The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules , The Last Statement describes how the International Ethics Standards Board for Accountants' (IESBA) Code impacts the U.S. accounting profession
Explanation:
In February 2017, the AICPA Executive board on Professional Ethics decided to suggest changes to the system of professional conduct requiring certain measures when members are aware of non-compliance with legislation or regulations related to their involvement or employment.
IESBA also created a structure for accountants to follow the IESBA Professional Accountants ' Code of Ethics–in particular the problem of the tension between sharing non-compatibility with appropriate people and keeping client or contractor knowledge confidential— while hearing of unlawful acts under the new standard. The application of this code has been called NOCLAR. The recommendation from the AICPA is largely in line with the IESBA system, but significant differences do remain.
Final answer:
The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules, and while the AICPA is a member of the IFAC, CPAs in the U.S. follow the AICPA and FASB's GAAP regulations.
Explanation:
Among the choices provided, the statement that best describes how the International Ethics Standards Board for Accountants' (IESBA) Code impacts the U.S. accounting profession is: The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules. The American Institute of Certified Public Accountants (AICPA) is a member of the International Federation of Accountants (IFAC), and as such, it adheres to the international standards but has its own set of ethics rules through its Professional Code of Conduct. It is noteworthy that the CPA profession in the U.S. follows the rules set forth by the AICPA and the United States generally accepts accounting principles (GAAP), which are established by the Financial Accounting Standards Board (FASB), rather than directly applying the IESBA Code.
Obtain the relevant authoritative literature on accounting for accounts receivable using the fasb's codification research system at the fasb website (www.fasb.org). what is the specific citation that describes the information about loans and trade receivables that is to be disclosed in the summary of significant accounting policies
Answer:
FASB: Financial Accounting Standards Board (FASB) is the board that governs GAAP by setting guidelines for financial accounting.
Explanation:
Requirement 1:
The specific citation that specifies these disclosure policies is FASB ACS 310-10-50-9: "Receivables—Overall—Disclosure—Accounting Policies for Credit Losses and Doubtful Accounts."
Requirement 2:
FASB ACS 310-10-50-9 — Disclosures:
"In addition to disclosures required by this Subsection and Subtopic 450-20, an entity shall disclose a description of the accounting policies and methodology the entity used to estimate its allowance for loan losses, allowance for doubtful accounts, and any liability for off-balance-sheet credit losses and related charges for loan, trade receivable or other credit losses in the notes to
The financial statements. Such a description shall identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments."
Every day during lunch, customers of the Tran Asian restaurant flock to the restaurant. Tran cannot afford to build a larger facility. To spread out demand, Tran should consider:
a. serving food in lesser quantities to encourage customers to eat more quickly.
b. charging a higher price for its cuisine to cut down the number of the customers.
c. prohibiting more customers from entering the restaurant once the seating capacity is full.
d. offering customers an incentive to come to the restaurant during off-peak hours.
Answer:
Correct option is (d)
Explanation:
It is observed that Tran Asian restaurant is flooded with customers during lunch and rest of the time it is not that crowded. So, adding more space is not a viable option since restaurant is crowded only during lunch hours. Cost would be more than revenue in this case. Serving less food will not increase customer satisfaction. It might lose existing customers in this case.
Charging higher price is not an appropriate strategy as it will again lose customers this way. The only appropriate strategy is offering incentive to the customers to visit restaurant at off-peak hours in the form of reduced prices or special offers. This will increase revenue as well as fully utilize existing capacity.
The effect on the prices of securities due to the "changing tastes, likes and dislikes" of investors is:____________A. Market riskB. Business riskC. Regulatory riskD. Opportunity cost
Answer:
B. Business risk
Explanation:
Business risk is any risk a business or organisation faces that might reduce its profits. Business risk is specific to the company. Business risk can be diversified. E.g. changing tastes, likes and dislikes, strikes etc
Market risk is any risk a business or organisation faces that is as a result of the performance of the overall financial market the company operates in. Market risk cannot be diversified.
Opportunity cost is the cost of foregoing other options when one option is chosen over other options.
I hope my answer helps you.
Which stage of the selling process deals with the actual point of sale where the customer agrees to buy? Which stage relates to the post-sale interaction with the customer?
The ______ A.approach B.closing C.pre-approach stage relates to the point where the customer actually agrees to buy. The ______ A.overcoming objections B.follow-ups C.presentation stage relates to the post-sale interaction with the customer.
Answer:
B.closing
B.follow-ups
Explanation:
You should know as a real estate buyer or seller that the actual point of sale where the customer agrees to buy the property is the closing stage. At this stage, everything is finalized, and the buyer is now ready to buy the property.
Also, you should know that the stage that relates to the post-sale interaction with the customer is the follow-ups. All the processes that are required to be completed after the closing stage, is being done during the follow-ups. And if you want to become a real estate agent, you should learn these by heart for your whole life.
Answer:
B.closing
B.follow-ups
Explanation:
"The __________ provision specifies what an insured must do, if a policy has lapsed, in order to put it back in force."
Answer:
The correct answer is Reinstatement.
Explanation:
The Reinstatement provision specifies what an insured must do, if a policy has lapsed, in order to put it back in force.
A reinstatement clause is a clause in insurance policy which grants the policy owner the right to reinstate a lapsed policy for specified reasons, such as non-payment of premiums, by furnishing satisfactory evidence of insurability and paying all unpaid premiums.which grants the policy owner the right to reinstate a lapsed policy for specified reasons, such as non-payment of premiums, by furnishing satisfactory evidence of insurability and paying all unpaid premiums.
The reinstatement provision in insurance contracts specifies the steps a policy holder must take to put a lapsed policy back into effect, typically involving repayment of overdue premiums, proof of insurability, and sometimes interest payments.
Explanation:The reinstatement provision specifies what an insured must do, if a policy has lapsed, in order to put it back in force. To regain the coverage, the policy holder must pay all overdue premiums, provide proof of insurability, and may be required to pay interest on the unpaid premium. This is an important provision in insurance contracts, helping to protect both the insurance company and the policy holder. The reinstatement provision in insurance contracts specifies the steps a policy holder must take to put a lapsed policy back into effect, typically involving repayment of overdue premiums, proof of insurability, and sometimes interest payments.
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A client has a bone marrow aspiration performed. After the procedure, what is the first nursing action?
Answer:
apply pressure over the aspiration site
Explanation:
Bone marrow aspiration is a difficult and delegate procedure which is performed inside bigger bones which generate red blood cells, white blood cells and platelets. After bone marrow aspiration, the first nursing action must be to apply pressure over the aspiration site to help circulate the blood. A small bandage area is the aspiration site where the needle went to operate the affected area.
When applied in marketing settings, the 80–20 Rule usually accurately suggests [approximately] 80% of profits emanate from (about) 20% of customers; 80% of product sales from 20% of products present in a product line (marketing organizations generally sell multiple products); 80% of sales are generated by 20% of advertising, and so forth. The 80–20 Rule is also known as the:
Answer:
The Pareto principle
Explanation:
The Pareto principle asserts that 80 percent of output will come from 20 percent of inputs. In different words, 80 percent of the results will come from 20 percent of the action. The Pareto principle is only an observation, not a law. The principle is applicable in business and almost all other disciplines.
In applying the Pareto principle, a business recognizes its best assets as uses efficiently to gain maximum value. The principle observes that similar amounts of input will yield different outputs. For business, results will never be evenly distributed, hence the need to identify and appreciate the minority inputs that will produce the majority of results.
A company that sells dairy products purchases large quantities of milk from the local dairy farms. Since the quantity purchased is very high, the company is able to demand and get price concessions from the dairy farms. The company prices its dairy products at a lower rate than its competitors. The greater quantity of products sold compensates for the low price. This is an example of
Answer: Economics of scale
Explanation:
The economics of scale is one of the advantage of the cost which typically measure the total output produced by the the given operation. With the increase in the economics of scale then the per unit cost of the output gets automatically decreases.
The main goals of this economics of scale is that it developed various types of unique goods and the services so that they can attract the consumers for increase the productivity in an organization.
According to the question, the economics of scale is one of the example of given situation in which the companies start selling the products in large quantity for compensating the low prices products.
Therefore, Economics of scale is the correct answer.
Pauline wants to develop a line of flatware and pottery. She is experimenting with various names and symbols to develop a trademark. Pauline's three-year-old daughter tells a neighbor that "mommy makes Fatware and Potty." Pauline laughs so hard that she decides to design a trademark of a large, obese, pink pig sitting on a toilet, with the letters FP (initials for the term Fat-Potty) written underneath the pig.
What is the best argument that Pauline's trademark is valid?
a. The mark is fanciful.
b. The mark is arbitrary.
c. The mark has a secondary meaning.
d. The mark is suggestive
Ordinary and necessary business expenses are deductible only to the extent they are also reasonable in amount.
Answer:
True
Explanation:
According to the IRS:
ordinary expenses are expenses that are common and accepted in a company's trade or industry.necessary expenses are expenses that help your company carry on its normal business.Tax deductible expenses must be ordinary, necessary, and reasonable.
Ordinary and necessary business expenses are deductible only to the extent they are also reasonable in amount. Here option A is correct.
In the realm of taxation, the principle that ordinary and necessary business expenses are deductible to the extent that they are also reasonable in amount holds true.
This concept is rooted in the idea that businesses should be allowed to deduct expenses incurred in the normal course of operations that are deemed essential and appropriate.
The Internal Revenue Service (IRS) defines ordinary expenses as those that are common and accepted in a specific trade or business, while necessary expenses are considered helpful and appropriate.
However, the reasonableness of the amount is a critical factor. The IRS expects businesses to exercise prudence and avoid excessive or extravagant expenditures. Deductions for business expenses must align with industry norms and the specific needs of the business.
If an expense is deemed excessive or unreasonable, it may be disallowed. This principle underscores the balance between allowing businesses to offset income with legitimate expenses and preventing abuse of the tax system through inflated or unjustifiable deductions. Here option A is correct.
Complete question:
Ordinary and necessary business expenses are deductible only to the extent they are also reasonable in amount.
A - True
B - False
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What are two things you need to maintain if you assist a person with banking and bill paying?
Answer:
transaction record and a reconciliation of the transactions
An adequate bank balance and a budget.
Legal guardianship of the person and power of attorney
Your documentation as payee for the person you support and the bankbook
Adelle is a department manager at a large corporation. She has made a conscious choice to lead in ways that enrich the lives of her subordinates, to help them develop and perform to their greatest capacity. Adelle’s attitudes and behaviors are most consistent with which stage of moral development?
Answer:
Adelle’s attitudes and behaviors are most consistent with the post-conventional stage of moral development.
Explanation:
According to Kohlberg's theory of moral development, there are three stages of moral development. They are the pre-conventional, conventional and post-conventional stages.
Adelle's behavior is consistent with the post-conventional stage. In this stage a person develops his/her own sense of morality and make conscious decisions, not just relying on what the society believes to be right or wrong.
Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage (which was higher than the federal minimum wage), but the servers were required to contribute their tips to a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise are not considered tipped employees. Misty sued the employer and alleged that the tip-pooling arrangement violated the minimum wage provisions of the Fair Labor Standards Act. Does it? Explain.
1. The Fair Labor Standards Act is involved in this case, because the case involved questions about the: minimum wage,
maximum hours.
2. The minimum wage can be changed by: Congress, the Department of Labor, the Fair Labor Standards Board
3. States: are, are not allowed to establish a: higher, lower wage than the federal minimum wage.
4. If a state minimum wage is higher than the federal minimum wage, an employee must receive: the state minimum wage,
the federal minimum wage
5. The government can establish a lower minimum wage for employees who make tips, but all employees are: entitled,not entitled to receive at least the minimum wage.
6. If an employee who makes tips earns less than the minimum wage, the employer: is, is not required to make up the difference so that the employee makes at least minimum wage.
7. In this case, the servers earned a wage: higher, the same as, lower than the state minimum wage, which was: higher,
the same as, lower than the federal minimum wage.
8. If the servers donate all of their tips to the "tip pool" and don’t receive any back, they: do, do not earn at least the minimum wage.
9. If the servers donate all of their tips to the "tip pool" and receive a portion of those back, they earn: more than, the same as, less than the minimum wage.
10. In this case, the court likely will find for: Woody Woo, Inc., Misty Cumbie, kitchen staff members
11. WHAT IF THE FACTS WERE DIFFERENT?
Assume Woody Woo decided to pay its servers and kitchen staff the legal minimum wage for a tipped employee (which is less than the required state minimum wage) plus tips received from the tip-pool funds. Under the Fair Labor Standards Act, employers can require employees to pool their tips for "redistribution" among tipped employees to ensure that all tipped employees make at least the minimum wage and are treated fairly.
If Woody Woo, Inc. pays the lower salary plus tips and then creates a tip pool where the servers’ tips are split among the servers and kitchen staff, this: does not violate, violates the FLSA.
12. With these facts, the court most likely would find for: Woody Woo, Inc., Misty Cumbie, kitchen staff members
To add on...here is a good article concerning Restaurant Tip Pooling + Tip Sharing Best Practices & Laws by state:
https://medium.com/@hello_5766/the-new-tip-pooling-laws-for-restaurants-what-you-need-to-know-in-2018-fec8e898b522
(Note: If you are using Excel (or Pen & Paper) for Restaurant Tips Distribution, check out https://tipmetric.com/ to learn how to automate the process, eliminate mistakes & save time processing payroll)
How has the number of farms in the United States changed over the past few decades?
Answer:
The number of farms in the United States have decreased over the past few decades.
Explanation:
The number of farms in the United States has reduced greatly over the past decades due to the inability of most farmers to keep the farm operations going. This is as a result of cuts in funding from states to farmers which left most farmers struggling and ultimately packing up the farm.
cheers.
You manage a popular nightclub, and lately revenues have been disappointing Your bouncer suggests that raising drink prices will increase revenues. Your bartender suggests that decreasing drink prices will increase revenues. You aren't sure who is right, but you do know that:
a) Your bouncer thinks the demand for drinks is elastic and the bartender thinks the demand for drinks is inelastic.
b) Your bouncer thinks the demand for drinks is inelastic and the bartender thinks the demand for drinks is elastic.
c) Both the bouncer and bartender think the demand for drinks is elastic.
d) Both the bouncer and bartender think the demand for drinks is inelastic.
Answer:
The correct answer is option b.
Explanation:
The manager of a nightclub wants to increase the revenues. The bouncer suggests increasing the price of drinks while the barender suggests decreasing the price.
An increase in the price of drinks will cause the revenues to increase if the demand for drinks is inelastic. The increase in the price will cause a less than proportionate decrease in the quantity demanded. In this situation, a price rise will increase revenues as well.
While a decrease in the price of a product will cause the revenues to increase if the demand is elastic. In this situation a decrease in the price will cause a more than proportionate increase in the quantity demanded. As a result, the revenues will increase.
This implies that the biuncer thinks the demand for drinks is inelastic while bartender thinks it is elastic.
To maximize revenues, a nightclub manager should understand the price elasticity of demand for drinks and adjust prices accordingly. If demand is elastic, lowering prices should increase total revenue, whereas if demand is inelastic, raising prices should lead to higher total revenue.
The question focuses on the concept of price elasticity of demand, which is crucial in determining how to maximize revenues from drink sales in a nightclub setting. The decision to either raise or lower drink prices should be based on whether the demand for drinks is elastic or inelastic.
If the demand for drinks is elastic, lowering prices would lead to a proportionately larger increase in the quantity sold, thus increasing total revenue. This is because consumers are more responsive to price changes when demand is elastic, and a lower price encourages more purchases. On the other hand, if the demand is inelastic, an increase in drink prices would lead to a smaller percentage decrease in the quantity sold, resulting in higher total revenue. In this scenario, consumers are less responsive to price alterations, and the higher price does not substantially deter sales.
Given the differing opinions between the bouncer and the bartender, the club manager must determine the elasticity of demand for drinks to make an informed pricing decision. If demand is elastic, as the bartender suggests, decrease in drink prices could be the right strategy. If demand is inelastic as the bouncer argues, increasing drink prices may be more appropriate to boost revenues.
According to the chart, which country has an absolute advantage over the other countries in oil production?A. BrazilB. MexicoC. ArgentinaD. United States
The country that has an absolute advantage over the other countries in oil production is D. United States.
The United States has an absolute advantage in oil production compared to the other three countries. An absolute advantage is when a country can produce a good or service using fewer resources than any other country. The United States has an absolute advantage in oil production based on the number of worker hours required.
So, In this case, the United States can produce one unit of oil using only 6 worker hours, while the other countries all require more worker hours to produce the same amount of oil. For example, it takes Argentina 10 worker hours to produce one unit of oil, which is almost twice as long as the United States.
Venus Inc. paid $5,000 for account payable. How does this transaction affect the accounting equation of Venus?
A) Assets decrease by $5,000 and equity increases by $5,000
B) Assets decrease by $5,000 and liabilities decrease by $5,000
C) Assets increase by $5,000 and equity decreases by $5,000
D) Assets increase by $5,000 and liabilities increase by $5,000
Answer:
B) Assets decrease by $5,000 and liabilities decrease by $5,000
Explanation:
Account equation of any entity can be represented by following equation:
Assets=Equity+Liabilities
When the entity pays for any account payable, its current liabilities in balance sheet are decreased and at the same time the cash included in the current assets of the balance sheet is also decreased.
In this case, the $5,000 paid by Venus Inc. will decrease the liabilities and assets section of Venus's balance sheet by $5,000.
So based on the above discussion, the answer shall be B) Assets decrease by $5,000 and liabilities decrease by $5,000
Wilma has a $57,500 certificate of deposit (CD) at the local bank. The interest on this certificate, $1,150, was credited to her account this year but she must pay an early withdrawal penalty if she cashes in the CD before next year. Which of the following is a true statement?
A. Wilma must include the $1,150 of interest in her income this year.
B. Wilma must include the $1,150 of interest in her income when she cashes the CD.
C. Wilma must include the $1,150 of interest in her income this year only if the bank waives the early withdrawal penalty.
D. Wilma must include the $1,150 of interest in her income next year if she does not pay the early withdrawal penalty.
E. All of the choices are correct.
Answer: Wilma must include the $1,150 of interest in her income this year
Explanation: Wilma must include the $1,150 of interest in her income this year because the interest on the certificate, was credited to her account this year and as that, it is a part of her income for the year.
Limpuntof Heritage Festival is an annual cultural event held in the country of Pompottis. A number of domestic companies extend their sponsorships for this event as part of their corporate social responsibility activities to preserve the heritage of the country. Which of the following marketing strategies does this scenario best illustrate.
Answer: Event marketing
Explanation: Event marketing is experiential marketing via special events of a company, facility or product. This generally involves direct communication with associates of a company.
It must not be mistaken with event management, that is a method under which activities are coordinated, supported and performed. Experiential branding incorporates the company communication model which seeks to connect with the audience additionally.
Experimental embraces a simple method that blends the image of a brand with interactive elements. This marketing style puts the intended audience in a live setting that might promote the intended result.
The scenario best illustrates Cause-Related Marketing, a strategy where a company associates itself with a social cause to promote its business and make a positive contribution to society.
Explanation:The scenario presented—domestic companies sponsoring the Limpuntof Heritage Festival in Pompottis as part of their corporate social responsibility activities—best illustrates the marketing strategy known as Cause-Related Marketing.
This strategy is used when a company associates itself with a social cause or issue in an effort to promote its business and benefit the cause. In this scenario, the cause is the preservation of the country's heritage. Such tactics serve various purposes: they help enhance a company's image, attract conscious consumers, and contribute positively to the community. Other examples of this can be found in celebrations like the Diwali festival, Saint Patrick's Day, and Cinco de Mayo where sponsors assist in preserving cultural identity, much like the Limpuntof Heritage Festival
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Elaine is very good at what she does, but she is constantly stressed by internal deadlines assigned to co-workers, obligatory meetings, and time lost in unrelated idle cubicle chatter. Today, after a meeting with her supervisor, she has been given more responsibility for her work, is able to set her own deadlines, decline attendance to various department meetings, and telecommute two days a week. Elaine’s boss is using which of the following organizational strategies to reduce her stress?A) Job redesignB) Organizational communicationC) Employee involvementD) Organizational developmentE) Process reengineering
Answer:
The correct answer is A
Explanation:
Job redesign is a procedure or a process in which the elements of the job is restructured such as responsibilities, tasks and duties. It is done or performed to make the job to be more interesting, inspiring, exciting and encouraging for the employees of the company.
So, the boss on seeing that the employees are stressed by the internal deadlines, therefore, the boss uses the job redesign strategy in order to reduce the stress of the employees.
.
The positively-sloped part of the long-run average total cost curve is due to which of the following?
a) Diseconomies of scale
b) Diminishing returns
c) The firm being able to take advantage of large-scale production techniques as it expands its output
d) The increase in productivity that results from specialization
Answer:
a) Diseconomies of scale
Explanation:
As output increases, the overall increase in unit cost is increased.This concept is know as Diseconomies of scale.These are often a result of managers/ staff losing control/ motivation as production gets greater. There can also be strains on local infrastructure which come with scale.
Generally the average total cost curve is negatively- sloped which means that the total average cost decreases when the production decreases thus decreasing the overall unit cost but in long run the average total cost curve become positively sloped due to diseconomies of scale, which means that total average cost increases with increase in the production as a result of which overall unit cost is increased.
so the answer is a) Diseconomies of scale
During recessions investment
a. falls by about the same percentage as GDP.
b. falls by a smaller percentage than GDP.
c. falls by a larger percentage than GDP.
d. falls but the percentage change is sometimes much larger and sometimes much smaller.
During recessions investment falls by a smaller percentage than GDP.
Answer: Option B
Explanation:
GDP is the gross domestic product of the country which talks about the growth rate of the country. During the time of recession in the trade cycle, the GDP of a country falls down.
The recession also sees the falling down of the demand, income, investment and so on. But during the time of recession, the fall in investment by the citizens of the country in various assets is less than the fall in the GDP of the country.
Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP?
A. zero
B. never 0%
C. 1% - 3%
D. 3% - 5%
Answer:
Zero
Explanation:
There are three(3) types of unemployment recognized by economists;
Structural unemployment: This occurs where innovation and technological improvement render workers unemployable because their is a mismatch between the available jobs and the skills possessed by willing workers. For example, the introduction of online classes might reduce the number of teachers needed by a school.
Frictional unemployment: This is used to describe the number of people looking for jobs because they are transiting from one job to another.The addition of the structural and frictional is know as the natural rate of of unemployment.
Cyclical unemployment: this is caused by fluctuation in real GDP around the potentila GDP. For example, when the real GDP falls significantly for a sustained period of six month. At a time like this, the economy is contracting and it is evident by a negative growth rate in real output, firms do lay off workers because the business climate is not favorable.This is called recession. The cyclical unemployment is the difference between the actual rate of unemployment and natural rate. During recession, the actual is always greater thant the natural; and the balance is cyclical unemployement
Full employment output and cyclical unemployment
The potential GDP is the level of real GDP achieved where an economy has fully employed all of its resources ( land, labour, capital and entrepreneur). It is also called full employment GDP. An economy operating at its potential GDP level will still record some level of unemployment which is known as natural unemployment. And its actual rate of unemployment will be equal to the natural rate.
In other words, at the full employment output level, the actual rate of unemployment is the same the natural rate of unemployement. So there is zero cyclical unemployment rate
Which of the following statements illustrates diminishing returns? A. The second billion hours of labor changes real GDP from $1 to $3 trillion and the third billion hours of labor changes real GDP from $3 to $4 trillion. B. The second billion hours of labor changes real GDP from $1 to $2 trillion and the third billion hours of labor changes real GDP from $2 to $3 trillion. C. The second billion hours of labor changes real GDP from $1 to $2 trillion and the third billion hours of labor changes real GDP from $2 to $4 trillion. D. The second billion hours of labor changes real GDP from $1 to $5 trillion and the third billion hours of labor changes real GDP from $5 to $9 trillion.
Answer and Explanation:
A. The second billion hours of labor changes real GDP from $1 to $3 trillion and the third billion hours of labor changes real GDP from $3 to $4 trillion.
While on a trip to South Africa, Elena was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Elena decided to explore the possibility of starting an import business to bring these products to the U.S. Which of the following statements seems to be good advice for Elena?
Answer:
Before starting her import business, Elena should try to gather relevant information from companies that import goods, and if possible information about companies that import African goods.
Explanation:
Elena might be right about American consumers liking African products, but if importing those goods is too difficult, or is subject to several trade barriers, or some other issues, then Elena might have to reconsider her idea. Sometimes no matter how good a business idea is, if it is impractical to carry out, then t is useless.
A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability?
A: $23,850
B: $1,590
C: $2,385
D: $15,900
Answer:
C: $2,385
Explanation:
A tax liability by definition is basically known as debt owed by a corporation or an individual to a tax authority like the Internal Revenue Service(IRS). To solve this question, set it up like this;
If $1,000 pays 4.5mills in taxable value, then 530,000 would pay how much?
If $1000 = 4.5
then tax liability on $530,000 would be= (530,000 *4.5) / 1,000
= 2,385,000/ 1000
= $2,385
Marlow Company purchased a point of sale system on January 1 for $7,000. This system has a useful life of 5 years and a salvage value of $1,200. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?
Answer:
$1,680
Explanation:
Data provided in the question:
Purchasing cost = $7,000
Useful life = 5 years
Salvage value = $1,200
Now,
Rate of depreciation using double declining method
= 2 × [ 1 ÷ Useful life ]
= 2 × [ 1 ÷ 5 ]
= 0.4
Therefore,
Depreciation expense for the year 1 = Rate of depreciation × Purchase cost
= 0.4 × $7,000
= $2,800
Thus,
Book value for the year 2 = cost - Depreciation expense for the year 1
= $7,000 - $2,800
= $4,200
Thus,
Depreciation expense for the year 2
= Rate of depreciation × Book value for the year 2
= 0.4 × $4,200
= $1,680
To calculate the second year's depreciation expense using the double-declining-balance method, double the straight-line rate (40%) and apply it to the book value at the beginning of the second year ($4,200). This results in a depreciation expense of $1,680 for the second year.
Calculating Depreciation Using Double-Declining-Balance Method
To calculate the depreciation expense for the second year using the double-declining-balance method for Marlow Company's point of sale system, we first need to determine the depreciation rate. The double-declining-balance method involves doubling the straight-line depreciation rate. Since the point of sale system has a useful life of 5 years, the straight-line depreciation rate is 1 / 5, or 20%. Accordingly, the double-declining rate is 40%.
Next, we calculate the second year's depreciation. In the first year, the depreciation would be 40% of $7,000, which equals $2,800. The book value at the end of the first year would then be the original cost minus the first year's depreciation ($7,000 - $2,800 = $4,200). For the second year, we again apply the 40% rate, but this time to the book value at the beginning of the second year, which is $4,200. The second year's depreciation would therefore be 40% of $4,200, or $1,680.
It is important to note that the salvage value is not considered in the annual calculation of depreciation expense using the double-declining method until the book value reaches the salvage value. At that point, depreciation stops to ensure that the book value does not fall below the salvage value.
Suppose the price of tires increases from $70 per tire to $80. In response, the quantity of tires supplied increases from 35 comma 000 to 45 comma 000 tires. What is the price elasticity of supply for tires?
Answer:
1.875
Explanation:
Data provided in the question:
Initial price, P₁ = $70
Final price, P₂ = $80
Initial supply quantity = $35,000
Final supply quantity = $45,000
Now,
Price elasticity of supply for tires = [tex]\frac{(\frac{Q_2-Q_1}{\frac{Q_2+Q_1}{2}})}{(\frac{P_2-P_1}{\frac{P_2+P_1}{2}})}[/tex]
on substituting the respective values, we get
Price elasticity of supply for tires = [tex]\frac{(\frac{45,000-35,000}{\frac{45,000+35,000}{2}})}{(\frac{80-70}{\frac{80+70}{2}})}[/tex]
or
Price elasticity of supply for tires = [tex]\frac{\frac{10,000}{\frac{80,000}{2}}}{\frac{10}{\frac{150}{2}}}[/tex]
or
Price elasticity of supply for tires = [ 0.25 ÷ 0.1333 ]
= 1.875
The price elasticity of supply for tires is calculated to be approximately 1.81, indicating that the supply for tires is elastic, meaning quantity supplied changes significantly with price changes.
Explanation:The question at hand is asking to calculate the price elasticity of supply for tires based on given changes in the price and quantity supplied. To do this, we use the formula: Price Elasticity of Supply (PES) = (% Change in Quantity Supplied) / (% Change in Price).
First, find the percentage change in the quantity supplied: [(45,000 - 35,000) / ((45,000 + 35,000) / 2)] × 100 = 25%. Then, calculate the percentage change in price: [($80 - $70) / (($80 + $70) / 2)] × 100 = approximately 13.79%. Now, divide the percentage change in quantity supplied by the percentage change in price: 25% / 13.79% ≈ 1.81.
Therefore, the price elasticity of supply for tires is approximately 1.81, indicating an elastic supply curve where the quantity supplied is responsive to changes in price.
In an inflation the money supply can be _____________ by the Fed selling securities.
Answer:
Reduce
Explanation:
Open market operations is one of the monetary policy instrument used by the Fed for controlling the money supply in an economy. There is a buying and selling of government securities in the open market. In our case, there is a situation of inflation.
In this situation, Fed sells the government securities to the public. Therefore, there is a flow of money from public to Fed. Hence, there is a fall in the money supply in an economy.
A government has the following liabilities at the end of the year:
General obligation bonds $1,500,000
Compensated absences 120,000
Salaries payable 40,000
What amount of liabilities should be reported in the governmental activities column of the
government-wide statement of net position?
A. $40,000
B. $160,000
C. $1,540,000
D. $1,660,000
Answer:
option (D) $1,660,000
Explanation:
Data provided in the question:
General obligation bonds = $1,500,000
Compensated absences = $120,000
Salaries payable = $40,000
Now,
The amount of liabilities that should be reported in the governmental activities column of the government-wide statement of net position
= General obligation bonds + Compensated absences + Salaries payable
= $1,500,000 + $120,000 + $40,000
= $1,660,000
Hence,
The answer is option (D) $1,660,000