
Firms operating globally often need to give some latitude to their local managers to tailor their strategies and practices to meet the needs of their locations. this highlights the differentiation aspect of global sourcing.
Differentiation is one of the key aspects of global sourcing, which involves identifying and selecting suppliers who can provide unique products, services, or expertise that are not readily available from local suppliers. Differentiation can take many forms, including:
Product differentiation: This involves sourcing products that are unique, innovative, or of higher quality than those available locally. For example, a company may source high-end fashion products from a supplier in Paris or Milan, which are known for their fashion expertise.Service differentiation: This involves sourcing suppliers that provide high-quality services or technical expertise that is not available locally. For example, a company may source IT services from a supplier in India, which is known for its expertise in this area.Cost differentiation: This involves sourcing suppliers that can provide products or services at a lower cost than local suppliers. For example, a company may source manufacturing services from a supplier in China, which can provide lower labor and material costs.Learn more about sourcing strategy here:
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Systems development methodology created to radically decrease the time needed to design and implement information systems. RAD relies on extensive user involvement, prototyping, integrated CASE tools and code generators.
The RAD relies on extensive user involvement, prototyping, integrated CASE tools and code generators. Rap Application Development (RAD).
Which of the following systems development methodologies was developed to reduce time to implement information systems?
A systems development approach called joint application development was developed to drastically cut down on the time required to design and execute information systems.
The end user or client involved in a project receives very little attention from the Waterfall methodology because it is an internal process.
Which of the following systems development approaches is the best option when there are limited time constraints?
When deadlines are tight, iterative development, system prototyping, and agile techniques make ideal choices because they best allow the project team to modify the system's functionality in light of a certain delivery date. The RAD relies on extensive user involvement, prototyping, integrated CASE tools and code generators. Rap Application Development (RAD).
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Complete question:
Systems development methodology created to radically decrease the time needed to design and implement information systems. RAD relies on extensive user involvement, prototyping, integrated CASE tools and code generators.
Rapid Application Development (RAD)Object-oriented analysis and design (OOAD)Computer-aided software engineering (CASE)Computer-aided software engineering (CASE)Suppose a firm hires both labor (L) and capital (under purely competitive conditions. The price of labor is PL, and that of capital is PC. The marginal product of labor is MPL, and that of capital is MPC. The firm sells its product competitively at a price of Px. If MPCI PC>MPLI PL, the firm Multiple Choice O may be maximizing profits, but it is not minimizing costs. may be minimizing costs, but it is not maximizing profits. O is neither minimizing costs nor maximizing profits. o is minimizing costs and maximizing profits.
MRP product of labor & capital costs. Profit is calculated as TR-TC = (Unit of labor*Price+Units of capital*Price)-(Unit of labor*Cost of Labor+Unit of Capital*Cost of Capital) = (15+12+9+6+3)*3+(8+6+5)*3 -(5*9+3*15)=102
What does MRP refer to?Three main parts make up this process: listing the elements and materials already in use, determining which more are required, and scheduling their manufacture or acquisition.
What is the MRP process?The materials needed for any particular project are determined by MRP software using data from the master production schedule, inventory data, and bill of materials (BOM).
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Adjusting entries are made at the ? of the accounting period, while daily transactions are made throughout the accounting period. (Enter one word per blank.)O endO assetsO closingO owed
Adjusting entries are made at the end of the accounting period, while daily transactions are made throughout the accounting period.
What are journal entries?The first recording of financial transactions in accounting is done through journal entries. They serve as a historical record of the financial activities of a firm and are used to explain the debit and credit components of each transaction. Journal entries are often kept in a company's general journal and must follow the double-entry accounting principles, which require that every transaction have an equal amount of debit and credit. The steps involved in the journal entry process are to identify the accounts impacted by the transaction, calculate the debit and credit amounts for each account, and then enter the entries in the journal. A company's trial balance, which is a summary of all the debit and credit balances in the general ledger, is created using journal entries.
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Which of the following can affect the natural rate of unemployment in an economy over time? A. labor force characteristics such as age and work experience B. the existence of labor unions C. advances in technologies that help workers find jobs D. government job-training programs E. all of the above
The option that can affect the natural rate of unemployment in an economy over time is option E. all of the above
What is the unemployment?The natural rate of unemployment is the rate of unemployment that exists when an economy is operating at full employment, with no cyclical unemployment. This rate is influenced by various factors that can change over time.
Labor force characteristics, such as age and work experience, can affect the natural rate of unemployment as different demographic groups may have varying levels of employment opportunities and job skills.
Therefore, the existence of labor unions can also impact the natural rate of unemployment, as they can negotiate for higher wages and better working conditions for their members, which may lead to increased job security but also potentially higher unemployment rates for non-union workers.
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you should always consider the strengths and weaknesses of the primary and secondary sources you encounter in the course of your historical study. primary sources ______ automatically be considered more reliable than secondary sources because they were produced in the historical time period you are studying. although primary sources give you firsthand insight into historical events, they usually provide only partial snapshots of events in the historical record.
Primary sources would automatically be considered more reliable than secondary sources because they were produced in the historical time period you are studying.
What are primary sources?It is important to consider both the strengths and weaknesses of both primary and secondary sources in historical study. While primary sources can be valuable for providing direct insight into historical events, they are not always more reliable than secondary sources. Primary sources can be biased or incomplete, and may only provide a limited perspective on historical events.
Similarly, while secondary sources are often based on a wide range of primary sources, they can also be influenced by the biases and perspectives of their authors. It is important to evaluate both primary and secondary sources critically, taking into account their context, authorship, and intended audience, in order to develop a nuanced understanding of historical events.
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2. If you used money from your emergency fund, which is an appropriate next response?
If you used money from your emergency fund, the appropriate next response is: "Reduce casual spending and increase savings until your emergency fund has been paid back." (Option C)
What is an emergency fund and why is it important?An emergency fund is a pool of money set aside specifically for unexpected expenses or events. It provides financial security and stability during times of crisis, such as a job loss, medical emergency, or unexpected car repair.
The general rule of thumb is to save at least three to six months' worth of living expenses in an emergency fund. Having an emergency fund can prevent individuals from going into debt, which can have long-lasting financial repercussions. It is an essential part of personal finance and can help individuals weather financial storms with greater ease.
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Which of the following statements is false with regard to the schedule of cost of goods manufactured?
The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor and manufacturing overhead.
The schedule of cost of goods manufactured summarizes the portions of costs that remain in ending Work in Process inventory and that are transferred out of Work in Process to Finished Goods.
The schedule of cost of goods manufactured summarizes the portions of costs that remain in ending Finished Goods inventory and that are transferred out of finished goods to Cost of Goods Sold.
The schedule of cost of goods manufactured includes a calculation for raw materials used in production which is embedded in the schedule.
The false statement with regard to the schedule of cost of goods manufactured is option (a) The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor and manufacturing overhead.
Manufacturing is the process of converting raw materials into finished goods. To keep track of the costs involved in this process, companies create a schedule of cost of goods manufactured.
Out of the given statements, three are true, but one is false. The false statement is that "the schedule of cost of goods manufactured includes a calculation for raw materials used in production, which is embedded in the schedule."
The other three statements are true. The schedule of cost of goods manufactured summarizes the three elements of product costs, namely, direct materials, direct labor, and manufacturing overhead.
In conclusion, manufacturing companies need to keep track of the costs involved in the production process to determine the total cost of producing the finished goods.
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operating cash flow per share question 50 options: uses information from the statement of cash flows and the income statement. uses information from the balance sheet and the statement of cash flows. uses information from the income statement and the balance sheet. all of these. g
Operating cash flow per share uses information from the statement of cash flows, the income statement and balance sheet. Thus, all of these financial analysis is required.
What is an example of a financial analysis?An instance of Financial ratios, such as the profitability ratio, which is determined by dividing net profit by sales, are used in financial analysis to examine a firm's productivity and trend.
What kinds of financial analysis are there?The most typical kinds of economic analysis include figure, scenario and sensitivity, variance analysis, accompanying disclosures, vertical analysis, flexibility analysis, growth rates, financial analysis, providing credit, management efficiency, profitability, rates of return, and cash flow.
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Complete question:
Operating cash flow per share:
uses information from the statement of cash flows and the income statementuses information from the balance sheet and the statement of cash flowsuses information from the income statement and the balance sheetall of theseA company purchased assets worth 72,000. It issued fully paid-up
equity shares of 100 each at 20% premium. Pass Journal Entries in
the books of company.
The journal entries are based on the three golden rules of accounting which recorded the income and expenses of the business.
What is a journal entry?A journal entry is the date-based recording of a business transaction in a journal book, which is then used to create the company's financial statements. To create a ledger report, data will be retrieved from the journal.
In the given case, the journal entry will be recorded as
Shares A/c Dr. 72000 * 100 7200000
To Equity share capital A/c 7200000
The asset is purchased in business which is debited as according to the rule debit what comes in credit is what goes out.
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Indicate how you think each of the following would shift demand in the indicated market a. The incomes of buyers in the market for used Ford Fusions decreases. The demand curve would shift to the left b. Buyers in the market for pizza read a study linking pepperoni consumption to weight gain. The demand curve woud The demand curve would shift to the leftf c. Buyers in the market for gas-powered cars learn of a decrease in the price of electric cars (a sut The demand curve would shift to the left d. Buyers in the market for electric cars learn of a decrease in the price of electric cars The demand curve would remain unchanged
The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve.
a. The income of buyers in the market for Adirondack vacations increases.
The demand curve shifts to the right.
b. Buyers in the market for pizza read a study linking pepperoni consumption to heart disease.
The demand curve shifts to the left.
c. Buyers in the market for CDs learn of an increase in the price of downloadable MP3s (a substitute for CDs).
The demand curve shifts to the right.
d. Buyers in the market for CDs learn of an increase in the price of CDs.
The demand curve remains unchanged.
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On its 2014 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2015. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
a. Dividends could have been paid in 2015, but they would have had to equal the earnings for the year.
b. The company must have had zero net income in 2015.
c. The company must have paid no dividends in 2015.
d. If the company lost money in 2015, they must have paid dividends.
e. The company must have paid out half of its earnings as dividends.
I know the answer is A, but I don't understand why it wouldn't be C?
The correct answer to this question is A: Dividends could have been paid in 2015, but they would have had to equal the earnings for the year.
Retained earnings represent the accumulated profits of a company that have not been paid out as dividends. If the retained earnings on a company's balance sheet remain the same from one year to the next, it could mean that the company did not pay any dividends during that year. However, it is also possible that the company paid dividends but earned enough profit to cover those dividends, so the retained earnings remained unchanged.
Therefore, statement C, "The company must have paid no dividends in 2015," is not necessarily true. It is possible that the company paid dividends in 2015, but the amount paid was equal to the earnings for the year, which would have kept the retained earnings balance the same.
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